Rules of the VATAN Payment System

1 "Approved" By the Resolution of the Board of Directors of the National Bank of Tajikistan of "15" February 2023, No. 17 Rules of the VATAN Payment System

The Rules of the VATAN Payment System (hereinafter referred to as the Rules) are developed in accordance with Articles 30 and 32 of the Law of the Republic of Tajikistan "On the National Bank of Tajikistan", Articles 14 and 18 of the Law of the Republic of Tajikistan "On Payment Services and the Payment System", and establish the procedure for joining and participation, cooperation, withdrawal, conditions for carrying out money transfers, and the functioning of the VATAN Payment System, which belongs to the National Bank of Tajikistan.

1. GENERAL PROVISIONS
2. The following main concepts are used in these Rules:

1. VATAN Payment System (hereinafter - Payment System) - a set of organizations (the Payment System Operator and Payment System Participants) interacting in accordance with the Rules for the purpose of carrying out money transfers;
2. Payment System Operator (hereinafter - Operator) - the National Bank of Tajikistan, determining the Rules and performing other duties in accordance with the Law of the Republic of Tajikistan "On Payment Services and the Payment System";
3. Payment System Participants (hereinafter - Participants, individually - Participant) - credit financial organizations having the right to carry out money transfer operations without opening a bank account;
4. Receiving Participant - a Participant carrying out the payment of funds to the recipient;
5. Sending Participant - a Participant accepting the instruction and funds from the sender for the purpose of carrying out a transfer;
6. Sender - a natural person giving an instruction to the Sending Participant to carry out a money transfer operation within the Payment System;
7. Recipient - a natural person who instructs the Receiving Participant to carry out an operation to pay the transferred funds to him within the Payment System;
8. Client - sender or recipient;
9. Money Transfer - actions of a payment service provider within the framework of the applied forms of non-cash settlements to provide the recipient with funds from the sender;
10. Unaddressed Transfer - a money transfer in which the name of the Receiving Participant is not specified when sending;
11. Transfer Commission (hereinafter - Commission) - monetary remuneration of the Operator and Participants for carrying out a transfer, paid by the sender through the Sending Participant at the time of sending the transfer in addition to the transfer amount;
12. Transfer Currency - the national currency of the Republic of Tajikistan or a foreign currency from among those established by the Operator for conducting transfers;
13. Transfer Control Number - a unique sequence of characters assigned by the Operator to each money transfer upon its sending, and serving as one of the transfer details;
14. Payment System Services - carrying out a money transfer:

• by natural persons for an unaddressed transfer for the payment of cash funds to natural persons without opening an account;
• by natural persons for crediting to accounts of natural persons in credit financial organizations, including electronic payment instruments;

15. Account - a correspondent settlement account intended for conducting settlements within the framework of Payment System operations;
16. Clearing Report - an electronic document compiled by the Operator reflecting the obligations and claims of the Participant regarding money transfers for a certain period of time;
17. Personal Data - any information directly or indirectly relating to a specific or determinable natural person (sender, recipient), available to the Participant who accepted this information for processing;
18. Structural Subdivision - structural subdivisions of Participants carrying out transfer operations;
19. Exchange of Electronic Messages - receipt by the Operator of electronic messages containing instructions from Participants;
20. Agreed Communication Channel (Banknet – M) - a secure communication network of the National Bank of Tajikistan;
21. Risk Management System - a set of actions and methods to reduce the probability of adverse consequences for the uninterrupted operation of the Payment System;
22. Non-standard Situation - a situation that may lead to system failures and incidents;
23. Payment System Tariffs (hereinafter - Tariffs) - the size of the commission established by the Operator.

2. The Payment System Operator performs the duties of a payment service provider, operator of payment infrastructure services, clearing house, other duties provided for by these Rules, and regulates the organizational and technological interaction between the participants of the Payment System.

3. PROCEDURE FOR JOINING AND PARTICIPATING IN THE PAYMENT SYSTEM

4. The Payment System functions on the basis of software of the National Processing Center for Money Transfers. Requirements for connection to the National Processing Center for Money Transfers are provided for in the "Procedure for Cross-Border Money Transfers and the Activity of Payment Systems Carrying Out Such Transfers in the Republic of Tajikistan", approved by the Resolution of the Board of Directors of the National Bank of Tajikistan of September 27, 2019, No. 117, registered in the Ministry of Justice of the Republic of Tajikistan on November 15, 2019, No. 992.

5. To obtain the status of a Participant, a credit financial organization having the right to carry out money transfer operations without opening a bank account may submit an application for participation in the Payment System to the Operator in accordance with Appendix No. 1 to the Rules, as well as provide documents provided for by these Rules.

6. Applications and documents submitted by a credit financial organization to the Operator are considered within a period of up to one month.

