Co-Presidency of the Central Monetary and Payments Office

Based on the Central Monetary and Payments Law No. 9 of 2021

The minutes of the meeting of the Board of Directors of the Central Monetary and Payments Office held

on 9/5/2023

Resolves:

Instructions for Electronic Payment Service Providers

Issued in accordance with the provisions of Articles 39 and 40 of Law No. 9 of 2021

 

Chapter One

Definitions, Objective and Scope of Application

Article (1)

Definitions

The following words shall have the meanings assigned to each of them, unless the context otherwise requires:

Monetary Office: Central Monetary and Payments Office in North and East Syria.
Board of Directors: Board of Directors of the Central Monetary and Payments Office.
Co-Chair: Co-chairmanship of the Central Monetary and Payments Office.
Payment Service Provider: An electronic payment company licensed to practice providing electronic payment services by the Central Monetary and Payment Office in accordance with the provisions of these instructions.
“Financial Institution”: means any entity or legal person licensed by the Central Monetary and Payments Office to conduct banking or exchange activities. The definition of “financial institution” may be expanded and clarified by the Office of Payments and Central Currency in the rules issued and published under these regulations.
Payment Services: Services that enable cash deposits and withdrawals, payment transactions related to the issuance and/or acquisition of payment instruments, the provision of money transfer services, payment initiation services, and any other services that transfer funds electronically in any of the currencies.
Electronic money: It is a pre-financed cash value issued against real balances, issued after receiving real cash in the currency approved by the monetary office or its authorized representative by the electronic payment services provider to be used to execute payment orders and electronic financial operations.
Payment Instrument: means a personal device and/or set of actions agreed between the Payment Service User and the Payment Service Provider and used to initiate a payment order.
Payment System: It is an interconnected system of technologies, procedures, rules, payment instruments and remittance systems, ensuring currency circulation. Depending on the type of payments made, payment systems are divided into . Payments for large values and retail payment systems.
Electronic payment instrument: Any instrument, whether tangible or intangible, enables a person to obtain cash, goods or services, make payments or otherwise transfer money, such tools include but are not limited to networks, money transfers using any paper or paperless means (such as ATMs, points of sale, internet, telephone, mobile phones), and payment cards including means that include storing electronic money.
Proxy: means a legal person or other entity contracted by a payment service provider to provide services to payment service provider’s customers on behalf of a payment service provider under a valid agency agreement;
Company: It has the same meaning as specified in the Companies Law.
Outsourcing: It is the outsourcing or assignment of a payment service provider and/or payment system manager operator to a third party to perform part of its technical and technical work and activities, which are usually performed by its internal departments and departments.
Third Party: Any person qualified and specialized to perform the technical and technical work and activities assigned to him by payment service providers and/or payment system operators/administrators.
Interoperability: It means the transfer of electronic transactions between different payment systems and between different payment service providers.

 

 

Article (2)

Instruction Objectives and Scope of Application

  1. These instructions aim to determine the licensing and regulatory requirements for the work of electronic payment companies in all areas of the Autonomous Administration in northern and eastern Syria.
  2. Setting regulatory and supervisory rules related to payment systems and services in a secure and transparent manner that contributes to the development of payment services.
  3. Strengthening the role of the Monetary Office in managing and modernizing payment systems, supervising and controlling them in order to facilitate their procedures and rules and encourage their use in order to raise the operational efficiency of the financial and banking system in particular and the economic system in general and maintain financial and monetary stability.
  4. These instructions apply to all electronic payment companies and their agents in the areas of the Autonomous Administration in northern and eastern Syria in accordance with the provisions contained in these instructions.

 

Chapter Two

Licensing Conditions and Procedures

Article (3)

Prohibiting work for those who do not have the necessary license to provide payment services and/or operate/manage payment systems

  1. No natural or legal person may operate a payment system or provide a payment service unless such person holds a valid payment service provider license issued by the Central Monetary and Payments Office in accordance with these instructions.
  2. No company may be registered to provide any of the payment services or to practice the management and operation of electronic payment systems with the official authorities concerned with the registration of companies except after obtaining the initial approval of the Board of Directors at the Central Monetary and Payments Office.
  3. It is prohibited for any person to use the term payment services or their synonyms or any other similar expression in any language, its publications or commercial address unless he has obtained a license or prior written approval from the Monetary Office.
  4. Exchange offices may not apply for or own a payment service provider license.
  5. SAMA has the right to request the competent authorities to take the necessary legal measures against any person who provides any of the payment services without obtaining a license from him.
  6. The Monetary Office has the right to request any person to provide him with his books, documents and accounts in case of suspicion that he is engaged in the business of providing any payment services without obtaining the necessary license.

 

Article (4)

Application, eligibility criteria

To obtain a Payment Service Provider license, a person seeking the license must:

  1. To be a joint stock company established under the laws of self-administration of northeast Syria.
  2. Apply in accordance with the requirements specified below.
  3. Meet the requirements specified in these instructions.
  4. Mobile telecommunications operators, retail and service markets, non-banking organizations that are all subject to the supervision of the Monetary Bureau, and customers of these various organizations may obtain a license as a payment service provider.

 

Article (5)

Minimum capital requirements

  1. To apply for a Payment Service Provider License and own a Payment Service Provider License, the concerned joint stock company must commence its operations with the minimum capital specified in Appendix 1 of these Instructions, and always keep it at the same level.
  2. The payment services provider must maintain a minimum share capital at all times.
  3. The capital may not be reduced or raised without the prior written approval of the Monetary Office.

 

Article (6)

Payment Service Provider Name

  1. A person applying for a license must apply to the Monetary Office for approval of the name of the proposed payment service provider, taking into account any intellectual property rights that may exist.
  2. The applicant will not use the name approved under the preceding clause 1 for any other purpose.

