Unofficial transfer (c) Soyuzpravoinform LLC

LAW OF THE AZERBAIJAN REPUBLIC

of July 14, 2023 No. 987-VIQ

About payment services and payment systems

This Law according to Items 10, of 11, 12 and 15 parts I of article 94 of the Constitution of the Azerbaijan Republic determines the legal basis of activities of payment systems, payment services, payment institutes, the organizations of electronic money and operators of payment systems and legal, organizational and economic basis of regulation and control in this sphere.

Chapter 1. Basic provisions

Article 1. Basic concepts

1.1. The basic concepts used in this Law have the following values:

1.1.1. authentication - the procedure, the identity of the user of payment services allowing the supplier of payment service to check or reliability of use of the payment instrument, including the personalized data of safety of the user of payment service;

1.1.2. authorization - consent this by the user of payment service to the supplier of payment service on making of payment transaction;

1.1.3. direct debiting - the payment instrument used for debiting of the payment account of the payer based on the payment order of the receiver of means based on the prior consent this by the payer to the receiver of means, the supplier of payment service of the receiver of means or the payer;

1.1.4. blocking - suspension of making of transactions by means of the payment instrument;

1.1.5. the steady carrier - any means allowing to store information during term according to its purposes and to reflect stored information without changes;

1.1.6. periodical payment - the payment made by the payer periodically for benefit of the receiver of means in previously certain amount or within amount limit;

1.1.7. acquiring - the service in acceptance and information processing rendered by suppliers of payment service about the transactions made with payment instruments by the conclusion of the contract with the receiver of means and leading to money transfer for benefit of the receiver of means or to provision of cash;

1.1.8. electronic money - the payment instrument allowing to perform payment transactions and accepted for payment along with the issuer of electronic money and the third parties which is stored electronically and made available to the user of payment service in the amount of the accepted money;

1.1.9. issue of electronic money - provision by the issuer of electronic money in the order of the user of payment service of electronic money;

1.1.10. the issuer of electronic money (further - the issuer) - person performing issue of electronic money according to this Law;

1.1.11. residual cost of electronic money - nominal value of electronic money on the settlement account of the owner of electronic money;

1.1.12. the owner of electronic money - the user of payment service having the right to dispose of electronic money;

1.1.13. the organization of electronic money - the legal entity who is emitting electronic money and carrying out the payment transactions connected with electronic money, based on the license obtained according to the procedure, established by this Law, at the same time having right to render and other payment services if it is provided by its license;

1.1.14. operational day - time established by the supplier of payment service for acceptance of payment orders and making of payment transactions;

1.1.15. incident of transaction or safety - unplanned from the operator and the supplier of payment service event which exerts or can exert negative impact on completeness, confidentiality, reliability and (or) stability of payment services, completeness and (or) stability of processing, clearing of payment transactions in payment systems and (or) conducting calculations, ensuring safe and effective activities of the operator and supplier of payment service;

1.1.16. the personalized these safety - the personalized data provided by the supplier of payment service to the user of payment service for the purpose of authentication;

1.1.17. emergency situations - the geological, natural fires, meteorological explosions, the fires, building collapse and constructions, problem in electric utility systems and other accidents of natural or technogenic origin and other circumstances having extreme character;

1.1.18. the strengthened authentication of the client - the authentication based on use of two and more elements known only to the user belonging to the user and which had by the user, intended for protection of confidentiality of authentication data, violation of one of which does not exclude reliability of others;

1.1.19. the calculating agent - the legal entity perfroming calculations for payment orders in payment system through the accounts opened for participants;

1.1.20. information service on the account - service in provision of online information on the payment accounts of the user of payment service serviced by one or several other suppliers of payment service;

1.1.21. the supplier of information service on the account - the supplier of payment service providing information service on the payment account;

1.1.22. the supplier of payment service servicing the account - the supplier of payment service having the payment account of the payer and rendering him payment service;

1.1.23. vulnerable payment data - data which can be used for fraudulent transactions, including the personalized these safety (except for information on name and account number of the user of payment service when rendering the payment services provided by articles 3.1.6 and 3.1.7 of this Law);

1.1.24. local branch of foreign payment institute (local branch of the foreign organization of electronic money, local branch of the foreign operator) - the branch which underwent state registration in the Azerbaijan Republic and performing the related activity on behalf of the foreign payment institute (the foreign organization of electronic money, the foreign operator) created outside the Azerbaijan Republic, based on the license obtained according to the procedure, established by this Law;

1.1.25. clearing - process of the transformation of the requirements and obligations arising on payment amount, provided by one or several participants of settlement system to one or several participants of this system or received from them in the net requirement or the net obligation which is their difference;

1.1.26. credit transfer (payment order) - the payment instrument used for the purpose of money transfer by the payment service provider servicing the payment account, and based on the payment order of the payer;

1.1.27. the aggregate capital - the capital established according to this Law for the purpose of ensuring steady activities of payment institute or the organization of electronic money;

1.1.28. considerable share - immediate or indirect possession of shares, component ten and more percent of the authorized capital of payment institute, the organization of electronic money or the operator or allowing to have significant effect on decision making of the legal entity in which are participant based on the agreement;

1.1.29. the subject of control - payment institute, the organization of electronic money and the operator of payment system who is acting on the basis of the licenses or registration according to this Law;

1.1.30. the operator - the person organizing work of payment system according to this Law and determining rules of this system;

