Belgian Payment Transaction Processor (SIPTP) Law

The Belgian Payment Transaction Processor (SIPTP) Law is a legislation that regulates payment transaction processors in Belgium. The law aims to ensure the sound and prudent management of SIPTPs, as well as the continuity and stability of the payment system in Belgium.

Key Provisions

Authorization

• Payment transaction processors must be authorized by the National Bank of Belgium (NBB) before operating.
• Outsourcing of significant operational tasks requires prior authorization from the NBB and must not undermine the quality of internal control or the capacity of the NBB to exercise supervision.

Risk-management framework

• SIPTPs must put in place a sound risk-management framework to identify, minimize, and manage operational risks.

Confidentiality and integrity of data

• SIPTPs must ensure the confidentiality and integrity of data and implement policies and procedures to maintain continuity and resilience of services.

Transparency

• SIPTPs must inform payment service providers, payment schemes, and users about temporary unavailability of their services, including causes, consequences, estimated length of unavailability, and time needed to remedy.

Supervisory Powers

Information requests

• The NBB can request information from SIPTPs.
• On-site inspections: The NBB has the right to carry out on-site inspections.
• Remedial measures: The NBB can impose remedial measures on SIPTPs.
• Administrative fines: The NBB can impose administrative fines on SIPTPs.

European Context

ECB oversight framework

• Payment transaction processors are currently only indirectly included in the ECB oversight framework through contractual arrangements between schemes and processors.
• Cross-border impact: The law applies regardless of the country of establishment of the payment transaction processor, with a “both legs in” principle.

Entry into Force

Effective date

• The Law entered into force on 24 April 2017.