 

Article (7)

Request for Initial Approval

  1. Anyone wishing to operate a payment system and/or provide payment services must first apply to the Monetary Office for a payment service provider license.
  2. The application for a payment service provider license must be submitted in accordance with the form contained in Annex 2 of these Instructions, indicating the following:
  • A- The type of company and the amount of capital.
  • B- The triple name of the main shareholders in the company’s capital (those who own 5% or more of the company’s share capital), their addresses, nationalities, and the number of shares each of them owns. And the names, addresses and nationalities of the company’s directors.
  • C- The name and address of the auditor.
  • D- Any additional information or data required by the instructions of the Central Monetary and Payments Office or deemed necessary to make its decision in applying for a license.
  1. The license application shall be accompanied by the following:
  • A- The company’s memorandum of association, articles of association and organizational structure.
  • B- A detailed description of the activity to be practiced, clarification of the type of payment system service and its objectives, a description of its mechanisms of work and any presentations that may be requested by the Monetary Office.
  • C- An economic feasibility study and estimated budgets for the first three years of the company’s operation based on realistic estimates.
  • D- A reference document from two persons who are not relatives, attesting to the good character of each of the applicant’s main shareholders (those who own 5% or more of the applicant’s shares), directors and directors.
  • E- The suitability form duly filled out as specified in Appendix 3 of these Regulations for shareholders, directors and important directors of the Company.
  • F- Statement of the source of funds with supporting documents including a certificate of clearance of tax, for the proposed works as set out in Annex 4 to these Instructions.
  • G- If the applicant has a shareholder and is a foreign company:
  1. Notarized copy of the certificate of incorporation of the foreign company issued by the Companies Registry in the country of incorporation
  2. A list of the names, addresses and nationalities of the major shareholders and directors of the foreign company.
  • H- Proof of payment of the non-refundable application fee specified in Appendix 1 of these Instructions.
  • I- Documented procedures and policies of the applicant that:
  1. Formally comply with the requirements of laws, regulations, circulars and other normative tools in force in northeast Syria that define measures to combat money laundering and terrorist financing or activities in violation of international sanctions.
  2. Its purpose and function is to effectively detect transactions, accounts and persons suspected of participating in or using to increase money laundering and terrorist financing or activities that violate international sanctions.
  3. Inform the Central Monetary and Payments Office of all transactions, accounts and suspicious persons.
  4. They are actually carried out in a routine manner by the applicant.
  • J- To demonstrate that the requirements of clause (3) of the preceding paragraph have been met, each owner, officer and manager of the applicant shall submit a written statement certifying – under penalty of law: (a) that the procedures and policies referred to to the applicant are in fact routinely carried out; and (b) that the owner, officer or manager providing the statement undertakes to notify the Monetary Office immediately in the event of any change in such policies or procedures or in their implementation.
  • K- Governance arrangements including internal controls, risk management, accounting procedures, administrative controls and operational risk management with disaster recovery plans and business continuity arrangements, which demonstrate that the arrangements, controls and procedures are appropriate, sound and adequate.
  • L- Documented regulatory arrangements for the intended use of agents and dealers.
  • M- Documented outsourcing arrangements.
  • N- Plan to participate in domestic and foreign payment systems.
  • O- The type of payment system service to be provided, the process progress and the system architecture.
  • P- Pay the minimum capital as specified in Appendix 1 within 30 days of obtaining the initial approval.
  • Q- Any other information or documents required by the rules issued and published by the Monetary Office under these instructions.
  1. Subject to Article 6 of these Instructions, the Monetary Office may request the applicant to change the name of his company for reasons provided to the applicant in writing by the Monetary Office.

 

Article (8)

Receiving/processing the license application and issuing the initial approval

  1. The person/company shall submit the application with all the required documents and documents according to these instructions to the Central Monetary and Payments Office.
  2. The office receives the file and reviews it within thirty days.
  3. In the event that the license application is incomplete, the Monetary Office shall officially notify the applicant through e-mail, official mail and telephone contact, and the applicant must complete the deficiencies within thirty days from the date of notifying him of this, and in the event that he does not complete the deficiencies within the mentioned period, the application shall be considered null and void.
  4. When studying any license application, the Monetary Office has the right to conduct the investigations it deems necessary to ascertain the financial capabilities of the founders as well as the legitimacy of the required documents submitted to it.
  5. When considering the license application, the Monetary Office has the right to reject any founder or shareholder who turns out to fall within the following cases:
  • A- A person convicted of a crime involving moral turpitude and dishonesty, or convicted of practicing or participating in illegal financial activities, unless he has been rehabilitated by a court ruling.
  • B- Who is financially unable to contribute to the capital and pay the value of the shares allocated to him.
  • C- One of the most famous bankruptcy or inability to fulfill its obligations to its creditors, whether inside and outside the northern and eastern regions of Syria.
  • D- Whoever has been permanently suspended as a board member, trustee, director or agent of any financial institution unless such suspension is removed.
  • E- Any person whose name or the name of the entity that participates or contributes to its ownership is included in the local and international money laundering and terrorist financing lists.
  • F- The existence of any other reasons at the Payments Office to be notified in writing.
  1. If the application is approved, the Monetary Office will give an initial license to the applicant allowing him to start the incorporation and registration procedures.
  2. The initial license terminates if:
    • A- All the requirements of the final license have not been met by the applicant within one year from the date of issuance of the initial license, and the Monetary Office has the right to extend the initial license for another six months in the event of substantial justifications accepted by the Monetary Office.
    • B- In the event that the applicant does not pay the minimum capital as described in Appendix No. 1.
  3. In the event of rejection of the application, the applicant shall be notified in writing and the reasons for rejection shall be given.
  4. SAMA has the right to reject or cancel the initial license application in the following cases:
    • A- If the data or documents provided in the application are found to be incorrect or misleading.
    • B- Failure to provide the required additional data, information or documents to the Monetary Office.
    • C- Failure to complete the data or complete the documents required by the Monetary Office.
    • D- If the capital of the payment service provider and/or the payment system operator/manager does not meet the minimum requirements to achieve the objectives, areas of its operations and the activities proposed by the applicant in the feasibility study.
    • E- The Cash Desk considers that the management of the payment service provider and/or the payment system operator/manager are unable to perform its activities.
    • F- The Monetary Office does not accept a shareholder or founder of the non-bank financial institution that will provide payment services and/or operate/manage the payment system and does not change it by the applicants.

