Safeguarding of payment-user funds requires timely protection, segregated escrow accounts, and strict restrictions on e-money issuance and use. Payment Service Providers must safeguard Payment Service User funds through a safeguarding-institution undertaking or guarantee, a trust account, or ... Summary
International Financial Services Centres Authority (Payment Services) Regulations, 2024
Safeguarding of payment-user funds requires timely protection, segregated escrow accounts, and strict restrictions on e-money issuance and use.
Payment Service Providers must safeguard Payment Service User funds through a safeguarding-institution undertaking or guarantee, a trust account, or another specified method. Funds must also be held in separate escrow accounts with an IBU for each relevant payment service. E-money issuers must maintain an end-of-day escrow balance covering outstanding e-money and payments due to users. Escrow transactions are restricted to permitted credits and debits, while e-money cannot be issued at a premium or discount, used for lending, linked to illegal activity, or withdrawn as cash.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.