Regulation on the criteria on how to stipulate the minimum monetary amount of the professional indemnity insurance or other comparable guarantees

1 of 15 Pursuant to Article 35, paragraph 1 subparagraph 1.1 and Article 65 of the Law No. 03/L-209 on Central Bank of the Republic of Kosovo (Official Gazette of the Republic of Kosovo, No.77 / 16 August 2010), amended and supplemented by Law No. 05/L –150 (Official Gazette of the Republic of Kosovo / No. 10 / 03 April 2017) and pursuant to article 8, paragraph 4, and article 136 of the Law No. 10/L-026 on Payment Services (Official Gazette of the Republic of Kosovo,No.10 / 14 May 2026), the Board of the Central Bank of the Republic of Kosovo, at its meeting held on June 29, 2026, approved the following: REGULATION ON THE CRITERIA ON HOW TO STIPULATE THE MINIMUM MONETARY AMOUNT OF THE PROFESSIONAL INDEMNITY INSURANCE OR OTHER COMPARABLE GUARANTEES CHAPTER I GENERAL PROVISIONS Article 1 Purpose This Regulation establishes the criteria and indicators for the minimum monetary amount of indemnity insurance or other comparable guarantees, as well as the formula for their calculation, for the purpose of determining the minimum monetary amount of such professional indemnity insurance (PII) or other guarantees in accordance with paragraphs 2 and 3 of Article 8 of the Law No. 10/L-026 on Payment Services applicable to entities applying for authorization as payment initiation service providers or registration as account information service providers. Article 2 Scope

1. This Regulation shall apply to applicants for authorization as a payment institution or for registration as an account information service provider with the Central Bank of Republic of Kosovo (CBK), to provide the payment services of payment initiation and account information, as defined in Article 4, paragraph 1, subparagraphs 1.14 and 1.15 of the Law No. 10/L-026 on Payment Services.
2. The annual review provided for in Article 14 of this Regulation is applicable to the entities already licensed or registered to provide payment initiation services and account information services.

2 of 15 Article 3 Definitions

1. The terms and definitions used in this Regulation shall have the same meaning as in Article 4 of the Law No. 10/L-026 on Payment Services.
2. In addition to paragraph 1 of this Article, for the purpose of implementing this Regulation, the following terms and abbreviations shall have the following meanings: 2.1. “AIS” means account information services as defined in the Law on Payment Services; 2.2. “AISP” means an account information service provider as defined in the Law on Payment Services; 2.3. “ASPSP” means an account servicing payment service provider as defined in the Law on Payment Services; 2.4. “CBK” means the Central Bank of Kosovo; 2.5. “Entity” means: 2.5.1 an undertaking applying for a license for the provision of payment initiation services; 2.5.2 an undertaking applying for registration for the provision of account information services; 2.5.3 an undertaking applying for license for the provision of payment initiation services and account information services; 2.5.4 or any of the undertakings referred to in the previous subparagraphs already licensed or registered, as applicable, as provided for in paragraph 2 of Article 2. 2.6. “Law on Payment Services” or “LPS” means Law No. 10/L-026 on Payment Services; 2.7. “PI” means a payment institution as defined in the Law on Payment Services; 2.8. “PISP” means a payment initiation service provider as defined in the Law on Payment Services; 2.9. “PII” means the professional indemnity insurance as defined in the Law on Payment Services; 2.10. “PIS” means payment initiation services as defined in the Law on Payment Services. CHAPTER II CRITERIA FOR THE MINIMUM MONETARY AMOUNT OF INDEMNITY INSURANCE OR OTHER COMPARABLE GUARANTEES Article 4 Purpose and Scope This chapter sets out the criteria and indicators for the minimum monetary amount of liability insurance or other similar guarantees, as well as the formula for their calculation, for determining the minimum monetary amount of the PII or other similar guarantees that must be maintained by entities subject to this regulation, for the entities and persons specified in Article 2 of this regulation.