7. In the event of the Operator making a positive decision to include a credit financial organization in the number of Participants, a participation agreement is signed with the credit financial organization.

8. The Operator refuses to assign the status of Participant in the event that the credit financial organization does not meet the requirements of these Rules.

9. In the event of a Participant's failure to comply with the conditions for carrying out payment clearing and settlement, as well as failure to comply with one of the provisions of these Rules, the Operator has the right to unilaterally suspend its participation in the Payment System until the date of elimination of the violation committed by the Participant. The Operator has the right to suspend the Participant's participation in the Payment System in the event of confiscation or seizure by state bodies of funds in the Participant's account.

10. The Operator, no later than 3 (three) working days following the day of suspension of participation, notifies the Participant in writing of the reasons for the suspension of participation. After the Participant has eliminated the violations committed and their consequences, the Participant's participation in the Payment System is resumed upon the Participant's written application with attachments of documents confirming the elimination of the violations committed and their consequences.

11. A Participant's participation in the Payment System terminates in the following cases:

• upon revocation of the Participant's license or prohibition of certain operations by the authorized state body;
• if the Participant declares its liquidation, or if bankruptcy proceedings are initiated against it;
• by decision of the Operator in cases provided for by these Rules.

11. In cases provided for in paragraph 26 of these Rules, the Participant is obliged to settle all its obligations in the Payment System.

12. The participation agreement is considered terminated from the date of termination of the Participant's participation in the Payment System.

13. PROCEDURE FOR INTERACTION BETWEEN THE OPERATOR AND PARTICIPANTS

14. Upon joining the Payment System, the relationship between the Operator and the Participant is determined by the participation agreement in the Payment System in accordance with Appendix No. 3 to these Rules. Upon joining the Payment System, the Participant provides the Operator with the documents specified in Appendix No. 2 to the Rules and signs the agreement.

15. Interaction between the Operator and the Participant within the framework of the Payment System is carried out on the basis of the participation agreement in the Payment System.

16. In accordance with the concluded agreement, the credit financial organization:

• acquires the status of a Participant;
• undertakes to comply with the requirements of these Rules;
• confirms that it is familiar with and agrees with the provisions of the current Rules and their appendices, including tariffs, and undertakes to comply with them;
• undertakes to pay the commission in accordance with the tariffs, which are established and changed in accordance with these Rules.

16. The Participant has the right to provide money transfer services within the framework of the Payment System, on the terms provided for by these Rules and the agreement concluded with the Operator.

17. Money transfer operations in the Payment System are carried out by senders through the structural subdivisions of Participants.

18. Settlements for completed money transfer operations are carried out through the accounts of Participants opened with the Operator.

19. Interactions between the Operator and the Participant begin from the moment of signing the participation agreement in the Payment System and the opening of the Participant's account with the Operator.

20. Decisions taken by the Operator regarding participation, suspension, and termination of participation in the Payment System are sent to Participants in the form of written notifications.

21. Deduction of funds from the Participant's account for operations carried out within the framework of the Payment System is carried out by the Operator on the basis of a clearing report in automatic mode.

22. Execution of instructions for crediting/deducting funds to/from the Participant's account is carried out on the terms of the account agreement with the Participant.

23. PROCEDURE FOR CARRYING OUT MONEY TRANSFERS WITHIN THE FRAMEWORK OF THE PAYMENT SYSTEM

24. The following types of operations are available in the Payment System:

• sending a transfer;
• payment of a sent transfer;
• return of a sent transfer;
• editing data of a sent, unpaid transfer (only the recipient's first name, last name, or patronymic);
• cancellation of a sent transfer;
• cancellation of transfer payment (only in cash form).

24. Acceptance of funds by the Sending Participant from the sender may be carried out in cash or non-cash funds. Acceptance of funds is carried out by an employee of the Sending Participant in the structural subdivision of the Participant. Operations related to money transfers are carried out by the Participant on the basis of a written application signed by the recipient/sender. The Sending Participant refuses to accept the sender's instruction for execution in case of insufficient funds provided for carrying out the transfer, taking into account the commission payable by the sender. When carrying out a money transfer, the Operator informs the Sending Participant of the transfer control number, which is presented to the recipient by the Sending Participant.

25. For money transfers in favor of the recipient for payment in cash, the irrevocability of the transfer arises at the moment of the recipient's appeal to the structural subdivision of the Receiving Participant.

26. The finality of a money transfer for the purpose of paying the recipient in cash arises at the moment of crediting the transfer to the account of the Receiving Participant. The finality of a money transfer sent for crediting to the recipient's account arises:

• at the moment of crediting funds to the recipient's account;
• at the moment of crediting funds to the account of the Receiving Participant, on whose account the recipient's account is opened.

27. The irrevocability of a money transfer sent for crediting to the recipient's account arises at the moment of providing cash funds by the sender to the Sending Participant or deduction of funds from the sender's account.

