Measures for the Administration of Payment Services by Non-financial Institutions

Releaseinformation

OrderofthePeople’sBankofChina

2010〕No.2No.

Accordingtothe“People’sBankofChinaLawofthePeople’sRepublicofChina”andotherlawsandregulations,thePeople’sBankofChinaformulatedthe“MeasuresfortheAdministrationofPaymentServicesforNon-FinancialInstitutions”.AdoptedattheofficemeetingoftheChiefExecutive,itisherebyannouncedandshallcomeintoforceonSeptember1,2010.

President:ZhouXiaochuan

June14,2010

Fulltextofthepolicy

Non-financialAdministrativeMeasuresforInstitutionalPaymentServices

ChapterOneGeneralProvisions

Article1istopromotethehealthydevelopmentofthepaymentservicemarketandregulatethepaymentofnon-financialinstitutionsServicebehaviors,preventionofpaymentrisks,andprotectionofthelegitimaterightsandinterestsofthepartiesconcerned.Thesemeasuresareformulatedinaccordancewiththe"People'sBankofChinaLawofthePeople'sRepublicofChina"andotherlawsandregulations.

Article2Theterm“non-financialinstitutionpaymentservices”asmentionedintheseMeasuresmeansthatnon-financialinstitutionsactasintermediariesbetweenpayeesandpayeestoprovidesomeorallofthefollowingmonetaryandfundtransferservices:

(1)Onlinepayment;

(2)Issuanceandacceptanceofprepaidcards;

(3)Bankcardreceipt;

(4)ChinaOtherpaymentservicesdeterminedbythePeople’sBankofChina.

Theterm“onlinepayment”asmentionedintheseMeasuresreferstotheactoftransferringmonetaryfundsbetweenpayersandpayersbasedonpublicorprivatenetworks,includingcurrencyexchange,Internetpayment,mobilephonepayment,fixedphonepayment,digitalTVpaymentetc.

TheprepaidcardmentionedintheseMeasuresreferstotheprepaidvalueofgoodsorservicespurchasedoutsidetheissuinginstitutionforprofit-makingpurposes,includingtheuseofmagneticstripe,chipandothertechnologiesintheformofcards,passwords,etc.Aprepaidcardissued.

Theterm“acquisitionofbankcards”asmentionedintheseMeasuresreferstotheactofcollectingmonetaryfundsforbankcardmerchantsthroughpoint-of-sale(POS)terminals.

Article3Non-financialinstitutionsprovidingpaymentservicesshallobtainthe"PaymentBusinessPermit"inaccordancewiththeprovisionsoftheseMeasuresandbecomeapaymentinstitution.

PaymentinstitutionsacceptthesupervisionandmanagementofthePeople’sBankofChinainaccordancewiththelaw.

WithouttheapprovalofthePeople’sBankofChina,nonon-financialinstitutionorindividualmayengageinordisguisedlyengageinpaymentbusiness.

Article4Thetransferofmonetaryfundsbetweenpaymentinstitutionsshallbehandledbybankingfinancialinstitutions,andshallnotbehandledbymeansofmutualdepositofmonetaryfundsbypaymentinstitutionsorbyentrustingotherpaymentinstitutions.

Paymentinstitutionsshallnothandlethetransferofmonetaryfundsbetweenbankingfinancialinstitutions,exceptwithspecialpermission.

Article5Paymentinstitutionsshallfollowtheprinciplesofsafety,efficiency,integrityandfaircompetition,andshallnotharmthenationalinterest,socialpublicinterestandthelegitimaterightsandinterestsofcustomers.

Article6Paymentinstitutionsshallcomplywithrelevantanti-moneylaunderingregulationsandperformanti-moneylaunderingobligations.

ChapterTwo"ApplicationandPermit

Article7:ThePeople'sBankofChinaisresponsiblefortheissuanceandmanagementofthe"PaymentBusinessLicense".Thosewhoapplyforthe"PaymentBusinessPermit"mustbereviewedbythelocalbranchofthePeople'sBankofChinaandreportedtothePeople'sBankofChinaforapproval.

ThebranchofthePeople'sBankofChinareferredtointheseMeasuresreferstothebranchesofthePeople'sBankofChinaabovethesub-provincialcentralbranchofacity.

Article8ApplicantsforthePaymentBusinessPermitshallmeetthefollowingconditions:

(1)AlimitedliabilitycompanyorjointstocklimitedcompanylegallyestablishedwithintheterritoryofthePeople’sRepublicofChina,Anditisanon-financialinstitutionlegalperson;

(2)HaveaminimumamountofregisteredcapitalthatmeetstherequirementsoftheseMeasures;

(3)HaveacontributorthatmeetstherequirementsoftheseMeasures;

(4)Therearemorethan5seniormanagerswhoarefamiliarwiththepaymentbusiness;

(5)Haveanti-moneylaunderingmeasuresthatmeettherequirements;

(6)HavetherequirementsPaymentbusinessfacilities;

(7)Haveasoundorganizationalstructure,internalcontrolsystemandriskmanagementmeasures;

(8)Haveabusinessplaceandsecuritymeasuresthatmeettherequirements;

(9)Theapplicantanditsseniormanagementpersonnelhavenotbeenpunishedforusingpaymentservicestocarryoutillegalorcriminalactivitiesortohandlepaymentservicesforillegalandcriminalactivitiesinthepast3years.

Article9Ifanapplicantintendstoengageinpaymentbusinessnationwide,theminimumregisteredcapitalshallbe100millionyuan;ifanapplicantintendstoengageinpaymentbusinesswithinaprovince(autonomousregionormunicipality),itsregistrationTheminimumcapitallimitis30millionyuan.Theminimumamountofregisteredcapitalisactuallypaid-incurrencycapital.

AsmentionedintheseMeasures,thepaymentbusinessiscarriedoutnationwide,includingapplicantswhosetupbranchesacrossprovinces(autonomousregions,municipalities)toengageinpaymentbusiness,orcustomerscantransactpaymentbusinessacrossprovinces(autonomousregions,municipalities)situation.

ThePeople'sBankofChinaadjuststheminimumamountofregisteredcapitalforapplicantsinaccordancewithrelevantnationallaws,regulationsandpolicies.

Thebusinessscopeofforeign-investedpaymentinstitutions,thequalificationsofoverseasinvestorsandtheproportionofcapitalcontributions,etc.,shallbeseparatelystipulatedbythePeople'sBankofChinaandsubmittedtotheStateCouncilforapproval.

