Licensing and registration rules for payment systems and payment service providers

Rules for licensing and registering operators of payment systems and payment service providers.

Contents
Definitions
Scope of Application
1 - Activities within the scope of application 2 - Activities outside the scope of application First: Rules for licensing payment institutions from within the Arab Republic of Egypt 1 - Transitional Provisions 2 - Licensing rules 1-2 Operating payment systems or providing payment services by banks 2-2 Payment Institutions 2-2-1 Prior approval for the establishment of a payment institution or amendment of activity in the commercial register 2-2-2 Conditions for granting a license 3-2-2 License Documents 2-2-4 Licensing Procedures 2-2-5 Amendment of the License 2-2-6 Notification or approval of changes in payment institutions 2-2-7 Suspension of activity or cancellation of license partially or wholly and deletion of registration 3 - Registration of Payment Institutions 4 - Financial Guarantee 5 - Fees Second: Rules for licensing payment institutions from outside the Arab Republic of Egypt for residents therein Rules for licensing and registering operators of payment systems and payment service providers CENTRAL BANK OF EGYPT Central Bank of Egypt Introduction These rules have been prepared in accordance with the provisions of the Central Bank and Banking System Law issued by Law No. 194 of 2020, with the aim of enhancing the safety and efficiency of payment systems and services, and include licensing rules. Providing payment services or operating payment systems by banks and other payment institutions from within the Arab Republic of Egypt or from outside it for residents therein. Rules for licensing and registering operators of payment systems and payment service providers CENTRAL BANK OF EGYPT Central Bank of Egypt Definitions For the purposes of these rules, the following words and phrases shall have the meanings assigned to them below:

1. Payment Instrument
   Related Parties
   A means by which the user gives instructions to the payment service provider. to execute a payment order. Individuals who have an agreement to acquire or gain effective control. Of a company, natural persons and their relatives. up to the second degree, as well as legal persons subject. to the effective control of those individuals, as well as the total number of individuals. The legal persons subject to the effective control of those individuals who They have an agreement to exercise their rights in the general assembly or. The board of directors of the company, which leads to effective control over any of them. Payer Effective Control Electronic Acceptance A. The natural or legal person who owns a payment account. and creates or agrees to create payment orders from that account. B. The person who issues payment orders without a payment account. The ability of the person and their related parties to appoint a majority of the members. The board of directors of a company, or to control in any way the decisions that the Issued by its board of directors, or control over the decisions issued by its general assembly. A payment service by which payment transactions are accepted and processed and which results. the transfer of funds to the beneficiary. Rules for licensing and registering operators of payment systems and payment service providers CENTRAL BANK OF EGYPT Central Bank of Egypt The natural or legal person receiving the funds in a payment transaction.
2. Beneficiary
   Payment.
   Participant
   Electronic Content
   Main Contributor
3. Key Officials
   Any party permitted to pay, receive or clear funds.
   Among them or settling them through the payment system, whether directly or.
   Indirectly.
   It refers to the cognitive materials that are stored digitally and prepared for publication on communication networks, whether this content takes the form of text or audio or visual material or forms or programs. The shareholder who owns more than 10% of the issued capital. To the payment institution or from the voting rights, whether individually or through his related parties. Heads and members of the boards of directors of payment institutions and managers. The executives responsible for the main and supervisory activities issued. To define them and determine their specializations, a decision from the Board of Directors of the Bank. Central.
4. Electronic Money
5. Direct Debit Order
   Monetary value denominated in Egyptian pounds or in one of the currencies issued.
   By the official monetary issuing authorities, due to the licensee.
   To issue them, and be stored electronically and accepted as a means of payment.
