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RESOLUTION OF BOARD OF CENTRAL BANK OF THE AZERBAIJAN REPUBLIC

of January 10, 2024 No. 01/2

About approval "Procedure for the organization and implementation of activities by payment institutes and organizations of electronic money"

Based on Articles 3.2. 9, 4.2, 5.1.1, 5.1.2, 7.1.1, 10.1, 49.2.11, 49.3, 59.2.3, 62.3.1, 62.4 of the Law of the Azerbaijan Republic "About payment services and payment systems" and article 22.1.17 of the Law of the Azerbaijan Republic "About the Central bank of the Azerbaijan Republic" DECIDES: Board of the Central bank of the Azerbaijan Republic

1. Approve "Procedure for the organization and implementation of activities by payment institutes and the organizations of electronic money" it (is applied).

2. Charge to Legal department (Rena Melikova) in 3-day time to provide submission of this Resolution to the Ministry of Justice of the Azerbaijan Republic for entering into the State register of legal acts of the Azerbaijan Republic.

Approved by the Resolution of Board of the Central bank of the Azerbaijan Republic of January 10, 2024, No. 01/2

Procedure for the organization and implementation of activities by payment institutes and organizations of electronic money

1. General provisions

1.1. This Procedure is developed according to Articles 3.2. 9, 4.2, 5.1.1, 5.1.2, 7.1.1, 10.1, 49.2.11, 49.3, 59.2.3, 62.3.1, 62.4 of the Law of the Azerbaijan Republic "About payment services and payment systems" (further - the Law).

1.2. This Procedure determines requirements to the minimum authorized capital and the minimum size of the aggregate capital of payment institute and the organization of electronic money, procedure of payments, structure and structure of the aggregate capital, procedure of foreign exchange activities and loan granting to users of payment services, cases and procedure for the message on low-risk quick assets in which the money accepted by the organization of electronic money, operational incidents or incidents of safety, the requirement concerning procedures with vulnerable payment data can be invested. This Procedure also determines requirements to the program of activities and the business plan of payment institute and the organization of electronic money, internal control systems and risk managements, including to the security measures connected with rendering payment services, stability of activities and to the recovery plan in emergency situations, the minimum amount of civil responsibility insurance (guarantee) for the payment institute wishing to render exclusively information service on the account, requirements to ensuring information security, and also form, content and procedure for submission of activities reports of payment institute and the organization of electronic money.

1.3. If the maximum amount of one payment transaction provided by mobile operator for acquisition of digital content and voice services according to article 3.2.9 of the Law exceeds 50 (fifty) manats, and the amount of payment transactions of such type on one subscriber within a month exceeds 250 (two hundred fifty) manats and also if the amount of the payment transactions of such type performed on one subscriber within charity within a month exceeds 500 (five hundred) manats, the corresponding payment transactions for the purposes of the Law are considered as payment service.

1.4. In this Procedure "organization" is implied as payment institute and the organization of electronic money.

1.5. Cash transactions, storage and collection of cash in the organization are performed according to "Procedure for making of cash transactions, storages and collections of cash and other values in credit institutions", approved by the Resolution of Board of the Central bank of the Azerbaijan Republic (further - the Central bank) of September 14, 2021 No. 24/1.

1.6. Wire transfer of financial resources by the organization is made according to the "Procedure for application of measures of client compliance in case of wire transfer of financial resources" approved by the Resolution of Board of the Central bank of February 22, 2023 No. 09/1.

1.7. The procedure for opening, maintaining and closing of payment accounts with the organization is regulated by the "Procedure for opening, maintaining and closing of bank accounts" approved by the Resolution of Board of the Central bank of February 4, 2022 No. 04/2, taking into account requirements of the Law.

2. Concepts

2.1. The concepts used in this Procedure have the following values:

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