3 of 15 Article 5 Professional indemnity insurance and comparable guarantees

1. For the purposes of this Regulation, PII and comparable guarantees shall be considered as mutually exclusive and the CBK shall require entities to hold PII or other comparable guarantees in any case.
2. The PII or other comparable guarantees held by entities for the purposes of Article 8, paragraphs 2 and 3 of the LPS shall cover their liabilities as follows: 2.1. in the case of entities applying for a license to provide PIS, the liabilities specified in Articles 73, 89, 90 and 92 of the LPS; 2.2. in the case of entities applying for registration to provide AIS, the liabilities vis-à-vis the ASPSP or the payment service user resulting from non-authorized or fraudulent use of payment account information; 2.3. in the case of entities applying to licensing to provide PIS and AIS, the liabilities referred to in subparagraphs 2.1 and 2.2 of this Article.
3. The minimum monetary amount of the PII or comparable guarantees shall also cover the costs incurred by payment service users and ASPSPs in connection with requests for reimbursement of losses resulting from one or more of the liabilities referred to in Article 8, paragraphs 2 and 3 of the LPS.
4. The minimum monetary amount of the PII or comparable guarantees allows entities to effectively meet their liabilities in relation to their activities by verifying that the PII or comparable guarantees do not contain any clause that could prejudice repayments resulting from refund requests from payment service users and ASPSPs, and that they are valid and enforceable when the liability arises.
5. The minimum monetary amount of the PII or comparable guarantee covers the territories in which the entity offers services, regardless of the countries where their users are established or the place in which the services are provided. Article 6 Criteria and indicators of professional indemnity insurance or comparable guarantees
6. The following criteria shall be used to calculate the minimum monetary amount of PII or comparable guarantees provided for in Article 5 of this Regulation: 1.1. the risk profile criterion, based on the following indicators: 1.1.1 value of requests for refunds received by the entity for the liabilities referred to in Article 8, paragraphs 2 and 3 of the LPS; 1.1.2 number of initiated payment transactions by an entity that provides PIS; 1.1.3 number of payment accounts accessed by an entity that provides AIS; 1.2. the type of activity criterion, based on the following indicators: 1.2.1 whether the entity provides exclusively PIS or AIS, or both;

4 of 15 1.2.2 whether the entity provides other payment services as referred to in Article 4, subparagraph 1.2 of the LPS; 1.2.3 whether the entity is engaged in business activities other than payment services as provided for in Article 20 of the LPS; 1.3. the size of activity criterion, based on the following indicators: 1.3.1 for entities that provide PIS, the value of the transactions initiated; 1.3.2 for entities that provide AIS, the number of users that make use of the AIS; 1.4. the comparable guarantees criterion, based on: 1.4.1 specific characteristics of the comparable guarantees; 1.4.2 triggers for the execution and implementation of the comparable guarantees. Article 7 Calculation of minimum monetary amount of the professional indemnity insurance or comparable guarantees

1. Entities shall calculate the minimum monetary amount of the PII or comparable guarantees using the following formula:
2. To calculate the minimum monetary amount of PII or comparable guarantees, the entity should complete the indicators under each criterion with the relevant values as set out in Articles 8 to 12 of this Regulation and calculate the amount reflecting each criterion separately by adding the amounts reflecting the relevant indicators and using the resulting amounts in the formula above.
3. The minimum monetary value of PII or comparable guarantees should be calculated by entities applying for a license or registration to provide PIS or AIS, as well as by entities already licensed or registered to provide PIS or AIS under the periodic reporting requirements of Article 14 of this regulation. Minimum monetary amount of PII or comparable guarantees = Amount reflective of risk profile criterion

Amount reflective of type of activity criterion + Amount reflective of size of activity criterion

5 of 15 Subchapter I Calculation of the amount that reflects the risk profile criterion Article 8 Value of requests for refunds received by entities

