Part 3: Agents and Electronic Money Distributors
Article 24
(1) A Payment Service Provider must obtain a non-objection letter from SAMA before it appoints an Agent for the provision of any Payment Service and submit a business plan in a form satisfactory to SAMA; the Application must include at least the following:
(a) The anticipated number and location of the Agents;
(b) The data of Persons that are intended to be appointed as Agents, as well as evidence that such Persons have obtained all necessary registrations, licenses and permissions from SAMA and other competent authorities in order to carry out their activities;
(c) The policies, procedures, systems and controls that the Payment Service Provider will use to select and supervise the Agent;
(d) The activities relating to the provision of Relevant Payment Services that are to be carried out by the Agents; and
(e) Such other information, data or documents as SAMA may request.
(2) SAMA’s non-objection to the appointment of an Agent shall be deemed cancelled if the approved Agent does not commence its activities within a nine-month period from the date of issuing SAMA’s non-objection. SAMA may extend this period if it deems appropriate.
(3) SAMA may revoke its non-objection to the appointment of an Agent where an Agent or the Payment Service Provider that appointed it has contravened the provisions of the Implementing Regulation or other applicable laws, regulations or decisions.
(4) The Payment Service Provider must ensure the compliance of the Agent when acting on its behalf according to the following:
(a) May distribute or redeem Electronic Money on behalf of an EMI into an Electronic Money account but may not issue Electronic Money on behalf of an EMI;
(b) Must ensure that it does not contravene any provision of the Outsourcing Rules; and
(c) Must only carry out activities for which it is duly licensed in accordance with applicable laws and regulations.
Article 25
(1) An Electronic Money Institution that wishes to appoint an Electronic Money Distributor must comply with the following:
(a) At least thirty calendar days before that Electronic Money Distributor commences work under its appointment, submit a business plan to SAMA describing the following:
i. The anticipated number and location of the Electronic Money Distributors;
ii. The data of Persons that are intended to be appointed as Electronic Money Distributors, as well as evidence that such Persons have obtained all necessary registrations, licenses and permissions from SAMA and other competent authorities in order to carry out their activities;
iii. The policies, procedures, systems and controls that the Payment Service Provider will use to select and oversee the Electronic Money Distributors;
iv. The activities relating to the provision of Relevant Payment Services that are to be carried out by the Electronic Money Distributors; and
v. Such other information, data or documents as SAMA may request;
(b) Within ten calendar days of entering into a contractual agreement to appoint an Electronic Money Distributor, notify SAMA of such entry, with the right of SAMA to refuse within this period.
(2) The Payment Service Provider must ensure the compliance of the Electronic Money Distributor according to the following:
(a) Is prohibited from issuing the electronic money but may distribute Electronic Money on behalf of an EMI into an Electronic Money account or redeem Electronic Money;
(b) Must ensure that it does not contravene any provision of the Outsourcing Rules.
(c) Must only carry out activities for which it is duly licensed in accordance with applicable laws and regulations.
Article 26
(1) Notwithstanding the Payment Service Provider’s responsibilities towards its Agents and Electronic Money Distributors specified in Paragraph (2) below, SAMA may supervise an Agent or Electronic Money Distributor directly or take any enforcement or remedial action in accordance with its powers where it deems it necessary. For such purposes only, Agents and Electronic Money Distributors are considered Payment Service Providers.
(2) A Payment Service Provider that appoints an Agent or an Electronic Money Distributor must comply with the following:
(a) Must take all necessary steps to ensure that the Agent and Electronic Money Distributor are acting in compliance and must be responsible for all acts and omissions of the Agent and Electronic Money Distributor (including the compliance with the obligations to safeguard Safeguarded Funds according to the provisions of Part 7 of the Implementing Regulation;
(b) Must put in place policies, procedures and systems and controls necessary to meet its obligations, including but not limited to the following:
(i) The occupants of Senior Positions at Agent and Electronic Money Distributor are fit and proper to carry out the activities for which they have been appointed (taking into account the Fit and Proper Requirements);
(ii) The powers to oversee activities relating to the provision of Relevant Payment Services that are carried out by an Agent or Electronic Money Distributor;
(iii) Disclosure to Payment Services users of its relationship with the Agent or Electronic Money Distributor;
(iv) Risks associated with the use of Agents and Electronic Money Distributors are addressed and documented;
(v) Personnel of Agents and Electronic Money Distributors receive appropriate training in order to ensure that they carry out their activities competently and in compliance with the Implementing Regulation and other relevant laws, regulations and decisions; and
(vi) Procedures to remove any Agent or Electronic Money Distributor that has contravened a requirement of the Law and the Implementing Regulation and other relevant laws, regulations, decisions and instructions.
(c) Payment service provider must submit an annual report to SAMA regarding the Agents and Electronic Money Distributor, their activities and tasks, their performance evaluation, accidents and problems, and the mechanism for addressing them, according to the form determined by SAMA.