Decision on the Minimum Amount of Insurance Policy or Liability Coverage Guarantee

Pursuant to Article 47 paragraph 1 item 6 of the Law on the National Bank of the Republic of Macedonia (Official Gazette of the Republic of Macedonia No. 158/10, 123/12, 43/14, 153/15, 6/16, 83/18 and Official Gazette of the Republic of North Macedonia No. 110/21) and Article 16 paragraph 18 of the Law on Payment Services and Payment Systems (Official Gazette of the Republic of North Macedonia No. 90/22), the National Bank of the Republic of North Macedonia Council has adopted the following DECISION On the minimum amount of the insurance policy or the liability coverage guarantee
I. GENERAL PROVISIONS

1. This Decision shall prescribe the following criteria for:

• determining the minimum amount of the insurance policy or the liability
  coverage guarantee without protest and payable on first demand that payment initiation service providers and account information service providers shall provide in accordance with the Law on Payment Services and Payment Systems (hereinafter: minimum amount of insurance policy or guarantee) and
• conditions that must be met by the financial institutions that issue the
  policies or guarantees in indent 1 of this item.
  II. Criteria for determining the minimum amount of the insurance policy or
  the liability coverage guarantee

2. For the needs of determining the minimum amount of the insurance policy
   or the liability coverage guarantee the payment institution shall use the following criteria:

• risk profile of the payment institution;
• volume of activities of the payment institution.

3. The minimum amount of insurance policy or guarantee shall represent a
   sum of:

• the amount related to the risk profile of the payment institution, as set in
  item 5 of this Decision and
• the amount related to the volume of activities of the payment institution,
  as set in item 8 on payment initiation service providers and/or item 9 on account information service providers of this Decision. The payment institution is obliged to determine the minimum amount of the insurance policy or the guarantee referred to in paragraph 1 of this Decision, on an annual basis, based on data for the previous calendar year, but no later than 30 June.

2
The payment institution shall inform the National Bank of the determined minimum amount of the insurance policy or the guarantee, within 30 days of the date of determining referred to in paragraph 2 of this item. The amount of insurance policy or the guarantee upon license application for providing payment initiation services and account information services shall equal Denar 9,000,000.
4. If the payment institution provides payment initiation services and account
information services, the minimum amount of the insurance policy or the guarantee as set in item 3 of this Decision shall be determined individually for each service and when determining the amount of the policy or the guarantee, the aggregate amount shall be considered. II.1. Risk profile of the payment institution
5. The amount related to the risk profile of the payment institution shall represent
a sum of the value of the requests for refunds received, as set in item 6 of this Decision and the value of the indicator of the number of initiated payments transactions or account information services provided, calculated in accordance with item 7 of this Decision.
6. The value of the indemnification requirements shall represent the total
amount of all indemnification requirements from the payment institution’s service users, during the previous 12 months. If the payment institution provides payment services for less than 12 months, the value referred to in paragraph 1 of this item shall amount to at least 3,000,000 Denars.
7. The value of the indicators of the number of initiated payments or account
information services provided shall be a sum of the following elements, as follows:

• 40% of the number of initiated payments or account information services
  provided in the previous 12 months multiplied by 60, if the number is equal to or less than 10.000 additionally adding,
• 25% of the number of initiated payments or account information services
  provided in the previous 12 months, if the number exceeds 10,000 to 100,000 multiplied by 60 additionally adding,
• 10% of the number of initiated payments or account information services
  provided in the previous 12 months, if the number exceeds 100,000 to 1,000,000 multiplied by 60 additionally adding,
• 5% of the number of initiated payments or account information services
  provided in the previous 12 months, if the number exceeds 1,000,000 to 10,000,000 multiplied by 60 additionally adding,
• 0.025% of the number of initiated payments or account information
  services provided in the previous 12 months over 10,000,000 multiplied by 60. If the payment institution provides payment services less than 12 months, the value referred to in paragraph 1 of this item shall amount to at least 3,000,000 Denars.

3
II.2. Volume of activities of the payment institution
8. The amount that is related to the volume of activities of the payment
institution which provides payment initiation services shall be a sum of the following elements, as follows:

• 40% of the total value of all transactions initiated in the previous 12
  months, if the value is equal to or less than 31,000,000 Denars additionally adding,
• 25% of the total value of initiated payments or account information services
  provided in the previous 12 months, if the value exceeds 31,000,000 to 62,000,000 Denars additionally adding,
• 10% of the total value of initiated payments or account information services
  provided in the previous 12 months if the value exceeds 62,000,000 to 310,000,000 Denars additionally adding,
• 5% of the total value of initiated payments or account information services
  provided in the previous 12 months if the value exceeds 310,000,000 to 620,000,000 Denars additionally adding,
• 0.025% of the value of initiated payments or account information services
  provided in the previous 12 months if the value exceeds 620,000,000 Denars.

9. The amount that is related to the volume of activities of the account
   information service provider shall be a sum of the following elements, as follows:

• 40% of the number of clients that used account information service in the
  previous 12 months multiplied by 60, if the number is equal to or less than 100 clients additionally adding,
• 25% of the number of account information service users/ clients in the
  previous 12 months, if the number exceeds 100 to 10,000 clients multiplied by 60 additionally adding,
• 10% of the number of account information service users/ clients in the
  previous 12 months, if the number exceeds 10,000 to 100,000 clients multiplied by 60 additionally adding,
• 5% of the number of account information service users/clients in the
  previous 12 months, if the number exceeds 100,000 to 1 million clients multiplied by 60 additionally adding,
• 0.025% of the number of account information service users/ clients in the
  previous 12 months, if the number exceeds 1 million clients multiplied by 60. If the payment institution provides payment services less than 12 months, the value referred to in items 8 and 1 of this Decision shall amount to at least 3,000,000 Denars.
  III. REQUIREMENTS THAT POLICY- OR GUARANTEE-ISSUING
  INSTITUTION MUST MEET

10. The financial institution that issues guarantee for liability coverage without
    protest and payable on first demand as collateral for liabilities to the payment service provider can be a bank seated in the Republic of North Macedonia or a foreign bank

4 whose latest long-term credit rating was at least AA- (according to the rating of Standard & Poor's or Fitch) or Aa3 (according to Moody’s).
11. The financial institution that issues insurance policy as collateral for
liabilities to the payment service provider can be an insurance corporation seated in the Republic of North Macedonia or a foreign insurance corporation whose latest long￾term credit rating was at least AA- (according to the rating of Standard & Poor's or Fitch) or Aa3 (according to Moody’s).
IV. CLOSING PROVISIONS
12. This Decision shall enter into force on the eighth day following that of its
publication in the Official Gazette of the Republic of North Macedonia, and shall apply from 1 January 2023. D No. 02-15/XX-4/2022 25 November 2022 Skopje Governor and Chairperson of the Council of the National Bank of the Republic of North Macedonia Anita Angelovska Bezhoska