CBS opens public consultation on proposed amendments to the National Payment System (Licensing and Authorisation) Regulations, 2014 |16 February 2024

The Central Bank of Seychelles is inviting the public to comment on amendments being proposed to the National Payment System (Licensing and Authorisation) Regulations, 2014, which guides the granting of payment service provider licences and authorisation to operate payment, clearing or securities systems.

The amendments are being considered in view of certain deficiencies observed by the Central Bank of Seychelles (CBS) in administering the National Payment System (Licensing and Authorisation) Regulations (NPSR) since its coming into force in 2014.

Key amendments being proposed include:

• Adding criteria that will provide CBS with greater tools and discretion when considering an application, which is deemed critical given the associated risks and adverse implications that failure to meet the set criteria might have on the economy;

• Including provisions in the NPSR as well as the Securities Act, 2007, requiring applicants to ensure that application for a licence or authorisation, as applicable under both laws, is made simultaneously;

• Extending the timeframe for the relevant authorities to assess a complete application for authorisation to operate a payment, clearing or securities systems (PCSS) and licence to serve as a payment service provider (PSP);

• Establishing a standardised approach for the licensing regime and alleviating certain regulatory impediments regarding existing PSPs wishing to expand the scope of payment services being offered locally.

The amendments are being made to have a more robust and up-to-date regulatory and supervisory framework that is aligned with international standards and best practices to keep pace with and support increasing developments within the payment landscape.

The aim is to also ensure greater synergy between CBS and other relevant authorities, particularly the Financial Services Authority, in view of the shared regulatory oversight of operators of securities settlement systems.

CBS is encouraging public participation in this consultation process. Comments, suggestions and feedback can be submitted by email to financialregulation@cbs.sc by February 29, 2024, at the latest. The consultation paper can be accessed on the CBS website via the following link: https://www.cbs.sc/Publications/PublicConsultation.html

Press release from the CBS