Article (9)

Requirements for Final Approval

  1. In the event that the initial approval is issued, the license applicant must complete the following procedures within a period of one year from the date of issuance of the initial approval, the following matters must be completed and provided to the Monetary Office:
  • A- Complete the approvals and licenses from the relevant authorities required by the Monetary Office.
  • B- Proof that the license applicant owns the minimum capital as specified in Appendix 1.
  • C- Pay the license fee as specified in these instructions.
  • D- Nominate the Board of Directors and authorized signatories on behalf of the company and provide the Monetary Office with their signature forms.
  • E- A statement of the equipment, equipment, programs, tools and real estate necessary for its implementation.
  • F- Appointing a statutory auditor to audit and audit the company’s annual accounts.
  • G- Any other requirements and conditions determined by the Office under instructions issued by it.
  1. The initial approval of the license shall be considered canceled if the license applicant does not meet the conditions set forth in this Article within one year from the date of issuance of the initial approval.
  2. A list of the names, professions, citizens, nationalities, dates of birth of the Chairman and members of the Board of Directors, the percentage of shares owned by each of them in the capital, and their curricula vitae that include their experience.
  3. The names and positions of the persons who will assume the executive management of the work of the payment provider and/or the operator/manager of the payment system and their curricula vitae that include their experience, provided that the name of none of them is included in the local or international money laundering and terrorist financing lists.
  4. Details of the payment system used to include: the company designing and developing the system, technical details, local and foreign financial institutions using the system, and any other details needed by the Monetary Office to assess the capability, suitability and safety of the system for the work of the payment provider and/or payment system operator/manager.
  5. Before issuing the final approval decision, the Central Monetary and Payments Office shall ensure the following conditions:
  • A- The character and integrity of the shareholders, directors and key managers of the company.
  • B- Experience of managers and managers of the company.
  • C- The applicant’s financial status and history.
  • D- The applicant’s ability to provide payment services safely and efficiently.
  • E- The source of funds for license applicants.
  • F- The applicant’s creditworthiness as determined by various reliable sources.
  • G- The applicant’s obligation to comply with the laws, regulations, circulars and other normative tools in force in northeast Syria, which outline AML/CFT measures, and activities that violate international sanctions.
  • H- Applicants’ disaster recovery plans and business continuity arrangements.
  • I- The applicant’s other licensed businesses may compromise or otherwise affect the financial integrity or durability of the payment service provider.
  • J- The ability of the Central Monetary and Payments Office to effectively monitor the compliance of the payment service provider with these instructions.
  • K- Issuance and acquisition mechanisms for the applicant.
  • L- Clearing and settlement mechanism.
  • M- Applicant agent agreements.
  • N- Applicant flow flows.
  • O- Applicant’s pricing policies.
  • P- Dispute Resolution and Arbitration Procedures.
  • Q- Any other information that may be requested by the Monetary Bureau.
  • R- Documented outsourcing arrangements (outsourcing).
  1. The Monetary Office may request additional information from the applicant if the information provided is incomplete, or if the Monetary Office deems it necessary.
  2. The Monetary Office assesses the application regarding the capacity of the entity and the suitability of its trustees, major shareholders, directors and managers.
  3. In the event that the license applicant completes the conditions and requirements specified in this Article, the Central Monetary and Payments Office shall issue the final approval within a period of thirty days following the date of completion and acceptance of the conditions and requirements.
  4. The Monetary Office also has the right to appoint any entity it may deem appropriate to ensure the validity of the data and information provided by the license applicant and the extent of his readiness to start practicing the activity, provided that the license applicant bears all related expenses.
  5. In the event that the Monetary Office rejects the application, the Office notifies the applicant in writing and gives the reasons for the rejection.
  • The company that has obtained the final license must conduct its business within a period of three months from the date of obtaining the final license. The license shall be considered revoked if work is not commenced within the specified period.

 

Article (10)

Repayment of capital

  1. The company’s capital as well as the capital increase, as the case may be, shall be paid in one payment in cash to the Central Monetary and Payments Office Fund as a mandatory requirement for initial approval within 30 days of the issuance of the initial approval.
  2. The Monetary Office retains the capital without interest until the final licensing procedures are completed or whenever the company wants to start business and the Board of Directors and authorized signatories of the company or office have been named and the Monetary Office has been informed of their names and specimens of their signatures, the company can submit a written request to the Monetary Office to transfer the capital to its account.
  3. To prove fulfillment of the clause ‏2 Article 5, and ensuring that the payment service provider maintains a minimum capital at all times, the monetary office has the right to request that the payment service provider provide it with its books, documents and accounts at any time.

