29 June 2021
On 11 June 2021, Bank Negara Malaysia (“BNM”) issued the exposure draft of a policy document applicable to approved issuers of electronic money (“e-money”). The exposure draft outlines requirements aimed to ensure the safety and reliability of e-money and preserve customers’ and merchants’ confidence in using or accepting payments in e-money. The final policy document is intended to replace the Guideline on Electronic Money (“Current E-money Guidelines”) that was issued by BNM on 31 July 2008.
The exposure draft, which is more extensive than the Current E-money Guidelines, includes among other things:
- Definition and conditions of “limited purpose e-money”, pursuant to which issuers of such e-money are exempted from requiring approval from BNM;
- Enhanced requirements on governance such as fit and proper requirements;
- Revised minimum capital funds applicable to non-bank e-money issuers;
- Enhanced risk management requirements;
- Enhanced IT requirements; and
- Enhanced regulatory processes and requirements.
Feedback on the exposure draft must be provided by 31 July 2021.