PAYMENT SERVICES AND SYSTEMS ACT (ZPlaSS) · 2010. 9. 13. · 2. Directive 98/26/EC of the European Parliament and of the Council of 19 May 1998 on settlement finality in payment

Legal noticeAll effort has been made to ensure the accuracy of this translation, which is based on the original Slovenian text. All translations of this kind may, nevertheless, be subject to a certain degree of linguistic discord. In case of any uncertainties regarding the English translation the questions may be addressed to:

Ministry of FinanceFinancial System DepartmentŽupančičeva 31502 LjubljanaSloveniaPhone: +386 1 369 66 92Fax: +386 1 369 66 99E-mail: [email protected]

The original text of this act is written in the Slovenian language; in case of any doubt or misunderstanding, the Slovenian text shall therefore prevail. Original text can be found in Official Gazette of Republic of Slovenia, no: 58/2009, or on web pagehttp://www.uradni-list.si/_pdf/2009/Ur/u2009058.pdf#page=1

PAYMENT SERVICES AND SYSTEMSACT (ZPlaSS)

CHAPTER 1 GENERAL PROVISIONS

SUBCHAPTER 1 CONTENT OF THE ACT

Article 1

(scope)

(1) This Act shall regulate: 1. the conditions for the establishment, operation, supervision and termination of payment institutions, 2. the conditions for the provision of payment services in the Republic of Slovenia, 3. the rights and obligations of users and payment service providers in connection with the provision of payment services, and 4. terms and conditions of the establishment and operation of payment systems.(2) This Act shall also regulate the sanctions for the breach of obligations regarding the billing of costs and reporting in accordance with the Regulation (EC) No. 2560/2001 of the European Parliament and of the Council of 19 December 2001 on cross-border payments in euro (OJ L 344, 28. 12. 2001, hereinafter referred to as: Regulation 2560/2001).

Article 2

(transposition and implementation of EU regulations)

This Act shall transpose in the legislation of the Republic of Slovenia the following directives of the European Parliament and Council: 1. Directive 2007/64/EC of the European Parliament and of the Council of 13 November 2007 on payment services in the internal market amending Directives 97/7/EC, 2002/65/EC, 2005/60/EC and 2006/48/EC and repealing the Directive 97/5/EC (OJ L 319, 5. 12. 2007, hereinafter referred to as: Directive 2007/64/EC);

2. Directive 98/26/EC of the European Parliament and of the Council of 19 May 1998 on settlement finality in payment and securities settlement systems (OJ L 166, 11. 6. 1998, hereinafter referred to as: Directive 98/26/EC);3. Directive 2000/46/EC of the European Parliament and of the Council of 18 September 2000 on the taking up, pursuit and prudential supervision of the business of electronic money institutions (OJ L 275, 27. 10. 2000, hereinafter referred to as: Directive 2000/46/EC).

Article 3

(exclusion from the implementation of this Act)

(1) This Act shall not apply to: 1. payment transactions, made exclusively in cash directly from the payer to the payee and without any intermediary intervention;2. payment transactions from the payer to the payee through a commercial agent authorised to negotiate or conclude the sale or purchase of goods or services on behalf of the payer or the payee;3. professional transport of notes and coins, including the collection, processing and delivery;4. non-professional cash collection and delivery within the framework of non-profit or charitable activities;5. services where cash is provided by the payee to the payer as part of a payment transaction following an explicit request by the payment service user before the execution of the payment transaction through a payment for the purchase of goods or services;6. money exchange business that is provided as a cash-to-cash operation;7. payment transactions on the basis of one of the following documents:- paper cheques in accordance with the Act regulating cheques and other paper documents that are regulated by the legislation of Member States and are in content and effects similar to cheques in accordance with the Act regulating cheques,- paper-based vouchers and other paper confirmations that enable the owner a payment of goods or services at the issuer or other person with whom the issuer arranged to accept vouchers or confirmations as a form of payment for goods or services (for instance, gift vouchers, food vouchers and other similar confirmations),- paper-based traveller's cheques,- paper-based postal money orders;8. payment transactions carried out between the participants of payment systems or securities settlement systems and are derived from the participation in such a system, and payment transactions that are performed between the participants of the payment system, settlement agents, clearing agents, central banks and payment service providers who are not participants of the payment system;9. payment transactions in connection with the compliance of obligations and exercise of rights arising from securities, including the payment of dividends and other payments on the basis of rights arising from securities, and payment transactions in connection with the purchase or sale of securities, if such transactions are performed by a member of the securities settlement system or another person who in accordance with the valid regulations performs investment services and transactions as well as safekeeping services or safe custody services in connection with the financial instruments of clients;10. technical services that support the provision of payment services, including the processing and storage of data, trust and privacy protection services, data and entity authentication, information technology (IT) and communication network provision, provision and maintenance of terminals and devices used for payment services, and other similar services, if the providers of these services don't have at any time a possibility of unlimited disposal of funds that are being transmitted;11. payment transactions that are based on instruments, which enable the payment for the purchase of goods or services:- only in the premises of the issuer, or