1.1.31. the payment agent - the legal entity rendering payment services on its own behalf based on the agreement signed with bank, payment institute or the organization of electronic money or the physical person performing business activity without formation of legal entity;

1.1.32. the payment instrument - any personalized tool and (or) set of procedures used by the user of payment service for the purpose of issue of the payment order and approved with the supplier of payment service;

1.1.33. payment transaction - irrespective of obligation availability between the payer and the receiver of means receipt, transfer or expenditure of means at the initiative of any of them;

1.1.34. intermediary service in making of payment transaction - service in issue of the payment order in the payment account opened at other supplier of payment service based on the address of the user of payment service;

1.1.35. the payment account - the account opened for one or several users of payment service for making of payment transactions;

1.1.36. payment service - services, the stipulated in Article 3.1 presents of the Law rendered by the supplier of payment service;

1.1.37. the user of payment service - person using payment services as the payer and (or) the receiver of means;

1.1.38. the supplier of payment service - persons rendering payment services to the user of payment services according to this Law and the stipulated in Article 3.3 presents of the Law;

1.1.39. the payment order - the assignment given by the user of payment service to the supplier of payment service via the payment instrument for accomplishment of payment transaction;

1.1.40. payment system - money transfer system with the official and standardized general mechanisms and processing rules, clearing of payment transactions and (or) conducting calculations which member are three and more participants;

1.1.41. the member of payment service provider - the person which signed the contribution agreement in payment system and recognized by the participant based on rules of payment system;

1.1.42. the payment terminal - the equipment allowing to perform payment transaction by means of the payment instrument, including by means of cash;

1.1.43. payment institute - the legal entity rendering other payment services in total or separately, except for to issue of electronic money and accomplishment of payment transactions with electronic money based on the license according to this Law;

1.1.44. the payer - person giving the payment order to the supplier of payment service for the purpose of implementation of payment transaction;

1.1.45. money transfer - transfer operation of money for benefit of the receiver without opening of the payment account addressed to the payer and (or) the receiver of means;

1.1.46. digital content - the goods or service made and represented in digital form, use (consumption) of which it is possible only by means of technical devices, and limited to them;

1.1.47. the unique identifier - the combination of letters, figures or symbols established by the supplier of payment service for the user of payment service and used for identification of the user of payment service and (or) the payment account when implementing payment transaction;

1.1.48. the intermediary - the supplier of payment service rendering intermediary services for making of payment transaction;

1.1.49. the receiver of means - person provided to receipt of means on payment transaction;

1.1.50. civil faultlessness - the fact of compliance of beneficial owners of subjects of control, persons performing managerial functions, and also owners of considerable share in the authorized capital, the head of executive body of this owner if he is legal entity, to requirements of article 17 of the Law of the Azerbaijan Republic "About fight against legalization of the property received in the criminal way, and terrorism financing".

1.2. Taking into account Articles 7. 5, 7.6, 48.12, 52, of 53, 54.2, 57, 58.2, 60.1, 60.3 and Chapter 7 of this Law of the requirement of this Law of rather payment institute, the organization of electronic money and the operator extend respectively and to local branch of foreign payment institute, the foreign organization of electronic money and the foreign operator.

1.3. Other concepts used in this Law express the values established by regulatory legal acts of the Azerbaijan Republic.

Article 2. Legislation on payment services and payment systems

2.1. Activities of payment services and payment systems are regulated by the Constitution of the Azerbaijan Republic, international treaties which the Azerbaijan Republic, the Civil code of the Azerbaijan Republic, this Law, the laws of the Azerbaijan Republic "About the Central bank of the Azerbaijan Republic", "About banks", "About non-bank credit institutions" and "About mail", other regulatory legal acts of the Azerbaijan Republic governing the relations in this sphere and also the acts of normative nature adopted by the Central bank of the Azerbaijan Republic (further - the Central bank) according to them joined.

2.2. The relations in the field of payment services and payment systems in the Alyatsky free economic zone are regulated according to requirements of the Law of the Azerbaijan Republic "About the Alyatsky free economic zone".

Article 3. Payment services and suppliers of payment service

3.1. Enter payment services:

3.1.1. making of transactions of receipt and (or) expenditure of money in cash form according to the settlement account;

3.1.2. accomplishment of payment transactions by credit transfer, direct debiting, payment card or other similar payment instruments;

3.1.3. issue of payment instruments and (or) acquiring of payment transaction;

3.1.4. money transfer;

3.1.5. issue of electronic money and accomplishment of payment transactions with electronic money;

3.1.6. intermediary services in making of payment transactions;

3.1.7. information service on the account.

3.2. As payment service for the purposes of this Law are not considered:

3.2.1. the payment transactions performed by the payer in cash form it is direct for benefit of the receiver of means;

3.2.2. the payment transactions made by the payer for benefit of the receiver of means through the sales representative (agent) authorized to sign purchase and sale agreements of goods, performance of works or rendering services only on behalf of the payer or the receiver of means;

3.2.3. the currency exchange transactions made in cash form without payment account;

3.2.4. transactions on the deposit account of the value added tax opened and kept on the single treasurer account according to the procedure established by regulatory legal acts and also on value added tax return;

3.2.5. the payment transactions made with letters of credit, the collection, checks and bills of exchange;

Disclaimer! This text was translated by AI translator and is not a valid juridical document. No warranty. No claim. More info