national payment systems...BELIZE: NATIONAL PAYMENT SYSTEM ACT, 2017 ARRANGEMENT OF SECTIONS PART 1 Preliminary 1. Short title. 2. Interpretation. PART 2 Administration of the National

BELIZE:

NATIONAL PAYMENT SYSTEM ACT, 2017

ARRANGEMENT OF SECTIONS

PART 1

Preliminary

1. Short title.

2. Interpretation.

PART 2

Administration of the National Payment System

3. Establishment of National Payment System.

4. Operational role of the Central Bank.

5. Cooperation with other authorities.

6. Establishment of the National Payment System Council.

PART 3

Licensing

7. Prohibition against carrying on activity without licence.

8. Application for licence.

9. Grant of licence to provide a payment service.

10. Grant of licence to operate a system.

11. Exemptions from licensing.

12. Display of licence.

13. Licence non-transferable.

14. Renewal of licence.

15. Conditions of licence.

16. Revocation or suspension of licence.

PART 4

Rules to Regulate a System

17. Establishment of rules of a system.

18. Amendment of rules.

19. Access to systems.

20. Central Bank directives.

PART 5

On-going Oversight

21. General and individual measures.

22. Power to examine and inspect.

23. Outsourcing of activities.

24. Use of agents.

25. Liability.

26. Compliance with the Money Laundering and Terrorism (Prevention)Act.

27. Retention of records.

28. Access to information and audit.

29. Disclosure of information.

30. Publication of data.

PART 6

Fees

31. Oversight, regulatory and operational fees and charges.

32. Application and licence fees.

PART 7

Infringement and Administrative Measures

33. Infringements and remedial measures.

34. Removal of officer or employee.

35. Procedure for administrative measure and penalties.

36. Payments to Central Bank.

PART 8

Settlement, Netting and Finality of Payment

37. Settlement of accounts.

38. Finality of payment.

39. Collateral for payment and settlement obligation.

PART 9

Winding Up and Administration of a System Operator or Participant

40. Central Bank to be notified of winding up.

41. Prohibition.

42. Winding up or administration of an operator or participant not toaffect finality.

43. Rules of the systems to bind liquidators.

44. Preservation of rights.

45. Conflict of laws provision.

PART 10

Provisions Affecting Cheques

46. Presentment of cheques.

47. Electronic presentment of cheque.

PART 11

Electronic Fund Transfers and Electronic Money

48. Enforceability and evidence of electronic funds transfer.

49. Issuance of electronic money.

PART 12

Miscellaneous Provisions

50. Transparency of fees.

51. Disclosure of terms and conditions.

52. Settlement of disputes by arbitration.

53. Protection for acts done in good faith.

54. General offences and penalties.

55. Limitation to prosecution.

56. Regulations, orders, directives or guidelines.

57. Transitional provisions.

No. 15] National Payment System 101

Short title.

AN ACT to provide for the establishment of a NationalPayment System and for its regulation and oversight;and to provide for matters connected therewith orincidental thereto.

(Gazetted 11th February, 2017)

BE IT ENACTED, by and with the advice and consentof the House of Representatives and Senate of Belizeand by the authority of the same, as follows:

PART 1

Preliminary

1. This Act may be cited as the

NATIONAL PAYMENT SYSTEM ACT, 2017.

No. 15 of 2017

I assent,

(SIR COLVILLE N. YOUNG)Governor-General

3rd February, 2017.

2. In this Act,

“account” means any account maintained with a paymentservice provider who holds accounts in accordance with thelaws of Belize;

“affiliate” has the meaning assigned to it in section 2 of theDomestic Banks and Financial Institutions Act;

“bank” has the meaning assigned to it in section 2 of theDomestic Banks and Financial Institutions Act;

“Central Bank” means the Central Bank of Belize establishedunder section 4 of the Central Bank of Belize Act;

“central counter-party” means an entity that is the buyer toevery seller and the seller to every buyer in a settlementsystem;

“central securities depository” means an entity whichenables,

(a) securities to be immobilized or dematerialized;

(b) securities transactions to be processed bybook-entry;

(c) custodial and asset services to be provided;and

(d) securities to be held either as an electronicrecord or in physical form;

“clearing” means the process of transmitting, reconcilingor confirming funds or securities transfer instructions priorto settlement and includes the netting of instructions and theestablishment of final positions for settlement;

102 National Payment System [No. 15

Interpretation.

CAP. 262

No. 11 of 2012

“clearing house” means an entity that provides clearing orsettlement services for a system and includes the CentralBank;

“clearing system” means a set of procedures wherebyparticipants present and exchange information relating tothe transfer of funds or securities to other participantsthrough a centralized system or at a single location andincludes mechanisms for the calculation of participants’positions on a bilateral or multilateral basis with a view tofacilitating the settlement of their obligations;

“close-out netting” means a netting arrangement underwhich, following the occurrence of certain events specifiedby the parties to the arrangement, all or any of thetransactions referred to in the netting arrangement may beterminated, and where so terminated the termination valuebecomes due and payable;

“Council” means the National Payment System Councilestablished under section 6;

“counter party” means the opposite party to a financialtransaction such as a securities trade or swap agreement,

“credit card” means a card that authorizes the person namedon it to charge goods or services to the account of an accountholder on a credit basis subject to repayment over a periodof time;

“credit risk” means the risk that a counter party to afinancial transaction will not settle that party’s obligation forfull value either when due or at any time thereafter;

“credit transfer” means the series of transfers, beginningwith the payer’s payment order, made for the purpose ofmaking payment to the payee and includes a payment orderissued by the payer’s payment services provider, or anintermediary intended to carry out the payer’s paymentorder;


“credit union” has the meaning assigned to it in section 2of the Credit Unions Act;

“debit card” means a card or other instrument, by whichmoney is automatically deducted from an account at adeposit-taking institution to pay for goods or servicespurchased;

“debit transfer” means the series of transfers, initiated bya payee, on the basis of a payer’s consent given to the payee,to the payee’s payment service provider or to the payer’sown payment services provider and includes a paymentorder issued by the payee’s payment service provider, oran intermediary intended to carry out the payee’s order;

“dematerialized” means the elimination of physical certificatesor documents of title which represent ownership of securitiesso that securities exist only as accounting records;

“direct participant” means a participant in a system who isresponsible for the settlement of its own payments, those ofits consumers and those of other participants who are notentitled to settle through the system on their own behalf;

“electronic funds transfer” means a transfer of funds whichis initiated by a person, either totally or partially, so as toinstruct, authorise, or order a payment service provider todebit or credit an account through an electronic terminal,telephonic instrument or other automated device, excludingthe sale of postal money orders, and including,

(a) point-of-sale transfers;

(b) automated teller machine transactions;

(c) transfers initiated by telephonic instruments,including mobile phones;

