Financial Crime World

Financial Regulator Grants Licenses to Payment Service Providers

The Bank of Guyana has implemented the Financial Institutions Act, which requires all payment service providers operating in the country to obtain a license before commencing operations.

License Requirements

To obtain a license, applicants must meet certain criteria outlined in Section 10 of the Act. These include:

  • Having a paid-up capital and capital adequacy requirement
  • Being registered under the Companies Act
  • Demonstrating suitable technical and organizational skills to operate a system
  • Meeting specific requirements for the type of payment service to be provided, average value of payments, and other relevant factors

The Bank will also consider factors such as:

  • The type of payment service to be provided
  • The average value of payments
  • Any other relevant factors when granting a license.

System Operators

For applicants seeking to operate a system, Section 11 requires demonstration of the following:

  • Necessary technical and organizational skills
  • Risk management mechanisms in place
  • Satisfactory measures to safeguard technical operations
  • Consideration of factors such as:
    • Type of system to be operated
    • Volume and value of payments likely to be processed
    • Any other relevant factors

Conditions for Licensed Payment Service Providers

Licensed payment service providers must comply with:

  • Operational requirements set by the Bank
  • Reporting requirements
  • Disclosure requirements
  • Oversight requirements

Additionally, licensed entities are required to apply for a separate license to operate a system under Section 9.

Prohibition Against Transfer of License

Section 13 of the Act prohibits the transfer of licenses or any rights acquired thereunder, except as may be prescribed by the Bank. Any transfer in contravention of this section will be void.

Renewal and Conditions of License

Licenses granted under the Act can be renewed in accordance with Section 14, subject to payment of fees or other payments as may be prescribed by the Bank. The Bank also has the power to amend any condition of a license issued under the Act by way of:

  • Alteration
  • Substitution
  • Addition
  • Omission
  • Modification

Suspension and Revocation of License

Section 16 of the Act allows the Bank to suspend or revoke a license where the licensed payment service provider or operator breaches a condition of the license, fails to comply with the Act or its regulations, or fails to provide the payment service or commence operation of the system within the prescribed period of time.