Procedure for Accounting and Transfer of Electronic Money

1 "Registered" by the Ministry of Justice of the Republic of Tajikistan by Order No. 999 dated December 31, 2019. "Approved" by the Board of the National Bank of Tajikistan by Order No. 130 dated October 24, 2019.

Procedure for Accounting and Transfer of Electronic Money

The Procedure for Accounting and Transfer of Electronic Money (hereinafter referred to as the "Procedure") is developed in accordance with Article 32 of the Law of the Republic of Tajikistan "On the National Bank of Tajikistan", Article 3 of the Law of the Republic of Tajikistan "On Banking Activity", Article 23 of the Law of the Republic of Tajikistan "On Microfinance Organizations", and Article 8 of the Law of the Republic of Tajikistan "On Payment Services and the Payment System", and establishes requirements for payment service providers regarding the accounting and transfer of electronic money.

CHAPTER 1. GENERAL PROVISIONS

1. The following main concepts are used in this Procedure:

• electronic money – money in national or foreign currency, previously provided by an individual to a payment service provider, who tracks the amount of provided money without opening a bank account, for the fulfillment of the individual's monetary obligations to third parties;
• electronic money operator (hereinafter referred to as the "operator") – a payment service provider (credit financial organization) carrying out the accounting and transfer of electronic money;
• electronic wallet – an electronic payment instrument, microprocessor (chip), computer software, and other software-technical means in which electronic money is stored and through which the transfer of electronic money is carried out;
• foreign electronic wallet – an electronic wallet whose operator is a non-resident of the Republic of Tajikistan, carrying out activities in accordance with the legislation of the country of registration;
• redemption – an operation by a payment service provider to issue electronic money to an individual or legal entity, as well as an individual entrepreneur, in cash or non-cash form;
• identified electronic wallet – an electronic wallet whose holder has undergone identification in accordance with the legislation of the Republic of Tajikistan;
• unidentified electronic wallet – an electronic wallet opened by an individual remotely using electronic devices based on a public offer, the owner of which has not undergone identification in accordance with the legislation of the Republic of Tajikistan;
• incident – suspension of services related to electronic money for more than 30 minutes, cases of fraud or theft, cases of disclosure of client data, as well as cases aimed at unauthorized access to electronic money.

2. The rights of the owner of electronic money arise from the moment of providing money to the operator, including through a banking payment agent.

3. The operator is obliged to ensure the functioning of the software for electronic money taking into account the requirements and restrictions established by this Procedure and the legislation of the Republic of Tajikistan.

4. The operator is liable to the owner of electronic money in accordance with Article 7 of the Law of the Republic of Tajikistan "On Payment Services and the Payment System".

CHAPTER 2. ACCOUNTING OF ELECTRONIC MONEY

5. To carry out activities related to electronic money, the operator is obliged to provide a written notification to the National Bank of Tajikistan no later than 10 calendar days before the start of activities, in accordance with the Appendix to this Procedure.

6. Confirmation of the crediting of electronic money to an electronic wallet is carried out by the operator after receiving the money, by providing a receipt (check) in the form of a paper document or an electronic document to the owner of the electronic money.

7. The receipt (check) issued upon the crediting of electronic money must contain the following mandatory details:

• identification number of the electronic wallet;
• name and bank identification code (BIC) of the operator;
• number of the ATM or self-service automated terminal;
• location (address) of the ATM or self-service automated terminal;
• serial number of the issued receipt (check);
• time and date of the transaction;
• amount of the transaction.

8. The receipt (check) may contain additional details established by the operator.

9. The contract (offer) for the use of an electronic payment instrument and the transfer of electronic money, in addition to the conditions provided by the operator, must also reflect the following conditions:

• rights and obligations of the parties;
• type and general characteristics of the payment services provided;
• sizes of commissions charged or indication of the source on the Internet containing the corresponding information;
• situations in which the operator reserves the right to refuse to provide a payment service;
• procedure for presenting claims and resolving disputed situations;
• conditions for carrying out operations using electronic money, including restrictions on the use of electronic money;
• procedure for the redemption of electronic money;
• procedure for exchanging information between the operator and owners of electronic money, including phone numbers, address for client appeals, procedure and deadlines for notifying the operator about the loss of access control to electronic money or their unauthorized use.

