Central Bank of Sudan

Regulation for Organizing Payment Systems Business for the Year 2013

In the name of Allah, the Most Gracious, the Most Merciful Regulation for Organizing Payment Systems Business for the Year 2013
Chapter One
Preliminary Provisions
Article:
1- Name of the Regulation and Commencement Thereof 2- Application 3- Interpretation
Chapter Two
Operation of Systems
4- Bases for Granting the License
5- Requirements for Granting the License
6- Licensing Procedures
7- Suspension or Revocation of the License
8- Expiry of the License
Chapter Three
Payment Services
9- Bases for Granting the License
10- Requirements for Obtaining the License
11- Licensing Procedures
12- Suspension or Revocation of the License
13- Expiry of the License
Chapter Four
Stored Value Cards
14- Bases for Granting the License
15- Provision and Issuance of Stored Value Cards 16- Suspension or Revocation of the License

Chapter Five

Supervision

General Provisions for Supervision

Disclosure of Information

Power to Conduct Inspection

Chapter Six

Obligations of Supervisory Authorities

Obligation to Maintain Confidentiality of Information

System Access and Information Request Regime

Use of Agents

Outsourcing of Activities

Liability

Record Keeping

Chapter Seven

General Provisions

Role and Power of the Bank in Determining the Actual Presence of a System or Service

Power to Impose Conditions and Set Restrictions

Power to Approve or Remove Employees and Managers

Sanctions

Appeal of Decisions of the Sanctions Committee

Power to Issue Circulars and Orders

In the name of Allah, the Most Gracious, the Most Merciful Regulation for Organizing Payment Systems Business for the Year 2013

Pursuant to the provisions of Article 60(1) of the Banking Business Organization Act for the Year 2004, the Board of Directors of the Central Bank of Sudan has issued the following Regulation:-

Chapter One

Preliminary Provisions

Name of the Regulation and Commencement Thereof

1- This Regulation shall be called (Regulation for Organizing Payment Systems Business for the Year 2013) and shall come into force from the date of its signature.

Application

2- The provisions of this Regulation shall apply to: -

(1) The conditions and criteria that must be met for the provision of payment services and the operation of payment systems,

(2) The terms, requirements and procedures that will be specified for granting the license, which are as follows:

(a) Operating payment systems,

(b) Providing payment system services,

(c) Providing stored-value card services,

(d) Any other activities related to payment systems.

(3) The means and procedures that the Bank will follow in exercising its powers of regulation, supervision and control over payment systems when carrying out control, inspection and review operations.

Interpretation

3- In this Regulation, unless the context requires otherwise:

"Payment instrument" means any tangible or intangible instrument that enables a person to obtain cash, goods or services, or to carry out a payment transaction or transfer of funds. It includes cheques, debit or deposit transfers, electronic funds transfers, payment cards or any other instrument approved by the Bank, provided that it is issued in compliance with the provisions of Sharia and is issued by the Bank's regulations and circulars from time to time.

"Payment card" means any card, payment voucher or device, including a code or any other means of access to an account, which may be used from time to time to obtain cash or to make payments.

"Stored-value cards" means a payment card on which electronic money is stored.

"The Bank" means the Central Bank of Sudan established under the provisions of the Central Bank of Sudan Act of 2002.

"Settlement" means the process of fulfilling obligations by transferring funds or securities between two or more parties.

"Gross settlement" means a transfer in which funds or securities transfer orders are settled on an order-by-order basis.

"Net settlement" means the final settlement of transfer orders on a net basis at a specified time or several specified and separate times during business hours.

"Clearing" means the process of sending, sorting and/or confirming funds or securities transfer orders prior to final settlement, and includes the net clearing of orders and the determination of final settlement positions.

"Payment service" means any service that enables the withdrawal and deposit of cash or the carrying out of payment operations, the issuance and/or acquisition of payment instruments, the provision of

Central Bank of Sudan
Electronic Payment Systems Wing
Banking Systems Department and Electronic Payment Systems

money transfer services and any services related to the transfer of money. This does not include the mere provision of internet or communications services or network access.

