Notice on Determining the Limits of Electronic Money Services

On 17 July 2023, the Bank of Lao PDR ("BOL") issued Notice No.717/BOL on Determining the Limits of Electronic Money Services ("Notice") informing commercial banks, non-banking financial institutions and legal entities that are electronic money service providers in Lao PDR on determining the limits of electronic money services ("EMS"). This is based on changing domestic and international economic conditions that have led to higher prices of goods and services.

To adopt to the economic situation and to meet the demand for the use of electronic money to pay for goods and services, BOL has redefined the limits of providing EMS. The details are set out below.

1. EMS providers must determine the electronic money limit according to each type and level as set out in the following table:



Levels of service user	Type of money	Service provider is a bank	Service provider is not a bank
		Amount (LAK)	Amount (LAK)
1.  Type of Individuals
Level 1:  Individual	Maximum transaction/once/ account	25 million	12 million
	Withdraw cash/day/account	5 million	2.5 million
	Maximum transaction balance/day/account	40 million	20 million
	Maximum balance/account	50 million	25 million
Level 2:  Individual	Maximum transaction/once/ account	30 million	25 million
	Withdraw cash/day/account	10 million	5 million
	Maximum transaction balance/day/account	80 million	40 million
	Maximum balance/account	100 million	50 million
2.  Type of Legal entities (company, outlet, public and international organisation)
Level 3:  Legal entities (companies and outlets)	Maximum transaction/once/ account	75 million	40 million
	Maximum transaction balance/day/account	150 million	80 million
	Maximum balance/account	Payment service providers are customised according to the size of the legal entity and outlets.
Level 4:  Public and International organisations	Maximum transaction/once/ account	Payment service providers shall conduct research and determine the appropriate amount together with public and international organisations, and must be officially authorised by BOL.
	Maximum transaction balance/day/account
	Maximum balance/account
3.  Type of agents
Level 5: Sub-agent	Maximum transaction/once/ account	50 million	25 million
	Maximum balance/account	1 billion	500 million
Level 6: The main agent is an individual	Maximum transaction/once/ account	50 million	25 million
	Maximum balance/account	1 billion	500 million
Level 7: The main agent is a legal entity	Maximum transaction/once/ account	It depends on the permission given by BOL on a case-by-case basis, because the main agent that can expand the sub-agent must apply for permission from BOL and determine the amount of money based on BOL's assessment on a case-by-case basis.
	Maximum balance/account




2. EMS providers must limit their EMS to the amount specified in the Notice ("Specified Amount"). In addition, an appropriate risk management mechanism must be determined in accordance with the regulations related to EMS as may be determined by BOL from time to time.


3. EMS providers that intend to provide EMS in an amount that is different from the Specified Amount must notify BOL in writing for the latter's consideration and research.


4. EMS providers that violate the Notice will face sanctions in accordance with the relevant regulations.

The Notice replaced Notice on Determining the Limits of Electronic Money Services No. 730/BOL dated 8 September 2021.