Article10Themaininvestoroftheapplicantshallmeetthefollowingconditions:

(1)Itisalegallyestablishedlimitedliabilitycompanyorjointstocklimitedcompany;

(2)Asoftheapplicationdate,continuouslyprovideinformationprocessingsupportservicesforfinancialinstitutionsformorethan2years,orprovidecontinuousinformationprocessingsupportservicesfore-commerceactivitiesformorethan2years;

(3)Asoftheapplicationdate,continuousEarningsformorethan2years;

(4)Inthelast3years,nopunishmenthasbeenimposedforusingpaymentservicestocarryoutillegalorcriminalactivitiesortohandlepaymentservicesforillegalorcriminalactivities.

ThemaininvestorasmentionedintheseMeasuresincludestheinvestorwhohasactualcontroloftheapplicantandtheinvestorwhoholdsmorethan10%oftheequityoftheapplicant.

Article11TheapplicantshallsubmitthefollowingdocumentsandmaterialstothelocalbranchofthePeople’sBankofChina:

(1)Writtenapplication,statingtheapplicant’sname,domicile,andregistrationCapital,organizationalstructure,andproposedpaymentbusiness,etc.;

(2)Copyofcompanybusinesslicense(duplicate);

(3)ArticlesofAssociation;

(4)Capitalverificationcertificate;(5)Financialaccountingreportauditedbyanaccountingfirm;

(6)Paymentbusinessfeasibilitystudyreport;

(7)Anti-moneylaunderingmeasuresAcceptancematerials;

(8)Technicalsafetytestingcertification;

(9)Resumematerialsofseniormanagementpersonnel;

(10)ApplicantsandtheirCertificateofnon-criminalrecordofseniormanagementpersonnel;

(11)Relevantmaterialsofthemaininvestor;

(12)Statementofauthenticityofapplicationmaterials.

Article12Theapplicantshallannouncethefollowingmattersasrequiredafterreceivingtheacceptancenotice:

(1)Theapplicant’sregisteredcapitalandequitystructure;

(2)Listofmajorinvestors,shareholdingratioandfinancialstatus;

(3)Thepaymentbusinesstobeappliedfor;

(4)Theapplicant’sbusinessplace;

(5)Technicalsafetyinspectionandcertificationcertificateofpaymentbusinessfacilities.

Article13ThebranchesofthePeople'sBankofChinashallacceptallapplicationsthatmeettherequirementsinaccordancewiththelaw,andsubmitthepreliminaryreviewopinionsandapplicationmaterialstothePeople'sBankofChina.UponreviewandapprovalbythePeople'sBankofChina,a"PaymentBusinessPermit"shallbeissuedinaccordancewiththelawandanannouncementshallbemade.

The"PaymentBusinessLicense"isvalidfor5yearsfromthedateofissuance.IfapaymentinstitutionintendstocontinuetoengageinpaymentbusinessaftertheexpirationofthePaymentBusinessPermit,itshallsubmitanapplicationforrenewaltothelocalbranchofthePeople'sBankofChinawithin6monthsbeforetheexpirationoftheterm.IfthePeople'sBankofChinaapprovestherenewal,thevalidityperiodofeachrenewalis5years.

Article14Ifapaymentinstitutionchangesanyofthefollowingitems,itshallreporttothePeople’sBankofChinaforapprovalbeforeapplyingtothecompanyregistrationauthorityforchangeregistration:

(1)Changeofcompanyname,Registeredcapitalororganizationalform;

(2)Changethemaininvestor;

(3)Mergerordivision;

(4)AdjustbusinesstypeorchangeBusinesscoverage.

Article15Whenapaymentinstitutionappliesforterminationofpaymentbusiness,itshallsubmitthefollowingdocumentsandmaterialstothelocalbranchofthePeople’sBankofChina:

(1)WrittensignedbythelegalrepresentativeofthecompanyApplication,statingthecompanyname,paymentbusinessdevelopmentstatus,proposedterminationofpaymentbusinessandreasonsfortermination,etc.;

(2)Acopyofthecompany’sbusinesslicense(duplicate);

(3)Acopyofthe"PaymentBusinessLicense";

(4)Customer'slegalrightsprotectionplan;

(5)Paymentbusinessinformationprocessingplan.

Iftheterminationisapproved,thepaymentinstitutionshallcompletetheterminationworkinaccordancewiththeapprovalofthePeople’sBankofChinaandreturnthePaymentBusinessPermit.

Article16Formattersnotstipulatedinthelicensingproceduresinthischapter,the"People'sBankofChinaAdministrativeLicensingImplementationMeasures"(People'sBankofChinaOrder[2004]No.3)shallapply.

ChapterIIISupervisionandManagement

Article17PaymentinstitutionsshallengageinbusinessactivitiesinaccordancewiththebusinessscopeapprovedbythePaymentBusinessPermit.Thoseengagedinbusinessoutsidetheapprovedscopeshallnotbeoutsourced.

Paymentinstitutionsarenotallowedtotransfer,lease,orlendthe"PaymentBusinessLicense".

Article18:Paymentinstitutionsshall,inaccordancewiththerequirementsofprudentoperation,formulatepaymentbusinessmethodsandcustomerrightsprotectionmeasures,establishandimproveriskmanagementandinternalcontrolsystems,andreporttothelocalbranchofthePeople’sBankofChinafortherecord.

Article19Paymentinstitutionsshalldeterminethechargingitemsandchargingstandardsforpaymentservices,andreporttothelocalbranchofthePeople’sBankofChinafortherecord.

Paymentinstitutionsshallpubliclydisclosethechargingitemsandchargingstandardsoftheirpaymentservices.

Article20:PaymentinstitutionsshallsubmitpaymentbusinessstatisticalreportsandfinancialaccountingreportstothelocalbranchofthePeople’sBankofChinainaccordancewithregulations.

Article21:Paymentinstitutionsshallformulatepaymentserviceagreementstoclarifytheirrightsandobligationswithcustomers,principlesforhandlingdisputes,andliabilitiesforbreachofcontract.

PaymentinstitutionsshallpubliclydisclosetheformatclausesofthepaymentserviceagreementandreporttothelocalbranchofthePeople’sBankofChinafortherecord.

Article22Whereabranchofapaymentinstitutionisengagedinpaymentbusiness,thepaymentinstitutionanditsbranchshallgotothelocalbranchofthePeople’sBankofChinafortherecord.

Ifthebranchofthepaymentinstitutionterminatesthepaymentbusiness,itshallbehandledinaccordancewiththeprecedingparagraph.

Article23Whenapaymentinstitutionacceptsacustomer'sreserve,itcanonlyissueaninvoicetothecustomerbasedonthepaymentservicefeecharged,andcannotissueaninvoicebasedontheacceptedamountofthecustomer'sreserve.

Article24Thecustomerreservefundacceptedbythepaymentinstitutiondoesnotbelongtothepaymentinstitution’sownproperty.