"Guarantee" means the assets provided or the obligation from a third party accepted by the guarantee seeker to secure an obligation from the guarantor to the guarantee seeker, and which complies with the provisions of Islamic Sharia.

"Clearing house" means the Bank or any other entity that carries out clearing operations (with or without settlement) for the system.

"Appeals Committee" is the committee competent to consider the decision of the Sanctions Committee under the Act, and it has the same competencies and powers.

"Sanctions Committee" means the committee formed under Article (6) of the Administrative and Financial Sanctions Regulation of 2004.

"Governor" means the Governor of the Bank.

"Systemic risk" means the risk arising from the ability of a participant to meet its obligations in a system when they fall due, or from a disruption of the system, which may for any reason make other participants in the system unable to meet their obligations when they become due.

"Securities depository center" means an entity in whose register securities are immobilized and in which trading in securities is ultimately enabled by book entry. Securities may be kept with the securities depository center either in the form of digital records or in physical form. The securities depository center may also provide safekeeping services on a fiduciary basis and asset services.

"Participant" means any party permitted under the rules of the system to exchange, clear and settle through the system with other participants directly or indirectly.

"System operator" means the Bank or any other entity licensed by the Bank to operate a system.

"Payment service provider" means any entity licensed by the Bank to provide a payment service.

"Financial institution" means a financial institution as defined in the Banking Business Regulation Act of 2004.

"System" means any payment, settlement or clearing system.

"Settlement system" means any system created and operated by the Bank for the settlement of funds or any system for the payment and settlement of obligations in relation to securities.

"Payment system" means any system or arrangements for the payment and/or clearing and/or settlement of funds

"Clearing system" means a set of procedures under which participants submit and exchange information related to the transfer of funds or securities to other participants through a central system or at a single location, and includes mechanisms for calculating the financial positions of participants on a bilateral or multilateral basis for the purpose of facilitating the settlement of their obligations.

"Electronic money" means a monetary value issued by the Bank, stored in a tangible or intangible electronic device such as a smart card or software, and granted by request of the issuer of the payment instrument approved by order of the Bank, which stores the monetary value, and which is issued after receipt of real cash for the purpose of carrying out payment operations. The stored monetary value must be equivalent to a value deposited in a bank account determined by the Bank.

"Settlement agent" means a financial institution that provides accounts for participants in the system for safekeeping funds and for settling transactions between participants in accordance with the rules of the system.

Chapter Two

Operation of a System

Bases for Granting the License

4- (1) No person may operate a system in whole or in part in Sudan without obtaining prior license from the Bank under the provisions of this Regulation or under any other conditions contained in any relevant directives issued by the Governor from time to time.

(2) In order to operate a system, the following conditions must be met: -

(a) The system operator must be registered as a public or private company in Sudan in accordance with the Companies Act,

(b) Meeting the capital requirements as determined by the Bank from time to time,

(c) The operator must possess the necessary technical and organizational competence and skills to operate the system, and the necessary mechanism to apply internal control controls, and manage the risks related to the operation and management of the system,

(d) The operator must have an effective strategy and business plan based on realistic estimates of budget elements, and the standards determined by the Bank from time to time for this purpose must be taken into account,

(e) The persons nominated to assume the management of the entity authorized to work as an operator must be technically qualified, and must not have been convicted of any crime that violates honor or trust,

(f) The criteria for access to the system must be secure and not discriminatory among users of the system,

(g) The system must have acceptable means of insurance and protection against technical failures,

(h) Any other conditions or controls issued by the Governor from time to time.

(3) The system must be compatible with all standards of control and supervision of payment systems and relevant policies issued by the Governor from time to time.

