| A. |
Background |
| |
With the enactment of the Payment Systems Act 2003 (PSA), which
came into force on 1 November 2003, any person who
intends to operate a payment system is required to submit documents
and information and obtain written notification from Bank Negara Malaysia
pursuant to Section 5 of the PSA, while issuer of a designated payment
instrument (DPI) is required to obtain the prior approval of the Bank
pursuant to Section 25 of the PSA.
Payment system is defined as any system or arrangement
for the transfer, clearing or settlement of funds or securities, but
excludes:-
| (a) |
a payment system operated by Bank Negara Malaysia under the
Central Bank of Malaysia Act 1958 |
| (b) |
a 'clearing house' recognised under the Securities Industry
Act 1983 [Act 280]; |
| (c) |
a 'clearing house' licensed under the Futures Industry Act
1993 [Act 499]; |
| (d) |
an in-house payment system operated by a person solely for
his own administrative purposes that does not transfer, clear
or settle funds or securities for third parties; |
| (e) |
a system that solely facilitates the initiation of payment
instructions; and |
| (f) |
such other systems or arrangements as may be prescribed by
Bank Negara Malaysia. |
The following payment instruments have been prescribed as designated
payment instruments:-
| (a) |
charge card that is a payment instrument which indicates a
line of credit granted by the issuer to the user and any amount
of the credit utilised by the user must be settled in full on
or before a specified date, without any extended credit; |
| (b) |
credit card that is a payment instrument which indicates a
line of credit or financing granted by the issuer to the user
and where any amount of the credit utilised by the user has
not been settled in full on or before a specified date the unsettled
amount may be subject to interest, profit or other charges; |
| (c) |
electronic money that is any instrument, whether tangible
or intangible, that - |
| |
| (i) |
stores funds electronically in exchange of funds paid
to the issuer; and |
| (ii) |
is able to be used as a means of making payment to any
person other than the issuer; and |
|
| (d) |
any combination of the payment instruments prescribed in subparagraphs
(a) to (c). |
|
| B. |
Submission of Information |
| |
Payment System
The following documents and information need to be submitted by any
person who intends to operate a payment system:- |
| |
| (a) |
a certified true copy of its memorandum and articles of association
or other constituent documents under which it is established; |
| (b) |
a certified true copy of its certificate of incorporation
or business registration; |
| (c) |
a certified true copy of its latest audited financial statements; |
| (d) |
the following information and supporting documents on the
operator:- |
| |
| (i) |
the name, place and date of its establishment; |
| (ii) |
the principal business and field of operations; |
| (iii) |
the names, addresses and identity card or passport numbers
of all its directors and chief executive officer; |
| (iv) |
if it is a company, the names and addresses of its substantial
shareholders, within the meaning of section 69D of the
Companies Act 1965 [Act 125], and its related corporations
as defined in section 4 of the Companies Act 1965; and |
| (v) |
if it is not a company, the names and addresses of its
shareholders, partners or other persons having ownership
by whatever name called; |
|
| (e) |
any approval, authorisation, license or permit from regulatory
authorities; |
| (f) |
the following information and supporting documents relating
to the payment system: |
| |
| (i) |
a detailed description of the payment system, including
payment flow and settlement arrangements; |
| (ii) |
a description of the intended participants and the criteria
for participation; |
| (iii) |
rules and procedures setting out the rights and liabilities
of the operator and the participant, including the terms
and conditions of participation and procedures for dispute
resolution; |
| (iv) |
procedures, controls and measures for the management
of credit, liquidity and settlement risk; |
| (v) |
measures that ensure the safety, security and operational
reliability of the payment system including contingency
arrangements; |
| (vi) |
fees and charges imposed by the operator; and |
| (vii) |
outsourcing arrangements, if any. |
|
|
| |
Designated Payment Instrument |
| |
The following documents and information need to be submitted by any
person applying to issue a DPI:-
| (a) |
a certified true copy of its memorandum and articles of association
or other constituent documents under which it is established; |
| (b) |
a certified true copy of its certificate of incorporation
or business registration; |
| (c) |
a certified true copy of its latest audited financial statements; |
| (d) |
the following information and supporting documents on the
issuer:-
| (i) |
the name, place and date of its establishment; |
| (ii) |
the principal business and field of operations; |
| (iii) |
the names, addresses and identity card or passport numbers
of all its directors and chief executive officer; |
| (iv) |
if it is a company, the names and addresses of its substantial
shareholders, within the meaning of section 69D of the
Companies Act 1965 [Act 125], and its related corporations
as defined in section 4 of the Companies Act 1965; and |
| (v) |
if it is not a company, the names and addresses of its
shareholders, partners or other persons having ownership
by whatever name called; |
|
| (e) |
any approval, authorisation, license or permit from regulatory
authorities; |
| (f) |
the following information and supporting documents relating
to the designated payment instrument: |
| |
| (i) |
the name and a detailed description of the designated
payment instrument, including payment flow and settlement
arrangements; |
| (ii) |
a description of the intended users and the intended
location of use; |
| (iii) |
rules and procedures setting out the rights and liabilities
of the issuer and the user and the risks the user may
incur, including the terms and conditions of use and procedures
for dispute resolution; |
| (iv) |
measures for the management of funds collected from
the user, including measures that ensure that such funds
are available for repayment to the user; |
| (v) |
measures that ensure the safety, security and operational
reliability of the designated payment instrument including
contingency arrangements; |
| (vi) |
fees and charges imposed by the issuer; and |
| (vii) |
outsourcing arrangements, if any. |
|
|
| C. |
Fee |
| |
Pursuant to section 5 or 25 of the PSA, applicants are required to pay a fee of RM500 which should be made payable to Bank Negara Malaysia via RENTAS with TRN code OBT01, account number 1547010015. Such fees should be paid as soon as an application has been submitted to Bank Negara Malaysia.
|
| D. |
Submission |
| |
All applications on the above should be addressed to:
|
| |
Director
Payment Systems Policy Department
Bank Negara Malaysia
Jalan Dato' Onn
P.O. Box 10922
50480 Kuala Lumpur |
|
|
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References