(d) transactions through television, the Internetand other communication channels; and


CAP. 314

(e) credit card and debit card transfers;

“electronic money” means monetary value represented bya claim on the issuer, which is,

(a) stored on a payment device such as a chip,prepaid card, mobile phone or on a computersystem;

(b) issued on receipt of funds of an amount not lessin value than the monetary value issued; and

(c) accepted as a means of payment by personsother than the issuer,

but the funds referred to in paragraph (b) above shall notbe treated as a deposit under this or another enactment;

“financial institution” has the meaning assigned to it insection 2 of the Domestic Banks and Financial InstitutionsAct;

“fit and proper person” has the meaning assigned to it insection 5 of the Domestic Banks and Financial InstitutionsAct;

“gross settlement” means the settlement of funds or securitiestransfer instructions that occur individually on an instructionby instruction basis;

“international remittance service” means a remittanceservice that includes, in whole or part, the sending from orreceiving at or by a location or person within Belize of cash,cheques or other monetary instruments to or from a locationor person outside of Belize;

“liquidity risk” means the risk that a participant in asettlement system will not settle an obligation for full value


No. 11 of 2012

No 11 of 2012

when due, even if the participant is not insolvent and maybe able to settle the obligation at an unspecified timethereafter;

“multilateral netting” means an arrangement among threeor more parties to net their obligations;

“National Payment System” includes all the institutions,infrastructure, processes, activities, mechanisms; rules,regulations and procedures in Belize, whether wholly orpartially, that are related to systems, operators, paymentservice providers, payment services, participants, otherusers of systems and users of payment services;

“net settlement” means a settlement procedure in whichfinal settlement of transfer instructions occurs on a net basisat one or more discrete and pre-specified times during theprocessing period;

“net termination value” means the net amount obtained aftersetting off or otherwise netting the settlement obligationsbetween the parties in accordance with settlement rulesissued by the Central Bank or a netting arrangement enteredinto between the parties;

“netting” means the determination of the net paymentobligations or the determination of the net termination valueof settlement obligations between two or more participantswithin a system;

“netting arrangement” means an arrangement in writing toconvert several claims or obligations into one net claim orone net obligation and includes bilateral netting, multilateralnetting, netting by novation, close-out netting, paymentsnetting or a combination of any of these;

“netting by novation” means a netting arrangement betweenthe parties to a series of transactions where an account of


amounts due is kept and the rights and obligations of theparties in respect of the account are continuously extinguishedand replaced by a new single amount payable by one partyto the other;

“officer” has the meaning assigned to it in section 2 of theDomestic Banks and Financial Institutions Act;

“operator” means the Central Bank or any entity licensedby the Central Bank to operate a system;

“participant” , in relation to a system”, means a party whois recognized in the rules of a system as eligible to exchange,clear and settle through the system with other participantseither as a direct participant or through the services of adirect participant;

“payment card” means a card, coupon book, or otherdevice, including a code or any other means of access toan account, that may be used to obtain money or to makepayment, and includes a debit, credit and stored-value card;

“payment instrument” means an instrument, whether tangibleor intangible, that enables a person to obtain money, goodsor services or to otherwise make payment or transfer moneyand includes, but is not limited to, a cheque, a fund transferinitiated by any paper or paperless device such as automatedteller machines, point of sale, internet, telephone, mobileand payment cards, including those involving storage ofelectronic money;

“payment service” means a service which enables cashdeposits and withdrawals, execution of a payment, the issueor acquisition of a payment instrument, the provision of aremittance service, and any other service functional to thetransfer of money and includes the issue of electronicmoney and an electronic funds transfer but excludes theprovision of a solely online or telecommunication serviceor network access;


No. 11 of 2012

“payment service agent” means a person who is authorisedto provide a payment service as an agent on behalf of apayment service provider and who is authorised undersection 24;

“payment service provider” means a person that is licensedto provide a payment service;

“payment system” means any system that consists of a setof instruments, banking procedures and, typically, interbankfunds transfer systems that ensure the circulation of money;

“Register” means the register required under section 24;

“remittance service” means a domestic or internationalservice, excluding the sale of a postal money order and anelectronic funds transfer, where cash, cheques, othermonetary instruments are sent from one location and acorresponding sum in cash or other monetary instrumentsis received by a designated recipient in another location bymeans of a communication, a message, transfer or througha clearing system in which the remittance service provideris a participant;

“securities” means negotiable or non-negotiable financingor investment instruments that denote ownership, a right orother interest and include, but are not limited to bonds,debentures, notes, options, shares and warrants;

“settlement” means the act of discharging obligations bytransferring funds or securities between two or moreparties;

“settlement account” means an account at the Central Bank,a settlement agent or central counter-party used to holdfunds and securities and to settle transactions betweenparticipants in a system;


“settlement agent” means a company providing accountsfor the participants in a system to hold funds and to settletransactions between participants in the system;

“settlement risk” means the risk that a party will default onone or more settlement obligation to the opposite party orto a settlement agent;

“settlement rules” means the rules, that provide the basisupon which payment obligations are calculated, netted orsettled and includes rules for the taking of action in the eventthat a participant is unable or likely to become unable tomeet its obligations to a payment system, clearing house,central counter-party or other participants and includessettlement of obligations from securities;

“settlement system” means a system established and operatedby the Central Bank for the discharge of payment obligationsas well as of settlement of obligations in relation to securitiesor another system which is approved by the Central Bankfor this purpose;

“system” includes a payment system, clearing system orsettlement system but excludes,

(a) a clearing house recognized under any otherlaw;

(b) an in-house system operated by a person solelyfor his own administrative purposes that doesnot transfer, clear or settle funds for thirdparties; or

(c) any other system or arrangement as may beprescribed by law; and

“systemic risk” means the risk that the failure of oneparticipant in a system, or in financial markets, to meet its


required obligations will cause other participants or financialinstitutions to be unable to meet their obligations, includingsettlement obligations in a system, when due and that thismay cause significant liquidity or credit problems and maythreaten the stability of a financial market.

PART 2

Administration of the National Payment System

3.–(1) The Central Bank shall establish the NationalPayment System.

(2) The Central Bank shall regulate and oversee theNational Payment System with the aim of reducing anyinefficiencies and potential risks to the National PaymentSystem.

(3) Without prejudice to the generality of subsection(2), the Central Bank shall,

(a) formulate policies for continuous modernizationof the National Payment System;

(b) license payment service providers andoperators in conformity with the provisions ofthis Act and any further implementing measure;

(c) establish general or individual conditions,standards, rules or procedures in accordancewith this Act and any further implementingmeasure regarding an entity licensed underthis Act and its activities and ensure that theseconditions, standards, rules and proceduresare duly applied;


Establishmentof NationalPaymentSystem.

