Definition of Data

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Main Focus of Document

Makes provisions for crypto currency/digital/virtual money

Target Beneficiaries or Sector

Financial institutions, consumers

Key Elements

Allows for electronic payments and regulates payment institutions accordingly. Additionally, provides for the protection of consumers and privacy of customers; information. Key details include:

13. Consumer protection, education and privacy
(1) A payment service provider shall implement measures to address consumer protection, education and privacy.
(2) A payment service provider shall, pursuant to paragraph (1) ensure that:
(a) it adopts general policies on safe operations, privacy of customers’ information, reliable and quality service, transparency of products and services, and prompt response to inquiries, complaints, refund demands and disputes;
(b) it puts in place rapid dispute resolution mechanisms and retains records of complaints or disputes;
(c) it provides adequate warning statements to users and merchants on the risk of loss arising from failure or insolvency of the issuer, lost or stolen payment instruments or access devices, or fraudulent transactions.
(3) A payment service provider shall
(a) make publicly available clear terms and conditions for use of the payment instruments and devices which it offers, which should, at a minimum include the following:
(i) type of payments that can be made;
(ii) applicable fees and charges;
(iii) availability of user’s statement;
(iv) procedures for reporting lost or stolen instruments/devices and the procedure for lodging a complaint;
(v) the payment service provider’s refund policies;
(vi) rights and responsibilities of users and merchants;
(vii) termination rules; and
(viii) redemption procedures, when relevant.
(b) obtain the consent of its users and merchants to the terms and conditions for use of the payment instruments and devices which it offers and their acknowledgement that they have read and understood such terms and conditions prior to their participation in the scheme.

5. Electronic money issuers
All applicants to issue electronic money products must comply with the general requirements of regulation 3(2) and 3(3), and pursuant to
section 26 of the Act, must also satisfy the Central Bank that the following conditions are met:
(a) The applicant must:
(i) be constituted as a company limited by shares under the Companies Act and be either an independent company or a wholly owned subsidiary of its parent company; and
(ii) have as its sole object, in its Memorandum of Association, the provision of electronic payment services;
(iii) submit the contract referred to in sub-sub paragraph (c)(iii)(aa) to the Central Bank together with the application for a licence to issue electronic money.
(b) the provision of electronic money shall not include the provision of credit, nor be treated as deposits;
(c) Electronic money issuers must—
(i) issue electronic money in exchange for the equivalent value in Bahamian Dollars;
 (ii) redeem the monetary value of electronic money at par with the Bahamian Dollar, upon the request of the payment service user;
(iii) ensure that—
(a) the management of the underlying float, the conditions for redemption of electronic money, including payment of any fees relating to redemption are clearly set out in the contract between the electronic money issuer and the payment services user; and
(b) the payment service user is informed of those conditions before being bound by any contract.
(iv) disclose statistics on the value of electronic money loaded and redeemed in their periodic financial statements; and
(v) furnish any information on their operations, within such time and in such format as the Central Bank may require for its effective oversight of the payments system.
(d) An electronic money issuer must ensure that the clearing and settlement mechanisms which it uses to execute electronic money transactions facilitate provision of final settlement not more than twenty four hours after a payment instruction has been initiated in the banking system or within such other time as the Central Bank may specify.
(e) Electronic money shall not be insured individually and must be deposited in full (one hundred percent) in the banking system in a Custodian Account.
(f) Electronic money deposited in accordance with subparagraph (e) shall remain the property of the payment service users of the electronic money issuer that deposited the electronic money who shall owe to such users, in respect of such deposit, the fullest fiduciary duties recognized under any applicable laws of The Bahamas. 

Policy/Regulation Mirrors

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