INSTRUCTION NO. 001/GR/2018 ON THE SCOPE OF INTEROPERABILITY AND INTERBANKING OF MONETARY PAYMENT SYSTEMS IN CEMAC

LEGAL BASIS:

• The Monetary Union Treaty of the Central African Economic and Monetary Community (CEMAC);
• Regulation No. 01/CM-UEAC/2018/MINFIN/MCE of 18 January 2018 on the organization and functioning of monetary payment systems;
• Regulation No. 02/CM-UEAC/MCE of 19 April 2000 on the harmonization of exchange rates among CEMAC countries;
• Regulation No. 01/CM-UEAC/MCE of 28 November 2016 on the market organization for electronic monetary instruments;
• Regulation No. 03/CM-UEAC/MCE of 18 September 2016 on the conditions for the exercise of electronic monetary payment services, as well as the rules for operators and regulators;
• Instruction No. 01/GR/MCE of 11 December 2011 on the supervision of monetary payment systems;
• Government Decision No. 42/GR/CM-UEAC of 17 May 2016 on the classification of entities within the CEMAC monetary payment system;
• Decision No. 01/GR/MCE of 10 December 2016 approving the list of electronic monetary payment institutions affiliated with CEMAC.

PREAMBLE: Considering the Central African Economic and Monetary Community (CEMAC) Council of Ministers meeting on 26 June 2018;

HAS ADOPTED THE PRESENT INSTRUCTION:

CHAPTER I: DEFINITIONS

Article 1: For the purposes of this Instruction, the following terms are defined as follows:

• Central Bank (Banque Centrale): The Central Bank of the Central African States (BEAC).
• Monetary Payment System or Platform: Any system or platform for monetary payment, electronic or non-electronic, designed to ensure the settlement of positions or transactions of each participating entity.
• Economic and Monetary Union: The Central African Economic and Monetary Community (CEMAC).
• Interoperability: A principle whereby a payment operator provides its services through a single reception point for the user, including the acquirer, and is subject to exchange rules that are mutually compatible, enabling the exchange of data or operations between them.
• Non-Interoperable System or Platform: A system constituted by a set of electronic monetary payment instruments, including cards, electronic or mobile wallets.
• Interoperable System: A system comprising a set of electronic and telematic treatments ensuring the issuance and portability of monetary payment instruments, cards, electronic wallets, as well as associated transactions.
• Interbanking System: A system constituted by all electronic, non-electronic, or mobile payment systems or platforms operating within CEMAC, enabling the execution of transfer orders or general payment orders for electronic, electronic, or mobile instruments issued by CEMAC.
• Electronic Payment Instrument: Any electronic or telematic instrument within which electronic monetary units are stored.

CHAPTER II: INTEROPERABILITY OF MONETARY PAYMENT SYSTEMS

Article 2: Any electronic, non-electronic, or mobile payment system or platform operating within CEMAC must be interoperable with the systems of other CEMAC countries, as well as with international payment networks. Article 3: Interoperability between electronic, non-electronic, or mobile payment systems and platforms defined in Article 1 must enable:

• A monetary payment system to carry out transfer operations on CEMAC electronic money accounts;
• A monetary payment system to perform transactions and services for a merchant affiliated with an international network operating within CEMAC;
• A monetary payment system to carry out transfer operations between a payment system and an electronic non-monetary system operating within CEMAC;
• An electronic monetary instrument to carry out payment operations for goods and services by a merchant or consumer affiliated with an international network operating within CEMAC;
• An electronic wallet to carry out transfer operations in CEMAC between an electronic payment system or platform issued by a natural person affiliated with a system or network operating within CEMAC;
• An electronic wallet to carry out charging, discharging, and withdrawal operations at all charging and discharging points of electronic monetary instruments affiliated with CEMAC. Article 4: Electronic, non-electronic, or mobile payment systems or platforms referred to in Article 1 must comply with the technical standards of the electronic payment industry and the norms for electronic wallets, based on the measures provided in the relevant articles.