Requirements for Granting the License

5- The applicant for a license to operate a system for providing documents and information must provide the following:-

(1) The contract, articles of association, registration certificate, business procedures manual, organizational chart, and a list of the names and identities of the directors and shareholders, directly or indirectly, and the persons responsible for management, in addition to the persons responsible for managing the specific activities in the operation of the system,

(2) Description of the system and its feasibility,

(3) A business plan for the next three years,

(4) The system's policies and procedures, including:-

(a) Criteria and requirements for direct and indirect participation in the system,

(b) The basis on which the system operates, whether it is an instant payment mechanism, a clearing mechanism, or otherwise,

(c) The system's rules and the service levels to be provided to participants,

(d) An analysis of the risks and the measures that would limit the system's risks arising from liquidity shortages and insolvency of participants, and the ability to manage these risks,

(e) Identification of the measures taken to protect technical operations, including a contingency plan in the event of interruption of operations resulting from a system failure,

(f) The measures taken to secure and protect electronic operations, and to preserve and store data related to the system and its participants against disclosure, misuse, damage, destruction, loss, or theft,

(g) Any procedures to ensure data protection in accordance with relevant laws or any other procedures approved by the Governor from time to time.

(5) Details of the terms of reference, structure, scope of work, tracks, and periodicity of reports for internal audit and information technology,

(6) The human resources plan to ensure adequate resources for operating the system,

(7) Any other information deemed necessary by the Governor.

Licensing Procedures

6- (1) The licensing procedures for operating a system shall be as follows:-

(a) The application for granting the license or making any amendment thereto shall be in writing,

(b) Payment of a non-refundable fee as determined by the Governor from time to time,

(c) The Governor has the right to request any additional clarifications or information whenever necessary to assess the license application, within (30) days from the date of receipt of the application.

(d) The license application shall be responded to in writing, either by accepting the application and granting the license with or without conditions, or rejecting the application, within (60) days from the date of receipt of the application,

(e) If the licence application is incomplete, the applicant shall complete it within (30) days from the date of being notified of the incompleteness of his application, and in case of failure, the application shall be considered void,

(f) In the event of refusal to grant the licence, the applicant shall be notified in writing of the refusal and the reasons for the refusal shall be explained, and the applicant shall have the right to appeal the decision to the Governor,

(g) The licence shall be valid for a period of three years, after which it shall be considered expired and shall require renewal,

(h) The licence granted under the provisions of this Regulation may not be transferred or bequeathed to any person or transferred by any of the ownership-transferring dispositions without the approval of the Bank.

(2) The Governor may announce his decision to suspend, withdraw or cancel the licence on the Bank's website on the Internet or by any means he deems appropriate,

(3) Any other procedures the Governor deems appropriate.

Suspension or Cancellation of the Licence

7- (1) The Governor may suspend or cancel the licence granted to the operator at any time, if:-

(a) The operator fails to operate the system within (12 months) from the date of obtaining the licence, (b) The system experiences a shutdown for a period exceeding 24 hours,

(c) It is proven that the operator obtained a licence from the Bank by submitting incorrect data or statements or by following improper means,

(d) Failure to comply with the agreed licence requirements,

(e) It becomes clear that the operation of the system poses a risk to the stability of payment systems or the financial system in Sudan,

(f) It is proven that the operator has commenced insolvency or liquidation proceedings,

(g) It appears to the Governor that the system operator has taken any measures or steps that hinder the inspectors from carrying out their duties, or that the inspection reports have proven the repeated violations committed by him in two consecutive reports,

(h) The Governor deems that the system no longer serves the public interest or the interest of the participants.

(2) The operator shall be notified of the Governor's decision to suspend or cancel the licence immediately upon its adoption,

(3) The Governor may announce his decision to suspend or cancel the licence on the Bank's website on the Internet or by any means he deems appropriate.

Expiry of the Licence

8- The licence granted to the operator shall expire in the following cases: -

(1) If its validity period has elapsed,

(2) If liquidation proceedings for the operator have commenced.

Chapter Three

Payment Services

Basis for Granting the Licence

9- (1) No person may provide any electronic payment services in Sudan except after obtaining a prior licence from the Bank under the provisions of this Regulation or under any other conditions contained in any relevant instructions issued by the Governor from time to time.