1. In calculating the value of the “refund requests received” indicator, entities should use the aggregated value of all refund requests made by payment service users of the entity and by ASPSPs in the previous 12 calendar months for losses arising from one or more of the liabilities referred to in Article 8, paragraphs 2 and 3 of the LPS.
2. If the entity has not received any claims for refunds in the last 12 months, the value for this indicator should be set to 0 in the formula.
3. For entities that have not provided payment services at any time during the previous 12 months, the aggregate value of all refund requests projected by the entity for the purpose of its application for licensing or registration, as applicable, should be used.
4. For entities in their first year of activity pursuant to obtaining license or registration that have not yet completed 1 full calendar year of activity, the aggregate value of all refund requests projected for purposes of their license or registration application, as applicable, should be used.
5. If the entity does not provide any forecasts of refund requests, or if the amount resulting from the application of the forecast total value of refund request is less than EUR 50 000 (fifty thousand), the value of this indicator in the formula should be set to 50 000 (fifty thousand). Article 9 Number of payment transactions initiated by entities providing payment initiation services
6. Entities should calculate the value of the indicator “number of initiated payment transactions” as the sum of the following elements: 1.1. 40% of the slice of N up to 10 000 initiated payments; plus 1.2. 25% of the slice of N above 10 000 up to 100 000 initiated payments; plus 1.3. 10% of the slice of N above 100 000 up to 1 million initiated payments; plus 1.4. 5% of the slice of N above 1 million up to 10 million initiated payments; plus 1.5. 0.025% of the slice of N above 10 million initiated payments, where N is the number of payment transactions initiated by the entity in the previous 12 months.
7. For entities that have not offered payment services at any time in the past 12 months, the number of initiated payment transactions should be the number of initiated payment transactions projected by the entity for the purpose of its license application.
8. For entities in their first year of activity (after obtaining a license), which have not completed 1 full calendar year of activity, the number of initiated payment transactions should be based on the number of payment transactions forecast by the entity for the purpose of its application for a license.

6 of 15 4. If the entity does not provide any forecasts regarding the number of initiated payment transactions, or if the amount resulting from the application of the forecast number of initiated payment transactions is less than 50 000 (fifty thousand), the value for this indicator in the formula should be set to 50 000 (fifty thousand). Article 10 Number of payment accounts accessed by entities that provide account information service

1. Entities should calculate the value of the indicator “number of accessed payment accounts”, as the sum of the following elements: 1.1. 40% of the slice of N up to 10 000 accessed accounts; plus 1.2. 25% of the slice of N above 10 000 up to 100 000 accessed accounts; plus 1.3. 10% of the slice of N above 100 000 up to 1 million accessed accounts; plus 1.4. 5% of the slice of N above 1 million up to 10 million accessed accounts; plus 1.5. 0.025% of the slice of N above 10 million accessed accounts, where N is the number of different payment accounts accessed by the entity in the previous 12 months.
2. For entities that have not offered payment services at any time in the past 12 months, the number of accessed payment accounts should be the number of accessed payment accounts projected by the entity for the purpose of its license or registration application, where relevant.
3. For entities in their first year of activity (after obtaining a license/registration), which have not completed 1 full calendar year of activity, the number of accessed payment accounts should be based on the number of accessed payment accounts forecast by the entity for the purpose of its application for a license or registration, where relevant.
4. If the entity does not provide any forecasts regarding the number of accessed payment accounts, or if the amount resulting from the application of the forecast number of accessed payment accounts is less than 50 000 (fifty thousand), the value for this indicator in the formula should be set to 50 000 (fifty thousand). Subchapter II Calculation of the amount that reflects the type and size of activity criterion Article 11 Calculation of amount reflective of type of activity criterion
5. Entities applying for a license to provide PIS only should set the value for this indicator in the formula to 0.
6. Entities applying for registration to provide AIS only should set the value for this indicator in the formula to 0.
7. If an entity applies for a license to provide both PIS and AIS, it should calculate the minimum monetary amount separately for each service and add the resulting amounts to obtain the minimum

7 of 15 monetary amount covering both services. In this case, the PII or comparable guarantees covering the provision of both services shall reflect the different liabilities referred to in Article 8, paragraphs 2 and 3 of the LPS. 4. If an entity provides other payment services, as referred to in subparagraphs 1.2.1 to 1.2.6 of paragraph 1 of Article 4 of the LPS, in parallel with either PIS or AIS or both, the minimum amount of PII or comparable guarantees for the provision of PIS or AIS or both should be calculated without prejudice to the initial capital and own funds requirements set out in Articles 9 and 10 of the LPS and applicable CBK Regulations. 5. If an entity is also engaged in business activities other than the provision of payment services, it should add the value of 50 000 to the formula in addition to the values required for the type of activity it intends to provide. 6. However, if an entity that is engaged in other business activities can demonstrate that its engagement has no impact on the provision of PIS or AIS, either because it has a guarantee covering its liabilities arising from the other business activities or because the CBK has required the establishment of a separate entity for the payment service business in accordance with Article 14, paragraph 5 of the LPS, the entity should set the value of the formula to zero. Article 12 Calculation of the amount that reflects the size of activity criterion