(d) act as a forum for the consideration of mattersof policy and mutual interest concerning theNational Payment System;

(e) perform any other functions relating topayment, clearing or settlement systems or theissuance of payment instruments permittingthe accomplishment of its functions; and

(f) issue regulations, order, directives, guidelinesor notice to govern the operation and regulationof the National Payment System.

4.–(1) The Central Bank may provide facilities for asystem to an operator or participant.

(2) The Central Bank may, in order to facilitate itsrole pursuant to subsection (1),

(a) establish, own, operate and participate in theownership or operation of a system;

(b) act as a central counter-party to participants;

(c) hold accounts for an operator or participant,which may be used for the clearing andsettlement of transfers into a system;

(d) hold securities on accounts for an operator andparticipant, which may be used for the workingof a system;

(e) extend intra-day credit, where it has beengranted adequate collateral, to entities that areparticipating in a system; or

(f) act as a central securities depository andauthorize another entity to act as a centralsecurities depository.


Operationalrole of theCentral Bank

5.–(1) The Central Bank may cooperate with,

(a) a public authority engaged in the regulationand supervision of financial institutions;

(b) an entity directly or indirectly involved inpayment services and their operation in Belize;

(c) an entity directly or indirectly involved in theregulation, monitoring and supervision ofcapital markets in Belize; and

(d) a monetary authority or internationalorganisation dealing with regulation andoversight of a system.

(2) The Central Bank may for the purpose ofcooperating with an entity or authority referred to insubsection (1) enter into a memorandum of understandingwith that entity or authority.

(3) Subsection (2) does not prohibit the CentralBank from cooperating with an authority or entity referredto in subsection (1) in the absence of a memorandum ofunderstanding with that authority or entity.

6.–(1) The National Payment System Council is herebyestablished for the purpose of advising the Central Bankon the regulation and oversight of the National PaymentSystem, including, but not limited to, setting operationaland technical standards and other matters affecting paymentservices and the clearing and settlement of payments andsecurities.

(2) The Council shall consist of seven members,and be chaired by a representative from the Central Bankand the other members appointed by the Central Bank,on the recommendation of the following entities,


Cooperationwith otherauthorities.

Establishmentof the NationalPaymentSystemCouncil.

(a) other governmental bodies that regulate or arein any other way involved in a system orfinancial market;

(b) if in existence, associations of financialinstitutions and credit unions operating inBelize which are involved in a payment serviceor clearing and settlement of securities; and

(c) any other entity, involved in a payment serviceor in the clearing and settlement of securities,as may be determined by the Central Bank.

PART 3

Licensing

7. A person shall not provide payment services oroperate a system unless that person is duly licensed forthat purpose by the Central Bank.

8.–(1) An applicant for a licence to provide a paymentservice shall apply to the Central Bank in the prescribedmanner, together with payment of the fee prescribed bythe Central Bank under section 32 and provide the followinginformation,

(a) documents which indicate the applicant’s legalstatus;

(b) an identification and description of the type ofpayment service the applicant intends toprovide;

(c) a business plan, including a budget forecast,for five financial years from the date the


Prohibitionagainstcarrying onactivitywithout alicence.

Applicationfor a licence.

applicant intends to provide the payment serviceand which demonstrates that the applicant isable to employ systems, resources andprocedures in the provision of the paymentservice that are appropriate, proportionate andsound;

(d) a description of the measures taken to safeguardfunds of a consumer of the payment service;

(e) a description of the applicant’s managementarrangements and internal control mechanisms,including administrative, risk managementand accounting procedures, which demonstratethat these management arrangements andinternal control mechanisms and proceduresare appropriate, sound and adequate;

(f) a description of the internal control mechanismswhich the applicant has established in order tocomply with obligations in relation to anti-money laundering and terrorist financing;

(g) a description of the applicant’s organisationalstructure including, if applicable, informationabout proposed agents, branches, outsourcingarrangements and participation in a national orinternational payment system;

(h) the identity of persons who have a direct orindirect interest or holding in the applicant;

(i) the identity of directors of the applicant and thepersons responsible for managing the provisionof the payment service by the applicant; and

(j) any other information the Central Bank mayrequire.


(2) An applicant for a licence to operate a systemshall apply to the Central Bank in the prescribed manner,together with payment of the fee prescribed by the CentralBank under section 32 and provide the following information,

(a) documents which indicate the applicant’s legalstatus;

(b) an identification and description of the type ofsystem the applicant intends to operate includingthe proposed rules of the system;

(c) a business plan, including a budget forecast,for five financial years from the date theapplicant intends to operate the system;

(d) a description of the applicant’s managementarrangements and internal control mechanisms,including administrative, risk managementand accounting procedures, which demonstratethat these management arrangements andinternal control mechanisms and proceduresare appropriate, sound and adequate;

(e) a description of the applicant’s organisationalstructure including, if applicable, informationabout proposed outsourcing arrangements andparticipation in a national or internationalsystem;

(f) a description of the technical structure andinformation technology system including,

(i) the architectural design and processes ofthe system;

(ii) the measures employed to safeguardtechnical operations, including a


contingency plan in the event of anoperational disruption should the ordinarysystem fail to function; and

(iii) the measures taken to secure the protectionof electronic processing and the storage ofdata relating to the system against disclosure,misuse, damage, destruction, loss or theft;

(g) an analysis of the risk and measures to limitrisks in the system arising from illiquidity orinsolvency of participants including capacityto manage risk;

(h) the identity of persons who have a direct orindirect interest or holding in the applicant;

(i) the identity of directors of the applicant and thepersons responsible for managing the systemof the applicant; and

(j) any other information the Central Bank mayrequire.

(3) For the purpose of subsection (1), the CentralBank may specify different classes and subclasses ofpayment services in respect of which a person is requiredto apply for a licence and for which a licence may begranted under section 9, including,

(a) a remittance service;

(b) an electronic funds transfer;

(c) electronic money; and

(d) any other classifications the Central Bankconsiders appropriate.


9.–(1) The Central Bank may grant a licence to providea payment service if the Central Bank is satisfied that theapplicant,

(a) is a corporate body;

(b) has the prescribed paid up capital and capitaladequacy requirement;

(c) has suitable and sufficient technical andorganisational skills to provide a paymentservice including the proper mechanisms toachieve internal control and risk managementas related to the provision of services;

(d) has a mechanism to safeguard funds whichhave been received from consumers of apayment service or through another paymentservice provider for the execution of paymenttransactions, by not making them commingledat any time with the funds of third parties andmaking them insulated against the claims ofother creditors of the service provider, inparticular in the event of insolvency;

(e) has a detailed strategy and business plansupported by realistic estimations in the budgetforecast for five years;

(f) is a fit and proper person and every officer isa fit and proper person;

(g) guarantees liquidity of the settlement of ordersaccepted by the system and this is protectedfrom credit risk;

(h) has sufficiently indicated that the grant of alicence is consistent with the objectives of


Grant of alicence toprovide apaymentservice.

