On Apr. 15, BER BMA issued paper on payment services framework.
BER BMA issued discussion paper re payment services provider regulatory framework.
Mitigates payment risk, systemic safety, customer protection, and market competition.
Payment Service Provider Framework
Standardizes and modernizes Payment service providers (PSPs) regime, incorporate risk-based regulation, enhance licensing, improve technology, align with best practices.
Streamlines licensing through defined categories aligned to BER BMA principles and business models, as well as replace the Money service business act 2016 (MSB Act).
Proposes to implement four-tiered licensing structure, namely, Class T (Testing), Class M (Modified), Class F (Full), Class PG (Professional Grade), with certain restrictions.
PSPs will be required to satisfy the Minimum Criteria for Licensing (MCL), at application stage and at licensing, and adhere to fit/proper, KYC, integrity and AML/CFT standards.
Addresses requirements for digital wallet providers, payment-handling providers, payment technology providers, licensing regime; exclusions certain payment systems.
Framework Objectives
Set unified, cohesive, future-proof payments regulatory framework with new Payment services act (PSA); implement principles of proportionality, risk-based approach.
Align commitment to assist in preventing financial crime, ensure consumer protection.
Additionally, aims to replace the Money service business act 2016 (BER BMA MSB Act).
Proposed framework aims to streamline process for firms seeking multiple licenses.
Further, objective to encourage technological advancements, sustainable innovation.
Align payment regulatory framework with international principles and best practices.
Request for Comment
Comments on discussion paper should be sent by close of business on May 15, 2025.
Regulators
BER BMA
Entity Types
Bank; CNSM; MSB
Reference
CP, RN, 4/15/2025; FinTech; Citation: BER BMA MSB Act;
