NEWS AND INSIGHT

The Amendment dated November 25, 2022 to the Regulation on Payment Services and Electronic Money Issuance and Payment Service Providers


19 December 2022

The Amendment dated November 25, 2022 to the Regulation on Payment Services and Electronic Money Issuance and Payment Service Providers

The Regulation on Payment Services and Electronic Money Issuance and Payment Service Providers ('Regulation') has been amended with the regulation published in the Official Gazette dated November 25, 2022. The amendment is related to the harmonization process with the Regulation and is mainly made in Provisional Article 1, which regulates the transitional provisions of the Regulation.

  1. The amendments to Provisional Article 1, which set the compliance period with the Regulation as February 28, 2023, are as follows

 

  1. Pursuant to the amendment made in the 1st paragraph of Provisional Article 1, the organizations operating as of the date of entry into force of the Regulation are obliged to become compliant until 28 February 2023.

  2. Pursuant to the amendment made to paragraph 5 of Provisional Article 1, Pursuant to paragraph 7 of Article 5 of the Regulation on the issuance of electronic money, services and legal entities providing such services that are not considered within the scope of paragraph 5 of Article 18 of the Law on Payment and Securities Settlement Systems, Payment Services and Electronic Money Institutions, and services and legal entities providing such services except for Article 34 titled 'Protection of payment funds' and Article 35 titled 'Protection of funds collected against electronic money' are obliged to comply with the Regulation until February 28, 2023.

  3.  Pursuant to the amendment made to paragraph 9 of Provisional Article 1, payment service providers that have payment accounts with the Bank as of the effective date of the Regulation and are among the top ten participants in terms of the total number of payment transactions to the account carried out in the year 2020 shall fulfil the obligations to be fulfilled under paragraph 5 of Article 59 of the Regulation titled 'Principles regarding payment order initiation service and account information service' until February 28, 2023. The Central Bank of the Republic of Turkey ('CBRT') is authorized to extend this period twice, each time for a period not exceeding six months. All other payment service providers holding payment accounts shall fulfil the obligations required to be fulfilled under paragraph five of Article 59 of the Regulation until February 28, 2023, after the completion of the period stipulated by the CBRT under this paragraph for payment service providers that are among the top ten participants in terms of the total number of payment transactions to the account carried out in the Bank Payment Systems.

  4. Pursuant to the amendment made to paragraph 11 of Provisional Article 1, data sharing services for which technical requirements are specified under paragraph 1 of Article 59 of the Regulation titled 'Principles regarding payment order initiation service and account information service' may continue to be provided using non-standard services until February 28, 2023.

  5. Pursuant to the amendment made to paragraph 17 of Provisional Article 1, persons granted an operating license pursuant to paragraph 17 of this Article of the Regulation are obliged to comply with the provisions of the Regulation that are not applicable and the provisions of the regulations to be issued by the CBRT pursuant to paragraph 1 of Article 31 titled "Management and audit of information systems" by February 28, 2023, at the latest.

  6. Pursuant to the amendment made to paragraph 18 of Provisional Article 1, persons granted operating permits pursuant to paragraph 18 of this Article of the Regulation are obliged to comply with the provisions of the Regulation that are not applicable and the provisions of the regulations to be issued by the CBRT pursuant to paragraph 1 of Article 31 titled "Management and audit of information systems" by February 28, 2023, at the latest.

 In addition to the amendments made above, the second paragraph of Provisional Article 1 has also been amended. Accordingly, pursuant to paragraph 26 of Article 18 titled "Representative" of the Regulation, the one-year period for the signing and implementation of the framework representation agreements, the minimum elements of which will be determined by the Association of Payment and Electronic Money Institutions of Turkey, will commence as of the date the framework agreement is published by the Association of Payment and Electronic Money Institutions of Turkey after obtaining the CBRT's consent. Since the one-year period in the first paragraph has been amended, the phrase 'in the first paragraph' has been removed from the first sentence of this paragraph. However, with the sentence added to the paragraph, the deadline for the institutions within the scope of this paragraph to comply with the provisions of paragraphs 4 and 5 of Article 15 titled 'Activities that cannot be carried out by institutions' and Article 66 titled 'Currency to be used in payments' of the Regulation has been set as 1 December 2022.