Article 14. Requirements for the provision of payment services through payment agents and (or) payment subagents The Law on Payments and Payment Systems

Home / RLA / Article 14. Requirements for the provision of payment services through payment agents and (or) payment subagents The Law on Payments and Payment Systems

1. A bank, an organization performing certain types of banking operations, or a payment organization may provide payment services to customers through a payment agent or a payment subagent on the basis of an agency agreement for the provision of payment services.

The payment organization has the right to involve a payment agent and a payment subagent in the provision of payment services, if such a condition is stipulated in the contract with the service provider.

2. The payment service provided by the payment agent and/or the payment subagent is provided to the client subject to the following requirements:

1) provision of payment services on behalf of a bank or an organization performing certain types of banking operations, or a payment organization;

2) fulfillment of the conditions stipulated in paragraph 12 of Article 13 of this Law;

3) providing the client with a document confirming the fact of the payment service and containing the necessary details;

4) collection of remuneration by a payment agent in accordance with the terms of an agreement concluded with a bank or an organization performing certain types of banking operations, or a payment organization, and by a payment subagent in accordance with an agreement concluded with a payment agent, as well as an agreement between a payment agent and a bank, organization performing certain types of banking operations, or a payment an organization;

5) providing the client with the information provided for in paragraph 3 of this Article.

3. Prior to the beginning of the provision of payment services by the payment agent and/or the payment subagent, the following information is provided to the client:

1) the name of the payment service and the address of the place of its provision;

2) the name, identification number, and contact details (location and legal address, telephone number) of the bank, organization performing certain types of banking operations, payment organization, payment agent, and payment subagent.

The payment agent and the payment subagent, who are individual entrepreneurs, additionally indicate information about their last name, first name, patronymic (if it is indicated in the identity document);

3) the license number of a bank or an organization performing certain types of banking operations for conducting banking operations, or the registration number of the payment organization's account registration;

4) the amount of remuneration withheld by the payment agent and (or) the payment subagent from the client when providing the payment service (if any).

4. A bank, an organization performing certain types of banking operations, and a payment organization must maintain registers of their payment agents and payment subagents in accordance with the procedure established by an internal document of the bank, an organization performing certain types of banking operations, and a payment organization.

5. The payment agent ensures that information about the involved payment subagents is provided to the bank, organization performing certain types of banking operations, or payment organization in order to include them in the specified register in accordance with the procedure established by the agreement between them.

6. A bank, an organization performing certain types of banking operations, or a payment organization must monitor the compliance of the payment agent with the requirements of the legislation of the Republic of Kazakhstan on payments and payment systems, as well as the terms of payment services established by the agreement between the payment agent and the bank, an organization performing certain types of banking operations, or a payment organization.

The procedure for exercising control provided for in part one of this paragraph is established in an agreement between the bank, an organization performing certain types of banking operations, a payment organization and a payment agent, or in the internal rules of the bank, an organization performing certain types of banking operations, and a payment organization.

7. The payment agent is obliged to monitor the compliance of the payment subagent with the requirements of the legislation of the Republic of Kazakhstan on payments and payment systems and the conditions for the provision of payment services established by the agreement between the payment agent and the bank, the organization performing certain types of banking operations, and the payment organization, in accordance with the procedure established by the agreement between the payment agent and (or) the payment subagent, and also, between a payment agent and a bank, an organization that performs certain types of banking operations, or a payment organization.

8. A bank, an organization performing certain types of banking operations, a payment organization that has concluded agency agreements for the provision of payment services, shall submit to the National Bank of the Republic of Kazakhstan information about these services, as well as about their payment agents and payment subagents in accordance with the procedure established by a regulatory legal act of the National Bank of the Republic of Kazakhstan.

9. A bank, an organization performing certain types of banking operations, or a payment organization shall be jointly and severally liable to the client for the obligations of the payment agent and the payment subagent, which have concluded agency agreements for the provision of payment services.

The Law of the Republic of Kazakhstan dated July 26, 2016 No. 11-VI SAM.

This Law regulates public relations arising in the field of organization and functioning of payment systems, regulation of payment systems and supervision (oversight) of them, regulation of the payment services market and control over it, as well as the implementation of payments and (or) money transfers in the Republic of Kazakhstan.

President

Republic of Kazakhstan

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