RESOLUTION OF BOARD OF NATIONAL BANK OF THE REPUBLIC OF BELARUS

of March 5, 2024 No. 77

About approval of the Instruction about the organization of management system payment risks at the payment service provider

Based on the paragraph of the seventy eighth of Article 26, No. 164-Z "About payment systems and payment services" the Board of National Bank of the Republic of Belarus DECIDES: parts one of article 39 of the Bank code of the Republic of Belarus, subitem 3.13 of Item 3 of article 4 of the Law of the Republic of Belarus of April 19, 2022

1. Approve the Instruction about the organization of management system by payment risks at the payment service provider it (is applied).

2. This resolution becomes effective after its official publication.

Approved by the Resolution of Board of National Bank of the Republic of Belarus of March 5, 2024 No. 77

The instruction about the organization of management system payment risks at the payment service provider

Chapter 1. General provisions

1. This Instruction:

establishes general requirements to the organization of management system payment risks at the payment service provider (further - PPU), except for banks, the non-bank credit and financial organizations, "Development Bank of the Republic of Belarus" open joint stock company;

determines conditions of emergence of conflict of interest in activities of PPU.

2. The operator of payment system considers requirements of this Instruction under the organization of management system payment risks of the payment system and provides their accomplishment by members of the payment service provider.

PPU considers necessary for accomplishment by the supplier of technological services of the requirement to management of payment risks in the agreements signed with such suppliers:

the operator of payment system and (or) its participants - under the organization of providing (ensuring) functioning of payment system;

other PPU - when rendering payment services.

3. For the purposes of this Instruction:

3.1. the following terms are applied:

source of payment risk - material and (or) non-material factors which independently or in combination with other factors have capability to cause payment risk;

IT risk - the payment risk connected with use of information technologies;

clearing system - system of clearing center by means of which clearing is provided and (or) the service of clearing is rendered to his participants;

criterion of payment risk - sign based on which assessment of the importance of payment risk is made;

the critical asset - tangible or intangible asset, destruction or violation of functioning of which will cause quantitative and (or) high-quality losses (losses) and (or) additional costs and (or) short-reception of the planned income;

critical personnel - personnel on which actions (failure to act) efficiency, reliability and safety of functioning of payment (clearing) system (implementation of activities of PPU) depends;

residual payment risk - the payment risk which remained after implementation of actions for decrease (non-admission) in realization of payment risk or present at process of implementation of the specified actions;

the plan of ensuring continuous work and maintenance - the document or set of documents containing complex of organizational actions and software and hardware solutions which shall be carried out to, in time and after emergence of crisis (faulty) situation;

payment risk - risk in payment system and (or) risk of the participant of the payment market;

inherent payment risk - the payment risk which is permanently present at functioning of payment system (implementation of activities of PPU);

profile of payment risk - set of indicators of payment risk and other data characterizing exposure of participants of the payment market of the Republic of Belarus (further - the payment market) to different types of payment risks taking into account strategy and priorities for the accepted payment risks;

risk of information security - the payment risk connected with violations in information security field and information security, personal data protection;

tactics of management of payment risks - set of procedures, rules, algorithms, the principles of management of payment risks based on their forecasting and responses to payment risk;

tolerance to payment risk - the level (size) of payment risk which the participant of the payment market determines for himself as admissible (safe) for ensuring the financial reliability and long-term functioning proceeding from strategy, nature, scale and complexity of types of activity, and also financial position;

3.2. the terms "oversight of payment systems", "operator of payment system", "payment", "payment service provider", "payment service", "payment market of the Republic of Belarus", "payment service provider", "risk in payment system", "risk of the participant of the payment market", "technological services", "management of payment risks", "service, critical for payment system (the payment market)", "member of payment service provider", "financial organizations", "participant of the payment market" are used in the values determined respectively in subitems 1. 13, 1.15, 1.18, 1.20, 1.21, 1.25, 1.30, 1.35, 1.36, 1.38, 1.41, 1.43 Items 1, subitems 2. 1, 2.4 Items 2 of article 2 of the Law of the Republic of Belarus "About payment systems and payment services".

The term "crisis (faulty) situation" matters, SPR 7.01-2020 determined by the standard of carrying out calculations "Activities in the field of payment systems and payment services. Information technologies. Ensuring continuous work and maintenance of the participant of the payment market of the Republic of Belarus. General requirements", the approved resolution of Board of National Bank of the Republic of Belarus of December 31, 2019 No. 552.

4. Payment risks are implemented in the payment market in case of violation of functioning of separate object of the payment market or business disruption of his participant constituting essential danger to stability and reliability of all payment market of the country which consists in impossibility of implementation of payment transactions during the terms established for them, including the guaranteed completion of calculations for the accepted payments (by results of clearing, execution of the payment obligations on the accepted payments).

Chapter 2. Types of payment risks and their description

5. Treat the main payment risks:

systemic payment risk;

legal payment risk;

settlement risk (payment liquidity risk and credit payment risk);

operational payment risk (including IT risk, risk of information security, payment cyberrisk);

payment risk of loss of goodwill (reputation payment risk);

strategic payment risk;

general commercial payment risk;

depositary payment risk;

investment payment risk.

6. The payment risks inherent in the payment market can extend on the payment market and develop gradually into systemic payment risk.

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