Article (11)

Review the Central Monetary and Payments Office’s decision to reject the application

  1. The applicant, affected by the decision of the Monetary Office, may apply to the Monetary Office to review its decision within thirty days from the date of notification.
  2. The Monetary Office shall, within thirty days of receipt of the request for review, review the decision and notify the complainant in writing of its final and conclusive decision.
  3. The Monetary Office may issue a license to the payment service provider when the applicant meets the requirements of these instructions.
  4. The Payment System Service Provider license, once issued, remains valid for five years, provided that the license is renewed annually unless suspended or canceled in accordance with the provisions of the Monetary and Payments Law for Northeast Syria No. 9/2021 and these instructions.

 

Article (12)

License Renewal

  1. The license renewal application for a payment service provider must be submitted to the Monetary Office before the end of the thirty-first of January of each year.
  2. The license renewal application must be submitted as in Appendix 5 and must be accompanied by the following:

Pay the license renewal fees stipulated in the First Schedule.

Any other information that may be requested by the Monetary Office.

Article (13)

License Suspension

The Monetary Office may suspend the license of the payment service provider if it is confirmed that the payment service provider:

  • A- It manages its affairs in a way that harms the interest of national payment systems.
  • B- If he commits a fundamental violation of the provisions of these instructions at the discretion of the Monetary Office.
  • C- He shall suspend his services under the Monetary and Payments Law No. 9 of 2021 and these instructions or any other written law.
  • D- When issuing a decision to suspend the license, the PMA may determine a specific period for the suspension, or notify the licensee of the continuation of the suspension until the licensee can prove its compliance with the terms of the license and the provisions of the instructions or complete any necessary procedures determined by the PMA.

Article (14)

License Cancellation

The Central Monetary and Payments Office may revoke the license of a payment service provider if:

  1. Failure to develop risk management plans that include operational risk, anti-money laundering, compliance with international sanctions and counterterrorism financing risk mitigation, liquidity management and no-settlement arrangements.
  2. The execution of operations did not begin within three months from the date of granting the license without the written consent of the Monetary Office.
  3. Fails to comply with the requirements for settling net liabilities in the settlement system of the Northeast Syrian Autonomous Administration.
  4. The license was obtained through false or fraudulent representation.
  5. Did not comply with the provisions of these instructions.
  6. If the company applies to cancel its license.
  7. If it is merged with another company.
  8. In case of non-payment of the fees due by the company.
  9. Has not complied with any other requirements under any other written law.

 

Article (15)

Effect of license revocation

  1. In the event that the Payment Service Provider’s license is revoked by the Cash Bureau, the Payment Service Provider must:
  • A- Deliver the complete database, electronic records in readable form, and other relevant information to the cash desk to facilitate the processing of payments to customers.
  • B- Within seven days from the date of submission of the cancellation notice, deliver the authorization certificate to the Monetary Office.
  • C- Immediately cease the implementation of the payment system services authorized under these instructions.
  1. The Monetary Office notifies the public of cancellation in widely circulated newspapers.

 

Article (16)

Pre-start requirements

  1. A payment service provider may not commence business until the premises, security facilities, telecommunications facilities, processing equipment, anti-money laundering system and accounting systems have been established, and have been inspected, reviewed and approved by the Central Monetary and Payments Office.
  2. The payment service provider must notify the Monetary Office of any change in its shareholder structure.

 

Article (17)

Disputes regarding the decisions and actions of the Central Monetary and Payments Office

The applicant, the license holder of the payment service provider, or any other person affected by a decision or action taken or by the inaction taken by the Monetary Office, has the right to submit the dispute to be settled in accordance with the law that sets out the procedures governing the handling of disputes related to the procedure/inaction of public authorities.

Article (18)

Governance

  1. The payment service provider must have a board of directors consisting of at least three members one of whom has a payment system or relevant experience.
  2. The Board appoints senior management for payment systems operations.
  3. The Monetary Office may have one seat on the Board of Directors with observer status that does not vote.
  4. The payment service provider may not appoint any person to the position of general manager or directors of departments without the prior approval of the Central Monetary and Payments Office.
  5. The Director General and Department Directors of the payment service provider must have sufficient knowledge and experience necessary to carry out the payment service business.
  6. In the event that the Director General or Directors of Departments cease to hold a position, the payment service provider shall, within seven days of the vacancy of the position, notify the Monetary Office of the cessation and the reasons therefor.
  7. The Board of Directors of the payment service provider
  • A- Have a thorough understanding of the operations of the payment system.
  • B- Provide effective oversight of the affairs of the payment service provider.
  • C- Ensure compliance with the regulations and directives issued by the Central Monetary and Payments Office.
  • D- Review and approve internal policies and process procedures. And ensure that the payment service provider always maintains an effective system of internal controls.
  • E- The Monetary Office may dismiss or suspend any person in an administrative position or manager from his duties if he violates the instructions issued in this regard or commits acts that cause or endanger heavy losses to the company in which he works.

Article (19)

Payment Associations

  1. Payment service providers may form associations for matters relating to payment systems and services.
  2. The Assembly referred to in the preceding clause above shall submit to the Central Monetary and Payments Office its statutes which provide, inter alia, as follows:
  • A- Code of Conduct for its members.
  • B- Consumer protection measures in relation to payment services, which include, disclosure of product information, complaints and redress mechanisms.
  • C- Compliance with laws.
  • D- Commitment to fair and ethical practices, and penalties for violating the code of conduct.
  1. The Monetary Office maintains a register of associations that comply with the requirements mentioned in sub-clause (4.2 above) and publishes this register on its website.