1. Entities providing PIS should calculate the amount reflecting the size of activity criterion as the sum of the following elements: 1.1. 40% of the slice of N up to EUR 500 000; plus 1.2. 25% of the slice of N above EUR 500 000 up to EUR 1 million; plus 1.3. 10% of the slice of N above EUR 1 million up to EUR 5 million; plus 1.4. 5% of the slice of N above EUR 5 million up to EUR 10 million; plus 1.5. 0.025% of the slice of N above EUR 10 million, where N is the total value of all transactions initiated by the entity in the previous 12 months.
2. Entities providing AIS should calculate the amount reflective of the size of activity criterion as the sum of the following elements: 2.1. 40% of the slice of N up to 100 users; plus 2.2. 25% of the slice of N above 100 users up to 10 000 users; plus 2.3. 10% of the slice of N above 10 000 users up to 100 000 users; plus 2.4. 5% of the slice of N above 100 000 users up to 1 million users; plus 2.5. 0.025% of the slice of N above 1 million users. where N is the number of users of the AIS, each user being considered separately, who have used the AIS in the last12 months.

8 of 15 3. For entities that have not offered services in the past 12 months, the value of all initiated transactions for a PISP or the number of customers for an AISP, as projected by the entity for purposes of its licensing or registration, as applicable, should be used. 4. For entities in their first year of operation (pursuant to licensing or registration) that have not completed one full calendar year of operation, the value of all initiated transactions in the case of a PISP, or the number of customers in the case of an AISP, as projected by the entity at the time of its licensing or registration, should be used. 5. If the entity does not provide forecasts of the value of all initiated transactions in the case of a PISP or the number of customers in the case of an AISP, or if the amount resulting from the application of the projected value of all initiated transactions or the number of customers is less than 50 000 (fifty thousand), the value of these indicators in the formula should be set to 50 000 (fifty thousand). Article 13 Requirements on documentation and criteria

1. Either a PII or a comparable guarantee, under the terms and calculated as prescribed here is this article , should be held by all entities subject to this Regulation.
2. As evidence of the PII or comparable guarantee, the entity shall provide to the CBK an insurance contract (policy) or similar document confirming the existence of the insurance or guarantee and specifying the relevant obligations covered by the insurance or guarantee.
3. The PII or comparable guarantee should be issued by an insurance company or bank established in Kosovo or otherwise accepted by the CBK, which is not part of the same group as the entity itself.
4. The insurance policy or comparable guarantee shall be payable in the event that the entity is unable to meet its obligations to payment service users and ASPSPs in accordance with the triggers for its implementation. Article 14 Periodic calculation and reporting to the Central Bank of Kosovo
5. All entities subject to this Regulation shall recalculate the minimum monetary value of their PII or comparable guarantees at least annually, within January of each year, based on the annual data of the previous calendar year.
6. Entities shall report to the CBK by the end of February each year, using the forms provided by the CBK in Annex 1 of this regulation, the components and the minimum monetary amount of their PII or comparable guarantees, calculated in accordance with the formulas set out in this Regulation.
7. After the recalculation of the minimum monetary amount of PII or comparable guarantees, the entities shall conclude and sign the insurance or guarantee contract for the recalculated amount and notify the CBK within 10 working days from the date of signing the respective contract.

9 of 15 Article 15 Annex Integral part of this regulation is Annex 1 Tables for calculating minimum monetary amount of professional indemnity insurance or comparable guarantees. CHAPTER III FINAL PROVISIONS Article 16 Enforcement, Improvement Measures and Penalties Any violation of the provisions of this Regulation shall be subject to corrective measures and/or administrative penalties as defined within the article 67 of Law No. 03/L-209 on Central Bank of the Republic of Kosovo, as amended and supplemented by Law No. 05/L –150, and Article 125 of the Law No. 10/L-026 on Payment Services. Article 17 Entry into force This Regulation shall enter into force 15 days from the date of its approval. Dr.sc. Bashkim Nurboja Chairperson of the Board of the Central Bank of the Republic of Kosovo