CAP. 250

protecting financial stability and is in theinterest of the public; and

(i) satisfies any other condition the Central Bankconsiders necessary.

(2) Where the Central Bank after considering,

(a) the type of payment service to be provided andthe related risks;

(b) the average value of payments; and

(c) any other relevant factor,

prescribes a paid up capital or capital adequacy requirementfor the purpose of subsection 1(b), the Central Bank shallspecify in the conditions of the licence the required paid upcapital or capital adequacy to be maintained by the licenseeas a condition of the licence.

10.–(1) The Central Bank may grant a licence to operatea system if the Central Bank is satisfied that the applicant,

(a) is a corporate body;

(b) has the prescribed paid up capital and capitaladequacy requirement;

(c) has suitable and sufficient technical andorganisational skills to operate a systemincluding the proper mechanisms to achieveinternal control and risk management as relatedto the operation of the system;

(d) is a fit and proper person and every officer isa fit and proper person;


CAP. 250

Grant of alicence tooperate asystem.

(e) has an access criteria that is safe and non-discriminatory;

(f) guarantees liquidity of the settlement of ordersaccepted by the system and this is protectedfrom credit risk;

(g) has satisfactory means of protection fromtechnical breakdowns within the system; and

(h) has sufficiently indicated that the grant of alicence is consistent with the objectives ofprotecting financial stability and is in theinterest of the public;

(i) satisfies any other condition the Central Bankconsiders necessary.

(2) Where the Central Bank after considering,

(a) the type of system to be provided;

(b) the volume and value of payments likely to beprocessed in the system ; and

(c) any other relevant factor,

prescribes a paid up capital or capital adequacy requirementfor the purpose of subsection 1(b), the Central Bank shallspecify in the conditions of the licence the required paid upcapital or capital adequacy to be maintained by the licenseeas a condition of the licence.

11.–(1) Notwithstanding sections 7 and 8, a bank shallbe a direct participant and shall not be required to obtaina licence to provide a payment service under this Act.


Exemptionsfromlicensing.No. 11 of 2012

(2) Notwithstanding sections 7 and 8, a credit unionthat meets the access criteria prescribed by the CentralBank may be a direct participant, shall not be requiredto obtain a licence to provide a payment service, otherthan an international remittance service, under this Act.

(3) Notwithstanding subsections (1) and (2), a bankor credit union which provides a payment service underthe Domestic Banks and Financial Institutions Act or theCredit Union Act, respectively, shall,

(a) comply with all other requirements of this Actand its regulations;

(b) be subject to the oversight requirements forentities licensed or approved;

(c) be required to apply for a licence to operate asystem under section 8(2); and

(d) be required to obtain the authorization of theCentral Bank for the use of an agent to providea payment service.

12.–(1) A person to whom a licence to provide apayment service is granted shall display the certificate ofa licence conspicuously at the primary location where thelicensee conducts business and shall similarly display acopy of the licence at every other location or branch inBelize.

(2) An agent of a payment service provider for theprovision of a remittance service shall obtain from theCentral Bank a certificate of agency in respect of eachlocation and display the certificate conspicuously at therelevant location.


Display oflicence andcertificates.

13.A licence or any right acquired under this Act shallnot be transferable, whether wholly or partly, except asmay be prescribed by the Central Bank, and any transferin contravention thereof shall be void.

14.A licence granted under this Part may be renewedin the manner and subject to payment of the fees or otherpayments prescribed by the Central Bank under section32.

15.–(1) A licence granted under this Act shall be subjectto the conditions the Central Bank considers necessary andthe Central Bank may, for the purposes of this Act, amendany condition of a licence by way of alteration, substitution,addition, omission or other modification.

(2) The Central Bank may, upon the application ofa licensee, amend a condition of a licence if it considersthe proposed amendment to be appropriate.

(3) The procedure for amending a condition of alicence under subsections (1) and (2), including the requiredperiods of notice and period for making representation tothe Central Bank, shall be prescribed in regulations undersection 56.

(4) Without prejudice to the generality of subsection(1), it shall be a condition of every licence that a personshall not, without the written authorisation of the CentralBank, act or continue to act as a director or officer ofa licensee or as an agent acting on behalf of a licenseeif that person is not a fit and proper person.

16.–(1) The Central Bank may suspend or revoke alicence granted under section 9 or 10 if,

(a) the licensee breaches a condition of the licenceor fails to comply with this Act or its regulations;


Revocation orsuspension oflicence.

Conditions oflicence.

Renewal oflicence.

Licence non-transferable.

(b) the licensee fails to commence operation of thesystem within the prescribed period of time;

(c) the licensee has ceased operation of the systemfor the prescribed period of time;

(d) the licensee obtained the licence through theprovision of incorrect information to the CentralBank or any other irregular means;

(e) the licensee no longer meets the applicablecriteria for the grant of a licence under section9 or 10;

(f) the operation of the system for which thelicence was granted endangers the stability ofthe payment or financial system in Belize;

(g) the company that owns or operates the systementers into insolvency proceedings;

(h) in the opinion of the Central Bank, the operationof the system is no longer in the public interestor the system no longer represents the interestof the participants; or

(i) the suspension or revocation of a licence ispermitted for the commission of an infringementunder Part 7.

PART 4

Rules to Regulate a System

17.–(1) An operator shall establish written rules forthe governance, management and operation of the system,which the operator is licensed to operate, including, ata minimum, rules for,


Establishmentof rules of asystem.

(a) management of liquidity, credit and settlementrisk;

(b) determining the time when a paymentinstruction and a settlement is final; and

(c) corporate governance, access, contingencyarrangements and operational risk, rights andliabilities of participants and the operator.

(2) Rules made pursuant to subsection (1) shall besubject to the prior approval of the Central Bank and shallnot be inconsistent with the requirements of this Act, andany regulations, rules, orders, directives or guidelinesissued by the Central Bank in respect of the governance,management or operation of a system.

18.–(1) The Central Bank may vary or revoke any ruleestablished under section 17 where it considers it appropriateto do so, having regard to,

(a) whether the variation or revocation would bein the public interest;

(b) the interests of the current participants in thesystem;

(c) the interests of persons who, in the future, maydesire access to the system; and

(d) any other matters the Central Bank considersrelevant.

(2) An operator shall not amend a rule established undersection 17 or cause a change in the system which wouldaffect the structure, operation or administration of thesystem without,


Amendment ofrules.

(a) the written approval of the Central Bank; and

(b) giving at least thirty days’ notice to theparticipants after the written approval of theCentral Bank is obtained.

(3) Notwithstanding subsection (2), the CentralBank may,

(a) as operator of a system, make a change to therules of its system; or

(b) permit any other operator to make a change toa rule of that operator’s system,

without giving notice to the participants under subsection(2)(b) or requiring the operator to give notice for a periodless than thirty days, in the interest of monetary policy,financial stability, or in the public interest.