Article (20)

Scope of Services

The payment services provider may apply for a license, to provide one or more of the following payment instruments. These include but are not limited to the following, always assuming that all services operate in accordance with the regulations of the Central Monetary and Payments Office and the laws in force:

  1. Issuance of electronic money and mobile financial services.
  2. Provide electronic invoices and bill payment services.
  3. Prepaid card issuance and prepaid card account management services.
  4. Online payment gateway services.
  5. POS acquisition services for locally and non-locally issued payment cards.
  6. ATMs for locally issued and non-local payment cards.
  7. Operate a transfer key for ATMs and POS machines.
  8. Cross-border electronic transfer services.

Article (21)

Risk Management

  1. The payment service provider must mitigate the risks that arise when operating and providing payment system services.
  2. The payment service provider must comply with risk management requirements including technical standards issued by the Cash Desk.
  3. The payment service provider must comply with the international payment standards set out in the Third Schedule to these Instructions.

 

Chapter Three

Payment Services License

Article (22)

Approval of the payment service

 Mechanism of application

  1. Any payment service provider must submit a written request to the Monetary Office for approval to provide payment services as set out in these Instructions.
  2. The application must be submitted on the form as set out in Appendix 6 of these Instructions.
  3. The application for approval of the payment service must be accompanied by the following:
  4. Valid license of the payment service provider.

The type of payment service to be provided in accordance with these instructions.

  1. Risk management plans commensurate with the payment service.
  2. Customer Terms including Disclosure.
  3. Issuance and acquisition mechanisms.
  4. Merchant and Agent Agreements.
  5. Payment instrument action flows.
  6. Pricing Policies.
  7. Any other information that may be requested by the Monetary Office.
  8. The payment service provider must:
  9. Non-acceptance of deposits from the public.

Not to provide credit directly except for credit card services.

  1. Providing payment services within the limits of transactions stipulated by the Central Monetary and Payments Office.
  2. Comply with any other requirements related to the scope of services issued by the Central Monetary and Payments Office.
  3. Not to borrow directly or indirectly without obtaining the prior written approval of the Central Monetary and Payments Office.

 

Article (23)

Grant and validity of consent

  1. The Central Monetary and Payments Office may issue a payment service license or approval to an applicant who meets the requirements of these instructions.
  2. The Central Monetary and Payments Office shall, within sixty days from the date of receipt of the request for approval in accordance with these instructions, or when further information is required after receipt of such information, issue either approval or rejection.
  3. If the application is rejected, the Central Monetary and Payments Office responds in writing to the applicant and explains the reasons for the refusal.

Article (24)

Review the decision of the Central Monetary and Payments Office to reject the application.

  1. When reviewing the application for a payment service provider license, the Monetary Office must ensure that:
  2. The applicant’s ability to provide payment service safely and efficiently.
  3. The adequacy of the payment service provider’s risk management measures including mitigating risks associated with money laundering, terrorist financing, and violations of international sanctions.
  4. Payment service provider’s safety or financial durability.
  5. The applicant system does not impair the ability of the Monetary Office to effectively monitor compliance with this system.
  6. Any other factor that may be determined by the Central Monetary and Payments Office.
  7. The Central Monetary and Payments Office, upon receipt of the complete application and all the required information, evaluates the application and notifies the applicant of the evaluation result.
  8. If the Central Monetary and Payments Office approves the application, it must issue a certificate of approval to the applicant.
  9. In the event that the Central Monetary and Payments Office issues a decision rejecting the application, the applicant may object to this decision as set out in these instructions.

 

Article (25)

Payment Service Approval Validity

Once issued, approval for the payment service remains valid:

  1. for the duration of the payment service provider license.

Unless suspended or canceled in accordance with the provisions of these Regulations.

 

Article (26)

Suspension of an approved payment service

The Monetary Desk may suspend approval for the payment service if it ascertains that the payment service provider:

  1. provides payment service in a manner that harms the interest of national payment systems.
  2. He must suspend his services under any written law.

 

Article (27)

Effect of suspension or revocation of consent

  1. In the event of suspension or cancellation of approval of the Payment Service, the Payment Service Provider immediately ceases to provide the Payment Service.
  2. The Monetary Office notifies the public of suspension or cancellation in widely circulated newspapers.

 

Article (28)

penalties

  • In the event that it is proven that the company has violated the provisions of these Instructions or any of the instructions of other payment instruments, the Monetary Office may impose any of the following penalties:
  1. Initial warning.
  2. Final warning.
  3. Temporarily stop providing service(s).
  4. Permanently stop providing service(s).
  5. Imposing a fine on the company whose value shall not be less than (500) five hundred US dollars and its value shall not exceed (2000) dollars two thousand US dollars.
  • Anyone who practices the activity of providing payment service without obtaining the necessary approvals and licenses from the Monetary and Payment Office shall be punished by a fine of not less than (10,000) ten thousand US dollars and not more than (20,000) dollars (twenty thousand US dollars).
  • Cancellation of the license granted to the company.

 

Chapter Three

Miscellaneous provisions

Article (29)

Agents

  1. The Payment Service Provider may appoint an agent to perform certain services on its behalf by entering into an agency agreement, provided that the approval of the Monetary Bureau is obtained before appointing any agent to provide any payment service pursuant to a written request that includes:
  • A- Expected number of agents
  • B- The data of the persons who will be appointed as agents, in addition to proof of their registration and obtaining the necessary licenses, permits and approvals from the Monetary Office and the competent authorities to practice their activities.
  • C- Activities related to the provision of relevant payment services to be practiced by agents.
  • D- Any other data, information or documents requested by the Monetary Office.
  1. Subject to subsection (1 above) of this Article, the services that an agent may perform on behalf of a payment service provider shall include:
  2. Providing cash services.
  3. Data management services for storage and processing.
  4. Switching Services.

Practicing the activities that he has been licensed to practice only, in accordance with the relevant laws and regulations.

