Decree of the People´s Bank of China
No.2 (2010)
According
to the Law on the People´s Bank of China of the People´s Republic of China
and other governing laws and regulations, the People´s Bank of China (referred
to as the PBC hereinafter) formulated Administrative Measures on Payment
Services Provided by Non-financial Institutions, which was approved by the
7th meeting of the PBC governor´s office convened on May 19, 2010. The Measures will be
effective since September 1, 2010.
Governor Zhou Xiaochuan
June 14, 2010
Administrative Measures on Payment
Services Provided by Non-financial Institutions
Chapter I General Provisions
Article 1 This Measure is promulgated
according to the Law on the People´s Bank of China of the People´s Republic
of China in order to promote healthy development of the payment market and
standardize the payment services provided by non-financial institutions,
prevent payment risks and protect legitimate rights and interests of relevant
parties.
Article 2 Payment services provided
by non-financial institutions refer to money transfer provided in any of the
following forms by non-financial institutions between a payer and a payee:
(1)On-line payment;
(2)Issuance and acceptance of prepaid
cards;
(3)Acquisition of bankcards;
(4)Other payment services as identified by
the PBC.
On-line payment refers to fund transfer
on public or special networks, including remittance, Internet payment, mobile
phone payment, fixed-line payment and payment via digital TV network and etc.
Prepaid cards refer to cards or pins
issued with value stored using technologies such as magnetic stripes and chips
which can be used to purchase goods and services provided not by the card
issuer with the purpose of gaining profits.
Bankcard acquisition refers to an
acquirer's acceptance of funds on behalf of licensed merchants that accept
bankcard payment via payment terminals such as POS machines.
Article 3 In order to provide payment
services, a non-financial institution should obtain a Payment Business License
in accordance with this Measure to become a payment institution.
Payment institutions are under
supervision and regulation of the PBC.
Without approval of the PBC, any
non-financial institution or individual shall not engage in payment businesses
in any forms, explicit or disguised.
Article 4 A payment institution shall
entrust a banking financial institution to transfer funds with another payment
institution and shall not transfer money with another payment institution by
way of mutual deposit of such funds, nor entrust a third payment institution to
conduct such transfer.
Payment institutions shall not provide
fund transfer services for banking financial institutions unless otherwise
permitted.
Article 5 Payment institutions
shall observe the principle of secure, efficient and good-faith operation and
fair competition and shall not undermine national interests, public interests
of the society and legitimate rights and interests of customers.
Article 6 Payment institutions shall
abide by AML laws and regulations and fulfill AML obligations.
Chapter II Application and
Licensing
Article 7 The PBC is in charge of
the issuance and management of the Payment Business License (referred to
as the License hereinafter).
A License application shall be
first reviewed by the local branch office of the PBC and then submitted to the
PBC headquarters for approval.
The branch office of the PBC in this Measure
refers to branches in cities of sub-provincial level and above.
Article 8 A License applicant
shall meet the following requirements:
(1)
The
applicant shall be a limited liabilities company or a limited company
lawfully incorporated within the jurisdiction of the People´s Republic of
China and should be a
non-financial institution with legal person status;
(2)
The
applicant shall meet the threshold for registered capital as provided for in
this Measure;
(3)
Investors
of the applicant shall meet requirements as provided for in this Measure;
(4)
At least
five members of the senior management of the applicant should know payment
businesses well;
(5)
The
applicant shall take adequate anti-money laundering measures as required;
(6)
The
applicant shall have qualified equipments for payment businesses;
(7)
The
applicant shall have sound organizational structure and internal control system
and take adequate risk management measures;
(8)
The
applicant shall have operation premises and take security measures in line with
relevant requirements;
(9)
The applicant
and its senior management have not been penalized for irregularities or crimes
by taking advantage of operation in payment businesses, or for providing
payment services for criminal or illegal conducts in the recent 3 years.
