CBA Warns Armenian PSS Operators: Repeated Infringements Can Lead to Penalty

The Central Bank of Armenia (CBA) has issued a stern warning to Payment Systems Services (PSS) operators in the country, stating that repeated infringements within one financial year can lead to severe penalties.

Penalties for Repeated Infringements

According to Article 15 of the Armenian PSS Law, if a PSS participant commits the same infringement three times or more within one financial year, CBA may penalize them at a rate of up to one thousand-fold of the minimum salary. In cases where the infringement is committed four or more times, the penalty can reach up to two thousand-fold of the minimum salary.

These penalties will be charged to the benefit of the Republic of Armenia State Budget revenues, providing an added incentive for PSS operators to adhere to the law and regulations.

Payment and Settlement Services: New Regulations Coming into Force

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The CBA Board has been tasked with establishing normative regulations for rendering payment and settlement services, as well as rules for circulating payment instruments and executing settlements. These regulations will apply to all parties holding a license that render payment and settlement services.

Here are some key activities included in the definition of payment and settlement services:

• Opening and running bank accounts
• Receiving and making payments
• Issuing payment cards and electronic monies
• Processing and clearing transactions

Parties Entitled to Render Payment and Settlement Services

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Article 18 of the law lists the parties entitled to render payment and settlement services in Armenia, including:

• CBA
• Banks
• Payment and settlement organizations
• The Central Treasury of the Republic of Armenia
• Other entities authorized by Armenian laws and international agreements

Parties not listed may still provide certain payment services, such as servicing checks, payment cards, and electronic monies, if they are granted authority by the issuer or in accordance with PSS rules. However, failure to notify CBA of these activities can result in liability under Armenian laws.

CBA to Monitor Payment Systems Services

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As part of its oversight role, CBA has the right to request information from parties rendering payment and settlement services, even if this information contains commercial or other secrecy. The central bank will continue to monitor PSS operators to ensure compliance with the law and regulations.

By doing so, CBA aims to maintain a stable and secure payment systems environment in Armenia, protecting the interests of consumers, businesses, and the economy as a whole.