Objectives. Importance. To set Central Bank s policy for the regulation of e-money and to contribute to its development

Transcription

1

2

3 Objectives To set Central Bank s policy for the regulation of e-money and to contribute to its development Importance Accelerated growth of e-money demand in the Republic of Armenia Willingness of,,potential issuers,, of e-money to operate under the legal claims of the Republic of Armenia, Stimulation of electronic commerce development, Central Bank s policy in IT sphere, Central Bank s policy in the integration to the European Union, adjustment of the Armenian legislation with EU regulation statements.

4 EU definition Electronic money shall mean monetary value as represented by a claim on the issuer which is: (i) stored on an electronic device; (ii) issued on receipt of funds of an amount not less in value than the monetary value issued; (iii) Accepted as means of payment by undertakings other than the issuer. RA definition The definition used in the Armenian law on,,the payment system and payment organizations,, is similar to the definition of EU.

5 Types of e-money There are 2 types of e-money depending on how the commitment of the issuer is illustrated 1. E-purse (card-based e-money) In card-based e-money products, the purchasing power resides in a device containing hardware-based security features (generally a chip, which is embedded in a plastic card) and the information is transferred from the card to a centralized computer. 2. E-cash (server-based e-money) In server-based e-money products, the purchasing power resides in a server that allows to transfer money for the purchased products and services by means of internet.

6 Issuing and service providing of e-money issuing ( obtaining of monetary obligation), recharging: in cash or cashless form, as well as by means of payment card, cashing recording of electronic units, keeping of electronic accounts Administrating and archiving, Processing, Exchanging with electronic units of other systems, Service providing via terminals (real time and virtual) in trade and service centers, Distribution.

7 Authorized issuers of e-money Non-bank credit institutions (EMI- e-money institutions)- European Union Commercial banks Finland, Germany Money remittance having license of e-money issuing - USA Legal approaches to e-money regulation 1) Licensing 2) Permission, 3) Free circulation.

8 Exceptions / according to the European legislation/ branded cards of organizations, local cards/ purses, loyalty programs/cards E-money for gambling, E-money of limited value /containing less than 150 EUR on one device/, if - total financial liabilities never exceed 6 mln. EUR, - E-money are accepted by the group of organisations a member of wich is the issuer - E-money are accepted by the limited number of organisations.

9 Requirements for e-money issuers 1) Requirement s for security and reliability: statutory capital and equity, limits for allocation of obtained funds, limits for other activities, market, percentage and other risks minimization policy, management and audit policy, measures and resources. 2) Provision of legal status for e-money circulation: contractual relations among all members, strict documentation of operation rules and procedures. 3) To guarantee a secure circulation of e-money: claims for software and technology equipment, optimal management of e-money operations.

10 Requirements for e-money issuers 4) Cashing possibility 5) Financial and other required accountability 6) To meet the reqirements of anti-money laundering legislation 7) Consumers protection system 8) Implemention of requirements similiar to those of the bank secrecy law

11 Regulation on Granting a permission for e-money emission, procedure and conditions of suspension and canceling of the permission, requirements for e-money issuers. Obligatory requirement license of payment organization for money remittance issued by CBA Procedure of granting a permission, Minimum conditions and requirements for the applicants, as well as deposition of funds, Procedure of suspension of e-money issuing, Procedure of canceling of e-money issuing.

12 Limitation of e-money issuing operations Minimum amount of deposition Appropriate level of provisions in correspondence with the rising amount of obtained funds Allocation of cash, obtained by means of e-money issuing, in high liquid assets.

13 Regulation on Rules and procedure of e- money emission and circulation, requirements for servicing of e-money. Banks Money remittance organizations Main conceptions, as well as e-money closed cycling model definition, Minimum requirements for e-money service operations, Minimum requirements for the flow of documents, concerning the contractual relations and circulation rules.

14 Users registration Types of users: anonymous and nominal Requirements, for the procedure of e-money service operations, Maximum residual on the electronic purse for each registered user ( 500 dollar).

15 Anonymous user limit: less than 500 dollars per month, 250 dollars per day, less than 15 transactions per month,

16 Requirements for internal supervision and regulation of risks while making e-money operations. Requirements for hardware and technology complex, security, equipment used by the organizations, outsourcing Forms and conditions for the accountability

17 Conversion of e-money of different systems Discussion around the importance of implementation of deposits insurance fund Consumers protection Protection of e-money issuers Mobile operators

18 Thank you for your attention!