In January 2020, the Central Bank of Argentina (“CBA”) issued resolutions regulating the activity of Payment Service Providers Offering Payment Accounts (PSP). These are defined as legal persons who while not being a financial entity they fulfil at least one function within a retail payment scheme, within the overall framework of the payment system.
Payment accounts are also defined as freely available accounts offered by a PSP to their customers to order and/or receive payments and payment schemes as systems of commercial, technical and/or operational rules that make fund transfers possible or payments.
Who cannot operate as a PSP?
-Legal entities that are not regularly incorporated in accordance with the General Companies Law.
-Legal entities that are recognized as markets, clearing houses, or agents that are thus recognized by the rules of the National Securities Commission.
-Legal entities whose capital, votes, administrative or supervisory bodies are composed of persons included in subsections a), b), e) or f) of Article 10 of the Financial Entities Law.
What retail payment schemes will not be considered for the purpose of the regulation?
-Those regulated by the National Securities Commission for primary placement and/or secondary negotiation, and/or compensation and/or liquidation of securities.
– Those whose object is the retention and/or perception and liquidation of sums destined to cancel tax or other obligations with the State in any of its levels and agencies.
Requirements to operate as PSP:
-Register in the “Payment Service Provider’s that offer payment accounts register”, entering the Tax Authorities Website with the tax code of the legal person that wishes to register in the registry. There you must attach the information required by the page.
-If the registration is approved, the Financial and Exchange entities’ Superintendence (CBA) will issue a registration certificate and grant the applicant a number in the Payments’ Register.
Also, the Communication regulates:
– The administration and management of the funds, for which full availability is required at least for an amount equivalent to what was accredited by each client.
-That 100% of client funds must be deposited in demand accounts in the Argentine currency in financial institutions of the country.
-That, at the client’s request, the balances credited to payment accounts can be transferred for application to carry out operations with common funds of money in the country. In this case, the balances invested in the common funds of required money will be reported separately from the rest.
-Compliance with the information and surveillance regime established.
-Transparency in advertising that must be clear and express.
-Sanctions for breaches that are verified with respect to the norms dictated by the CBA.