Decree No. 2017-851 Implementing Law No. 2016-056 of February 2, 2017 on Electronic Money and Electronic Money Institutions

REPUBLIC OF MADAGASCAR
Tanindrazana - Fahafahana - Fandrosoana

MINISTRY OF FINANCE AND BUDGET

DECREE NO. 2017-851

Implementing Law No. 2016-056 of February 2, 2017 on Electronic Money and Electronic Money Institutions

THE PRIME MINISTER, HEAD OF GOVERNMENT,

• Having regard to the Constitution,
• Having regard to Law No. 95-030 of February 22, 1996 on the activity and supervision of credit institutions as amended,
• Having regard to Law No. 2016-056 of February 2, 2017 on electronic money and electronic money institutions,
• Having regard to Decree No. 2016-250 of April 10, 2016 appointing the Prime Minister, Head of Government,
• Having regard to Decree No. 2016-265 of April 15, 2016, amended and supplemented by Decrees No. 2016-460 of May 11, 2016, No. 2016-1147 of August 22, 2016, No. 2017-148 of March 2, 2017, No. 2017-262 of April 20, 2017, No. 2017-590 of July 17, 2017 and No. 2017-724 of August 25, 2017 appointing members of the Government,

On the proposal of the Minister of Finance and Budget,

In Council of Ministers,

DECREES:

Article 1 – Subject Matter
The implementation procedures of Law No. 2016-056 of February 2, 2017 on electronic money and electronic money institutions are established by the provisions of this Decree.

Article 2 – Minimum Capital
Electronic money institutions must hold a paid-up share capital and/or a paid-up endowment equal to five hundred million ariary (MGA 500,000,000) on the date of their incorporation.

Article 3 – Representativeness of Minimum Capital Electronic money institutions must be able to demonstrate that their assets exceed, at all times, by an amount at least equal to the minimum capital, the liabilities for which they are responsible towards third parties.

Article 4 – Competitiveness Rule for Electronic Money Institutions The Banking and Financial Supervision Commission (CSBF) ensures the competitiveness and efficiency of the sector. To this end, the CSBF takes all measures it deems appropriate to guarantee healthy and fair competition among electronic money institutions.

Article 5 – Security of Electronic Money Transactions
5.1. Electronic money institutions and credit institutions exercising electronic money activities ensure that their technological infrastructure meets the standards required by the profession, particularly regarding information security.
5.2. The management of risks related to technological infrastructure must take into account all aspects concerning the security of the technologies used, and the processes and procedures implemented to ensure confidentiality, integrity and availability, authenticity and non-repudiation.
The technology implemented for electronic money activities must comply with the technologies and security standards determined by the CSBF via an instruction.
5.3. Electronic money institutions and credit institutions exercising electronic money activities submit their infrastructure to an annual external audit by a qualified body, approved by a competent authority and experienced, in order to guarantee notably the relevance and efficiency of the security mechanism put in place. The opinion of the CSBF is previously required regarding the appointment of said auditor.
The Banking and Financial Supervision Commission is mandatorily a recipient of the report related to the external audit conducted by the body.

Article 6 – Share Capital of Banking Operation Intermediaries and Credit Institutions Exercising Electronic Money Activities In application of Article 122 of the law on electronic money, banking operation intermediaries applying for approval as an electronic money institution and credit institutions exercising electronic money activities must hold the same capital as mentioned in Article 2 of this Decree. They must, where applicable, carry out a capital increase.

Article 7 – Entry into Force
Due to urgency and without prejudice to its publication in the Official Journal, this Decree enters into force immediately upon its publication via broadcast radio, in accordance with the provisions of Ordinance No. 62-041 of September 19, 1962 on the general provisions of domestic law and private international law.

Article 8 – Final Provisions
The Minister in charge of Finance and Budget is responsible for the implementation of this Decree, which will be published in the Official Journal of the Republic of Madagascar.

Done at Antananarivo, on September 26, 2017
For the Prime Minister, Head of Government MAHAFALY Solonandrasana Olivier The Minister of Finance and Budget

ANDRIAMBOLOLONA Vonintsalama Sehenosoa

FOR TRUE COPY
Antananarivo, on 13 OCT 2017
THE GENERAL SECRETARY OF THE GOVERNMENT

(Signature)
FARATIANA Tsihoara Eugène