  1. Any other services as stipulated by the Central Monetary and Payments Office under these instructions issued in accordance with the Monetary and Payments Law No. 9 of 2021.
  2. The payment service provider is responsible to its customers for the conduct of its agents, which is carried out within the scope of the agency agreement.
  3. The service provider must oblige the agent to clearly announce to the public proof that he is an authorized agent with the service provider and to show the services provided through him.
  4. Subject to subsection (1 above) of this Article, the Payment Service Provider shall not enter into exclusive agreements with an Agent, prohibiting the use of the Agent by other Payment Service Providers.
  5. The Cash Office may monitor and inspect the agent’s business related to payment services at any time. This clause must be included in the agreement between the payment service provider and the agent.
  6. The Monetary Office must be notified immediately in the event that the agent violates the instructions of the Monetary Office for payment services.
  7. The payment service provider is responsible for monitoring and monitoring the cash and electronic balances of its agents.

 

Article (30)

Presentation and disclosure of fees and costs

  1. The payment service provider must display and disclose the fees, costs, terms and conditions of its services to its customers.
  2. Subject to sub-clause No. 1 of Article 29 of these Instructions, the payment service provider shall notify its customers of the fees, costs and any changes thereto at least one month before the imposition of such fees and charges.
  3. Subject to items No. 1 and 2 of Article 29 of these Instructions, the notice shall be delivered to the customer through electronic means and displayed in a prominent place in the service provider’s offices and agents markets.

Article (31)

Cross-border payments

The payment service provider must not operate the services of the cross-border payment system without the written consent of the Central Monetary and Payments Office.

Article (32)

Interoperability and connectivity with cash desk-managed payment systems

  1. The payment service provider must ensure that any system or service it provides is interoperable with other payment service providers.
  2. The payment service provider shall ensure that any system or service it provides is interconnected and compatible with the relevant payment operating systems managed by the Monetary Bureau or its authorized representative.

Article (33)

Expansion

A payment service provider may not open a branch inside or outside the Northeast Syria Autonomous Administration or establish a subsidiary without the prior written consent of the Central Monetary and Payments Office.

 

Article (34)

data collection

The payment service provider must maintain a sound management information system that facilitates the efficient collection and processing of statistical data and information, and is able to provide an audit trail for its own use, and used by internal and external auditors and by the Central Monetary and Payments Office.

Article (35)

Mergers and acquisitions

  1. The payment service provider must obtain the approval of the Monetary Office, before making any changes in shareholders, directors, trade name, product name or any other work related to this, or any other changes determined by the Monetary Office.
  2. The payment service provider must require written approval from the Central Monetary and Payments Office before entering into any merger or acquisition arrangements.

Article (36)

Record Retention

  1. The payment service provider must obtain records of all transactions conducted during work and keep them for a period of not less than ten years from the date of the transaction, by providing systems capable of saving and storing data securely to ensure its confidentiality and protect it from loss and theft.
  2. The Company shall maintain its headquarters with the following:
  • A- License issued by the Monetary Office.
  • B- Memorandum and Bylaws.
  • C- Documents of the minutes of the meetings of the Board of Directors and its resolutions and the minutes of the Audit Committee.
  • D- Its annual reports, statements of its accounts, financial position and reports of the company’s auditors.
  • E- All records related to operational and administrative tasks.
  • F- Any other data determined by the Monetary Bureau.

 

Article (37)

Primary Data Center

  1. The payment service provider must put its primary data center in relation to the payment system services of the Northeast Syria Autonomous Administration.
  2. The payment service provider is allowed to place its primary data center with a cloud service provider provided that the following points are adhered to:
  • A- Obtain prior written approval from the Monetary Office before using the cloud computing service for primary payment systems and systems containing confidential data.
  • B- Take all necessary measures to ensure the confidentiality, accuracy and availability of data and systems, and apply technical controls that ensure the security, integrity and privacy of data, encrypt it and secure it from unauthorized access, use or modification.
  • C- Implement due diligence procedures when selecting a service provider, and ensure that legislation related to data protection and confidentiality and anti-money laundering and combating the financing of terrorism is in place in the service provider’s country.
  • D- Provide a backup copy of data and information about systems on a daily basis and check them to ensure their safety and keep them in a safe place and accessible at any time.
  • E- Provide the Monetary Office with a report from a specialized company related to the extent of compliance with the provisions of these instructions and the information security standards of the cloud service, especially the Cloud Controls Matrix standard (CCM) or any other similar standard approved by the Monetary Office.

 

Article (38)

Data Backup Center

  1. The payment service provider must maintain a separate data center to serve as backup support for its primary data center, to ensure business continuity whose location must be approved by the Central Monetary and Payments Office.
  2. The data backup center should offer performance similar to that provided by the underlying data center.

 

Article (39)

Compliance with anti-money laundering laws and international sanctions

The Payment Service Provider license holder must establish and maintain procedures and policies:

  1. Fully comply with the requirements of laws, regulations, circulars, and other normative instruments in force in northeast Syria, which outline measures to combat money laundering and terrorist financing, or activities that violate international sanctions.
  2. Its objective and function shall be to effectively detect transactions, accounts and persons suspected of participating in or using to increase money laundering, terrorist financing, or activities that violate international sanctions.
  3. Authorize the reporting of all transactions, accounts and suspicious persons to the Central Payments and Monetary Office.

It is routinely carried out by the payment service provider license holder.

Article (40)

Approval or license is non-transferable/waivable

The license or consent issued under these Instructions may not be transferred, assigned or encumbered in any way to any other person.

Article (41)

Accountability

The payment service provider is fully responsible to all users of the payment services it provides in the event of failure or hacking of the systems and services it manages, leakage of information from them or mismanagement of accounts, and this includes bearing all losses that may result.

