The following activities, linked or related to the provision or management of payment methods as defined in Article 12 of Regulation No. 03/16/CEMAC/UMAC/CM, are considered payment services such as:
- Credit institutions as defined by the Convention of January 17, 1992, on the harmonization of banking regulations in the Central African States;
- Microfinance institutions as defined by Regulation No. 01/02/CEMAC/UMAC/COBAC/CM of April 13, 2002, concerning the conditions for carrying out and monitoring microfinance activities in the CEMAC region;
- The Public Treasury and postal check services, subject to the specificities related to their status;
- Other approved institutions.
The Banking Commission sets, in particular, rules for payment service providers relating to:
- The configuration and functional modalities of payment services, as well as the legal relationships between payment service providers and their clients in the context of providing these services;
- The methods of administration and management, including the number and qualifications of managers and corporate governance within these institutions;
- Minimum capital requirements;
- The management standards that these institutions are required to comply with, in particular to guarantee their liquidity, solvency, the balance of their financial position, and the sustainability of their activities;
- Customer protection standards, etc.
The Banking Commission is responsible for ensuring that payment service providers comply with the legislative and regulatory provisions issued by the Ministerial Committee of the Central African Monetary Union (UMAC), the national monetary authorities, the Central Bank, or itself, and for penalizing any observed breaches.
The supervision of payment service providers is carried out through documentary and on-site audits by the Banking Commission.
The Banking Commission is authorized to request from payment service providers, their auditors, technical partners, distributors, sub-distributors, and any other person or organization whose assistance may be required, all information or supporting documents necessary for the performance of its duties. Those concerned are required to comply with the requests made to them.
Payment service providers who fail to meet the obligations prescribed in this title within the prescribed time limits shall be subject to penalties, the methods of calculation and recovery of which shall be set in accordance with the provisions of the Annex to the Convention of 17 January 1992, for credit institutions and payment institutions, and of Regulation No. 01/17/CEMAC/UMAC/COBAC of 27 September 2017, for microfinance institutions.
When COBAC observes malfunctions in the management or control of a payment service provider, it takes all the sanitation, restructuring or disciplinary measures provided for by Regulation No. 02/14/CEMAC/UMAC/COBAC/CM, for credit institutions and payment institutions, and Regulation No. 01/17/CEMAC/UMAC/COBAC, for microfinance institutions, with a view in particular to sanctioning the observed failures to preserve or restore normal operating conditions or, where appropriate, to ensure the settlement of the institution's liabilities.
The Central Bank sets the rules relating to:
- the technical and functional standards applicable to the technological solutions used to guarantee the security, efficiency, and reliability of payment services;
- the legal framework for the issuance of payment instruments and the conversion of electronic money into bank or physical money;
- the interoperability of the technical systems or platforms for providing payment services; etc.
The Central Bank oversees the compliance, security, and availability of the technical solutions for providing payment services and the use of payment instruments.
In accordance with Article 255 of Regulation No. 03/16/CEMAC/UMAC/CM, the Central Bank establishes or approves interbank payment systems for the provision of payment services.
It is authorized to request from payment service providers any information or supporting documents necessary for the exercise of the required supervision.
The Central Bank shall report to the COBAC any breaches identified during the supervision carried out pursuant to this article for the purposes of:
- Implementing the coercive or disciplinary measures provided for by the regulations,
- Or, where applicable, withdrawing the authorization, revoking the prior authorization, or withdrawing the notice of no objection provided for in Titles 5 and 6 of this Regulation.
When a payment service is provided via a mobile phone solution, the Central Bank may, to ensure the required oversight, rely on the public body responsible for regulating, controlling, and monitoring telecommunications and information and communication technology activities in the country where the payment service provider is established.
The Banking Commission and the Central Bank each determine, within their respective areas of responsibility, the list, content, formats, frequency, methods, and deadlines for submitting the documents that payment service providers are required to provide to them.
The Monetary Authority, upon the advice of the National Credit Council, makes decisions regarding the conditions for establishing branches and service points, the organization of shared services, and all matters concerning the organization and operation of payment service providers, other than those falling within the jurisdiction of the Banking Commission and the Central Bank.
Professional secrecy cannot be invoked against the Monetary Authority, the Banking Commission and the Central Bank in the exercise of their missions.