- within the framework of the limited network of goods or service providers who are mutually connected on the basis of a commercial agreement with the issuer, or- for a limited range of goods or services;12. payment transactions executed by any means of telecommunication, digital or IT device for the payment of content that is delivered and implemented through telecommunication, digital or IT device provided so that the telecommunication, digital or IT system operator addsto the content substantial additional characteristics in the form of access, transfer or search functions and in this way does not act as an intermediary between the buyer and content supplier;13. payment transactions carried out between payment service providers, their agents or branches for their own account;14. payment transactions between a parent company and its subsidiary or between subsidiaries of the same parent company, without any intermediary intervention by a payment service provider other than an undertaking belonging to the same group;15. services by providers to withdraw cash by means of automated teller machines acting on behalf of one or more card issuers, which are not a party to the framework contract with the customer withdrawing money from a payment account, on condition that these providers do not conduct other payment services.(2) Only Chapter 8 of this Act shall apply to payment transactions on the basis of paper billsof exchange in accordance with the Act regulating bill of exchange and other paper documents that are regulated by the legislation of Member States and are in content and effects similar to bills of exchange in accordance with the Act regulating bill of exchange.(3) The Bank of Slovenia may with an executive act specify the characteristics of services and payment transactions referred to in the first paragraph of this Article.

SUBCHAPTER 2 DEFINITION OF TERMS

Article 4

(definition of terms)

The terms used in this Act shall have the following meaning:1. Member State shall mean a Member State of the European Union or a signatory state to the European Economic Area Agreement (OJ L No 1, 3. 1. 1994, p. 3);2. Country of Residence shall mean a Member State in which the registered office of the payment service provider is situated;3. Head office shall mean the place of the registered office of the payment service provider, or if the payment service provider doesn't have a registered office in accordance with the national legislation place where its management is operating;4. Host country shall mean any Member State other than the country of residence in which a payment service provider has an agent or a branch or directly provides payment services;5. Third country shall mean a country that is not a Member State as referred to in item 1 of this Article;6. Consumer shall mean a natural person who concludes payment service contracts for the purposes other than his gainful or occupational activity;7. Funds shall mean banknotes and coins, scriptural money and electronic money;8. Electronic money shall mean a money value in form of a claim of a holder to an issuer, which:- is issued by the issuer against the receipt of a payment of a certain sum of money,- is accepted as a payment means with persons who are not issuers of electronic money, and- is stored on an electronic medium that is securely saving data notwithstanding the fact if it's owned by the holder or not, and that enables the holder to transfer a money claim from the issuer to a third person;