Paymentinstitutionscanonlytransferreservefundsbasedonpaymentinstructionsinitiatedbycustomers.Itisforbiddenforpaymentinstitutionstomisappropriatecustomerreservefundsinanyform.

Article25,thepaymentinstitutionshallrecordthefollowingitemsinthepaymentinstructioninitiatedbythecustomer:

(1)thenameofthepayer;

(2)Thedeterminedamount;

(3)thenameofthepayee;

(4)thenameofthepayer’sbankorpaymentinstitution;

(5)Thenameofthebeneficiary’sbankorpaymentinstitution;

(6)Thedateofinitiationofthepaymentinstruction.

Ifacustomerpaysthroughabanksettlementaccount,thepaymentinstitutionshouldalsorecordthecorrespondingbanksettlementaccountnumber.Ifacustomerpaysthroughanon-banksettlementaccount,thepaymentinstitutionshallalsorecordthenameandnumberonthecustomer’svalidID.

Article26Whenapaymentinstitutionacceptsaclient'sreservefund,itshallopenaspecialdepositaccountforthereservefundinacommercialbanktodepositthereservefund.UnlessotherwisespecifiedbythePeople'sBankofChina.

Paymentinstitutionscanonlychooseonecommercialbankasthereservefunddepositorybank,andonlyonespecialreservedepositaccountcanbeopenedinabranchofthecommercialbank.

Thepaymentinstitutionshallsignareservefunddepositoryagreementwiththelegalentityorauthorizedbranchofthecommercialbanktoclarifytherights,obligationsandresponsibilitiesofbothparties.

PaymentinstitutionsshallsubmitinformationonthedepositoryagreementandspecialdepositaccountforreservefundstothelocalbranchofthePeople’sBankofChina.

Article27Thebranchofapaymentinstitutionshallnotopenaspecialreservedepositaccountinitsownname,andcanonlydeposittheacceptedreserveinthespecialreserveopenedbythepaymentinstitutionDepositaccount.

Article28Whenapaymentinstitutionadjuststhepositionsofdifferentspecialreservedepositaccounts,thelegalentityofthereservedepositorybankshalladjustthebalanceofthespecialreservedepositaccounttobeadjustedbythepaymentinstitutionCarryoutareviewandinformthepaymentinstitutionandtherelevantreservefunddepositorybankofthereviewopinions.

Thepaymentinstitutionshall,withthereviewopinionsissuedbythelegalpersoninstitutionofthereservedepositorybank,handlethepositionallocationofthespecialdepositaccountforthereservefund.

Article29Thereservedepositorybankshallsupervisetheuseofcustomerreservefundsdepositedinthisinstitution,andprovidethebranchofthePeople’sBankofChinawherethereservedepositorybankislocated.Institutionsandthelegalpersoninstitutionsofthereservefunddepositorybankshallsubmitinformationandmaterialssuchasthedepositoryorusagestatusoftheclient'sreservefund.

Forthepaymentinstitution’sapplicationorinstructiontousetheclient’sreservefundinviolationoftherelevantprovisionsofArticles25to28,thereservedepositorybankshallrejectit;itisfoundthattheclient’sreservefundhasbeenIncaseofillegaluseorotherabnormalcircumstances,itshallimmediatelyreporttothebranchofthePeople'sBankofChinawherethereservedepositorybankislocatedandthelegalpersoninstitutionofthereservedepositorybank.

Article30:Theratioofthepaid-inmonetarycapitalofthepaymentinstitutiontotheaveragedailybalanceofthecustomer’sreserveshallnotbelessthan10%.

The“averagedailybalanceofcustomerreserves”mentionedintheseMeasuresreferstotheaverageamountcalculatedbythelegalentityofthereservedepositorybankbasedonthetotalamountofcustomerreservesattheendofeachdayofthepaymentinstitutioninthelast90daysvalue.

Article31Thepaymentinstitutionshallcheckthecustomer’svalidIDorothervalididentificationdocumentsasrequired,andregisterthebasicinformationofthecustomer’sidentity.

Apaymentinstitutionthatknowsorshouldknowthatacustomerusesitspaymentbusinesstocarryoutillegalandcriminalactivitiesshouldstopprocessingpaymentservicesforit.

Article32Paymentinstitutionsshallhavethenecessarytechnicalmeanstoensurethecompleteness,consistencyandnon-repudiationofpaymentinstructions,thetimeliness,accuracyandsecurityofpaymentbusinessprocessing;Possessdisasterrecoveryprocessingcapabilitiesandemergencyresponsecapabilitiestoensurethecontinuityofpaymentbusiness.

Article33Paymentinstitutionsshallprotectcustomers’commercialsecretsinaccordancewiththelawandshallnotdisclosethemtotheoutsideworld.Exceptasotherwiseprovidedbylawsandregulations.

Article34Paymentinstitutionsshallproperlykeepthebasiccustomeridentityinformation,paymentbusinessinformation,accountingfilesandothermaterialsinaccordancewithregulations.

Article35Paymentinstitutionsshallacceptregularorirregularon-siteinspectionsandoff-siteinspectionsbythePeople’sBankofChinaanditsbranches,providerelevantinformationtruthfully,andshallnotrefuse,obstructorevadeinspections,andshallnotmakefalsereports.,Concealanddestroyrelevantevidencematerials.

Article36ThePeople’sBankofChinaanditsbranchesshallconductcorporategovernance,businessactivities,internalcontrol,riskstatus,andanti-moneylaunderingofpaymentinstitutionsinaccordancewithlaws,administrativeregulations,andrelevantprovisionsofthePeople’sBankofChina.Waitforregularorirregularon-siteinspectionsandoff-siteinspections.

ThePeople'sBankofChinaanditsbranchesconducton-siteinspectionsofpaymentinstitutionsinaccordancewiththelaw,andapplythe"People'sBankofChinaLawEnforcementInspectionProcedureRegulations"(People'sBankofChinaOrder[2010]No.1promulgated).

Article37ThePeople’sBankofChinaanditsbranchesmaytakethefollowingmeasurestoconducton-siteinspectionsofpaymentinstitutions:

(1)AskthestaffofpaymentinstitutionsandaskthemtoExplainandexplaintheinspecteditems;

(2)Viewandcopythedocumentsandmaterialsrelatedtotheinspecteditems,andsealthedocumentsandmaterialsthatmaybetransferred,concealedordamaged;

(3)Checkthespecialdepositaccountandrelatedaccountsofthecustomerreservefundofthepaymentinstitution;

(4)Checkthepaymentbusinessfacilitiesandrelatedfacilities.

Article38Ifapaymentinstitutionhasoneofthefollowingcircumstances,thePeople’sBankofChinaanditsbrancheshavetherighttoorderittostopsomeorallofthepaymentbusiness:

(1)Theaccumulatedlossexceeds50%oftheactualpaid-incurrencycapital;

(2)Thereisamajorbusinessrisk;

(3)Thereisamajorviolationoflawsandregulations.