(2) In order to provide payment services, the following conditions must be met :-

(a) The payment service provider must be registered as a public or private company in Sudan in accordance with the Companies Law,

(b) Must meet the capital requirements as determined by the Governor from time to time,

(c) To ensure the safety of funds received from payment service users, or through another payment service provider to execute payment transactions, by ensuring they are not commingled at any time with third-party balances and are completely isolated from the claims of creditors of the payment service provider in cases of bankruptcy, while ensuring the traceability of funds at any moment.

(d) The existence of arrangements to ensure the smooth operation of payment service activities, which include :-

First) The existence of a clear organizational structure characterized by transparency and consistency in the scope of authority and responsibility, (Second) The existence of effective procedures that determine how to manage, monitor, and report on risks to which it may be exposed in its field of work,

(Third) The availability of sufficient internal control mechanisms and tools, including sound administrative and accounting procedures.

(e) The aforementioned arrangements, procedures and mechanisms must be comprehensive and proportionate to the nature, size and level of complexity of the payment services provided.

(f) Persons nominated to assume the management of the entity licensed to operate as an electronic payment service provider shall not have been convicted of any crime involving dishonesty or lack of integrity.

(3) The payment services provided must be compatible with all standards of control and supervision of payment systems and related policies issued by the Governor from time to time.

Licence Granting Requirements

10- The applicant for a licence to provide a payment service must submit the following documents and information :-

(1) Contract, articles of association, registration certificate, manual of work procedures, organizational chart, and a list of the names of the directors and shareholders directly or indirectly, and the persons responsible for management, in addition to the persons responsible for managing the specified activities in the payment service,

(2) Description and explanation of the type of payment service operations intended to be provided,

(3) A work plan showing that the applicant has the capacity to deploy resources and establish systems and procedures for work properly, and the work plan shall be accompanied by an estimated budget for the first three years, (4) Description of the procedures and measures taken to secure the funds of payment service users,

(5) Description of internal control, administrative, risk management arrangements and mechanisms, and accounting procedures that demonstrate sound management of the payment service applicant,

(6) Description of the internal control mechanisms of the payment service applicant for compliance with and adherence to the provisions and controls of the Anti-Money Laundering and Combating Terrorism Financing Law, including its network of agents if any,

(7) Description of the organizational structure of the payment service applicant, and whether this structure reflects its desire to use agents, in addition to a description of outsourcing arrangements and policies, and whether it participates in national, regional or global payment systems accepted by the Bank.

Licensing Procedures

11- (1) The licensing procedures for providing the payment service are as follows :-

(a) The application for granting the licence or any amendment procedure to it must be in writing,

(b) Payment of a non-refundable fee upon submission of the application as determined by the Governor from time to time,

(c) The Bank shall have the right to request any clarifications or additional information whenever necessary to conduct an assessment of the licence application, within (30) days from the date of receipt of the application by the Bank,

(d) The licence application shall be responded to in writing, either by accepting the application and granting a conditional or unconditional practice licence, or by rejecting the acceptance of the application, within (60) days from the date of receipt of the application by the Bank,

(e) If the licence application is incomplete, the applicant shall have the right to complete it within (30) days from the date of receipt of the application by the Bank, and in case of failure, the application shall be considered void,

(f) In the event of refusal to grant the licence, the applicant shall be notified in writing of the refusal and the reasons for the refusal shall be explained, and the applicant shall have the right to appeal the decision to the Governor,

(g) The licence shall be valid for a period of two years, after which it shall be considered expired and shall require renewal,

(h) The licence granted under the provisions of this Regulation may not be transferred or bequeathed to any person or transferred by any of the ownership-transferring dispositions without the approval of the Bank.

(2) The Governor may announce his decision to suspend or cancel the licence on the Bank's website on the Internet or by any means he deems appropriate,

(3) Any other procedures the Governor deems appropriate.

