HomeTechLiabilities Regarding Payment And Electronic Money Institutions Are Extended - Fin Tech...

Liabilities Regarding Payment And Electronic Money Institutions Are Extended – Fin Tech – Turkey

Date:

Related stories

spot_imgspot_img


To print this article, all you need is to be registered or login on Mondaq.com.

With the Regulation on Payment Services and
Electronic Money Issuance and Payment Service Providers
(“Regulation“), and the
Communiqué on Information Systems of Payment and Electronic
Money Institutions and Data Sharing Services in the Field of
Payment Services Providers
(“Communiqué“) published in the
Official Gazette dated December 1, 2021, and numbered 31676,
payment institutions and electronic money institutions are defined
and the obligations regarding these institutions are regulated.

With the Regulation on Amending the Regulation
on Payment Services and Electronic Money Issuance and Payment
Service Providers, and Amending the Communiqué on
Information Systems of Payment and Electronic Money Institutions
and Data Sharing Services in the Field of Payment Services
Providers Communiqué published in the Official Gazette dated
February 28, 2023, and numbered 32118, the transition periods in
some provisions regarding the compliance obligations in the
temporary first articles of the Regulation and the
Communiqué have been extended from February 28, 2023, to
April 30, 2023 (“Extension Date“).

As a result of the amendments, the extended
liabilities of payment institutions and electronic money
institutions are as follows:

Amended Regulation:

  • Institutions operating as of December 1, 2021, are obliged to
    comply with provisions that were not previously included.

  • Services made with prepaid tools that can only be used in the
    issuing institution’s store network as of December 1, 2021, in
    the purchase of a certain group of goods or services, or only in a
    certain service network as a result of an agreement and legal
    entities that provide these services are obliged to comply with the
    provisions of the Regulation (excluding the provisions regarding
    the protection of payment funds and the protection of funds
    collected against electronic money) until the Extension Date.

  • Payment service providers, which hold a payment account as of
    December 1, 2021, and are among the top ten participants in terms
    of the total number of payment transactions carried out in Bank
    Payment Systems in 2020, fulfill the obligations related to the
    necessary infrastructure to other authorized payment service
    providers requesting to be able to provide payment services by
    connecting to the Bankalararasi Kart Merkezi A.S. until the
    Extension Date.

  • Data sharing services that technical requirements of which are
    determined by the Central Bank of the Republic of Turkey
    (“Bank“) within the scope of the
    Regulation, may continue to be provided by using non-standard
    services until the Extension Date.

  • The provisions of this Regulation regarding obtaining an
    operating permit, equity and collateral liability, protection of
    payment funds, and protection of funds collected in return for
    electronic money shall be applied to whom applied for an operating
    permit before December 1, 2021. Legal entities who are granted
    permission to operate according to this provision are obliged to
    comply with the provisions of the Regulation that are not applied,
    and the provisions contained in the regulations are to be made by
    the Bank until the Extension Date at the latest.

  • Legal entities that provide services made with prepaid tools
    that can be used only in the own store network of the issuing
    institution, only in the purchase of a certain group of goods or
    services, or only in a certain service network as a result of an
    agreement, as of December 1, 2021, who granted permission to
    operate according to the Regulation are obliged to comply with the
    provisions of which they are exempt from the Regulation, and the
    provisions included in the regulations to be made by the Bank,
    until the Extension Date at the latest.

Amended
Communiqué:

  • Institutions operating as of December 1, 2021, are obliged to
    comply with provisions that were not previously included.

  • Payment service providers that hold payment accounts as of
    December 1, 2021, and are among the top ten participants according
    to the total number of account payment transactions carried out in
    Bank Payment Systems in 2020, fulfill the obligations related to
    the necessary infrastructure to other authorized payment service
    providers requesting to be able to provide payment services by
    connecting to Account Service Provider (HHS) to BKM API Gateway
    until the Extension Period.

  • Data sharing services, the technical requirements of which are
    determined by the Bank, may continue to be provided by using
    non-standard services until the Extension Period.

Institutions that have not yet fulfilled the
obligations specified in the Regulation and Communiqué and
detailed above are expected to fulfill their obligations until
April 30, 2023.

However, it should be noted that there is a
possibility that the deadline for the above-mentioned liabilities
may be extended by the Central Bank of the Republic of Turkey.

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.

POPULAR ARTICLES ON: Technology from Turkey

Cybersecurity In The New Workplace

lus Laboris

“Armies and missiles are no longer needed to cause mass damage. You can paralyze industrial plants, administrations and hospitals with a simple laptop. You can disrupt an entire electoral…

UK Announces Proposals For Crypto Regulation

Akin Gump Strauss Hauer & Feld LLP

The UK government has announced that it plans to regulate crypto under its existing financial services regime. Under the proposals, crypto will be subject to the UK Financial Services…

- Never miss a story with notifications

- Gain full access to our premium content

- Browse free from up to 5 devices at once

Latest stories

spot_img

LEAVE A REPLY

Please enter your comment!
Please enter your name here