Article39Ifapaymentinstitutionisterminatedduetodissolution,cancellationordeclarationofbankruptcy,itsliquidationshallbehandledinaccordancewithrelevantnationallawsandregulations.

ChapterIVPenaltyProvisions

Article40ThestaffofthePeople’sBankofChinaanditsbranchesshallbesubjecttoadministrativePunishment;ifacrimeisconstituted,criminalresponsibilityshallbeinvestigatedaccordingtolaw:

(1)Violatingtheregulationstoreviewandapprovetheapplication,modification,terminationandothermattersofthe"PaymentBusinessLicense";

(2))Checkingpaymentinstitutionsinviolationofregulations;

(3)Leakingknownstatesecretsortradesecrets;

(4)Otheractsofabuseofpowerandnegligenceofduty.

Article41Ifacommercialbankhasanyofthefollowingcircumstances,thePeople’sBankofChinaanditsbranchesshallorderittomakecorrectionswithinatimelimit,andgiveawarningorimposeafineof10,000to30,000;thecircumstancesareserious,ThePeople’sBankofChinaordersittosuspendorterminatethedepositorybusinessoftheclient’sreservefunds:

(1)Failingtoreportthedepositoryorusageinformationoftheclient’sreservefundsasrequired;

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(2)Failingtoreviewthepaymentinstitution’sadjustmentofthepositionofthespecialdepositaccountforreservefundsaccordingtoregulations;

(3)Failingtocheckthepaymentinstitution’suseofcustomerreservefundsinviolationofregulationsTheapplicationorinstructionisrejected.

Article42Ifapaymentinstitutionhasanyofthefollowingcircumstances,thebranchofthePeople’sBankofChinashallorderittomakecorrectionswithinatimelimit,andgiveawarningorimposeafineof10,000yuanupto30,000yuan:

(1)Failuretoestablishrelevantsystemsandmeasuresorriskmanagementmeasuresasrequired;

(2)Failuretogothroughrelevantfilingproceduresasrequired;

(3)FailuretofollowRegulationsforpublicdisclosureofrelatedmatters;

(4)Failuretosubmitorkeeprelevantmaterialsinaccordancewithregulations;

(5)Failuretohandlerelatedchangesinaccordancewithregulations;

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(6)Failuretoissueinvoicestocustomersaccordingtoregulations;

(7)Failuretokeepcustomers’businesssecretsaccordingtoregulations.

Article43Ifapaymentinstitutionhasoneofthefollowingcircumstances,thebranchofthePeople’sBankofChinashallorderittomakecorrectionswithinatimelimitandimposeafineof30,000yuan;ifthecircumstancesareserious,thePeople’sBankofChinashallcancelitspaymentbusinessLicense”;ifacrimeissuspected,itshallbetransferredtothepublicsecurityorganforinvestigation;ifacrimeisconstituted,criminalresponsibilityshallbeinvestigatedinaccordancewiththelaw:(1)Transfer,lease,orlendthe“PaymentBusinessLicense”;

(2)Exceedingtheapprovedbusinessscopeoroutsourcingthebusiness;

(3)Failingtostoreorusethecustomer’sreservefundasrequired;

(4)NotComplywiththeregulationsontheratioofpaid-inmonetarycapitaltotheclient’sreservefund;

(5)Interruptorterminatethepaymentbusinesswithoutjustifiablereason;

(6)RejectorhinderrelatedinspectionsSupervised;

(7)Otherviolationsoflawsandregulationsthatendangerthestableoperationofpaymentinstitutions,harmthelegitimaterightsandinterestsofcustomers,orendangerthepaymentservicemarket.

Article44Ifapaymentinstitutionfailstoperformitsanti-moneylaunderingobligationsinaccordancewithregulations,thePeople’sBankofChinaanditsbranchesshallimposepenaltiesinaccordancewithrelevantnationalanti-moneylaunderinglawsandregulations;ifthecircumstancesareserious,thePeople’sBankofChinashallcancelits"PaymentBusinessLicense".

Article45IfapaymentinstitutioncontinuestoengageinpaymentbusinessbeyondthevalidityperiodofthePaymentBusinessPermit,thePeople’sBankofChinaanditsbranchesshallorderittoterminatethepaymentbusiness;ifacrimeissuspected,itshallbetransferredtothepublicsecurityagencyaccordingtolawFileacaseforinvestigation;ifacrimeisconstituted,criminalresponsibilityshallbeinvestigatedinaccordancewiththelaw.

Article46Ifthe"PaymentBusinessPermit"isappliedforbyfraudorotherimpropermeansbutisnotapproved,theapplicantandtheinvestorholdingmorethan5%ofitsequityshallnotapplyorreapplywithin3years.Participateintheapplicationfor"PaymentBusinessLicense".

Forthosewhoapplyforthe"PaymentBusinessLicense"byfraudorotherimpropermeansandhavebeenapproved,thePeople'sBankofChinaanditsbranchesshallorderthemtoterminatethepaymentbusinessandcanceltheir"PaymentBusinessLicense";suspectedIfacrimeiscommitted,thecaseshallbetransferredtothepublicsecurityorganforinvestigation;ifacrimeisconstituted,criminalresponsibilityshallbeinvestigatedinaccordancewiththelaw;applicantsandinvestorsholdingmorethan5%oftheirequityshallnotreapplyorparticipateintheapplicationforthePaymentBusinessPermit.

Article47Ifanynon-financialinstitutionorindividualengagesinpaymentbusinesswithouttheapprovalofthePeople’sBankofChinaorindisguisedform,thePeople’sBankofChinaanditsbranchesshallorderthemtoterminatethepaymentbusiness;ifacrimeissuspected,Transferthecasetothepublicsecurityorganforinvestigation;ifacrimeisconstituted,criminalresponsibilityshallbeinvestigatedinaccordancewiththelaw.

Chapter5SupplementaryProvisions

Article48Non-financialinstitutionsthathaveengagedinpaymentbusinessbeforetheimplementationoftheseMeasuresshallbeimplementedonthedateofimplementationoftheseMeasuresApplyforthe"PaymentBusinessPermit"within1year.Thosewhofailtoobtainitwithinthetimelimitshallnotcontinuetoengageinpaymentbusiness.

Article49:ThePeople’sBankofChinaisresponsiblefortheinterpretationoftheseMeasures.

Article50TheseMeasuresshallcomeintoforceonSeptember1,2010.

Interpretationofthecontent

ThepersoninchargeoftherelevantdepartmentofthePeople’sBankofChinaanswersreporters’questionsonthe"MeasuresfortheAdministrationofPaymentServicesforNon-FinancialInstitutions"

1.Question:Whatisthebackgroundandsignificanceofthepromulgationofthe"Measures"?