19.An operator,

(a) shall make rules on access to a system whichare objective, non-discriminatory andproportionate; and

(b) shall not inhibit access to the system more thanis necessary to safeguard against risks,including,

(i) credit, liquidity, and systemic risks;

(ii) settlement risks; and

(iii) the risk that deficiencies in informationsystems or internal controls could result inunexpected loses.


Access tosystem.

20.Notwithstanding any other provision of this Part,the Central Bank may issue directives in respect of all orany of the matters specified in this Part and in the eventof a conflict between any rule, instruction, direction oragreement made by or, as the case may be involving anoperator and any directives made by the Central Bank underthis Act, the directives of the Central Bank shall prevail.

PART 5

On-going Oversight

21.–(1) The Central Bank may at any time adopt generalstandards and criteria for the conduct of payment servicesor the operation of systems.

(2) The Central Bank may at any time issue directivesto a licensed payment service provider or operator, orgenerally to such providers or operators or categoriesthereof, with respect to the governance, management,operations, relations with consumers, and relations withsystems and any other matter for the efficient administrationof this Act.

(3) The Central Bank shall, at least fifteen days priorto the coming into operation of any general directive issuedunder subsection (2), publish that directive in the Gazetteor give notice on its website.

22.–(1) The Central Bank is authorised, with or withoutprior notice, to enter and inspect the premises of an operatoror payment service provider for the purposes of carryingout its functions under this Act and during an inspectionthe Central Bank may,

(a) inspect and retain any book, account, otherdocument, equipment, apparatus, machinery,


Central Bankdirectives.

Power toexamine andinspect.

General andindividualmeasures.

and any other item or record of a paymentsystem participant, operator or issuer of apayment instrument; and

(b) interview staff of a payment service provideror operator.

23.–(1) An operator or a payment service provider shallnot outsource an aspect of the operation of its system orthe provision of its payment service without priorauthorisation of the Central Bank, and shall provide theCentral Bank with all relevant information in relation tothe proposed outsourcing in a request for authorisation.

(2) The Central Bank may, upon receipt of therequest and information required under subsection (1),issue authorisation for the outsourcing of an operationalfunction that is not an important operational function thatis being outsourced in a manner that, impairs,

(a) the quality of the operator’s or payment servicesprovider’s internal control; or

(b) the ability of the Central Bank to monitor theoperator’s or payment service provider’scompliance with all obligations prescribedunder this Act.

(3) The Central Bank shall ensure that when an operatoror payment services provider outsources an importantaspect of its operation or payment service, it complies withthe following conditions,

(a) the outsourcing shall not result in the delegationby senior management of its responsibility;

(b) the relationship and obligations of the issuertowards the consumers of any relevant paymentinstrument shall not be altered;


Outsourcing ofactivities.

(c) the conditions with which the operator orpayment services provider is to comply inorder to be licensed and remain so in accordancewith this Act shall not be undermined; and

(d) none of the other conditions subject to whichthe licence was granted shall be removed ormodified.

(4) For the purposes of subsections (2) and (3), anaspect of an operation or payment service shall be regardedas important if a defect or failure in its performance wouldmaterially impair the continuing compliance of an operatoror payment services provider with the requirements of itslicence, its financial performance or the soundness or thecontinuity of its services.

24.–(1) Where a payment service provider intends toprovide a payment service to a consumer through an agentthe payment service provider shall seek the prior authorisationof the Central Bank by making an application undersubsection (2) to the Central Bank, which shall containthe following information,

(a) the name and address of the agent;

(b) a description of the internal control mechanismsthat will be used by the agent in order tocomply with its obligations pursuant to theMoney Laundering and Terrorism (Prevention)Act;

(c) the identity of the directors and personsresponsible for the management of the agent tobe used in the provision of the services andevidence that they are fit and proper persons;and

(d) any other information that the Central Bankmay require.


CAP. 104

Use of agents.

(2) An application for authorisation of an agentunder this section shall be submitted by a payment serviceprovider in writing, in the form and manner prescribedby Central Bank, together with the applicable prescribedfees.

(3) An authorisation granted under this section shallbe subject to the conditions the Central Bank considersnecessary and the Central Bank may, for the purposes ofthis Act, amend any condition of an authorisation by wayof alteration, substitution, addition, omission or othermodification.

(4) The Central Bank may, if it considers that theinformation provided is incorrect, take further action toverify the information and if, after taking action to verifythe information, the Central Bank is not satisfied that theinformation provided pursuant to subsection (1) is correct,the Central Bank shall refuse to authorise the use of anagent.

(5) The Central Bank shall maintain a Register ofagents which shall be available to the public.

(6) A person shall not carry out any activity as anagent of a payment service provider prior to being authorisedby the Central Bank for that purpose in accordance withthis section.

(7) A payment service provider shall ensure thatits agent informs consumers that it is acting as an agentof that payment service provider.

25.–(1) If an operator outsources an aspect of itsoperation, the operator shall take reasonable steps to ensurethat the person to whom the aspect of its operation isoutsourced complies with the requirements of this Act.


Liability.

(2) If a payment service provider outsources or usesan agent to perform an aspect of its payment service, thepayment service provider shall take reasonable steps toensure that the agent or the person to whom it is outsourcedcomplies with the requirements of this Act.

(3) An operator or payment service provider shallremain fully liable for any act of an employee, agent, branchor person to whom an aspect of its operation or paymentservice is outsourced.

26.–(1) An operator or payment service provider shallcomply with the requirements of the Money Launderingand Terrorism (Prevention) Act, and any Regulations andguidelines made under that Act or adopted by the CentralBank.

(2) An operator or payment service provider shallalso guarantee that an agent or any third party acting ontheir behalf shall comply with all requirements referredto in subsection (1).

27.–(1) An operator, participant or payment serviceprovider shall retain all records obtained and producedby them in the course of their operation, provision of apayment service and administration for a period of sevenyears from the date the record was obtained or produced.

(2) For the purpose of subsection (1), records maybe retained electronically pursuant to section 6 of theElectronic Transactions Act.

28.–(1) An operator, participant or payment serviceprovider shall provide any information requested by theCentral Bank and produce all books, minutes, accounts,cash instruments, securities, vouchers or any documentsrelating to its business or the business of its affiliates forthe inspection of any examiner appointed by the CentralBank at the time and in the manner as the Central Bankor the examiner specifies.


Compliancewith theMoneyLaunderingand Terrorism(Prevention)Act. CAP. 104

Access toinformation,and audit

No. 8 of 2003

Retention ofrecords.

(2) If the operator, participant or payment serviceprovider provides information or produces any documentpursuant to subsection (1) which is false in any materialparticular, that operator, participant or payment serviceprovider commits an offence.