10. The operator is obliged to store information identifying owners of electronic wallets, information about operations with electronic wallets, official correspondence, as well as the results of any analyses conducted for a period of no less than 5 years after the operation and the termination of business relations.

CHAPTER 3. PROCEDURE FOR THE USE OF ELECTRONIC MONEY

11. Electronic money is used by its owner – an individual – for the purpose of paying for goods and services, as well as carrying out other operations on terms not contradicting the legislation of the Republic of Tajikistan.

12. Acceptance of electronic money by an individual entrepreneur and a legal entity as payment for goods and services and other payments, not contradicting the legislation of the Republic of Tajikistan, is carried out based on a contract concluded with the operator.

13. An individual entrepreneur and/or a legal entity that has accepted electronic money as payment for goods and services from individuals acquires the right to a monetary claim against the operator in the amount of the accepted payment.

14. When opening an electronic wallet for a client who is an individual entrepreneur and/or a legal entity, the operator is obliged to identify their identity in accordance with the requirements of the Law of the Republic of Tajikistan "On Countering the Legalization (Money Laundering) of Income Obtained by Criminal Means, Terrorism Financing, and Financing of the Proliferation of Weapons of Mass Destruction".

15. The operator provides information and data on suspicious transactions and mandatory control transactions to the authorized body for countering the legalization (money laundering) of income obtained by criminal means, terrorism financing, and financing of the proliferation of weapons of mass destruction, in accordance with the requirements of the Law of the Republic of Tajikistan "On Countering the Legalization (Money Laundering) of Income Obtained by Criminal Means, Terrorism Financing, and Financing of the Proliferation of Weapons of Mass Destruction" and other normative legal acts of the Republic of Tajikistan.

16. The maximum amount of the balance of electronic money stored on one identified electronic wallet must not exceed an amount equal to 1,750 calculation indicators.

17. In the event that the execution of the client's order will lead to exceeding the amounts specified in paragraph 16 of this Procedure and part 21 of Article 9 of the Law of the Republic of Tajikistan "On Payment Services and the Payment System", the operator has the right to suspend the execution of the order until its execution will not lead to exceeding the specified amounts, or to take other actions provided for in the contract with the client.

18. Redemption of the balance or part of the balance of electronic money is carried out by the operator at any time at equal nominal cost, unless a commission is provided for in the contract concluded between the operator and the owner of the electronic money.

19. Redemption of the balance or part of the balance of electronic money of the holder of an unidentified electronic wallet – an individual is carried out after the identification of the holder of the electronic wallet in the structural subdivisions of the operator.

20. Holders of identified electronic wallets – individuals have the right to return the balance or part of the balance of electronic money from the operator by transferring to a bank account, transferring without opening a bank account, or in cash form. Holders of identified electronic wallets – legal entities and individual entrepreneurs have the right to return the balance or part of the balance of electronic money by transferring to their bank account.

21. When carrying out operations related to stimulating the use of electronic money or when returning electronic money to an individual – payer, in the event of termination of the completed transaction for the payment of goods or services, the transfer (return) of electronic money by an individual entrepreneur or legal entity to holders of electronic wallets is permitted.

CHAPTER 4. CROSS-BORDER TRANSFERS OF ELECTRONIC MONEY

22. In the case of transferring money from abroad to an electronic wallet, the operator credits electronic money to the electronic wallet taking into account part 21 of Article 9 of the Law of the Republic of Tajikistan "On Payment Services and the Payment System". In the event that the owner of the electronic wallet – an individual – is not identified in accordance with the legislation of the Republic of Tajikistan, the credited funds can only be used to pay for goods and services within the territory of the Republic of Tajikistan.

23. Operators are prohibited from crediting money coming from abroad to the electronic wallets of individuals from countries where, according to the current legislation of these countries, the identity of the sender is not established when making such a transfer, including if the money was provided by the sender using an automated self-service terminal and other equipment.