CHAPTER III: COMPOSITION AND INTERBANKING OF THREE MONETARY SYSTEMS

Article 5: Any system or platform for monetary payment referred to above must ensure interbanking as regulated by the regulations on the composition and interbanking of three monetary systems. Article 6: As of 1 December 2018, all interbanking payment transactions carried out within CEMAC by electronic monetary instruments issued by establishments operating within CEMAC must be cleared and settled in CFA francs through a system or platform of interoperable payment operating within CEMAC and affiliated with the Central Bank of the Central African States (BEAC).

CHAPTER IV: INTEROPERABLE MONETARY PAYMENT SYSTEMS

Article 7: As of 1 December 2018, all electronic payment instruments issued within CEMAC by affiliated establishments must be cleared and settled in CFA francs through a system or platform of interoperable payment operating within CEMAC and affiliated with the Central Bank of the Central African States (BEAC). Article 8: As of 1 December 2018, all electronic payment instruments operating within CEMAC must be interoperable with the systems or platforms of interoperable payment. Article 9: The composition and interbanking systems referred to in Articles 1 and 5 must be notified to the Central Bank of the Central African States (BEAC) within fifteen (15) days following their establishment or domiciliation in a financial institution.

CHAPTER V: DECLARATIONS AND TRANSMISSIONS OF PAYMENT SYSTEMS

Article 10: Any issuer of electronic payment instruments must, by 31 December 2018 and subsequently every month, transmit to the BEAC an interoperable electronic payment system declaration including:

1. The number, type, and denomination of electronic payment instruments in circulation;
2. The list of the five (5) most used electronic payment instruments, indicating their characteristics as per Article 1, as well as the number and amount of transactions;
3. The number of cards or electronic wallets issued, as well as the number and amount of transactions related to them. Article 11: Every establishment authorized to carry out transfer operations must, by 30 June 2018 and subsequently every month, declare to CEMAC the systems or platforms of interoperable payment, their lists, names, and amounts of transferred funds within CEMAC. Article 12: Any manager of a system or platform for interoperable monetary payment, in accordance with the date of entry into force of this Instruction (by 31 December 2018 and subsequently every month), must declare to the BEAC their modifications, the number and amount of transactions processed by their network, and the number of payment instruments, wallets, or other electronic instruments operating within CEMAC.

CHAPTER VI: DELAYS OF REGULARIZATION OF MONETARY PAYMENT SYSTEMS

Article 13: Any manager of a system or platform for payment defined in Article 2, in accordance with the date of entry into force of this Instruction, must ensure by 31 March 2019 that said system or platform complies with the provisions of Articles 3 and 5 above. Article 14: Any issuer of electronic or non-electronic payment instruments, prior to the date of entry into force of this Instruction, must ensure by 31 March 2019 that they comply with the provisions of Articles 3 and 4 above, failing which a penalty clause defined in Article 11 will apply.

CHAPTER VII: SANCTIONS AND PENALTIES

Article 15: The BEAC may, without prejudice to general sanctions and amendments provided by the Monetary Union Treaty and Article 13 above, impose a suspension or withdrawal of authorization for any system or platform for monetary payment operating within CEMAC that fails to comply with the provisions of Articles 1, 3, 5, 7, 8, 9, 11, and 14 above. Article 16: The suspension is pronounced by the Governor of the BEAC for any electronic monetary instrument circulating within CEMAC that has not been placed in circulation within the deadlines set in Article 11 above. Article 17: It is enforced by any affiliated entity, upon each annual collection of fees and a one-time fee of 100 CFA per month for late payment by the issuer, and at 10% of the monthly amount for electronic or other electronic payment instruments issued before the date of entry into force of this Instruction and not placed in circulation. Article 18: It is enforced by a financial institution: 15% of the amount of transactions cleared and settled, particularly regarding the provisions of Articles 11 and 14 above, as the issuer of the payment instrument for irregularly cleared and settled transactions. Article 19: The sanctions of affiliated entities notified by the BEAC are announced monthly to the system manager, based on account statements exceeding 10 million CFA, and reported monthly to the manager of the interoperable monetary payment system operating with the BEAC for banks or settlement agents. Article 20: The present Instruction enters into force as of the date of its publication in the Official Gazette.