Suspension or Cancellation of the Licence

12- (1) The Governor may suspend or cancel the licence granted to the payment service provider at any time, if:-

(a) It is proven that the service provider obtained a licence from the Bank by submitting incorrect data or statements or by following improper means, (b) The payment service provider fails to provide the payment service within (6) months from the date of obtaining the licence,

(c) It is proven that the payment service provider has gone bankrupt or has been liquidated, or that it has changed its activity without obtaining prior approval from the Bank,

(d) It is shown to the Governor that the payment service provider has taken any measures or measures that impede the inspectors from carrying out their duties, or that the inspection reports have proven the repeated violations committed by it in two consecutive reports,

(e) In case of non-compliance with the provisions of this Regulation or any related laws,

(f) Failure to provide the payment service in accordance with the agreed specifications and standards, or the lack of quality of the services provided by the payment service provider.

(2) The payment service provider shall be notified of the Governor's decision to suspend or cancel the license immediately after its issuance.

(3) The Governor may announce his decision to suspend or cancel the license on the Bank's website or by any means he deems appropriate.

Expiry of the License

13- The license granted to the payment service provider shall expire in the following cases: -

(1) If its validity period has expired,

(2) The legal personality of the payment service provider ceases to exist.

Chapter Four

Stored Value Cards

Bases for Granting the License

14- (1) No entity shall issue stored value cards without having obtained a prior license from the Bank.

(2) The applicant must fulfill all the conditions set forth in Articles (10) and (11) of the provisions of this Regulation.

Provision and Issuance of Stored Value Cards

15- (1) The issuance of a stored value card must not include the granting of credit.

(2) The provision of stored value cards does not mean storing them or loading them with cash (zero-value card).

(3) All stored value cards in the national currency must be treated as demand deposits. And the stored cash value shall be equivalent to the cash deposited or highly liquid assets accepted by the Bank.

(4) Issuers of stored value cards are committed to paying the value of electronic money with the equivalent value of it in cash on demand.

(5) The issuer of stored value cards must provide statistical data on the electronic money that has been exchanged and loaded into the cards in their periodic financial statements sent to the Bank. The system must also be capable of providing sufficient and reliable information to monitor and supervise the quantity and speed of turnover of the supply of electronic money in the economy.

(6) Banks are the sole participant in electronic money settlement mechanisms.

(7) The system must provide final settlement according to the controls issued by the Bank.

Suspension or Cancellation of the License

16- The Governor may suspend or cancel the license granted for the provision or issuance of stored value cards at any time, if it is proven that the entity has: -

(1) Failed to meet the requirements or standards set forth in the agreed specifications, or

(2) Violated the provisions and conditions set forth in this Regulation or any instructions issued to it by the Bank.

Chapter Five

Supervision

General Provisions for Supervision

17- (1) Payment system services and their providers, system operators and participants therein, providers and issuers of stored value cards, agents and/or any third party providing a service or operating payment systems by assignment shall be subject to the supervision of the Bank.

(2) No obligations or consequences shall arise towards any third party for the persons or entities entrusted by the Bank to carry out the supervision process of payment systems as a result of their performing their function.

(3) Payment system service providers, the system operator, participants therein, and other persons and entities subject to the supervision and control of the Bank shall provide all information and data and refrain from any acts that affect or prevent the mission of supervision, control, and cooperation as required by necessity to accomplish the mission of supervision and control by the Bank.

(4) The Bank may cooperate with the relevant local supervisory authorities in supervising and overseeing payment systems and payment system services and the entities related thereto, exchange information with these authorities, and carry out joint tasks based on memoranda of understanding or any similar agreements agreed upon.

(5) The Bank has the right to cooperate with institutions and entities in other countries for the supervision and control of payment systems and services, and any international or foreign entities or institutions performing similar tasks. It also has the right to exchange information with these institutions and entities.

Disclosure of Information

18-(1) The operator of a payment system, a payment service provider, a participant in a payment system, and the issuer or provider of stored value cards must provide any information requested by the Bank and must make available all books, minutes of meetings, accounts, cash instruments, banknotes, securities, receipts, or any information stored in any media related to its work or the work of its subsidiaries, affiliates, or a third party, for inspection by any entity or employee authorized to inspect appointed by the Bank at the time and in the manner determined by the Bank.

