Eternity Law International — News — System operator license in South Africa

System operator license in South Africa

Published:
October 12, 2022

Reserve Bank of SA issued a directive regarding the issuance of cards and the organization of acquiring within the jurisdiction. Through this directive, certain rules were introduced for those entrepreneurs who intend to obtain such a permit as a system operator license in South Africa, in particular for card issuers, card acquirers and organizations providing card acceptance services for transfers in the domestic market.

Provisions of directive aim to ensure the SA payment system is not threatened by domestic card service providers. It was the basis for the SARB to require the mandatory participation of local card issuers in the internal clearing system. In addition, local merchants must also use local card acquirers.

Contractual and legal requirements

A firm licensed as a system operator in South Africa – SO must have a separate agreement, drawn up in writing, concluded with each person for which certain services will be provided. Agreement is designed for following duties and rules for parties concluded it.

  1. This is an official obligation to comply with all the requirements and rules put forward in the framework of the provision of relevant services, which is spelled out in the Law.
  2. Ensuring appropriate problem and crisis supervision mechanisms, incl. escalation procedures.
  3. Ensuring efficient performance in terms of quality and service times.
  4. Establish a disaster recovery plan that outlines a mechanism to ensure the continuity of all functions for the beneficiaries.
  5. This agreement shall be governed by and construed according to provisions of the laws of SA. In case of any disputes and conflicts that could be reclassified as legal, the parties apply to the South African court of the appropriate instance. The parties undertake to follow what was issued and decided by the court.

With regard to the storage of information received from a client by a company licensed as a system operator in South Africa, company undertakes to do next-mentioned:

  • to properly store all the records that were made in the course of providing the service, for the period established by the norms of the law;
  • maintain the confidentiality of information about each person who becomes services’ customer. Only exceptions are cases when disclosure of such data is required by law.

Risk control requirements

The SO is required next-mentioned.

  1. Conscientiously and in a timely manner to comply with all reasonable measures in relation to risk management.
  2. Implement mechanisms necessary to contain risks.
  3. Timely and conscientiously implement the measures necessary to prevent certain risks, or reduce their impact, if their complete prevention is impossible.
  4. From time to time, test its own internal systems in order to identify and limit potentially unacceptable risks associated with operations/
  5. Actively cooperate with PASA and clearing house representatives to lead the development and implementation of better and more efficient procedures designed to implement risk management.
  6. Do not interact with firms or any other third parties that are not recognized and approved by PASA.
  7. Provide guarantees that the director of the firm and the board of directors have been fully informed of all these criteria. If necessary, a written report may be required.

A firm with a PSP license in South Africa undertakes to inform banking authority of all significant changes occuring in management system, nature of the activity and form of ownership of the firm. From time to time, other information may be requested by the bank, which must also be fully provided by the operator.

In order to carry out full-fledged activities, an enterprise that has a PSP license in South Africa needs to properly maintain accounting records and send fiscal statements to regulative authority for the annual period. In addition, these reports should be audited. The firm is also required to have adequate insurance against claims that may arise from beneficiaries or clients.

Our specialists are ready to provide you with professional assistance and support in obtaining a PSP license in South Africa. We also have a large selection of ready-made companies for sale. Contact us and we will provide you with comprehensive advice on all issues related to PSP activities in this jurisdiction.

You can see our current offers in the categories “Cryptocoins and licensing of cryptocurrency operations”, “Ready-made companies”, “Banks for sale” and “Licenses for sale”.

You could be interested

Registration of a company in Poland

Poland has been a favorable market for foreign businesspersons who appreciate the country’s openness, geographic location, and well-educated and highly skilled employment market.  Accordingly, company registration in Poland is an excellent option to discover many commercial opportunities and take advantage of both low labor costs and attractive corporate taxation rates. Below is a brief overview of the...

Permanent resident card in Europe

Permanent resident card in Europe is always a topical question. Each European state has its own characteristics: the economic situation, geographical location, attitude towards emigrants, and so on. When choosing a country to apply for a permanent resident card, all these factors must be taken into account. What is also important to remember is that...

Legalization of Cryptocurrency Trading in the UAE

The regulatory authorities of the UAE have determined the procedure for working with cryptocurrency. Now, investors are given the opportunity to trade and other cryptocurrency transactions within the DWTCA Free Zone – Dubai World Trade Center Authority. An agreement has been concluded between DWTCA and SCA (Securities and Commodity Control Authority), the provisions of which...

Forex broker in Bulgaria

To Forex brokers contemplating expansion in Europe but unwilling to bear the hefty cost of maintaining a Cypriot or Maltese licensed company, we strongly advise considering Forex broker in Bulgaria license. Key highlights Broker in Bulgaria is formally categorized as investment enterprise and operate under an Investment Services License (ISL), which outlines the allowable array...

TOP 5 Best Offshore Jurisdiction for Banking Licenses

When planning to set up offshore banking establishments dealing with crypto-currencies, managing capital of investors or functioning as a simple transactional institution, it is necessary to carefully study list of offshore countries being profitable for launching such a firm. Offshore licenses for banks are official certificates allowing these institutions to offer various services to customers...

Obtaining of investment services license in Bulgaria

Our experts will help you to get your own license as quickly and effortlessly as possible, allowing you to offer on the market and provide consumers with investment services on the territory of Bulgaria. As you know, Bulgaria is a member state of the European Union, therefore, this license gives you the opportunity to offer...

Discover our services

The international company Eternity Law International provides professional services in the field of international consulting, auditing services, legal and tax services.

Ready-made companies for sale

Companies with a bank account around the world

Banks for sale

Established Banks for sale

Ready-made licenses for sale

Forex, cryptocurrencies, gambling, EMI, PSP, SVF, MSO, DLT

Licensing

Forex licenses, cryptocurrencies, gambling, EMI, PSP, SVF, MSO, DLT

Offshore company registration

Expert advice on the acquisition of an offshore company

Open a bank account

Open bank accounts in more than 120 banks around the world
Fill the blank:

Zurich

Dreikonigstrasse, 31A, Stockerhof
+41 435 50 73 23

Kyiv

Baseina street, 7
+38 094 712 03 54

London

Grosvenor Gardens, 52
+44 203 868 34 37

Washington

1629 K St. Suite 300 N.W.
+1 (888) 647 05 40 Toll Free

Vilnius

Gediminas Avenue, 44A
+370 52 11 14 32

Tallinn

Kesklinna linnaosa, Tuukri 19
+372 880 41 85

Edinburgh

Lochrin Square, 1
+44 203 868 34 37

Nicosia

Jacovides Tower, 5 floor
+371 665 550 51

Riga

Esplanade, 7 floor
+371 665 550 51

Hong Kong

18 Harbour Road, 35/F, Central Plaza, Wanchai
800938622 Toll Free

Singapore

Level 42, Suntec Tower Three, 8 Temasek Boulevard
+6531594300

Sydney

20 Martin Place
+61 2 888 00 365

Porto

2609 Avenida da Boavista
+351 800 500 206 Toll Free

Tbilisi

Revaz Tabukashvili Str., N 45, area N 7
+995706070360