 

Article (42)

Confidentiality requirements

  1. The payment services provider and all its employees must maintain the confidentiality of information and documents related to subscribers that reach them by virtue of performing their duties, and they may not disclose any of this information or allow others to view it, unless the access is under the written consent of the subscriber or a court ruling issued by a competent court.
  2. The following cases shall be exempted from the provisions of the confidentiality requirements contained in paragraph (1) of this Article, with the commitment of these bodies to the confidentiality requirements of the information they obtain:

Disclosure of information and documents requested by the Monetary Office or its employees assigned to carry out their duties.

B- Disclosure to perform the specific legal duties of the external auditor or legal advisors

C- Disclosure of some or all information related to the subscriber’s transactions to provide judicial evidence in the existing claim between them about these transactions.

Article (43)

Right of inspection

The payment service provider must allow the inspection and control teams of the Central Monetary and Payments Office to have reasonable access to their offices, systems, and agents.

Article (44)

Downtime

The Licensee may not cease practicing any of its activities unless it obtains the prior written approval of the Monetary Office to do so, without prejudice to the Licensee’s obligations towards its customers, creditors, shareholders or members, as the case may be.

Article (45)

Payment Service Provider Registry

License Renewal Fees License fees for the first time Non-refundable application fee Minimum Capital
5000 thousand US dollars USD 15,000 1000 thousand US dollars 300.000 USD Basic License

Payment Service Provider

 

No nothing No nothing No nothing  300.000  USD One-time service license

E-money issuance and mobile financial services

No nothing No nothing No nothing 100.000   USD One-time service license

Electronic invoice submission and bill payment services

No nothing No nothing No nothing 100.000  USD One-time service license

To provide bill payment services

No nothing No nothing No nothing 100.000  USD One-time service license

Prepaid Card Issuance and Prepaid Card Account Management

No nothing No nothing No nothing 100.000  USD One-time service license

Online Payment Gateway Services

No nothing No nothing No nothing 50.000  USD One-time service license

A- Providing locally and non-locally issued POS service

No nothing No nothing No nothing 50.000  USD B- Providing ATM service for cards issued locally and internationally.
No nothing No nothing No nothing 50.000  USD One-time service license

National switch (splitter)  operation

No nothing No nothing No nothing 100.000  USD One-time service license Cross-border electronic transfer service

Payment system operators and licensed payment service providers shall be registered in a special register prepared for this purpose at the Monetary Office, after obtaining the final license, including the name of the company, its address, the type of activities licensed to provide, the date, sequence, license issuance number and its branches.

Article (46)

Validity and implementation

  1. All competent authorities in the areas of the Autonomous Administration of North and East Syria, each within its jurisdiction, shall implement the provisions of these instructions and their provisions shall be applied from the date of their entry into force.
  2. All payment service providers shall settle their status in accordance with the provisions of this Law within a period of three months from the effective date of these Instructions.
  3. This decision shall be duly published and notified to those who need to act according to it and shall be effective from 1/10/2023.

 

Annex 1

 

   Annex 2

Request for Payment Service Provider License

 

              Note: This application must be filled clearly and in Arabic

 

1. Applicant Name

(as shown in the registration certificate):

2. Category of license for which the application is submitted Payment Service Provider
3. Applicant Contact Information
Physical Address:
Road/Street:
Part Number:
Town/City
Building:
Floor:
Room:
Postal Code:
Telephone/Fax Number
Mobile phone number.
Email Address:

 

 

  1. Shareholder Details

 

figure Name Nationality  Phone & Email Numbers Profession   % of Shares
1.
2.
3.

 

  1. Details of directors and managers in order of seniority:

 

figure Name Nationality surname Education Qualification
1.
2.
3.

 

  1. Other information

 

figure
1. Determine whether any of the partners/directors/shareholders has a benefit in any other company licensed to provide payment services.
 

 

2. Has any previous application been rejected or cancelled? (If so, provide details)
 

 

 

  1. Supporting Documents:

Attach any documents that you feel will support your application.

 

  1. Statement (by shareholders):

 

 

figure Documents
1. Cover Letter
2. All documents included under this system.
I/we the undersigned hereby acknowledge:

 

a) the details contained herein are true and true in accordance with my knowledge and belief;
b) that I/we are not in bankruptcy and have never been convicted of fraud or dishonesty;
Name:  

Signature:

 

Name: Signature:

 

Name: Signature:

 

Proverb: Name: ……………………………………… ………………………………..

Signature: ………………………………………… ………………………

Date: ………………………………………… ……………………………….

Address: ………………………………………… …………………………

Notary

 

 

Annex 3

 

  1. Suitability form (to be completed by all shareholders, directors and managers of the payment service provider)

 

  1. Personal Information

 

  1. a) Full name (Mr/Mrs.) ………………………………. ………………………..
  2. b) Previous names (if any) …………………………………. …………………..
  3. c) Year and place of birth………………………………….. ………………….
  4. d) Nationality … …………………………..
  5. e) National ID card number and date and place of issue ……………………
  6. f) Passport number, date and place of issue ………………………………..
  7. g) Postal address …………………………………….. ………………………..
  8. h) Actual residential address ……………………………………. ……..
  9. i) Phone number …………………………………….. ………………….
  10. j) Email address …………………………………… ……………………….
  11. k) Educational qualifications (attach copies of …………………………………
  12. l) Professional qualifications (attach copies): ………………………………….

 

  1. Employment/Business History

 

Please provide full details:

 

  1. 4. Participation in other companies (directly owned or through agents)

 

Period Employer/Company Name and Address Positions Held and Dates Responsibilities Reasons for leaving work

(where applicable)

Company Name Date of Establishment % of contribution

 

  1. Other Information

5.1  Have you or any entity with whom you have a relationship as a shareholder or director ever obtained or applied for a license to operate a payment system or service business?