   A payment order is issued for debiting from the payer’s account for the benefit of the beneficiary based on upon his request in accordance with the instructions contained in the direct debit authorization. Rules for licensing and registering operators of payment systems and payment service providers CENTRAL BANK OF EGYPT Central Bank of Egypt
6. Payment Order
7. Sensitive Payment Data
8. Direct Debit Authorization
9. Payment Account
10. Outsourcing Services
11. Payment Services
    Instructions issued by the payer or the beneficiary based on authorization from the payer. To the payment service provider to carry out the process of depositing funds, or transferring them or withdrawing them, whether in paper or electronic form. The security data and the personal and financial data of the payment service user, That may compromise the security and privacy of the institution and its dealers At risk if exploited, except (name) the account holder and number Payment account, with respect to services for creating payment orders And account information services. An agreement under which the payer grants the beneficiary the right to issue instructions To the payment service provider to execute one or more direct debit orders on The payer's account for the benefit of the beneficiary according to the values and due dates. Indicated in it. The account that bears the names of the payment services users and which is used. To carry out payment transactions, including depositing, transferring or Withdrawing it. Services assigned by licensed payment institutions to a third party. To perform any tasks or activities on its behalf. All services related to account information or the issuance or transmission. Payment orders and operations, or receiving or executing them, whether in local currency Or in foreign currencies, and includes the issuance and management of payment instruments and money. Electronic. CENTRAL BANK OF EGYPT Central Bank of Egypt
12. Payment Order Creation Service
13. Payment Account Service
14. Payment Account Information Service
15. Eligibility and Appropriateness Requirements
    It is the service through which the payment order is created based on the request.
    And authorization from the payment services user associated with the payment account with. Another payment services provider in accordance with the authorization issued by him, without retaining. The payer’s funds at any time. Payment account maintenance and management service for the benefit of the payment service user. A service for providing aggregated information - in its original form or after processing it - About one or more payment accounts with one or more. Payment account service providers, enabling the payment services user to. Process and submit them in alternative ways, provided that they are shared through Electronic channels or others with the payment services user or. Authorized on his behalf. The standards set by the Board of Directors of the Central Bank to approve Appointment of key officials. The international fundamental principles for financial market infrastructure. Issued by the International Committee on Payment and Settlement Systems (CPSS). And the International Organization of Securities Commissions (IOSCO) to regulate. Develop, monitor and identify the work of financial markets to reduce the risks. Related to business and securities, in addition to. Systemic, legal and operational risks, and liquidity risks. And credit. The natural or legal person who uses payment services as. Payer, beneficiary or both. Rules for licensing and registering operators of payment systems and payment service providers CENTRAL BANK OF EGYPT Central Bank of Egypt (PFMIS)
16. Payment Service User
    The licensed institution to operate the payment system by the Board of Directors.
17. Payment System Operator
    Central Bank.
    The payment system operator that is classified as operating a system of systemic importance. According to the decision of the Board of Directors of the Central Bank, in light of the purpose.
18. Operator of a payment system of systemic importance from it, the scope of its business, the value of its transactions, the number of participants in it, and its impact.
    On the stability of the financial system in the country and its susceptibility to the requirements of this. Classification. It is the payment system operator that is created for a temporary period to settle the conditions.
19. Clearing System Operator
    Payment system operator of systemic importance and subject to settlement.
20. Payment Services Provider
    The institution licensed to provide one or more payment services.
21. Payment Services Provider Category (A)
    The institution licensed to provide all payment services and which increases.
    The monthly average of the values of payment transactions carried out by it exceeds an amount. 750 million Egyptian pounds during the 12 months prior to the date. Average account. The institution licensed to provide all payment services - except for the service. Creating payment orders and the payment account information service - which amounts to The monthly average of the value of payment transactions carried out by it is an amount of 750 million Egyptian pounds or less during the 12 months prior to. Date of average account. Rules for licensing and registering operators of payment systems and payment service providers CENTRAL BANK OF EGYPT Central Bank of Egypt
22. Payment Services Provider Category (B)
23. Payment Institutions
24. Payment System
    Companies and entities other than banks that engage in any activity that includes.
    Operating payment systems or providing payment services, whether from within.
    Arab Republic of Egypt or from outside it for residents therein.
    A set of means and procedures for paying, clearing or settling.
    Funds by transferring funds between two or more parties through.
    An electronic system.
