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Licensing and Authorization of Payment System Operators (Directive No. 313/2020)

National Bank Of Ethiopia313/2020

Summary

This directive outlines the licensing and authorization requirements for payment system operators in Ethiopia, issued by the National Bank of Ethiopia.

Who's affected

Entities seeking to operate payment systems within Ethiopia.

Action required

Entities intending to operate payment systems must review and comply with the licensing and authorization procedures detailed in this directive.

Key points

4
  • Defines licensing and authorization procedures for payment system operators.
  • Sets out requirements for capital, governance, risk management, and operations.
  • Establishes penalties for non-compliance.
    • Show 1 more
    • Issued by the National Bank of Ethiopia.

Requirements

6
  • Minimum capital requirements for payment system operators.
  • Fit and proper criteria for directors and senior management.
  • Risk management framework.
    • Show 3 more
    • Business continuity and disaster recovery plans.
    • Compliance and audit functions.
    • Reporting obligations to the National Bank of Ethiopia.

Rights and permissions

2
  • Right to apply for a license to operate a payment system.
  • Right to operate a payment system upon obtaining authorization.

Restrictions

3
  • Operating a payment system without a license is prohibited.
  • Restrictions on foreign ownership and control of payment system operators.
  • Limitations on the types of activities a payment system operator can engage in.

Penalties

3
  • Fines for non-compliance with the directive.
  • Suspension or revocation of license.
  • Other administrative sanctions as deemed necessary by the National Bank of Ethiopia.

Objectives

3
  • To establish a framework for licensing and authorization of payment system operators.
  • To ensure the safety, soundness, and efficiency of payment systems.
  • To promote innovation and competition in the payment system sector.

Organizations

1
  • National Bank of Ethiopia
Original sourcehttps://justice.gov.et/en/directives/licensing-and-authorization-of-payment-system-operators-directive-no-313-2020/
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