28. Cancellation/return of a money transfer is carried out at the initiative of the sender, in the event that it has not been paid to the recipient.

29. Cancellation/return of a money transfer sent for crediting to the recipient's account is not carried out by the Operator. For the cancellation/return of a money transfer, the sender appeals directly to the Receiving Participant, on whose account the recipient's account is opened.

30. To return the transfer amount, the sender is obliged to submit an application for the return of the transfer to the Sending Participant of this transfer. An additional commission for the return of the money transfer amount is not charged from the sender, while the commission for the transfer is not subject to return.

31. Cancellation of transfer payment can be performed within the operational day in which the transfer payment was made. Cancellation of a sent transfer can be performed within the operational day in which the transfer was sent. In the event of cancellation of a sent transfer, the commission is subject to return to the sender.

32. Acceptance of funds from the sender is carried out upon presentation by the sender of a document confirming identity.

33. Payment of funds to the recipient is carried out upon presentation by him of a document confirming identity.

34. In the event of an appeal by a representative of the sender/recipient, it is required to present a document confirming the identity of the representative of the sender/recipient, as well as a properly оформленная power of attorney.

35. The Sending Participant/Receiving Participant is obliged to provide the sender/recipient with a document confirming the carrying out of the transfer.

36. A document confirming the carrying out of an operation within the framework of the Payment System cannot be the basis for the export of foreign currency in cash abroad (this is indicated in the document confirming the operation).

37. A money transfer in foreign currency is carried out in accordance with the requirements of Instruction No. 251 "On the Scope of Use, Procedure for Circulation of Foreign Currency, Procedure and Rules for Issuance and Revocation of Licenses for Activities in the Field of Currency Operations in the Republic of Tajikistan", approved by the Resolution of the Board of Directors of the National Bank of Tajikistan of February 22, 2022, No. 23, registered by the Ministry of Justice of the Republic of Tajikistan on June 13, 2022, No. 1168, and the Law of the Republic of Tajikistan "On Currency Regulation and Currency Control".

38. Within the framework of the functioning of the Payment System, the transfer of funds for commercial purposes is prohibited. A money transfer must have only a social character (gift, assistance).

39. When establishing the identity of the client, Participants are obliged to be guided by the requirements of normative legal acts of the Republic of Tajikistan on combating the legalization (laundering) of income obtained criminally, financing of terrorism, and financing of the proliferation of weapons of mass destruction.

40. Participants implement a set of measures aimed at preventing and combating the legalization (laundering) of income obtained criminally, financing of terrorism, and financing of the proliferation of weapons of mass destruction.

41. WORKING HOURS AND PROCEDURE FOR PAYMENT OF SERVICES IN THE PAYMENT SYSTEM

42. An operational day is established in the Payment System from 00:00:00 to 23:59:59 of the calendar day. The Payment System functions in a round-the-clock mode and without days off (7 days a week).

43. Dushanbe time is recognized in the Payment System, the time for conducting settlements from 16:00 to 17:00. Settlements are carried out on the working days of the Operator.

44. Settlement of payment clearing positions is carried out at 08:00, 11:00, and 16:00 on the working days of the Operator. Account statements are sent to Participants by 12:00 on the working days of the Operator.

45. The Operator notifies Participants in advance of planned technical, preventive, and repair work, no later than one working day before the date of commencement of the work. Notification may be sent in written and/or electronic form using the Operator's email address. Participants are obliged to inform their clients about planned technical, preventive, and repair work.

46. Changes to the time regulation of the functioning of the Payment System are made by the Operator.

47. Withdrawal of funds from the Participant's account is allowed in the time period from 16:00 to 17:00 on the working days of the Operator.

48. A payment order for the withdrawal of funds from the Participant's account for execution on the current operational day is accepted by the Operator until 16:00.

49. A payment order for the withdrawal of funds from the Participant's account, accepted by the Operator after 16:00, is executed on the next working day of the Operator in the time period from 16:00 to 17:00.

50. Replenishment of Participants' accounts is allowed until 16:00 during the working day of the Operator.

51. The Participant may carry out transfers in the Payment System within the limit of the amount of money in his account.

52. The procedure for payment of services for money transfers within the framework of the Payment System is uniform for all Participants.

53. In accordance with Article 34 of the Law of the Republic of Tajikistan "On the National Bank of Tajikistan" and Article 18 of the Law of the Republic of Tajikistan "On Payment Services and the Payment System", tariffs are determined by the Operator.

54. The Participant is prohibited from charging the client an additional commission or fee for Payment System services in excess of the established tariffs.

55. RIGHTS AND OBLIGATIONS OF THE OPERATOR AND PARTICIPANTS

56. The Operator ensures Participants and their clients access to money transfer services, including the use of electronic payment instruments, as well as the exchange of electronic messages via the agreed communication channel.

