Legal support for a project to start providing payment services through an agent on behalf of a NPI
We provided legal support for a project to start providing payment services through an agent on behalf of a National Payment Institution (NPI). We also audited the national payment institution’s internal procedures.
Legal advice on the provision of services by a national payment institution through an agent. The activities of supervised institutions, including National Payment Institutions, are strictly regulated, both directly – by the provisions of generally applicable law, and on the basis of all kinds of regulations, guidelines and recommendations of the Financial Supervision Commission. Hence, all activities undertaken by entities from the payment services sector require the support of experienced lawyers.
At the request of the National Payment Institution, we provided comprehensive legal support for the project to start providing payment services through an agent.
The scope of our support included, in particular:
- advice on regulatory requirements;
- assessment and support in establishing a business relationship between the client and the entity intending to act as its agent;
- a comprehensive assessment of the business relationship that the National Payment Institution intended to establish with the entity intending to act as its agent.
The client was provided with detailed guidance on the scope and nature of the relationship it might establish. We analysed and reviewed all business assumptions agreed between the parties on an ongoing basis in order to develop the most effective model of cooperation, which at the same time met all legal and regulatory requirements.
The above support also included assistance in the preparation of assumptions for the draft agreement to be concluded.
The Firm also audited the internal procedures of the National Paying Authority in terms of their compliance with the adopted new business plans.
The conclusion of the work on the project was to provide the client with the necessary substantive support in terms of reporting the commencement of the provision of payment services through an agent to the Financial Supervision Commission.
See also:
For our client, during regular legal advice, we developed documentation for an anti-money laundering and counter-terrorist financing system (hereinafter “AML/TF system”, maximum penalty for violating those laws may result in financial penalty up to 5 million EUR).
As part of our ongoing cooperation with a client, a small payment institution, providing payment services including issuing of credit cards and providing payment credit to consumers, we represent the client in the proceedings for obtaining a license to provide payment services as a national payment institution.