Rwanda
Regulation on Administrative Sanctions Applicable to Payment Systems Operators and Payment Service Providers
Regulation 3 of 2015
- Published in Official Gazette 13 on 30 March 2015
- Assented to on 11 February 2015
- Commenced on 30 March 2015
- [This is the version of this document from 30 March 2015.]
Article one – Purpose
The purpose of this Regulation is to establish administrative sanctions for an operator of payment system and a payment service provider in case of violation of the laws, regulations and directives governing the payment systems and the payment services.Article 2 – The scope
For the purpose of this Regulation, administrative sanctions include disciplinary and pecuniary sanctions.This Regulation is applicable to payment service providers and payment systems operators that violate the provisions of the Law and Regulations.Pursuant to the laws and regulations that establish sanctions applicable to banks and microfinance institutions, this regulation is not applicable to banks and microfinance institutions.Article 3 – Definitions
In this Regulation, the following terms and expressions shall mean:a.Law: The Law n° 03/2010 of 26/02/2010 concerning payment systems.b.Regulations include regulations, directives and decisions of the Central Bank that govern payment systems and payment services.c.Payment service providerAny entity providing services enabling cash deposits and withdrawals, execution of Payment Transactions, issuing and/or acquisition of Payment Instruments, Money Remittances and any other services functional to the transfer of money. The term does not include solely who provides online services or by telecommunication services or network access;d.Payment system operatorThe entity that is in charge of the operation or administration of the payment system;e.Manager: a person who has an executive authority and/or a member of the executive committee of the payment systems operator or for a payment service provider.f.Shareholder: person whose name appears is entered in the share register as the holder for the time being of one or more shares in the company;g.Written warning:Is a document explaining the nature of the violation, often referencing the specific rule or standard violated, and usually the consequences that will follow if the conduct continues.It is issued after two unsuccessful consecutive verbal warnings. The verbal warnings are informal conversations and documented.The purpose of the written warning is to correct a non-compliance with rule or standards by discussing it with the infringer and providing a written record of that conversation.Article 4 – Determination of sanctions
Without prejudice to other sanctions set forth in article 5 of the Law n° 03/2010 of 26/02/2010 concerning payment system, the Central Bank shall determine administrative sanctions applicable to an operator of payment systems or for a payment service provider that violate the provisions of the Law and regulations.Article 5 – Disciplinary sanctions
An operator of a payment system or a payment service provider that violates the provisions of the Law and regulations shall be liable, depending upon the seriousness of the violation, to the following disciplinary measures:1°written warning;2°Permanently or temporarily prohibition from conducting certain activities, or other limitations on the exercise of payment system operations or payment services.Article 6 – Disciplinary sanctions applicable to Directors and Managers
The Central Bank may suspend or dismiss the Directors of the payment system operators or payment services providers in case it determines that the infringement of the Law or the regulations has been committed with the consent or connivance of these persons.Article 7 – Pecuniary sanctions
This Regulation shall determine pecuniary sanctions applicable to operator of systems or a payment service provider that violates the provisions of Law and regulations.The Central Bank may impose pecuniary sanctions either in lieu or cumulatively, the sanctions prescribed in Articles 5 and 6.The amount of each penalty shall depend on the nature of default, according to a scale set out in Appendix.Article 8 – Recovery of the sums related to the penalties imposed
The sums related to the penalties imposed to institutions governed by this regulation shall be recovered in the favour of the Central Bank upon a notification of Central Bank account on which the infringer shall deposit those sums.The infringer shall pay the sums mentioned in paragraph one of this article within ten days of imposition of that sanction.Article 9 – Repealing of inconsistent provisions
All prior regulatory provisions contrary to this Regulation are hereby repealed.Article 10 – Commencement
This Regulation shall come into force on the date of its publication in the Official Gazette of the Republic of Rwanda.History of this document
30 March 2015 this version
Commenced
11 February 2015
Assented to