A Discussion Paper on Proposals
for the Regulation of Electronic Money Providers
14th December 2006
Discussion Paper on Proposals for the Regulation of Electronic-Money
Page: 1
CONTENTS
Page No.
Section 1
INTRODUCTION
2
Section 2
PROPOSED REGULATIONS
3
2.1
Regulated activities
3
2.2
Restrictions on Activities
4
2.3
Licensing
4
2.4
Anti-money laundering requirements
5
2.5
Capital and own fund requirements
6
2.6
Management of client money
8
2.7
Record keeping
8
2.8
Reporting requirements
9
2.9
Systems
9
2.10 Redeemability
9
2.11
Licence Fees
9
Section 3
SUMMARY OF QUESTIONS
10
Discussion Paper on Proposals for the Regulation of Electronic-Money
Page: 2
SECTION 1
1.
INTRODUCTION
The Commission has been charged with the development of a regime to regulate
electronic money (“e-money”) providers operating in or from the Island.
Based on analysis of the regulations applying in other jurisdictions and discussions with a
number of interested parties, this document sets out the proposed approach to
regulation of e-money. We would welcome your comments on these proposals.
At the close of the consultation we will arrange a meeting with interested parties, to
discuss the findings and, we hope, agree the way forward.
Subject to your comments on this initial document, the intention is to release a
consultation paper during the first quarter of 2007 which will set out the proposed
regime in more detail. It is intended that regulations will be progressed through the
legislative process in conjunction with the Financial Services Bill and related secondary
legislation with a view to implementation early in 2008.
A draft of the Financial Services Bill is to be released for consultation in the near future;
you may want to familiarise yourself with its content or participate in the consultation.
It would assist us in our consideration of responses if you