Answer:Withtherapiddevelopmentofnetworkinformationandcommunicationtechnologyandthecontinuousdivisionoflaborandrefinementofpaymentservices,moreandmorenon-financialinstitutionshaveusedInternet,mobilephonesandotherinformationtechnologiestoparticipateinpaymentbusiness.Non-financialinstitutionsprovidingpaymentservicesandcooperatingandcompetingwiththebankingindustryhavebecomeanimportantforce.Traditionalpaymentservicesaregenerallyundertakenbythebankingsector,suchascashservices,billexchangeservices,directtransferservices,etc.,whileemergingnon-financialinstitutionsinterveneinthepaymentservicesystemanduseelectronicmeanstoprovidemarkettraderswithfront-endpaymentorback-endoperationservices,Soitisoftenreferredtoas"third-partypaymentagency."Practicehasprovedthatnon-financialinstitutionsuseinformationtechnologyandelectronicmeanstoprovidepaymentservices,whichgreatlyenrichestheservicemethods,expandsthebreadthanddepthofthepaymentbusinessofbankingfinancialinstitutions,andeffectivelyalleviatestheshortageofbankingfinancialinstitutions’outlets.Socialproblemssuchaswaitinginlineanddifficultyinfindingchange.Thediversifiedandpersonalizedpaymentservicesofnon-financialinstitutionshavebettermetthepaymentneedsofe-commercecompaniesandindividuals,promotedthedevelopmentofe-commerce,andplayedaroleinsupportingmacroeconomicpoliciessuchas"stimulatingconsumptionandexpandingdomesticdemand".positiveeffects.Althoughthepaymentservicesofnon-financialinstitutionsaremainlyconcentratedintheretailpaymentfield,andtheirbusinessvolumeissmallcomparedwiththepaymentservicesprovidedbybankingfinancialinstitutions,theirservicetargetsareverylarge,mainlyInternetusers,mobilephoneusers,andbankcards.Andprepaidcardholders,etc.,itsinfluenceisveryextensive.Asoftheendofthefirstquarterof2010,atotalof260non-financialinstitutionlegalpersonshavesubmittedpaymentbusinessregistrationmaterialstothePeople'sBankofChina,mostofwhichareengagedinInternetpayment,mobilepayment,telephonepayment,andissuanceofprepaidcards.

Withthecontinuousexpansionofthebusinessscopeandscaleofpaymentservicesofnon-financialinstitutionsandthepromotionofnewpaymenttools,aswellastheincreasinglyfiercemarketcompetition,someinherentproblemsinthisfieldaregraduallyexposed,andnewrisksandhazardsaregraduallyexposed.produce.Suchastheprotectionoftherightsandinterestsofthecustomer’sreservefunds,theissueofviolationsintheissuanceandacceptanceofprepaidcards,theimplementationofanti-moneylaunderingobligations,thesecurityofinformationsystemsrelatedtopaymentservices,theviolationofmarketcompetitionrules,andtheissueofdisorderlyengaginginpaymentservices,etc..Theseproblemsaredifficulttosolveonlybyrelyingonmarketforces,andmustbepreventedandcorrectedinatimelymannerthroughnecessarylawsandregulationsandsupervisorymeasures.

TheleadingcomradesofthePartyCentralCommitteeandtheStateCouncilattachgreatimportancetothesupervisionofnon-financialinstitutions'paymentservicesandhaveissuedimportantinstructionsonmanyoccasions.AsthestatutorysupervisoryadministratorofChina’spaymentsystem,thePeople’sBankofmycountryconscientiouslyimplementstherequirementsofthePartyCentralCommitteeandtheStateCouncilon"vigorouslydevelopfinancialmarketsandencouragefinancialinnovation"and"strengthenriskmanagementandimprovetheeffectivenessoffinancialsupervision".Throughbusinessinnovation,paymentserviceentitiescontinuetoenrichpaymentmethods,improvepaymentserviceefficiency,andcomplywiththeever-evolvingpaymentserviceneedsofthepublic.Atthesametime,theyvigorouslypromotetheconstructionofpaymentservicemarket-relatedsystems,strengthenthesupervisionandmanagementofpaymentservicesofnon-financialinstitutions,andpreventVariousfinancialrisks.Onthebasisoforganizingandcarryingouttheregistrationofpaymentservicesofnon-financialinstitutions,solicitingopinionsandsuggestionsfromallsectorsofthesociety,andlearningfrominternationalexperience,thePeople'sBankofChinaformulatedandissuedtheseMeasures.

Theformulationandimplementationofthe"Measures"isanimportantpracticetoguidethePeople’sBankofChina’ssupervisionandmanagementofthepaymentsystembasedonthescientificoutlookondevelopment.Importantmove.Thepromulgationofthe"Measures"meetstheneedsofnon-financialinstitutionsforstandardandorderlydevelopmentbasedontherulesofequalcompetition,meetstheneedsofconsumerstosafeguardtheirlegitimaterightsandinterests,andguaranteethesafetyoffunds,andmeetsthestate'srequirementsforencouragingfinancialinnovation,developingfinancialmarkets,andsafeguardingfinance.Theneedforstabilityandsocialstabilitywilldefinitelyhaveapositiveandimportantimpactonthehealthydevelopmentofmycountry'sfinancialsystem.

2.Q:Whatistheguidingideologyofthe"Methods"?

Answer:ThePeople’sBankofChinaadherestotheguidanceofthescientificdevelopmentconcept,strengthensthesupervisionandmanagementofpaymentservicesfornon-financialinstitutions,andclarifiestheworkthinkingoftheInnovative,market-led,andstandardizeddevelopment",andbasedonthis,theguidingideologyofthe"Measures"isdeterminedtobe"equalemphasisonstandardizeddevelopmentandpromotionofinnovation."

"Regulateddevelopment"mainlyreferstotheestablishmentofaunifiednon-financialinstitutionpaymentservicemarketaccesssystemandstrictsupervisionandmanagementmechanism.Ensurethatdifferentinstitutionsfollowthesameruleswhenengaginginthesamebusiness,preventunfaircompetition,protectthelegitimaterightsandinterestsoftheparties,andmaintainthestableoperationofthepaymentservicemarket.

"Promotinginnovation"mainlyreferstoadheringtothemarket-orienteddevelopmentdirectionofpaymentservices,encouragingnon-financialinstitutionstotakethemarketasthelead,andcontinuetoinnovateunderthepremiseofensuringsafety,soastobettersatisfysocialandeconomicactivitiesDemandforpaymentservices.

3.Question:Howarepaymentservicesofnon-financialinstitutionsregulatedinternationally?DoestheMeasuresdrawoninternationalexperience?

