Separate regulations will come into force in a few years

Sixty articles - so much contains the basic law, which the Head of State signed on 26^th of July this year. It was published in the press recently.

The developer of the document is the National Bank of Kazakhstan, whose staff will now exercise state control over payment systems and providers of payment services. Let's speak about the most basic standards.

This Law shall apply to legal entities and individuals "as subjects of the relations arising in the implementation of payments and money transfers in the Republic of Kazakhstan, as well as in the functioning of payment systems of the market of payment services".

A few words about the basic requirements to payment systems established in the law. Here, priority is given to regulatory standards, rather than technical parameters. Thus, the operator of the payment system should publish on its internet website the rules of the payment system, as well as information on changes and additions to tariffs and any changes in these tariffs. The operators have the right for transition to the new tariffs only after the publication on the website of tariff amendments. In addition, the law prohibits inclusion of the rules to the payment system, which limit participation of one the participants of the payment system in the other payment systems, including the rules on the exclusive participation. The providers of the services are also prohibited to unilaterally increase the size of the commissions, established on the date the contract was signed between the payment service provider and the client. The exceptions are the commission for international payments and transfers of money, "about the fees of which the payment service provider shall inform the client in the manner and time stipulated in the agreement between them". It should be noted that the law also prohibits the payment organization to carry out other business activities except, for example, purchasing, sales, property rental of real estate, advertising, marketing, consulting and information services. In addition, providers are allowed the development, adaptation, modification, technical support of software, development and security of information systems and networks.

If to talk about other prohibitions, the legal entity that is not a payment system operator "has no right to use the word "payment system" and words derived from it, suggesting that it is working to ensure the functioning of the payment system." Only the National Bank, banks and institutions performing certain types of banking operations, mail operators carrying out postal money transfers, payment organizations, agents, sub-agents have the right to be named providers of payment services. At the same payment service providers under the law can include in the list of important, if, for example, the supplier shall make payments and money transfers "to the systemically important or important payment system, the operators of which are residents of Kazakhstan, during the year in the amount of not less than established by the National Bank". Another condition - the provision of supplier "of services for the production and processing of payment card transactions with its use on the territory of Kazakhstan and abroad throughout the year in the amount of no less than the set by the financial regulator". Provision of payment services through electronic terminals and remote access system without the use of payment cards throughout the year in the amount of not less than index established by the National Bank, is also one of the conditions for inclusion in this list.

 The law provides ten reasons for exclusion of the payment organization from the register of payment institutions of the National Bank. Among them - "systematic (three and more times within twelve consecutive calendar months) failure to provide information on payment services to the National Bank of Kazakhstan), the provision of false information on payment services or inaccurate information to be reported in the documents that affect the decision on registration of payment organizations. "Red card" from the National Bank can also be issued for systematic failure to comply to legislation on payments and payment systems, the failure of the payment organization to exercise its activities within twelve consecutive calendar months from the date of inclusion in the register of payment institutions or termination of its activities for more than six consecutive months. Voluntary termination of its activity through reorganization (merger, consolidation, division, separation, transformation) or liquidation will be grounds for exclusion from the registry.

This law comes into force thirty calendar days after its first official publication. At the same time we pay attention that a number of rules will come into force later. In particular, the paragraph 3 of Article 2, which comes into force on 16^th of December 2020. This provision concerns the requirements for banks, which will become mandatory for the branches of non-resident banks of the Republic of Kazakhstan, established on the territory of our country, but only after three years.

Zhanar Serdalina