10 of 15 ANNEX 1 Tables for calculating minimum monetary amount of professional indemnity insurance or comparable guarantees The purpose of these calculation tables is to assist entities in determining the minimum monetary amount of professional indemnity insurance or other comparable guarantees for the provision of account information services (AIS) and/or payment initiation services (PIS), in accordance with Article 8 paragraphs 2 and 4 of the Law on Payment Services and the Regulation on the Criteria for Determining the Minimum Amount of Professional Indemnity Insurance or Other Comparable Guarantees. For entities that aim to offer (that apply for authorization) payment initiation service only (PIS) Initial questions Does the undertaking provide/intend to provide only PIS, only AIS, or both PIS and AIS? Has the undertaking offered services in the previous 12 months? Did the undertaking provide any forecasted value for providing the services? Does the undertaking engage in business other than providing payment services? Does the undertaking have a guarantee that covers its liabilities arising from other business activities? Professional indemnity insurance or comparable guarantee for undertakings providing/intending to provide only PIS Reference Indicator Annual value 8.3, 8.4 and 8.5 Forecasted value of requests for refunds (EUR/12 months) 9.2, 9.3 and 9.4 Forecasted number of initiated payment transactions (units/12 months) 11.5 and 11.6 Engagement in business other than providing payment services 12.3, 12.4 and 12.5 Forecasted value of initiated payment transactions (EUR/12 months) Minimum monetary amount of professional indemnity insurance or comparable guarantee (EUR) Formula* Annual value (+) Amount reflective of risk profile criterion (+) Amount reflective of type of activity criterion (+) Amount reflective of size of activity criterion (=) Minimum monetary amount of professional indemnity insurance or comparable guarantee (EUR) Date of calculation Period of reference (12 months) Note: PIS means payment initiation service and AIS means account information service.

11 of 15 For entities that offer (that are authorized to offer) payment initiation service only (PIS) Initial questions Does the undertaking provide/intend to provide only PIS, only AIS, or both PIS and AIS? Has the undertaking offered services in the previous 12 months? Does the undertaking engage in business other than providing payment services? Does the undertaking have a guarantee that covers its liabilities arising from other business activities? Professional indemnity insurance or comparable guarantee for undertakings providing/intending to provide only PIS Reference Indicator Annual value 8.1 and 8.2 Value of all requests for refunds received (EUR/previous 12 months) 9.1 Number of initiated payment transactions (units/previous 12 months) 11.5 and 11.6 Engagement in business other than providing payment services 12.1 Value of initiated payment transactions (EUR/previous 12 months) Minimum monetary amount of professional indemnity insurance or comparable guarantee (EUR) Formula* Annual value (+) Amount reflective of risk profile criterion (+) Amount reflective of type of activity criterion (+) Amount reflective of size of activity criterion (=) Minimum monetary amount of professional indemnity insurance or comparable guarantee (EUR) Date of calculation Period of reference (12 months) Note: PIS means payment initiation service and AIS means account information service.

12 of 15 For entities that aim to offer (that apply for registration) account information service only (AIS) Initial questions Does the undertaking provide/intend to provide only PIS, only AIS, or both PIS and AIS? Has the undertaking offered services in the previous 12 months? Did the undertaking provide any forecasted value for providing the services? Does the undertaking engage in business other than providing payment services? Does the undertaking have a guarantee that covers its liabilities arising from other business activities? Professional indemnity insurance or comparable guarantee for undertakings providing/intending to provide only AIS Reference Indicator Annual value 8.3, 8.4 and 8.5 Forecasted value of requests for refunds (EUR/12 months) 10.2, 10.3 and 10.4 Forecasted number of accessed payment accounts (units/12 months) 11.5 and 11.6 Engagement in business other than providing payment services 12.3, 12.4 and 12.5 Forecasted number of users of AIS (clients/12 months) Minimum monetary amount of professional indemnity insurance or comparable guarantee (EUR) Formula* Annual value (+) Amount reflective of risk profile criterion (+) Amount reflective of type of activity criterion (+) Amount reflective of size of activity criterion (=) Minimum monetary amount of professional indemnity insurance or comparable guarantee (EUR) Date of calculation Period of reference (12 months) Note: PIS means payment initiation service and AIS means account information service.

