The Central Bank of Honduras (BCH) has published in La Gaceta the New Regulations for Payment and Transfer Services Using Electronic Money. The purpose of this regulation is to regulate the organization, operation, and functioning of legal entities offering payment and transfer services that use electronic money within the national territory.
Entities Subject to This Regulation:
- Non-Banking Electronic Money Institutions (INDEL): Entities authorized to provide electronic money and offer electronic transfer services and payment for goods or services.
- Domestic or Foreign Legal Entities: Entities not subject to the Financial System Law or the Cooperatives Law.
- Institutions of the National Financial System (IFI): Public and private banks, savings and loan associations, financial companies, and others that are engaged in the activities outlined in the Financial System Law on a regular and systematic basis.
- Savings and Credit Cooperatives (CAC): Entities subject to the Cooperatives Law of Honduras and its regulations.
Key Provisions:
1. Authorization and Operation:
- Legal entities wishing to offer electronic money services must obtain authorization from the BCH, which will require a favorable opinion from the National Banking and Insurance Commission (CNBS).
2.Capital Requirements:
- The minimum capital for INDELs must be USD 4,021.08 (L100,000.00) and must adjust based on the average daily balance of electronic money on their technological platform.
3.Operation and Security:
- INDELs, IFIs, and CACs must implement security measures and controls to mitigate risks, including cybersecurity and data protection.
4.Authorized Services:
- The services allowed include the activation of electronic wallets, conversion of physical money to electronic money and vice versa, balance inquiries, sending and receiving domestic transactions, purchasing goods and services, among others.
5.Prohibitions:
- INDELs cannot engage in financial intermediation activities unrelated to their business model, allow overdrafts of electronic money, or activate more than one electronic wallet per user.
Obligations of Entities:
Entities must keep user funds segregated from their own resources, ensure liquidity in their network of agents, monitor transactions continuously, and ensure the reversal of amounts debited in unsuccessful transactions.
Additionally, the BCH will oversee compliance with the regulations and may update the required minimum capital for INDELs. Entities must also report their operations regularly and maintain detailed records of transactions.
godofredo.siercke@garciabodan.com
Partner
García & Bodán
Honduras