(3) The Central Bank may conduct an audit orcommission an independent auditor to conduct an auditof the accounts, books, documents and other records ofan operator, participant or payment service provider,

(a) once per annum; or

(b) when issues arise that are of regulatory concern,

and the operator, participant or payment service providershall assist the Central Bank to the extent necessary for thepurpose of enabling the Central Bank or its independentauditor to carry out an audit.

29.–(1) The Central Bank shall not directly or indirectlydisclose to any person any information or documentobtained during the exercise of its functions under thisAct, except

(a) for the purpose of performing its functionsunder this Act;

(b) if this is necessary to protect the financialintegrity, effectiveness or security of theNational Payment System;

(c) where it is disclosed to a person who islawfully authorized to receive the information;

(d) when disclosure is ordered by a court of law;or


Disclosure ofinformation.

(e) where this is required for the purpose ofmeeting obligations which Belize entered intounder international agreements.

(2) Notwithstanding subsection (1), the CentralBank may furnish data or information obtained under thisAct to an entity in Belize or a foreign entity which is chargedwith the supervision of a financial market or of naturalpersons or legal entities that are active in a financial market,unless,

(a) the purpose for which the data or informationwill be used is insufficiently specified;

(b) the intended use of the data or information doesnot fit the framework of the supervision offinancial markets or of natural persons, legalentities and firms active in these markets;

(c) the supply of the data or information would notbe compatible with the laws of Belize or publicorder;

(d) the secrecy of the data or information is notadequately guaranteed;

(e) the supply of the data or information is or maycome into conflict with the objects of this Act;or

(f) it is not sufficiently guaranteed that the data orinformation will not be used for a purposeother than for which it is supplied.

(3) Where the request for disclosure is related toan investigation into the commission of an offence it shallonly be granted with the permission of the Governor ofthe Central Bank, by order of the court or in accordancewith any other law.


(4) A request for data or information shall if grantedbe supplied within a reasonable period to be determinedby the Central Bank.

30.Section 29 does not preclude the Central Bank frompublishing,

(a) in whole or part any information or dataobtained under this Act, if,

(i) the information published does not disclosethe financial affairs of a person other thanan operator, payment service provider orparticipant; or

(ii) the person referred to in subparagraph (i)whose financial affairs are being disclosed,gives prior written consent to the publication;or

(b) without consent, consolidated statements oraggregated data of,

(i) information provided under this Act; and

(ii) information related to or derived frominformation provided under this Act.

PART 6

Fees

31.–(1) The Central Bank may prescribe in respect ofan operator, participant or payment service provider acharge or fee to defray the direct and indirect costs incurredto provide oversight and regulation pursuant to this Act.


Publication ofdata.

Oversight,regulatory andoperationalfees andcharges.

(2) The Central Bank may also impose a chargeor fee for the performance of its operational role andprovision of facilities pursuant to section 4.

(3) Section 32(2) applies to fees and charges referredto in this section.

32.–(1) The Central Bank may prescribe fees for eachtype or class of licence, or authorisation that the CentralBank has authority to grant or give under this Act andthese fees may include,

(a) a non-refundable application fee to cover thecost of processing the application or requestfor the licence or authorisation;

(b) an initial licence or authorisation fee whichshall be paid when the licence or authorisationis initially granted or given; and

(c) an annual licence or authorisation fee whichshall be paid when a licence or authorisationis renewed.

(2) The fees shall be determined and applied in afair, equitable and non-discriminatory manner.

PART 7

Infringements and Administrative Measures

33.–(1) A person who,

(a) contravenes a provision of this Act, regulationsor guidelines made thereunder; or


Applicationand licencefees.

Infringements,administrativemeasures andpenalties.

(b) breaches a term or condition of a licence orauthorization issued under this Act,

commits an infringement if that contravention does notconstitute an offence under section 54 or any otherprovision of this Act.

(2) The Central Bank may take one or more of thefollowing administrative measures in respect of a person(including, but not limited to. an operator, participant,payment service provider, its officer, manager or employeethereof) who commits an infringement, namely,

(a) issue a written warning;

(b) issue a written order to cease and desist froman infringement and to undertake remedialaction;

(c) issue a written order to perform the acts as arenecessary for compliance;

(d) impose a fine not exceeding two thousanddollars for each day that the infringementcontinues;

(e) impose a restriction on participation or provisionof a payment service;

(e) suspend an officer or manager temporarily;and

(f) suspend or revoke the licence or authorization.

(3) In determining an administrative measure to betaken, the Central Bank shall consider,

(a) the seriousness of the infringement;


(b) the actual or potential effect of the infringementon systemic risk;

(c) the stage at which the infringement was detected;

(d) whether the infringement was voluntarilyreported by the person who committed theinfringement; and

(e) the measure that is appropriate to remedy orterminate the infringement.

(4) A person who fails to comply with an orderissued, pay a fine imposed or otherwise comply withadministrative measures taken by the Central Bank inaccordance with this section commits an offence and isliable on summary conviction in accordance with section54.

34.The Central Bank may, by order, remove a personfrom office as an officer or a director of an operator orpayment service provider if the Central Bank is of theopinion that the person is not suitable to hold that office,

(a) because the person is not a fit and properperson; or

(b) because by action, omission or negligence, theperson has contravened or contributed to thecontravention of,

(i) a provision of this Act, or of its regulationsor guidelines made under this Act;

(ii) an order or directive issued under this Act;

(iii) a condition of the licence of the operator orpayment service provider; or


Removal ofofficer oremployee.

(iv) an undertaking given by the operator orpayment service provider to the CentralBank.

35.–(1) If the Central Bank intends to take anadministrative measure or impose an administrative penaltyunder section 33 or 34, the Central Bank shall notify theconcerned operator, participant or payment service provider,as well as, where applicable, the concerned officer,manager or employee,

(a) of the administrative measure or penalty itintends to take or impose and reasons; and

(b) of the opportunity to make representations tothe Central Bank in relation to the matterwithin ten days, or any longer period as theCentral Bank indicates in the notice.

(2) Notwithstanding subsection (1), if the CentralBank is of the opinion that the public interest may beprejudiced by a director or officer continuing to exercisethe powers or carry out the functions of that office duringthe period for making representations under subsection(1)(b), the Central Bank may suspend the officer or directorfor that period.

(3) A person may appeal the decision of the CentralBank to the Appeals Board established under section 128of the Domestic Banks and Financial Institutions Act, andthe Appeal Board may dismiss the appeal or set aside thedecision of the Central Bank but an order to remove aperson from office under section 34 is not stayed by anappeal.

36.–(1) An administrative penalty payable to the CentralBank shall be due within one month from the date the noticeof the administrative penalty was given.


Procedure foradministrativemeasure andpenalties.

Payments toCentral Bank.