24. Payment service providers are prohibited from replenishing a foreign electronic wallet on behalf of an unidentified sender, including through an unidentified electronic wallet via an automated self-service terminal and other devices.

25. A payment service provider based on a contract with the operator of a foreign electronic wallet may carry out the identification of owners of foreign electronic wallets on the territory of the Republic of Tajikistan.

26. A payment service provider carries out the transfer of electronic money abroad to foreign electronic wallets based on a contract with the operator of a foreign electronic wallet.

27. A payment service provider carries out the crediting of money coming from abroad from owners of foreign electronic wallets based on a contract with the operator of a foreign electronic wallet.

CHAPTER 5. PROCEDURE FOR TERMINATION OF ACTIVITIES RELATED TO ELECTRONIC MONEY

28. The operator notifies the National Bank of Tajikistan thirty days before the termination of activities related to the transfer of electronic money, in accordance with the Appendix to this Procedure.

29. The operator, thirty days before the termination of activities related to the transfer of electronic money, informs the owners of electronic money about this via the Internet resource of the electronic money (if available) and the personal account (account) of the owner of electronic money, mass media (state television and newspaper), sending to the email address and/or to a mobile device specified by the owner of electronic money, short text messages.

Upon expiration of the period established by the operator for the redemption of electronic money in circulation, the remaining unredeemed electronic money located in electronic wallets:

• of individual entrepreneurs and legal entities – are redeemed to their bank accounts;
• of identified owners of electronic money – individuals having bank accounts are redeemed to their bank accounts;
• of unidentified owners of electronic money – individuals are redeemed to the corresponding balance sheet account of the operator until they are claimed by the owners of electronic money.

CHAPTER 6. RISK MANAGEMENT

30. Operators are obliged to establish and apply internal regulatory acts for the detection, management, monitoring, minimization, and accounting of risks that may arise in the process of carrying out activities related to the accounting and use of electronic money, taking into account the requirements of normative legal acts of the Republic of Tajikistan, in particular normative legal acts of the National Bank of Tajikistan.

31. To ensure the effectiveness of the internal control system, operators must constantly identify and assess risks associated with carrying out activities related to the accounting and use of electronic money.

32. Operators are obliged to identify, assess, and take necessary measures for supervision and minimization of existing and possible risks of legalization (money laundering) of income obtained by criminal means, terrorism financing, and financing of the proliferation of weapons of mass destruction, associated with the servicing of electronic money, new types of financial services, or the introduction of new methods of their provision, as well as the application of new or developing technologies.

33. Operators are obliged to implement the requirements specified in part 32 of this Procedure before providing a service related to electronic money, new types of financial services, or the introduction of new methods of their provision, as well as the application of new or developing technologies.

34. In order to ensure safe activities when carrying out operations with electronic money, operators are obliged to comply with norms of safe functioning, backup, as well as supervision and effective management of operational risks.

CHAPTER 7. REPORTING ON ELECTRONIC MONEY

35. Operators provide the National Bank of Tajikistan with a report on activities related to the accounting and transfer of electronic money in accordance with the requirements established by the normative legal acts of the National Bank of Tajikistan.

36. Operators are obliged to notify the National Bank of Tajikistan about all incidents that arose during the conduct of operations with electronic money no later than the next working day after the detection of the incident.

CHAPTER 8. LIABILITY FOR VIOLATION OF THE REQUIREMENTS OF THIS PROCEDURE

37. Ensuring the fulfillment of the requirements of this Procedure is placed on operators, individuals and legal entities, individual entrepreneurs, and responsible persons of these subjects; control over its compliance is carried out by the authorized structures of the National Bank of Tajikistan.

38. For failure to comply with the requirements of this Procedure, individuals and legal entities are held liable in accordance with the normative legal acts of the Republic of Tajikistan.

Appendix to the Procedure for Accounting and Transfer of Electronic Money

Notification about the commencement (termination) of activities related to electronic money

(Name of the operator) notifies about ____________________ from ______________ 20___ y. (Commencement/Termination) of activities related to electronic money.

(Name of the electronic payment instrument)

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(Position of the Head) (Signature) (Full Name) M.P.