On 11 June 2011, Bank Negara Malaysia ("BNM") issued an exposure draft on the new Guidelines for Electronic Money ("e-Money") ("Exposure Draft"). Written feedback on the proposals in the Exposure Draft are to be made by/before 31 July 2021.
The Exposure Draft aims to ensure the safety and reliability of e-Money issued by persons approved under section 11 of the Financial Services Act 2013 or the Islamic Financial Services Act 2013 ("EMI"), and to enhance confidence in using or accepting e-Money for the payment of goods and services.
The Exposure Draft outlines, among others, the following:
- introduction to two types of EMIs – the ‘standard EMIs’ and the ‘eligible EMIs’, with eligible EMIs being subject to more enhanced requirements;
- introduction of a new category of ‘limited purpose e-Money’ issuers who will be exempt from the framework and requirements for approval;
- a framework provisioning for the ‘white labelling’ of EMIs that enter into partnerships with third parties, who offer e-Money under their own brand, whilst the EMIs remain accountable for the issuance and management of e-Money funds and operations;
- Board of Directors and senior management governance requirements;
- Shariah governance requirements for EMIs that offer Shariah compliant e-money;
- operational and risk management requirements;.
- substantial additional technology and cybersecurity controls and requirements relating to risks and operations management;
- minimum requirements on outsourcing agreements; and
- control measures based on various digital delivery channels.
The Exposure Draft, if finalised and issued as a Guideline, will replace and supersede the current Guideline on Electronic Money (e-Money) which was issued by BNM on 31 July 2008.