No. 11 of 2012

(2) The Central Bank may prescribe that a paymentdue pursuant to subsection (1) that is not paid by the dateit is due shall be subject to interest from the date due ata rate not exceeding twelve per cent per annum.

(3) The Central Bank shall not impose anadministrative penalty on an operator or payment serviceprovider if the licence of that operator or payment serviceprovider is revoked.

PART 8

Settlement, Netting and Finality of Payment

37.–(1) The Central Bank may require a participantto,

(a) open and maintain settlement accounts on thebooks of the Central Bank or an operator,including the maintenance of minimumbalances, on the terms and conditions as theCentral Bank or operator may specify; or

(b) appoint another participant which has openeda settlement account as a settlement agent, tosettle all obligations due from the first-mentionedparticipant to any other participant arising outof each day’s clearing.

(2) In the case where a participant appoints asettlement agent under subsection (1)(b) the participantshall, before any obligation is settled by the settlement agenton his behalf, give the operator notice in writing of theappointment, accompanied by a written confirmation fromthe settlement agent of the appointment.

(3) A participant who intends to terminate theappointment of a settlement agent, shall notify the operator


Settlement ofaccounts.

in writing not less than fifteen days before the date oftermination of the appointment.

38.–(1) An operator shall specify the rules to achievefinality in its operations, in accordance with the provisionsof this Act and as prescribed by any rules, regulationsor directives issued by the Central Bank and shall includerules establishing irrevocability of orders once these haveentered into the system, unless special conditions apply.

(2) The entry or payment that has been effected interms of subsection (1) shall not be revoked, reversed,or set aside, including, without limitation, by insolvencyor bankruptcy proceedings or any other law similar inpurpose and effect, and is not subject to any provisionof law or order of an administrative or judicial authoritythat operates as a stay of that payment.

39.–(1) The rights and remedies of an operator,participant, clearing house, central counter-party or anyother third party in the system and the Central Bank withrespect to collateral granted to it as security for a paymentor the performance of an obligation incurred in a systemshall not be affected by insolvency or bankruptcy proceedingsor any other law similar in purpose and effect.

(2) The rights and remedies referred to in subsection(1) shall not be the subject of any stay provision or orderaffecting the ability of creditors to exercise rights andremedies with respect to the collateral.


Collateral forpayment andsettlement.

Finality ofpayment.

PART 9

Winding Up and Administration of an Operator orParticipant

40. If an operator or participant in a system is woundup or placed in scheme of administration, the operator orparticipant at whose instance the winding up or theadministration order or the decision, as the case may be,was issued, shall with no delay lodge a copy of the orderor decision with the Central Bank.

41.An operator or participant against which a winding-up application or scheme of administration has been lodgedor decision for voluntary dissolution is made shall beprohibited from operating or participating in any systemuntil the application or scheme is disposed of or finallydetermined.

42.Notwithstanding anything to the contrary in anyenactment relating to insolvency or bankruptcy,

(a) the winding up of; or

(b) the opening of scheme of administration inrelation to,

a participant, shall not affect the finality or irrevocabilityof any entry or payment which became final and irrevocablepursuant to section 38, before the copy of the relevant orderor decision was lodged with the Central Bank.

43.–(1) A liquidator or administrator shall, where aparticipant is wound up or placed in administration orotherwise declared insolvent by a court, be bound by anyprovision contained in a written netting arrangement towhich the participant is a party or any netting rules andpractices applicable to the system of the participant concernedin respect of any payment or settlement obligation,


Central Bankto be notifiedof winding up.

Prohibition.

Winding up oradministrationof participantnot to affectfinality.

Rules ofsystem to bindliquidator.

(a) which has been determined through nettingprior to the issue of the winding-up orarrangement order, as the case may be; and

(b) which is to be discharged on or after the dateof the winding-up or arrangement order ordischarge of which was overdue on the date ofthe winding-up or scheme of administrationorder, as the case may be.

(2) Subsection (1) shall apply notwithstandinganything to the contrary in any other law for the time beingin force in Belize.

44.The provisions of this Part shall not restrict orpreclude any person from enforcing his rights under thelaw in so far as it does not affect the finality of paymentinstruction or settlement or the validity and enforceabilityof a netting arrangement under this Part.

45.-(1) In the event of insolvency of a foreign participant,the rights and obligations of that foreign participant relatingto settlement shall be governed by the laws of Belize.

(2) In this section “foreign participant” means aparticipant operating in Belize but whose base of origin,whether by incorporation, registration, licensing, ownership,citizenship, nationality or otherwise, is outside Belize.

PART 10

Provisions Affecting Cheques

46.–(1) A bank may present a cheque for payment tothe bank on whom it is drawn by notifying that bank ofthe essential features of the cheque by,


Preservation ofrights.

Conflict oflawsprovisions.

Presentmentof cheque.

(a) the physical cheque;

(b) the electronic image; or

(c) the data.

(2) For the purposes of this section, the essentialfeatures of a cheque are,

(a) the serial number of the cheque;

(b) the code which identifies the bank on whom thecheque is drawn;

(c) the account number of the drawer of thecheque;

(d) the amount of the cheque as entered by thedrawer of the cheque; and

(e) any other feature which the Central Bankprescribes from time to time.

(3) Notwithstanding subsections (1) and (2), theCentral Bank shall determine and indicate in guidelinesthe form in which a cheque is to be presented for the purposeof a clearing house.

47.–(1) For the avoidance of doubt, where a chequeis presented in an electronic form pursuant to section 46(1) or (2), the cheque shall not be taken to have been madeoutside of the ordinary course of business, in bad faithor negligent because it is made by electronic means ratherthan by presentment of the physical cheque.

(2) If, before the close of business on the nextbusiness day following presentment of a cheque under thissection, the bank on whom the cheque is drawn requests


Electronicpresentmentof cheque.

the bank by whom the cheque was presented to presentthe physical cheque,

(a) the presentment under this section shall bedisregarded; and

(b) this section shall not apply in relation to thesubsequent presentment of the cheque.

(3) A request under subsection (2) for the presentmentof a cheque shall not constitute dishonour of the chequeby non-payment.

(4) Where presentment of a cheque is made underthis section, the bank who presented the cheque and thebank on whom it is drawn shall be subject to the sameduties in relation to the collection and payment of the chequeas if the cheque itself had been presented for payment.

PART 11

Electronic Funds Transfer and Electronic Money

48.–(1) An electronic funds transfer and a record ofan electronic funds transfer is enforceable and has theevidentiary value in accordance with the ElectronicTransactions Act and Electronic Evidence Act.

(2) The Central Bank shall, in the implementationof the provisions of this Act, make or issue regulations,instructions or other relevant measures within its powersto cover specific issues on payment orders and moneytransfers executed by electronic messages, including, whenrelevant, protection of consumers of electronic paymentinstruments.