Answer:Internationally,insomecountrieswherethenon-financialinstitutionpaymentservicemarkethasdevelopedearlierandfaster,thegovernment’ssupervisionofsuchmarketshasgraduallyshiftedfrombeingbiasedtowards“self-disciplineandlaissez-faire”."Compulsorysupervisionandmanagement"change.Fromtheperspectiveofprotectingthelegitimaterightsandinterestsofcustomers,mosteconomiessuchastheUnitedStatesandtheEuropeanUnionrequirequalifiedinstitutionstoconductpaymentservicesinanorderlyandstandardizedmanner.Specificmeasuresincludetheimplementationoftargetedbusinesslicenses,theestablishmentofnecessaryentrythresholds,theestablishmentofinspectionandreportingsystems,theprotectionofcustomerrightsandintereststhroughassetguarantees,andthestrengtheningofmanagementofterminationandwithdrawalofinstitutions.

TheUnitedStatesdefinessimilarinstitutions(includingnon-financialinstitutionsandnon-bankfinancialinstitutions)asmoneyserviceinstitutions.Morethan40statesintheUnitedStatesrefertothe"UniformCurrencyServiceAct"toformulatelawstosupervisecurrencyservices.Theselawsgenerallyemphasizethemanagementandregulationofnon-bankinstitutionsengagedincurrencyservicesbyissuinglicenses.Institutionsengagedincurrencyservicesmustobtainaspecialbusinesslicenseandmeettherelevantqualificationrequirementsforinvestmententities,businesslocations,financialstrength,financialstatus,andbusinessexperience.Currencyserviceinstitutionsshallmaintainahighdegreeofliquidityandsecurityoftransactionfunds,andshallnotengageinbank-likedepositandloanbusiness,andshallnotretainorusecustomertransactionfundswithoutauthorization.Suchinstitutionsshouldalsocomplywithrelevantanti-moneylaunderingregulatoryrequirementstoensuredataandinformationsecurity.

TheEuropeanUnionhassuccessivelyformulatedthe"ElectronicCurrencyDirective"andthe"InternalMarketPaymentServiceDirective"forinstitutionsengagedinelectroniccurrencyissuanceandclearing,andrevisedthe"ElectronicCurrencyDirective"againin2009.TheselawsemphasizethatEUmemberstatesshouldimplementabusinesslicensingsystemforelectronicmoneyinstitutionsandpaymentinstitutionstoensurethatonlyinstitutionsthatcomplywiththeprincipleofprudentialsupervisioncanengageinsuchbusinesses.Paymentinstitutionsshouldstrictlydistinguishbetweentheirownfundsandcustomerfunds,andprovideinsuranceorsimilarguaranteesforcustomerfunds;whenelectronicmoneyinstitutionsprovidepaymentservices,thetotalamountofinvestmentusedfordemanddepositsandsufficientliquidityshallnotexceed20timesoftheirownfunds.Similarly,theFinancialServicesandMarketsActoftheUnitedKingdomrequirestheimplementationofbusinesslicensesforinstitutionsengagedinelectronicpaymentservices,andelectronicmoneyinstitutionsmustusecompliantliquidassetstoprovideguaranteesforthevalueofcustomers’advances,andthetotalvalueofcustomers’advancesmustnotbehigh8timesofitsownfunds.

SouthKorea,Malaysia,Indonesia,Singapore,ThailandandotherAsianeconomieshavesuccessivelypromulgatedlawsandregulations,requiringelectroniccurrencyissuerstoobtainpriorauthorizationorpermissionfromthecentralbankorfinancialThevaluecardsetstheupperlimitoftheamount,etc.

mycountry'snon-financialinstitutionpaymentservicesstartedlatebutdevelopedrapidly,andrelatedproblemsgraduallyemergedwiththecontinuousdevelopmentofbusiness.Basedonacomprehensiveandobjectiveanalysisofthedevelopmenttrendofnon-financialinstitutions'paymentservicesanddrawingoninternationalexperience,thePeople'sBankofChinahasestablishedanon-financialinstitution'spaymentservicesupervisionandmanagementthinkinginlinewithmycountry'snationalconditions.

4.Question:Pleaseintroducethemaincontentofthe"Measures".

Answer:The"Measures"hasfivechaptersand50articles,andthemaincontentsare:

ChapterOneGeneralProvisions,whichmainlystipulatethelegislativebasisandpurposeofthe"Measures",Legislativeadjustmentobjects,paymentbusinessapplicationsandpermits,thesupervisoryresponsibilitiesofthePeople’sBankofChina,andtheoveralloperatingprinciplesofpaymentinstitutions’paymentbusinesses.

ChapterTwo,ApplicationandPermit,mainlystipulatesthemarketaccessconditionsforpaymentservicesofnon-financialinstitutionsandthetwo-levelapprovalprocedureofthePeople’sBankofChinaonthe"PaymentBusinessPermit".Themarketaccessconditionsmainlyemphasizetheapplicant'sinstitutionalnature,registeredcapital,anti-moneylaunderingmeasures,paymentbusinessfacilities,creditstatus,andthequalificationrequirementsthatthemaininvestorshouldmeet.Inaddition,theapprovalrequirementsforchangesinpaymentinstitutionshavebeenclarified.

ChapterIIISupervisionandManagementmainlystipulatestheresponsibilitiesandobligationsofpaymentinstitutionsinregulatingoperations,fundsecurity,andsystemoperation.Standardizedoperationmainlyemphasizesthatpaymentinstitutionsshouldengageinpaymentbusinesswithinthescopeofapproval,reportanddisclosebusinesscharges,formulateanddiscloseserviceagreements,verifycustomeridentityinformation,keepcustomerbusinesssecrets,keepbusinessandaccountingfilesandotherinformation,andstandardizeinvoiceissuance,etc..Fundsecuritymainlyemphasizesthatpaymentinstitutionsshoulddepositacceptedcustomerreservefundsinthesamecommercialbankaccount,andcanonlyuseitinaccordancewithcustomerrequirements.Theoperationofthesystemmainlyemphasizesthatthepaymentinstitutionshouldhavethenecessarytechnicalmeans,disasterrecoveryprocessingcapabilitiesandemergencyresponsecapabilities.Inaddition,paymentinstitutionsalsoneedtocooperatewiththePeople'sBankofChinaforsupervisionandinspectionaccordingtolaw.

Chapter4PenaltyProvisionsmainlyclarifythelegalresponsibilitiesofthepeople’sbankstaff,commercialbanks,paymentinstitutionsandotherresponsibleentities.

Chapter5SupplementaryProvisionsmainlyclarifythetransitionperiodrequirementsandimplementationdateofthe"Measures".

