Seychelles to update regulatory framework for payment systems
Cabinet stressed on the need to have retail shops make use of electronic cash registers that issue receipts for every transaction. (Seychelles Nation)
The setting up of an up-to-date regulatory framework governing the operations of payment, clearing, settlement systems and retail payment services in Seychelles was approved by the Cabinet of Ministers this week.
In a Cabinet press briefing on Thursday, Vice-President Ahmed Afif said that as payment systems have evolved in a rapid manner in the country, it is essential to have in place up-to-date legislation that can govern such activities efficiently.
This will be done by making amendments to the existing National Payment System Act (NPSA).
The amendments approved by the Cabinet set out to address deficiencies identified during the implementation of the law enacted in 2014, as well as align the legislation with international standards and best practices.
"Today, a lot of transactions are taking place online. There are many benefits that come with these modern payment systems but we need to ensure that the regulator has good control over all the transactions taking place and as such, there needs to be modern legislation in place that takes into account the different systems in place," said Afif.
Under the Act, the Central Bank of Seychelles has the power to regulate and oversee the country's national payment system for the purpose of ensuring its safe, secure, efficient, and effective operation.
The amendments to the Act and the affiliated regulations will also be amended to ensure alignment between the two instruments.
"It is necessary for the Central Bank of Seychelles to be up-to-date with all the payment systems to ensure that the central bank can have a system in place that allows clearing between banks to be processed faster. They can ensure that all financial laws that have been recently amended, like the Financial Institution Act, are reflected in the National Payment Systems Act," explained Afif.
The amendments are in line with the government's plan to have a modern electronic payment system that will allow for a quick and efficient payment system in a secure environment; improve the ease of doing business and eliminate the potential for fraudulent activities.
During the meeting, the Cabinet stressed on the need to have retail shops make use of electronic cash registers that issue receipts for every transaction.
"We need to ensure that everyone who is getting a service and who is paying for a service must be issued with a receipt, otherwise this will help people to evade tax, or have others lose their rights should they need to return a commodity as there is no proof of purchase," said the Vice-President.
He added that everyone who is in business, in general, should adhere to these systems.
Members of the public are encouraged to report to either the Fair Trading Commission or the Seychelles Licensing Authority concerning situations where retail shops are using calculators instead of cash registers.