The proposed policy, it said, set out the legal obligations, requirements and standards that digital currency exchangers, which will be defined under the First Schedule of the AMLA, must carry out as reporting institutions.
KUALA LUMPUR: Bank Negara Malaysia has issued the interoperable credit transfer framework (ICTF) to foster an efficient, competitive and innovative payment landscape in Malaysia.
According to a statement posted on its website, the ICTF will enable the interoperability of credit transfer services and promote collaborative competition between banks and non-bank electronic money (e-money) issuers through fair and open access to shared payment infrastructure.
Credit transfer services, particularly when offered through the use of mobile devices, have the potential to complement debit cards as a cost-effective and convenient alternative to cash and cheques.
Bank Negara said the growing penetration of smartphones and the availability of various mobile payment solutions offered by banking institutions and non-bank e-money issuers have the potential to accelerate the migration to electronic payments (e-payments).
This will also enable every adult in Malaysia to make or receive payments electronically, it said.
The ICTF outlines requirements target to enable interoperability of credit transfer services leveraging on shared payment infrastructure. This is to expand network reach and avoid market fragmentation.
The framework is also to ensure fair and open access to shared payment infrastructure to promote a level playing field and foster collaboration at the infrastructure level.
It also seeks to facilitatie effective oversight of shared payment infrastructure to maintain the safety and integrity of credit transfer systems and to ensure the integrity and stability of the financial system.
Bank Negara also said the framwork would also encouraging innovation through the establishment of innovation sandbox facilities and publication of Application Programming Interfaces (APIs) by an operator of a shared payment infrastructure.
The framework seeks to establishing risk management measures proportionate to the nature, scale and complexity of the activities and risk profile of the respective providers of credit transfer services.
Importantly, the framework seeks to strengthen customer protection and foster confidence in the use of credit transfer services.
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