Regulation of payment aggregators

The Law of the Republic of Belarus dated 19.04.2022 No. 164-З "On Payment Systems and Payment Services" has for the first time regulated types of payment services and payment services providers as well as requirements to their activities.

Payment aggregators are providers of such payment services as acquiring payment transactions, i.e. accept payments from payment initiators (money transfers, electronic money transfers) to third parties, provide information necessary to make these payments, and transfer money (electronic money) in favor of their recipients.

Payment aggregators are such popular services as Uber, Booking.com, Webpay, EasyPay and others.

A variety of payment aggregators - payment couriers (for example, Wildberries, Ozon, Yandex.Market, AliExpress) which provide acceptance, processing, storage, transportation (organization of transportation in the freight forward activities), delivery (handing) of goods from the sender to the recipient (except for the shipment of goods by mail) and carrying out activities to receive payments for these goods from recipients to senders while providing the service of acquiring payment transactions.

Non-resident payment aggregators are deemed to provide payment services on the territory of Belarus if they accept payments in favor of Belarusian residents.

Commercial activities of payment aggregators (payment couriers), both residents and non-residents, are subject to the following requirements:

• compliance with the requirements of the National Bank regarding:

- payment risk management system and internal control system;

- safe operation norms, financial norms, other criteria;

• guaranteeing the completion of settlements on accepted payments, including through the establishing of a guarantee fund;

• conclusion of contracts:

- with the user for the provision of services: payment agreement, other agreement;

- with the operator of the payment system (for the providers - participants of the payment system);

• provision of information:

- to the National Bank - on payment activities, in some cases – audited annual accounting/financial statements;

- to the users – on the terms of services provision, posting such information on the website;

• anti-money laundering, prevention of financing terrorist activities and proliferation of weapons of mass destruction.

Payment aggregators-residents of Belarus will also have to:

• open a special account for placement and accounting of funds for payments in the settlement center, maintaining separate accounting of funds (for payment aggregators that are not members of the payment system).

Payment aggregators–non-residents of Belarus must have a special permit to provide payment services or similar authorization, if required by the legislation of the country of their registration.

The new regulatory requirements will take effect on 27.08.2022. Resident payment aggregators can operate without being included in the register until 27.11.2022, non-resident payment aggregators - until 27.08.2023.

If you need additional information and/or comments on the regulation of payment aggregators, we will be happy to advise you.

Please contact partner Tatiana Emelianova (tatiana.emelianova@vmp.by).