(2) The Bank may request access to systems whenever necessary to extract and derive data and information it deems important for carrying out the tasks of supervision and oversight of payment systems.

(3) The Bank may prepare and publish consolidated reports including all data and information obtained under the provisions of these Regulations for statistical purposes.

Authority to Conduct Inspection

19-(1) The Bank may inspect and visit the premises of payment system operators, payment service providers, and issuers or providers of stored value cards as part of the licensing procedures, and it may also conduct this procedure periodically as part of the inspection system, and this procedure may be conducted with or without written notice.

(2) Under the authority granted in item (1) of this Article, the Bank must be allowed access to systems to monitor their compliance with the standards and policies for oversight of payment systems. The Bank, while doing so, must respect and protect data in accordance with applicable legislation.

(3) The Bank has the authority to inspect premises, equipment, interview employees, retain records, or any other procedures deemed necessary for the purposes of ensuring compliance with standards, policies, and regulations for oversight and supervision of payment systems.

Chapter Six

Obligations of Supervisory Authorities

Obligation to Maintain Confidentiality of Information

20-(1) Authorized entities and persons authorized to supervise and oversee payment systems and services must adhere to the principle of professional secrecy regarding facts obtained while performing these tasks, and the Bank may provide a summary of this information to a third party without disclosing the identity of the persons or entities and the payment systems or services it supervised.

(2) Information obtained during the process of supervision and oversight of payment systems may be used by authorized persons to complete their job duties or in the event of a violation of a decision issued by the Bank related to the oversight and supervision of payment systems and/or payment services, or in other judicial proceedings.

(3) The Bank may provide regulatory authorities in another country with information obtained during its process of oversight and supervision. However, these authorities may be provided with information according to conditions that determine the extent of these authorities' and entities' commitment to protecting information and respecting the principle of confidentiality. Provided that it is used only for the purposes specified, or for the procedures on the basis of which this information was granted. No details of any operation related to a system operator, service provider, or system participant may be disclosed before notifying it.

(4) The Bank may request relevant information needed to carry out its supervisory tasks from regulatory authorities in other countries based on a cooperation agreement or under Article (17)(4) of these Regulations.

System Access and Information Request Regime

21-(1) Subject to what is stated in Article (20), the Governor may impose a system access regime on a person or entity whose systems it has decided to access, regardless of whether this entity is a participant, operator, service provider, provider or issuer of stored value cards, or settlement agent, according to the conditions the Bank deems appropriate.

(2) If a system access regime is imposed under item (1) above, the following must be taken into account:-

The public interest in imposing the access regime,

The interest of those mentioned in item (1) above,

The interest of persons who need or wish in the future to access the system, and

Any other considerations the Bank deems relevant.

(3) When imposing a system access regime under item (1) of this Article, ensuring the fairness of the system and non-discrimination in treatment must be taken into account.

(4) Any changes may be cancelled or made in the access regime imposed under item (1) above, when evaluating the criteria mentioned in item (2) of this Article.

Use of Agents

22-(1) Any entity wishing to provide payment system services to its clients through an agent must, before commencing the use of agents, submit the following data:-

(a) The agent's name, address, national number, and legal capacity.

(b) A description of the internal control mechanisms that will be used by the agents which ensure compliance with their obligations related to combating money laundering and terrorist financing and the Bank's controls regarding know your agent.

(c) Identification of the managers and officials responsible for managing the agents and their legal and administrative capacity.

(2) When the Bank obtains the data under item (1) of this Article, the agents will be listed in a register available to the public through publication, provided that no agent is allowed to practice any activities unless its name is listed in the Bank's announced register list.

(3) The Bank has the right to take measures to verify the accuracy of the agents' data if it doubts the accuracy of the data submitted by the agents.

(4) The Bank has the right to refuse to list any agent if it is convinced of the inaccuracy of the data submitted to it under item (1) of this Article.

(5) Notwithstanding what is stipulated in items (3) and (4) of this Article, the Bank bears no responsibility for any incorrect or misleading data contained in the agents' register as a result of an error by the entity that submitted the data.