Article 9 To apply to operate
payment businesses nationwide, a payment institution shall have a minimum of
100 million yuan as registered capital; to apply to operate payment
businesses within a province (autonomous region or municipality), a payment
institution shall have a minimum of 30 million yuan as registered capital. The
minimum registered capital should be paid-in capital.
The operation of payment businesses
nationwide refers to the applicant applying to open branch(es) to operate payment
businesses in another province (autonomous region or municipality) or to enable
clients to make cross-provincial payment.
The PBC may adjust the registered
capital threshold for applicants according to relevant laws, regulations and
policies.
The PBC will release separate
provisions on the scope of business of foreign-invested payment institutions,
qualifications of foreign investors and requirements on the share of investment
by foreign investors in another document and submit it for the approval of the
State Council.
Article 10 Major investor(s)
of an applicant should meet the following requirements:
(1)
The
major investor of a payment institution shall be a lawfully incorporated limited
liabilities company or limited company;
(2)
The
major investor should have provided services to support information processing by
financial institutions or for e-business activities for at least two
consecutive years by the date of application;
(3)
The
major investor should have made profits for at least two consecutive years by
the date of application;
(4)
The
major investor has not been penalized for irregularities or crimes by taking
advantage of operation in payment businesses, or for providing payment services
for criminal or illegal conducts in the recent 3 years;
Major investor in this Measure
refers to investor(s) holding controlling shares of the applying institution
and investors holding more than 10 percent of the shares of the applying
institution.
Article 11 An applicant shall provide the
following documents and materials to local branch office of the PBC:
(1)
An
written application stating the name, premise, registered capital,
organizational structure of the applicant and specific payment business to be
operated;
(2)
Photocopy
of the business license (duplicate) of the company;
(3)
Articles
of association of the company;
(4)
Capital
verification report;
(5)
Financial
statements audited by auditing agencies;
(6)
Feasibility
reports of the payment businesses to be operated;
(7)
Materials
verifying the adequacy of anti-money laundering measures taken by the
applicant;
(8)
Certificate
of technological security;
(9)
Biographical
statements of senior management;
(10)
Materials
authenticating that the applicant and the senior management have no criminal
records;
(11)
Relevant
materials of major investors;
(12)
Statements
ensuring the authenticity of application materials.
Article 12 The applicant shall publicly disclose
the following information after receiving the PBC´s notice of accepting the
application for examination:
(1)
Registered
capital and equity structure of the applicant;
(2)
Name
list of, the ratio of shares held by major investors and financial situation of
major investors;
(3)
The specific
payment businesses the applicant intends to operate;
(4)
Operation
premise of the applicant;
(5)
Certificate
affirming technological security of the equipment of payment businesses.
Article 13 Branch offices of the PBC shall
accept the applications that have met the requirements and forward the results
of preliminary examination and the application materials to the PBC headquarters.
Where the application is approved after examination, the PBC will issue the
applicant with a Payment Business License and notify such
issuance.
The License is valid for 5 years
since the date of issuance. Where the payment institution continues the payment
business after the expiry of the License, the payment institution shall
apply to renew the License to local branch office of the PBC within 6
months before its expiry. As approved by the PBC, the renewed License is
valid for 5 years.
Article 14 When that the payment
institution alters one of the following items, the payment institution shall get
the approval of the PBC before filing an application for alteration at the
registration agency of the company:
(1)
Name,
registered capital or organizational structure;
(2)
Major
investors;
(3)
Merge or
separation;
(4)
Adjustment
in the types or scope of business;
Article 15 A payment institution shall
provide the following documents and materials to the local branch office of the
PBC to apply for termination of its operation of payment businesses.
(1)
A
written application signed by the legal representative of the company with the
name of the company, conducts of payment businesses, specific payment business
to be terminated and the reasons for termination;
(2)
Photocopy
of business license (duplicate) of the company;
(3)
Photocopy
of the License;
(4)
Plan to
protect legitimate rights and interests of clients;
(5)