9. Business day shall mean a day on which the relevant payment service provider of the payer or the payment service provider of the payee involved in the execution of a payment transaction is open for business as required for the execution of payment transactions to its user;10. Value date shall mean a reference time used by a payment service provider for the calculation of interest on the funds of a payment account debited from or credited to a payment account;11. Reference exchange rate shall mean the exchange rate which is used as the basis to calculate any currency exchange and which is made available by the payment service provider or comes from a publicly available independent source;12. Reference interest rate shall mean the interest rate which is used as the basis for calculating any interest to be applied and which comes from a publicly available independent source which can be verified by both parties to a payment service contract; 13. Uniform identifier shall mean a combination of letters, numbers or symbols specified to the user by the payment service provider and to be provided for a payment transaction by the user to identify unambiguously this user and/or his payment account;14. Means of distance communication shall mean any means which, without the simultaneous physical presence of the payment service provider and the payment service user, may be used for the conclusion of a payment services contract;15. Durable medium shall mean any instrument which enables the user to store information addressed personally to him in a way accessible for future reference for a period of time adequate to the purposes of the information and which allows the unchanged reproduction of the information stored;16. Paper postal money order shall mean a paper-based payment order that is submitted by the payer to the postal service provider with the intention that the paper order is transmitted to the payee as a postal delivery in accordance with the regulations regulating the provision of postal services, and that the payment transaction is executed to the payee on the basis of the submission of a paper postal money order to his postal service provider;17. Group shall mean a group that consists of a parent company, its subsidiaries, companies in which the parent company or its subsidiaries have holdings in a capital, and also companies that are linked to each other by general management;18. Companies that are linked to each other by general management shall mean the same as in the Act regulating banking;19. Close connection shall mean the same as in the Act regulating banking;20. Insolvency proceedings shall mean proceedings due to insolvency and proceedings of enforced termination as defined in the Act regulating financial business, insolvency proceedings and enforced termination;21. Banks shall mean legal persons that have an authorisation of a competent supervisory authority for the provision of banking services, including savings banks as defined in the Act regulating banking;22. Electronic money undertaking shall mean the same as in the Act regulating banking;23. Agent shall be natural or legal person which acts on the basis of an authorisation on behalf of a payment institution in providing payment services;24. Private citizen shall mean a natural person who is not a sole proprietor and independently carries out a specific activity, such as a notary, physician, lawyer, farmer and similar;25. Sole proprietor shall mean the same as in the Act regulating companies;26. Administration of the Republic of Slovenia for Public Payments shall mean a state authority who is on the basis of a special Act responsible for the provision of services for direct and indirect users of the national budget and budgets of self-governing local communities.

Article 5

(payment services)

(1) According to this Act, payment service shall mean any of the following activities that are performed by the payment service provider within the framework of his business activity:1. services enabling cash deposits to a payment account and all the operations required for operating of this account;2. services enabling cash withdrawals from a payment account and all the operations required for operating of this account;3. services enabling the execution of payment transactions credited and debited on a payment account of the payment service provider who keeps the payment account or other payment service provider;4. services enabling the execution of payment transactions, the funds of which are coveredby credit line to a user;5. issuing and/or acquiring of payment instruments;6. execution of money remittance;7. services enabling the execution of payment transactions, where the payer gives consent to the execution of a payment transaction by using any telecommunication, digital or IT device, while the payment is executed to the telecommunication, digital or IT network operator, who only operates as an intermediary between the user of payment services and provider of goods and services.(2) Payment services referred to in items 3 and 4 of the previous paragraph shall include the execution of payment transactions:1. by direct debits,2. by payment cards or similar devices, or3. by credit payments.

Article 6

(domestic and cross-border payment transactions)

(1) A domestic payment transaction shall mean a payment transaction where the payer's payment service provider or payee's payment service provider or the only payment service provider performs payment services for the payer and payee in the territory of the Republic of Slovenia.(2) Cross-border payment transaction shall mean a payment transaction where the payer's payment service provider or payee's payment service provider performs payment services for the payer and payee in the territory of different Member States. Payment transaction shall be executed cross-border also if the same payment service provider performs payment services for the payer in one Member State and for the payee in another Member State.

Article 7

(user, payer and payee)

(1) User shall mean a natural or legal person making use of a payment service in the capacity of either payer or payee, or both.(2) Payer shall mean a legal or natural person who orders a payment transaction by giving a payment order or providing consent to the execution of a payment order, which is issued by the payee.(3) Payee shall mean a natural or legal person who is the intended recipient of funds which have been the subject of a payment transaction.