(6) The entity that submitted the data must, without delay, notify the Bank of the addition or cancellation of any agent in its agent network, or any amendment to the agent's status or the regulations governing it.

(7) The entity that submitted the data must ensure that the agents working on its behalf have notified their clients of their work as agents for this entity.

Outsourcing of Activities

23-(1) A payment system operator or payment service provider may assign any of its functions to a third party after obtaining prior approval from the Bank.

(2) The Bank may refuse the outsourcing of material operational operations if it deems that they may affect the quality of the internal control mechanisms of payment service providers or payment system operators or affect the Bank's ability to oversee payment systems to ensure compliance with the obligations stipulated under these Regulations or the standards and policies related to the oversight and supervision of payment systems.

(3) For the purposes of item (2) of this Article, operational functions are considered material if a defect or failure in their performance could materially affect the ability of a payment service provider or payment system operator to continue complying with licensing requirements, or its financial performance or continuity.

(4) In the event that a payment system operator or payment system service provider outsources material operational functions, the Bank must ensure its compliance with the following conditions:-

(a) That the outsourcing is not a delegation to carry out senior management responsibilities.

(b) That the outsourcing does not affect the relationship and commitment of the payment system operator or payment service provider with system users and its clients.

(c) That the outsourcing does not affect the ability of the system operator or service provider to comply with the conditions for granting the license or the provisions of these Regulations.

(d) That no amendment or deletion of any of the conditions for granting the license is made.

Liability

24- (1) In the event that a payment system operator or a payment service provider assigns any of its operational functions to a third party, it must take appropriate steps to ensure that the third party complies with all the requirements of these Regulations and the Bank's standards and policies related to the oversight and supervision of payment systems and the requirements of anti-money laundering and counter-terrorism financing.

(2) Payment system operators and payment service providers shall remain responsible for all acts committed by their employees, or any agent, or branch, or any other party to which tasks have been assigned.

Record Keeping

25- (1) Every participant in the system, system operator, payment service provider, and provider and issuer of stored value cards must retain all records related to operational and administrative tasks for the period determined by the Bank.

(2) Electronic means may be used to retain records in accordance with the provisions of item (1) above or any other law.

Chapter Seven

General Provisions

Role and Authority of the Bank in Determining the Actual Existence of a System or Service

26- (1) The Bank may, whenever it has reasonable grounds to believe in the existence of a system for the netting and/or settlement of obligations or for the settlement of securities, request any person who is a party to these arrangements or part of this system to provide it with all documents, records, and information related to this system or those arrangements, in order to determine whether the existence of this system or those arrangements is consistent with the provisions of these Regulations.

(2) The Bank may, whenever it has reasonable grounds to believe that a payment service is being provided, request any person who is a party to the provision of the payment service to provide it with all documents and records

and information related to this service, in order to determine whether the existence of this service is consistent with the provisions of these Regulations.

(3) The Bank may, whenever it has reasonable grounds to believe that stored value cards are being provided or issued, request any person who is a party to this scheme to provide it with all documents, records, and information related to this service, in order to determine whether the existence of this service is consistent with the provisions of these Regulations.

(4) Every person required to provide information, records, and documents pursuant to items (1), (2), and (3) above must respond to those requests.

Authority to Impose Conditions and Place Restrictions

27- (1) The Bank may impose conditions or place restrictions on a system operator, a service provider, providers or issuers of stored value cards, a participant, an agent, a settlement agent, or any other party operating within the payment systems scheme, whenever it deems appropriate, with respect to some or one of the following conditions and restrictions:-

(a) The conditions that must be met by any person in order to be allowed access to or participation in the system,

(b) The conditions that must be followed to operate the system, which include netting agreements,

(c) The conditions that must be met for the system to interact with other systems,

(d) The conditions governing the relationship between the system and its participants,

(e) The conditions governing the relationship between the service provider and its agents, (f) The procedures to be taken by a system operator, a service provider, a provider of stored value cards, a participant, a group of participants, or a settlement agent with respect to its work,

