Bank Negara Malaysia ("BNM"), the Central Bank of Malaysia, has on 15 December 2021 issued an exposure draft of the Payment System Operator policy document ("PSO Exposure Draft"). The PSO Exposure Draft is intended to apply to all approved operators of a payment system under the Malaysian Financial Services Act 2013 and Malaysian Islamic Financial Services Act 2013 ("PSO"). The objectives of the PSO Exposure Draft are to:
The key requirements and standards that BNM is proposing to introduce are set out below.
Key Requirements and Standards
Risk Management and Operational Requirements
Adequate Capital and Liquid Net Assets Requirement
Outsourcing Arrangements and Interlinkages
Access and Participation Rules
The PSO Exposure Draft will have far reaching implications on PSOs. Changes will need to be made to their operational day-to-day requirements and interactions with participants across the payment infrastructure as well as their service providers. It is imperative for PSOs to undertake a gap analysis to determine the refinements that it will need to make to comply with the requirements of the PSO Exposure Draft.
For further information and to discuss what this development might mean for you, please get in touch with your usual Baker McKenzie contact.
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