………………………………………….. ………………………………………….. ………………………………………….. ………………………………………….. ….

5.2  Have you ever been convicted of any criminal offence in any jurisdiction (country)? If so, provide details of the court that convicted you, the crime, the sentence imposed and the date of conviction.

. ………………………………………….. ………………………………………….. ………………………………………………………………………………

 

  • Have you ever been dismissed from any office or job, disciplined by your employer or barred from joining any profession or job? ………………………………………….. ………………………………………….. …………………………………………..

 

5.4  Have you ever been declared bankrupt or notified of bankruptcy filing? If so, select Status.

………………………………………….. ………………………………………….. …………………………………………..

5.5  Have you ever been held liable by a court for any fraud or other misconduct? If so, provide the details. ………………………………………………………………………………………………………………………………………..

5.6      Is there any additional information you consider relevant to considering your application for a payment service provider license?

……………………………………….. ………………………………………….. …………….

 

  • confession

I understand that intentionally or recklessly providing any false or misleading information in connection with the application for a payment service provider license is a crime.

I certify that the above information is correct to the best of my knowledge and that there are no other facts relating to this request of which the Central Monetary and Payments Office should be aware.

I undertake to inform the Central  Monetary and Payments Office of  any material changes to the application during the consideration of the application.

 

 

 

 

Name:…………………………………………………………………………… Date: ……… ………………………………………….. ……………………………

 

Proverb: Name: ……………………………………… ………………………………..

Signature: ………………………………………… ………………………

Date: ………………………………………… ……………………………….

Address: ………………………………………… …………………………

Notary

 

Note: The Central Monetary and Payments Office must maintain  the confidentiality of the information provided in response to this questionnaire except in cases otherwise provided by law.

Annex 4

  1. Source of funds

 

Please provide details of the actual source(s) of the funds you, as a contributor, wish to invest or use in the proposed business along with supporting documents and a tax clearance certificate:

 

 

 

 

 

  1. confession

 

I understand that it is a crime to provide, intentionally or recklessly, any false or misleading information in an application for a payment system license.

I certify that the above information is correct to the best of my knowledge and that there are no other facts relevant to this request of which the CPFA  should be  aware of the Office of Payments and Central Currency.

I undertake to inform the Central Payments and Monetary Office of any material changes to the application during the consideration of the application.

 

Name:…………………………………………………………………………… Date: ……… ………………………………………….. ……………………………

 

Proverb: Name: ……………………………………… ………………………………..

Signature: ………………………………………… ………………………

Date: ………………………………………… ……………………………….

Address: ………………………………………… …………………………

Notary

Annex 5

 License Renewal Request

    Note: This application must be filled clearly and in Arabic

 

1. Applicant’s Name

(as shown on the registration certificate):

2. Category of license for which the application is submitted: Payment Service Provider

License number. ………………………….

3.

 

Applicant Contact Information
Physical Address:
Road/Street:
Part Number:
Town/City
Building:
Floor:
Room:
Postal Code:
Telephone/Fax Number
Mobile phone number.
Email Address:

 

 

 

 

  1. Supporting Documents
figure Documents
1. Details of the changes that have occurred in relation to the documents submitted during the previous application for a license in accordance with these regulations.
2.  Details of changes to shareholders, directors and management at the payment service provider.

 

  1. Acknowledgment (from shareholders):

 

Proverb: Name: ……………………………………… ………………………………..

Signature: ………………………………………… ………………………

Date: ………………………………………… ……………………………….

Address: ………………………………………… …………………………

Notary

 

I/we the undersigned hereby acknowledge:

 

a) the details contained herein are true and true in accordance with my knowledge and belief;
b) that I/we are not in bankruptcy and have never been convicted of fraud or dishonesty;
Name:  

Signature:

 

Name: Signature:

 

  

Annex 6

 

  1. Request for Approval to Provide a Payment Service

     Note: This application must be filled clearly and in Arabic

 

1. Applicant’s Name

(as shown on the registration certificate):

2. Category of license for which the application is submitted: Payment Service Provision  
3. Applicant Contact Information
Physical Address:
Road/Street:
Part Number:
Town/City
Building:
Floor:
Room:
Postal Code:
Telephone/Fax Number
Mobile phone number.
Email Address:

 

  1. Supporting Documents:

Attach any documents that you feel will support your application.

 

  1. Acknowledgment (from shareholders):

 

Proverb: Name: ……………………………………… ………………………………..

Signature: ………………………………………… ………………………

Date: ………………………………………… ……………………………….

Address: ………………………………………… …………………………

Notary

 

 

I/we the undersigned hereby acknowledge:

 

a) the details contained herein are true and true in accordance with my knowledge and belief;
b) that I/we are not in bankruptcy and have never been convicted of fraud or dishonesty;
Name:  

Signature:

 

Name: Signature:

 

 

Annex 7

  1. International Payment Systems Standards

 

figure Standards

 

Standards Development Body

 

1.  

Principles of financial market infrastructure.

Bank for International Settlements (BIS), Payments and Market Infrastructure Commission and International Organization of the Securities Commission
2. Anti-Money Laundering and Combating the Financing of Terrorism Standards. Financial Action Task Force (FATF)
3.  

 

Telecommunications, security and payment card standards.

  1. International Standards Organization (ISO)
  2.   EMV  Standards
  3. Payment Card Industry and Data Security Standards (PCI/DSS)

 

 

 

Raqqa

Date 14/9/2023.

 

Co-Presidency of the Central Monetary and Payments Office

 

               Doctor Muhammad Alahmad

 

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