Financial Crime World

Manual: Payment Services Regulation

Section 6: Cash Merchants and Wholesale Cash Merchants

To ensure the safe and efficient provision of services to clients, cash merchants and wholesale cash merchants contracted to payment service providers must maintain effective oversight over their activities.

Records Maintenance

Each cash merchant shall maintain records of:

  • The number of transactions carried out by them
  • The volume of transactions
  • The value of transactions

Section 7: Outsourcing

Payment service providers intending to outsource operational functions must inform the Bank at least 30 days prior to implementing such outsourcing agreement.

Compliance Requirements

The outsourcing of material operational functions shall not impair:

  • The quality of the payment service provider’s internal control
  • The ability of the Bank to monitor compliance with the Act and this Regulation

Section 8: Compliance Requirements/Risk Management

Payment service providers must:

  • Utilize open systems capable of becoming interoperable with other payment systems in the country and internationally
  • Comply with technical standards determined by the Bank from time to time
  • Comply with risk management regulations published by the Bank from time to time

Section 9: Ring Fencing/Safeguarding Requirements

Payment service providers engaged in retail transfers and other commercial activities must safeguard funds received for the execution of retail transfers as follows:

Safeguarding Funds

Funds shall not be:

  • Transferred to their own account used for normal business operations or to a third party without proper authorization
  • Kept separate from other accounts and records, and clearly identified as being held in trust for the purpose of executing retail transfers
  • Maintained accurate and complete records of all transactions involving such funds

Section 10: Execution of Payment Transactions

Payment service providers must:

  • Execute payment transactions promptly and accurately
  • Be liable to the payer for any defects in the execution of payment transactions

Section 11: Consumer Protection

Disclosure Requirements

Payment service providers must provide:

  • A clear and understandable description of their services, rates, terms, conditions, and charges
  • Notification of any material changes to their rates, terms, conditions, and charges at least 7 days prior to implementation
  • The name of the payment service provider and a telephone number for customer care
  • Information regarding transactions, including reference number, payee details, amount, charges, and date of debit or credit

Additional Requirements

Where a retail transfer will not be completed in real time, the payment service provider shall provide the payer with the maximum execution time.