    CENTRAL BANK OF EGYPT
    Central Bank of Egypt
    Scope of Application
    The provisions of these rules apply to any natural or legal person who practices or wishes to obtain a license to practice. Any activity that includes operating payment systems or providing one or more payment services, whether from within the Arab Republic of Egypt The Arab Republic of Egypt or from outside it for residents, and this includes entities established under special laws. Activities within the scope of application First: Operating payment systems Second: Providing payment services, after obtaining a license by decision of the Board of Directors of the Central Bank, And includes the following:
    1-1 Cash deposit and withdrawal from the payment account and its operation using payment instruments, means and acceptance channels. Electronic. 2-1 - Execution of payment transactions, including the transfer of funds to the payment account by the payment service provider. By the user or by another payment services provider, including:
    1-2-1 Direct debit transactions, including one-time direct debit, direct debit orders and authorizations. Direct debit. 2-2-1 Payment transactions using all payment instruments, including credit cards and digital payment instruments, as well as. By way of example, but not limited to. 3-2-1- Direct addition transactions, including standing payment orders. 3-1 Issue payment instruments and electronic acceptance channels. 1-4 Electronic acceptance includes:
    1-4-1 Providing technological services for payments.
    1-4-2 Facilitating electronic payment operations services.
    1-4-3 Cash Collection.
    1-5 Sending remittances in Egyptian pounds, and disbursing remittances received in Egyptian pounds regardless of their currency. 1-6 Payment Order Creation Services. 7-1 Payment Account Information Services. 8-1 Payment Account Services. 9-1 Issuing electronic money. Rules for licensing and registering operators of payment systems and payment service providers CENTRAL BANK OF EGYPT Central Bank of Egypt Activities outside the scope of application 1-2 Cash payment transactions executed directly between the payer and the beneficiary without the intervention of any intermediary. 2-2 Payment transactions related to traveler's checks or paper receipts. 3-2 Payment transactions resulting from services provided by mobile phone companies and services provided by other parties to the subscriber, so that it is provided in addition to electronic communication services, and includes services the following:
    1-3-2 Buying electronic content.
    2-3-2 Donating to institutions authorized to collect donations.
    While adhering, when implementing these additional services, to the following specifications:
    A. Charging the value of the transaction for what is collected in exchange for telephone communication services for customers. B. The payment transaction does not include the use of foreign currency.
    C. The cumulative value of payment transactions for the subscriber does not exceed three thousand Egyptian pounds during the month.
    2-4 The following are not considered payment systems or services: stock exchanges and financial instruments exchanges, and futures exchanges. And systems for settling securities and financial instruments, and companies licensed to conduct central deposit and registration operations. For securities and financial instruments, custodians, and internal systems of the Ministry of Finance that do not include payment or collection. Funds from dealers with it from state employees or from other natural or legal persons and the resulting. From clearing or settling funds. Rules for licensing and registering operators of payment systems and payment service providers CENTRAL BANK OF EGYPT Central Bank of Egypt First: Rules for licensing payment institutions. From inside the Arab Republic of Egypt. 1 - Transitional Provisions With the exception of banks, any existing institution that engages in an activity that includes operating payment systems or providing payment services must. Apply for a license within twelve months from the date of issuance of these rules, and that is entitled to. The institution continues its activity, and this is based on what is determined by the Board of Directors of the Central Bank, until a decision is taken. Regarding the license application.

• Licensing rules
  1-2 Operating payment systems or providing payment services by banks.
  2-1-1 Banks are allowed to engage in the activity of operating payment systems or providing payment services, provided that they obtain approval. Prior to the Central Bank before practicing the activity and without the need to obtain a license. 2-1-2 Approvals issued by the Central Bank before the date of issuance of these rules are valid. 2-1-3 Banks must comply with the provisions of paragraphs (2-2-6-1-2-a) and (2-2-6-5-e) of these rules. 2-2 Payment Institutions 2 - 2 - 1 Prior approval for the establishment of a payment institution or amendment of activity in the commercial register:
  2-2-1-1 An application must be submitted to the Central Bank to obtain prior approval in any of the following cases:
  A. Starting the procedures for establishing a payment institution.
  B. Recording or adding the activity of providing payment services or operating payment systems in the commercial register and the system. The basic, that is for existing institutions. 2-2-1-2 The application is submitted to the Central Bank to issue a decision regarding