BNM issues Exposure Draft of Policy Document on e-Money

Bank Negara Malaysia (“BNM”) has today issued the Exposure Draft of the Policy Document on Electronic Money (e-Money) (“Exposure Draft”) to seek written feedback on the proposals in the Exposure Draft.
The deadline for providing comments to BNM on the Exposure Draft is 31 July 2021.
When issued, the Policy Document will apply to persons approved under section 11 of the Financial Services Act 2013 or the Islamic Financial Services Act 2013 to issue electronic money (e-money) (“EMI”).
Electronic money (e-money) is defined in the Exposure Draft as any payment instrument, whether tangible or intangible, that:
  1. stores funds electronically in exchange of funds paid to the issuer; and
  1. is able to be used as a means of making payment to any person other than the issuer;
The Policy Document, when issued, will supersede:
  1. The Guideline on Electronic Money (E-money) issued on 31 July 2008; and
  1. Paragraphs 11.2 (for non-bank EMIs) and 12 of the Policy Document on Interoperable Credit Transfer Framework issued on 23 December 2019.
The Exposure Draft appears to be significantly more comprehensive than the Guideline on Electronic Money (E-money) which it will replace.
For enquiries, please contact Lee Ai Hsian (Partner) of the Corporate Practice of Skrine.