Enforceabilityand evidenceof electronicfundstransfer.No. 8 of 2003No. 9 of 2003

49.An applicant for a licence as a payment serviceprovider who intends to issue electronic money, shall, inaddition to the requirements for a licence under Part 3,satisfy the Central Bank that the following conditions aremet,

(a) the provision of electronic money shall notinclude the provision of credit;

(b) electronic money providers shall providestatistics on electronic money loaded andredeemed values in their periodic financialstatements and shall also be able to providesufficient and reliable information to the CentralBank to monitor and control the quantity andvelocity of electronic money supply in theeconomy;

(c) clearing and settlement mechanisms shallfacilitate rapid provision of final settlementafter a payment instruction has been initiatedin the banking system, according to time limitsthat the Central Bank may establish from timeto time; and

(d) issuers shall be obliged to redeem electronicmoney value in Central Bank money, at par,upon request and the management of theunderlying float and redemption of electronicmoney value by the issuer to the holder shallbe clearly defined.

PART 12

Miscellaneous Provisions

50.–(1) The Central Bank shall require a paymentservice provider and an operator who imposes or appliesa fee, charge or tax on any consumer for providing a service


Transparencyof fees.

Issuance ofelectronicmoney.


within the National Payment System to provide notice inaccordance with subsections (2) and (3) to the consumerof the imposition and amount of the fee.

(2) The notice required under subsection (1) withrespect to any fee, charge or tax for a payment serviceprovider shall be displayed prominently and conspicuouslyat the location or facility where the consumer may initiateor request the service.

(3) The notice required under subsection (1) for apayment service provider shall be in the form as may berequired by the Central Bank.

(4) A payment service provider and an operatorshall not impose a fee in connection with any serviceinitiated by a consumer where the notice as required undersubsection (1) has not been satisfied.

51.–(1) A payment service provider shall, in accordancewith the rules and guidelines of the Central Bank, disclosethe terms and conditions of a payment service involvinga consumer’s account in a manner clearly understood bythe consumer, at the time the consumer contracts for thepayment service.

(2) The terms and condition to be disclosed undersubsection (1) include,

(a) the consumer’s liability for unauthorizedpayment service and notice of the advisabilityof prompt reporting of any loss, theft, orunauthorized use of a card, access code orother means of access;

(b) the telephone number of the person to benotified in the event the consumer believes thatan unauthorized payment service has been ormay be effected;

Disclosure ofterms andconditions.


(c) the procedures to verify that the consumer hadmade the notification under paragraph (b) andwhen the notification was made;

(d) the maximum execution time for any kind ofpayment to be executed;

(e) the kind and nature of the payment servicewhich the consumer may initiate, includingany limitations on the frequency or amount ofthe payment service;

(f) any charges for the payment service transfersor for the right to make the payment service;

(g) the consumer’s right to stop payment of apreauthorized payment service and theprocedure to initiate a stop;

(h) the consumer’s right to receive information ofa payment service;

(i) a summary of the error resolution proceduresand the consumer’s rights thereunder;

(j) the bank or payment service provider’s liabilityto the consumer;

(k) the circumstances under which the bank orpayment service provider will in the ordinarycourse of business disclose informationconcerning the consumer’s account to thirdparties; and

(l) a notice to the consumer that a fee may beimposed if the consumer initiates a transferfrom an automated teller machine or otherelectronic terminal that is not operated by theissuer of the card or other means of access.


(3) The terms and conditions shall be written in clearconcise language.

(4) A payment service provider shall notify aconsumer in writing or by any other means as may berequired by the Central Bank from time to time, at leasttwenty-one days prior to the effective date of any changein any term or condition of the consumer’s account requiredto be disclosed, unless the change is immediately necessaryto maintain or restore the security of a payment systemor a consumer’s account.

52.Any dispute between an operator or participantconcerning any matter arising under this Act shall besubmitted to arbitration pursuant to the Arbitration Act.

53.The Minister, the Governor of the Central Bank,a director, officer or employee of the Central Bank andany examiner appointed by the Central Bank shall not beliable to any person for anything done or omitted in thedischarge or purported discharge of their functions underthis Act, unless it is shown that the act or omission wasdone in bad faith.

54.–(1) A person who contravenes section 7, 8,11(3)(c), 13, 15(2), 23(1), 24(6), 26 or 33(4) commits anoffence and is liable on summary conviction,

(a) in the case of an individual, to a fine of onehundred thousand dollars or to imprisonmentfor a term of four years, or to both; or

(b) in the case of a body corporate, to a fine of fivehundred thousand dollars,

and if the offence is a continuing one to an additional fineof ten thousand dollars for every day or part of a day duringwhich the offence continues.

Generaloffences andpenalties.

Protection ofacts done ingood faith.

Settlement ofdisputes byarbitration.CAP 125


(2) Where an offence under this Act, committedby a body corporate, is proved to have been committedwith the consent or connivance of, or to be attributableto any neglect on the part of, any officer, director, manageror employee of the body corporate or any person whowas purporting to act in any such capacity, he, as wellas the body corporate, commits that offence and is liableon summary conviction to the penalty under subsection(1).

55.–(1) No prosecution in respect of an offence underthis Act shall be instituted except by, or with the consentin writing, of the Central Bank or the Director of PublicProsecutions.

(2) All prosecutions, actions, suits or otherproceedings brought for an offence under this Act shallbe brought within five years after the date of the offencecommitted or the cause of action accrued.

56.–(1) The Central Bank may issue regulations,orders, directives, guidelines or notices as may be requiredfrom time to time for carrying into effect the provisionsof this Act.

(2) Without prejudice to the generality of subsection(1), the Central Bank may, as far as this is necessary forthe performance of functions assigned by this Act, issuepractice directions concerning, among other things, themanagement and administrative organisation of the CentralBank as operator.

57.–(1) A person, an entity or the officers of an entitywhich conducts business relating to the provision of apayment service or operation of a system on thecommencement of this Act shall take all necessary measuresto have its,

(a) organisation;

Transitionalprovision.

Regulations,orders,directives andguidelines.

Limitation toprosecution.


(b) administration; and

(c) operations,

comply with the requirements of this Act within six monthsfrom the commencement of this Act, and shall, within threemonths from the commencement of this Act, submit to theCentral Bank, a programme for becoming fully compliantby the end of the six-month period.

(2) A person, entity or its officers whose,

(a) organisation;

(b) administration; or

(c) operations,

does not comply in one or more material respects with therequirements of any directive, issued by the Central Bankpursuant to this Act, shall comply with the requirements ofthe directive within the time period to be specified by thedirective.

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national payment systems...BELIZE: NATIONAL PAYMENT SYSTEM ACT, 2017 ARRANGEMENT OF SECTIONS PART 1 Preliminary 1. Short title. 2. Interpretation. PART 2 Administration of the National