The Central Bank of Cyprus has published the draft Payment Services Law of 2009, which implements the European Payment Services Directive, 2007/64/EC. The Payment Services Directive aims to create a single market in payment services, to guarantee fair and open access to payments markets and to increase consumer protection. It requires systems to be put in place to enable all euro or domestic electronic payments to be completed within one day after the payment order is given and provides the legal foundation for cross-border direct debit schemes. It also provides the necessary legal platform for the Single Euro Payments Area.
The draft law establishes the regime for payment institutions, which generally speaking are institutions other than banks and electronic money institutions that may provide payment services with the prior authorisation from the relevant authority, and designates the Central Bank of Cyprus as the competent authority responsible for the authorisation and prudential supervision of payment institutions. It is expected to be enacted and become effective by 1 November 2009, the transposition date set by the Directive.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