5.Q:Whatpaymentservicescannon-financialinstitutionsprovide?

Answer:The“Measures”clarifythatnon-financialinstitutionpaymentservicesrefertonon-financialinstitutionsasintermediariesbetweenpayersandpayerstoprovidemonetaryandfundtransferservices,includingonlinepaymentsandprepaidcardsIssuanceandacceptance,aswellasbankcardacquiring,etc.

(1)Onlinepaymentbusiness.Theterm"onlinepayment"inthe"Measures"referstonon-financialinstitutionsthatrelyonpublicorprivatenetworkstotransfermonetaryfundsbetweenpayersandpayers,includingcurrencyexchange,Internetpayments,mobilephonepayments,fixedphonepayments,digitalTVpayments,etc.

(2)Prepaidcardissuanceandacceptancebusiness.Theprepaidcardsreferredtointhe"Measures"refertotheprepaidvalueofgoodsorservicespurchasedoutsidetheissuinginstitutionthatareissuedforprofit,includingprepaidcardsissuedintheformofcards,passwords,etc.,usingtechnologiessuchasmagneticstripsandchips.

(3)Bankcardacquiringbusiness.Thebankcardacquiringreferredtointhe"Measures"referstotheactofcollectingmonetaryfundsforbankcardmerchantsthroughpoint-of-sale(POS)terminals,etc.

(4)OtherpaymentbusinessesdeterminedbythePeople’sBankofChinabasedonthedevelopmenttrendofthepaymentservicemarket.

6.Q:Whyisabusinesslicensesystemimplementedfornon-financialinstitutionpaymentservices?

Answer:AccordingtotheworkrequirementsoftheStateCouncilon“establishinganopen,equalandstandardizedserviceindustryaccesssystemtoencouragetheentryofsocialcapital”,thePeople’sBankofChinacomplieswiththe“People’sBankofChinaLaw”andotherlawsandregulations.,Ithasbeenrecognizedbythenationaladministrativeexaminationandapprovaldepartmenttoimplementapaymentbusinesslicensesystemfornon-financialinstitutionpaymentservices.Non-financialinstitutions,whetherstate-ownedorprivatecapital,canobtainthe"PaymentBusinessLicense"aslongastheymeettherequirementsofthe"Measures".The"Measures"aimtoselectnon-financialinstitutionswithgoodcreditworthiness,strongprofitabilityandcertainprofessionalexperiencetoenterthepaymentservicemarketthroughstrictqualificationrequirements,andtoregulatethepaymentbusinessunderthesupervisionandmanagementofthePeople'sBankofChina,andeffectivelymaintainThelegitimaterightsandinterestsofthepublic.WithouttheapprovalofthePeople'sBankofChina,nonon-financialinstitutionorindividualshallengageinpaymentbusinessorindisguisedform.

ThePeople'sBankofChinadoesnotimposequantitativerestrictionsonthe"PaymentBusinessLicense",encouragesallqualifiednon-financialinstitutionstocompeteonanequalfootinginthepaymentservicemarket,andpromotetheoptimalallocationofresourcesinthepaymentservicemarket.

7.Q:Whataretherequirementsfornon-financialinstitutionstoprovidepaymentservices?

Answer:The“Measures”stipulatethatnon-financialinstitutionsshouldhavethecorrespondingqualificationstoprovidepaymentservices,soastoestablishaunifiedandstandardizednon-financialinstitutionpaymentservicemarketaccessorderandstrengthennon-financialinstitutionsSustainabilityofpaymentservices.Therequirementsfornon-financialinstitutionstoprovidepaymentservicesmainlyinclude:

(1)Commercialpresence.Theapplicantmustbealimitedliabilitycompanyoracompanylimitedbysharesestablishedinmycountryaccordingtolaw,andbeanon-financialinstitutionlegalperson.

(2)Capitalstrength.Applicantswhoapplytoengageinpaymentbusinessnationwidemusthavearegisteredcapitalofatleast100millionyuan;thosewhoapplytoengageinpaymentbusinesswithinthesameprovince(autonomousregionormunicipalitydirectlyundertheCentralGovernment)musthavearegisteredcapitalofatleast30millionyuan,andbothMustbepaid-incurrencycapital.

(3)Maininvestor.Theapplicant'smaininvestor(includingtheinvestorwhohasactualcontrolrightsandmorethan10%oftheequity)oftheapplicantshouldmeettherequirementsofthelegalpersonnatureofthecompany-basedenterprise,experienceinrelatedfields,certainprofitabilityandotherrelevantqualifications.

(4)Anti-moneylaunderingmeasures.Applicantsshouldhavetheanti-moneylaunderingmeasuresstipulatedbythenationalanti-moneylaunderinglawsandregulations,andsubmitcorrespondingacceptancematerialswhenapplying.

(5)Paymentbusinessfacilities.Theapplicantshallsubmitthetechnicalsafetyinspectionandcertificationcertificateofthenecessarypaymentbusinessfacilitiesatthetimeofapplication.

(6)Creditrequirements.Theapplicant,itsseniormanagementandthemaininvestorshouldhavegoodcreditstatusandprovidecorrespondingnon-criminalcertificationmaterials.

Consideringtheprofessionalismandsecurityrequirementsofpaymentservices,theapplicantshouldalsomeettherequirementsoftheorganization,internalcontrolsystem,riskcontrolmeasures,businesspremises,etc.ThePeople'sBankofChinawillrefinethespecificrequirementsformaterialsforacceptanceofanti-moneylaunderingmeasures,technicalsafetyinspectioncertificationandnon-criminalcertificationinthedetailedrulesfortheimplementationoftheMeasures.

8.Q:Whatarethestepsinvolvedintheapprovalprocessofthe"PaymentBusinessLicense"?

Answer:Accordingtothe"AdministrativeLicensingLawofthePeople'sRepublicofChina"anditsimplementationmeasuresandtheprovisionsofthe"People'sBankofChinaAdministrativeLicensingImplementationMeasures",the"Measures"stipulatethe"PaymentBusinessLicense"Theexaminationandapprovalprocessmainlyincludes:

(1)TheapplicantsubmitsapplicationmaterialstothelocalbranchofthePeople’sBankofChina.ThebranchesofthePeople'sBankofChinareferredtointhe"Measures"includetheShanghaiheadquartersofthePeople'sBankofChina,branches,businessmanagementdepartments,provincialcapital(capital)citycentralbranchesandsub-provincialcitycentralbranches.

(2)Iftheapplicationmeetstherequirements,thebranchofthePeople'sBankofChinashallacceptitinaccordancewiththelaw,andsubmitthepreliminaryreviewopinionsandapplicationmaterialstotheheadofficeofthePeople'sBankofChina.