(g) The appointment of a person or entity approved by the Bank to provide technical advice to a system operator, a service provider, a provider or issuer of stored value cards, a settlement agent, a participant, or a group of participants in its field of work,

(h) Netting arrangements,

(i) Risk control and risk management mechanisms,

(j) The conditions related to confirming the finality of settlement,

(k) The conditions related to the nature of financial arrangements between participants,

(l) Protection of funds received from users,

(m) The operational systems and financial safety of the clearing house and all matters that the Bank considers to represent a threat to the financial system,

(n) The issuance and management of specific payment instruments,

(o) The conditions that must be applied in the case of outsourcing operations of the tasks of a system operator or a service provider, or providers or issuers of stored value cards, or a participant, or a group of participants, or a settlement agent.

(p) All matters that the Bank considers necessary or appropriate or in the interest of the public or a segment thereof.

(2) The Governor may change any condition or restriction imposed on a system operator, a service provider, providers or issuers of stored value cards, a participant, a group of participants, or a settlement agent at any time, with notification to it by any means he deems appropriate.

(3) The Governor may issue a written directive specifying to a system operator, a service provider, providers or issuers of stored value cards, a participant, a group of participants, an agent, or a settlement agent, within a specified period of time, to:-

(a) Cease or refrain from entering into any business engagements or agreements,

(b) Perform or carry out acts that the Bank deems necessary for the public interest, or

(c) Establish, amend, or cancel the operating rules of a system.

(4) Any directives issued under the provisions of this Article are binding and take effect from the date of notification of the person or entity to which they are issued.

(5) The entity to which the directives are issued, as stated in item (4) above, must notify the Bank immediately upon completion of the implementation of the directives.

(6) The Governor may suspend any system or payment service whenever he deems that the system or service poses a danger to the public interest.

Authority to Approve or Remove Employees and Managers

28- (1) The Governor shall approve the appointment of the general manager and executive managers of a payment service provider, a system operator, a participant, an intermediary party, a securities depository center, or a settlement agent before granting the license or participation in the system.

(2) The Governor may refuse to approve the appointment of the general manager and executive managers of a payment service provider, a payment system operator, a participant, an intermediary party, a securities depository center, or a settlement agent if it becomes apparent to him that the practical experience is insufficient or unsuitable for the nature of the position, or personal bankruptcy, or if it becomes apparent that he has been convicted of a crime that violates honor and trust.

(3) The Governor may dismiss or suspend the general manager, the executive manager, or any employee, if, without providing any acceptable justification, he violates the provisions of these Regulations, or any related standards or policies issued by the Bank, or fails to comply with the provisions of the financial investigation law and controls with respect to the anti-money laundering or terrorism financing law, or if he has declared bankruptcy or has been convicted of a crime that violates honor and trust.

Violations and Sanctions

29- Without prejudice to any penalties provided in any other law, the Sanctions Committee may take one or more of the sanctions provided in the Sanctions Regulations against a payment service provider, a system operator, providers or issuers of stored value cards, a participant, an intermediary party, a securities depository center, a settlement agent, or its managers, agents, subsidiaries, or a third party, in the event that these entities violate the provisions of these Regulations or any publications, controls, orders, or directives issued by the Bank under these Regulations.

Appeal of Sanctions Committee Decisions

30- Decisions of the Sanctions Committee regarding violations provided in these Regulations may be appealed before the Appeals Committee within 5 business days from the date of issuance of the contested decision.

Authority to Issue Publications, Controls, Orders, and Directives

31- The Governor may issue relevant publications, controls, orders, and directives and take the necessary measures to implement the provisions of these Regulations.

I certify that the Board of Directors of the Central Bank of Sudan has issued this regulation and approved it on the day ......... corresponding to 17 of the month .......... year 1434 AH corresponding to .......... of the month .......... year 2013 AD.

Dr. Mohamed Kheir Ahmed Elzubeir
Governor of the Central Bank of Sudan
Chairman of the Board of Directors