57. The Operator has the right:

• to make changes to these Rules unilaterally;
• to conclude agreements on interaction with other Payment Systems;
• to publish the list of Participants in public access;
• to suspend and terminate the participation of Participants in the Payment System in the order and on the grounds established by these Rules;
• to determine the list of Payment System services, establish and change requirements for the quality of Payment System services provided by Participants.

56. Duties of the Operator:

• creation of a unified conceptual basis for interactions in the Payment System and ensuring equal access of Participants to the Payment System;
• determining the Rules, organizing and controlling their compliance by Participants;
• carrying out monitoring, analysis, assessment, and risk management in accordance with the requirements of the legislation of the Republic of Tajikistan;
• ensuring the receipt and consideration of appeals from Participants regarding the uninterrupted operation of the Payment System;
• ensuring the possibility of out-of-court settlement of disputes with Participants in accordance with the Rules;
• ensuring information protection and bank secrecy in accordance with the current legislation of the Republic of Tajikistan;
• ensuring the routing of electronic messages transmitted in real-time mode between Participants;
• receiving electronic messages containing the instruction of Participants to carry out a money transfer;
• ensuring the reception of authenticated messages from Participants by checking the corresponding certificate or electronic signature;
• ensuring information and technological interaction between the Operator and Participants;
• ensuring the acceptance for execution of Participants' instructions to carry out a money transfer within the framework of the Payment System and carrying out verification of the compliance of Participants' instructions with established requirements;
• determining payment clearing positions (net position for each of the currencies);
• calculating the commission.

57. Direct participation of the Participant is provided for in the Payment System. Direct participation implies the opening of an account by the Participant with the Operator.

58. The Participant has the right:

• to charge senders a commission for services provided within the framework of the Payment System in accordance with the agreement concluded with the Operator, observing the requirements of the legislation of the Republic of Tajikistan and normative legal acts of the National Bank of Tajikistan;
• to provide Payment System services in accordance with the Rules;
• to use the name of the Payment System when placing informational/advertising materials in mass media and other sources of information.

59. The Participant undertakes:

• to ensure interaction with the Operator in accordance with the features of payment clearing provided for in Articles 21 and 43 of these Rules;
• to pay the commission in accordance with the tariffs;
• to open an account with the Operator and control the sufficiency of funds in the account;
• to immediately inform the Operator of any circumstances that may affect the Participant's fulfillment of its obligations;
• to ensure obtaining consent for the processing (including automated processing) of personal data of the sender and recipient;
• to comply with the requirements for ensuring security in the Payment System in accordance with the Rules;
• in the event of changes to the constituent documents, as well as in the event of changes in other data of the Participant, to inform the Operator about the changes with attachments of confirming documents no later than 5 (five) working days from the date of making these changes;
• upon written request of the Operator (including from the Operator's email address), to send to the Operator information, documents, reporting, as well as, if necessary, originals or properly certified copies of documents confirming the carrying out of operations by natural persons in the Payment System and/or consent of clients to the processing of their personal data by Participants and the Operator;
• to contact the sender/recipient of the money transfer to obtain additional information and/or a copy of the document confirming the identity of the sender/recipient;
• to carry out, within its competence, the creation of a risk management system, carrying out monitoring, analysis, assessment, and risk management in accordance with the requirements of the legislation of the Republic of Tajikistan;
• to ensure the proper functioning of operational and technological means, equipment, and information systems used in the Payment System.

7. RISK MANAGEMENT SYSTEM AND METHODS AND ENSURING INFORMATION PROTECTION

8. The Operator ensures the uninterrupted functioning of the Payment System by carrying out activities on risk management in the Payment System.

9. The Operator ensures the reliability of the Payment System. Functions for assessing and managing risks in the Payment System are distributed between the Operator and Participants.

10. Risk management methods are determined by the Operator taking into account the features of the organization of the Payment System, the risk management model, the clearing and settlement procedure, the number of money transfers and their amounts, and the time of final settlement.

11. The Risk Management System provides for the following methods:

• carrying out mutual settlements within the limits of the funds available in the Participant's account;
• automated management of the sequence of execution of Participants' money transfer instructions by the time of receipt of instructions;
• carrying out settlement in the Payment System at the specified time;
• application of other risk management methods by the Operator.

64. Information on identified risks is immediately provided by the Participant to the Operator in the form of written reports. The report contains a detailed description of the nature of the risk, probable causes of its occurrence, and possible consequences.

65. For the purpose of risk management, the Operator has the right to request and receive from Participants information necessary for managing the risks of the Payment System, as well as to systematize, process, accumulate, and store such information.

66. The Participant is obliged to provide the required information to the Payment System Operator for the purpose of managing risks in the Payment System, if the provision of such information does not contradict the requirements of the legislation.