(3)TheheadofficeofthePeople'sBankofChinawillreviewtheapplicationmaterialsbasedonthereviewopinionsofvariousbranchesandsocialsupervisionfeedbackinformation.Ifapprovedtobecomeapaymentinstitution,theheadofficeofthePeople'sBankofChinashallissuea"PaymentBusinessPermit"accordingtolawandmakeanannouncement.

9.Question:Whatmeasuresdoesthe"Measures"providetoprotectcustomerreservefunds?

Answer:Paymentinstitutionscanindependentlydeterminewhetherthepaymentbusinesstheyareengagedinacceptscustomerreservefunds.Customerreservereferstothemonetaryfundsthatcustomersvoluntarilyentrustpaymentinstitutionstokeepandcanonlybeusedtohandlepaymentservicesentrustedbycustomers.

The"Measures"hasmadethefollowingprovisionsintermsofprotectionmeasuresforcustomerreserves:

(1)Clarifythenatureofthereserves.Thecustomerreservefundacceptedbythepaymentinstitutiondoesnotbelongtothepaymentinstitution'sownproperty.Thepaymentinstitutioncanonlytransferthereservefundaccordingtothepaymentinstructioninitiatedbythecustomer.Itisforbiddenforpaymentinstitutionstomisappropriatecustomerreservefundsinanyform.

(2)Limittheholdingformofthereservefund.First,thepaymentinstitutionmustchooseacommercialbankasthedepositorybankforthereservefund,andaspecialaccounttostoretheacceptedclientreservefund.Second,paymentinstitutionscanonlydepositcustomerreservefundsinthesamecommercialbankaccount.Third,thebranchofapaymentinstitutioncannotopenaspecialdepositaccountforreservefundsonitsown.

(3)Emphasizethecooperativesupervisionresponsibilityofcommercialbanks.Asareservefunddepositorybank,acommercialbankshallsupervisetheuseoftheclient'sreservefunddepositedinitsinstitution,andshallhavetherighttorejecttheapplicationorinstructionofthepaymentinstitutiontousetheclient'sreservefundinviolationofregulations.Whenapaymentinstitutionintendstoadjustthepositionsofdifferentspecialdepositaccountsforreservefunds,itmustbereviewedbythelegalpersoninstitutionofitsreservefunddepositorybank.

(4)HighlightthestatutorysupervisoryresponsibilitiesofthePeople’sBankofChina.ThepaymentinstitutionandthereservedepositorybankshallrespectivelysubmittothePeople’sBankofChinathedepositoryagreementforreservefunds,thespecialdepositaccountforreservefunds,andthedepositoryoruseofthecustomerreservefundsandotherinformationandmaterialstothePeople’sBankofChina.ThePeople'sBankofChinawillconducton-siteinspectionsofthespecialdepositaccountsandrelatedaccountsofcustomers'reservefundsofpaymentinstitutionsinaccordancewiththelaw.

10.Q:Howtodealwithfalseapplications?

Answer:The“Measures”emphasizesthattheapplicationbehaviormustbetrueandcredible.Differentiatingwhethertheapplicationhasbeenacceptedorwhethertheapplicanthasobtainedthe"PaymentBusinessPermit"andothersituations,the"Measures"stipulatesdifferentwaysofhandlingfalseapplicationsbyapplicants.

(1)Iftheapplicantappliesforthe"PaymentBusinessPermit"byfraudorotherimpropermeansbutisnotapproved,theapplicantandtheinvestorholdingmorethan5%ofitsequityshallnotapplyagainorParticipateintheapplicationfor"PaymentBusinessLicense".

(2)Thosewhoapplyforthe"PaymentBusinessPermit"byfraudorotherimpropermeansandhavebeenapproved,thePeople’sBankofChinaanditsbranchesshallorderthemtoterminatethepaymentbusinessandcanceltheir"PaymentBusinessPermit"》;Ifacrimeissuspected,itshallbetransferredtothepublicsecurityorganforinvestigation;ifacrimeisconstituted,criminalresponsibilityshallbeinvestigatedinaccordancewiththelaw;applicantsandinvestorsholdingmorethan5%oftheirequityshallnotapplyfororparticipateintheapplicationforthePaymentBusinessPermit.

11.Q:Whatpenaltieswillbeimposedforprovidingpaymentserviceswithoutauthorization?

Answer:TheMeasuresstipulate:Anynon-financialinstitutionorindividualengagesinpaymentbusinesswithouttheapprovalofthePeople’sBankofChinaorengagesinpaymentbusinessindisguise,orthepaymentinstitutionexceedsthevalidityofthePaymentBusinessPermitThosewhocontinuetoengageinpaymentbusinesswithinthetimelimitshallbeorderedbythePeople’sBankofChinaanditsbranchestoterminatethepaymentbusiness;ifacrimeissuspected,itshallbetransferredtothepublicsecurityorganforinvestigation;ifacrimeisconstituted,criminalresponsibilityshallbeinvestigatedinaccordancewiththelaw.

12.Question:WhatarethetransitionalarrangementsandsupportingmeasuresaftertheimplementationoftheMeasures?

Answer:The"Measures"areequallyapplicabletonon-financialinstitutionsengagedinpaymentservicesinmycountry,includingnon-financialinstitutionsthathavebeenengagedinpaymentbusinesseswithoutapprovalbeforetheimplementationofthe"Measures",andNon-financialinstitutionsthatintendtoapplyforpaymentservicesaftertheimplementationoftheMeasures.Theformercanindependentlydecidetowithdrawfromthemarketorobtainthe"PaymentBusinessPermit"withinoneyearaftertheimplementationofthe"Measures".Non-financialinstitutionsthatfailtoobtainthePaymentBusinessPermitwithinthetimelimitshallnotcontinuetoengageinpaymentbusiness.

ThePeople'sBankofChinawillexpeditiouslyformulatedetailedrulesfortheimplementationofthe"Measures"andrelatedbusinessmeasures.Theimplementationrulesmainlyelaborateandexplaintheprovisionsofthe"Measures"concerningthequalificationsoftheapplicant,thecontentoftherelevantapplicationmaterials,andtheobligationsoftheresponsiblesubject.Relevantbusinessmeasuresaremainlyspecificmeasures(orguidelines)toguidepaymentinstitutionstoregulatevarioustypesofbusiness,especiallybusinessmeasuresrelatedtotheissuanceandacceptanceofprepaidcards,andbankcardacquiring.ThePeople'sBankofChinawillalsoformulaterelevantsupportingmeasureswithrelevantdepartmentssuchaspublicsecurity,organizeandcarryoutrelevantspecialinspections,formajointforce,implementeffectivesupervisionofpaymentservicesofnon-financialinstitutions,andeffectivelymaintainthehealthydevelopmentofthepaymentservicemarket.

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