13 of 15 For entities that offer (that are registered to offer) account information service only (AIS) Initial questions Does the undertaking provide/intend to provide only PIS, only AIS, or both PIS and AIS? Has the undertaking offered services in the previous 12 months? Does the undertaking engage in business other than providing payment services? Does the undertaking have a guarantee that covers its liabilities arising from other business activities? Professional indemnity insurance or comparable guarantee for undertakings providing/intending to provide only AIS Reference Indicator Annual value 8.1 and 8.2 Value of all requests for refunds received (EUR/previous 12 months) 10.1 Number of accessed payment accounts (units/previous 12 months) 11.5 and 11.6 Engagement in business other than providing payment services 12.2 Number of users of AIS (clients/prvious 12 months) Minimum monetary amount of professional indemnity insurance or comparable guarantee (EUR) Formula* Annual value (+) Amount reflective of risk profile criterion (+) Amount reflective of type of activity criterion (+) Amount reflective of size of activity criterion (=) Minimum monetary amount of professional indemnity insurance or comparable guarantee (EUR) Date of calculation Period of reference (12 months) Note: PIS means payment initiation service and AIS means account information service.

14 of 15 For entities that aim to offer (that apply for authorization) for the provision of payment initiation service and account information service (PIS and AIS) Initial questions Does the undertaking provide/intend to provide only PIS, only AIS, or both PIS and AIS? Has the undertaking offered services in the previous 12 months? Did the undertaking provide any forecasted value for providing the services? Does the undertaking engage in business other than providing payment services? Does the undertaking have a guarantee that covers its liabilities arising from other business activities? Professional indemnity insurance or comparable guarantee for undertakings providing/intending to provide only PIS and AIS Reference Indicator Annual value 11.5 and 11.6 Engagement in business other than providing payment services 8.3, 8.4 and 8.5 Forecasted value of requests for refunds for PIS and AIS (EUR/12 months) PIS Calculation 9.2, 9.3 and 9.4 Forecasted number of initiated payment transactions (units/12 months) 12.3, 12.4 and 12.5 Forecasted value of initiated payment transactions (EUR/12 months) AIS Calculation 10.2, 10.3 and 10.4 Forecasted number of accessed payment accounts (units/12 months) 12.3, 12.4 and 12.5 Forecasted number of users of AIS (clients/12 months) Minimum monetary amount of professional indemnity insurance or comparable guarantee (EUR) Formula* Annual value (+) Amount reflective of risk profile criterion (+) Amount reflective of type of activity criterion (+) Amount reflective of size of activity criterion (=) Minimum monetary amount of professional indemnity insurance or comparable guarantee (EUR) Date of calculation Period of reference (12 months) Note: PIS means payment initiation service and AIS means account information service.

15 of 15 For entities that offer (that are authorized to offer) payment initiation service and account information service (PIS and AIS) Initial questions Does the undertaking provide/intend to provide only PIS, only AIS, or both PIS and AIS? Has the undertaking offered services in the previous 12 months? Does the undertaking engage in business other than providing payment services? Does the undertaking have a guarantee that covers its liabilities arising from other business activities? Professional indemnity insurance or comparable guarantee for undertakings providing/intending to provide only PIS and AIS Reference Indicator Annual value 11.5 and 11.6 Engagement in business other than providing payment services 8.1 and 8.2 Value of all requests for refunds received for PIS and AIS (EUR/previous 12 months) PIS Calculation 9.1 Number of initiated payment transactions (units/previous 12 months) 12.1 Value of initiated payment transactions (EUR/previous 12 months) AIS Calculation 10.1 Number of accessed payment accounts (units/previous 12 months) 12.2 Number of users of AIS (clients/previous 12 months) Minimum monetary amount of professional indemnity insurance or comparable guarantee (EUR) Formula* Annual value (+) Amount reflective of risk profile criterion (+) Amount reflective of type of activity criterion (+) Amount reflective of size of activity criterion (=) Minimum monetary amount of professional indemnity insurance or comparable guarantee (EUR) Date of calculation Period of reference (12 months) Note: PIS means payment initiation service and AIS means account information service.