Article 8

(payment transaction and payment order)

(1) Payment transaction shall mean an act, initiated by the payer or by the payee, of placing, transferring or withdrawing funds, whereby the execution of the payment transaction is performed through a payment service provider irrespective of any underlying obligations between the payer and the payee.(2) Payment order shall mean any instruction by a payer or payee to their payment service provider requesting the execution of a payment transaction.

Article 9

(direct debit)

(1) Direct debit shall mean a payment service for debiting a payer's payment account, where a payment transaction is initiated by the payee on the basis of the payer's consent given to the payee.(2) The payer can give consent for the execution of a payment transaction with direct debit to the payee, to the payee's payment service provider or to the payer's own payment service provider.

Article 10

(money remittance)

Money remittance shall mean a payment service where funds of the payment service provider are received from a payer, without any payment accounts being created in the name of the payer or the payee, for the sole purpose of transferring a corresponding amount to a payee or to another payment service provider acting on behalf of the payee, and where such funds are made available to the payee or transferred to the payee's payment account.

Article 11

(credit payment)

Credit payment shall mean a payment service where the payer initiates the execution of an individual payment transaction or several payment transactions, including a standing order, to his payment service provider.

Article 12

(payment account)

(1) Payment account shall mean an account that is opened by the payment service provider in the name of one or several users and is used for the execution of payment transactions.(2) Payment institutions may only keep payment accounts that are used exclusively for the execution of payment transactions.

Article 13

(transaction account)

(1) Transaction account shall mean a payment account that is opened by a bank with a head office in the Republic of Slovenia or branch of a Member State in the Republic of Slovenia on behalf of one or several users for the purposes of executing payment transactions and for other purposes in connection with the provision of banking services for the user. Funds on the transaction account shall be considered as sight cash deposit.

(2) For the purposes of this Act, the transaction account shall include the treasury single account of the state or self-governing local community that is opened at the Bank of Slovenia, and account that is opened at the Administration of the Republic of Slovenia for Public Payments as a sub-account of the treasury single account of the state or self-governing local community.(3) Payment institutions shall not keep transaction accounts.

Article 14

(joint payment account)

(1) Joint payment account shall mean a payment account that is opened by the payment service provider on behalf of two or several natural persons or on behalf of two or several legal persons.(2) Each individual holder of a joint payment account shall be able to have disposal of total funds of the joint payment account, unless the agreement on the keeping of a joint payment accounts stipulates different powers for the disposal of funds of the joint payment account.(3) Funds of the joint payment account may be entirely used for the settlement of obligations of an individual holder to third persons. Agreement between the holders of a joint payment account on the amount of individual holders' shares and obligations of an individual holder shall not restrict the rights of third persons that during enforcement or bankruptcy proceedings of an individual holder they settle their claims to this holder debited to the total funds at the joint payment account.(4) If a special Act stipulates that the execution to specific funds of the debtor is restricted, these restrictions shall apply with regard to each individual holder of a joint payment account during the enforcement proceeding against an individual holder of a joint payment account.

Article 15

(payment instrument and obtainment of payment instruments)

(1) Payment instrument shall mean any device or set of procedures or both agreed upon between the user and the payment service provider that is bound by this user and used by the user in order to initiate a payment order. (2) Acquiring of payment instruments shall mean a payment service where a payment service provider ensures to the payee the execution of payment transactions that were initiated by the payer through the use of a specific payment instrument.

Article 16

(payment instruments for low-value payments)

Payment instruments for low-value payments shall mean payment instruments, where at least one of the following conditions is fulfilled:1. they enable the execution of individual payment transactions that don't exceed 30 EUR, or2. the total restriction of use in an individual period or the total value of electronic money that is deposited on a payment instrument doesn't exceed 150 EUR.

SUBCHAPTER 3 PAYMENT SERVICE PROVIDERS

Article 17

(payment service providers)

(1) In the territory of the Republic of Slovenia, payment services shall be performed only by:

1. banks that have obtained an authorisation of the Bank of Slovenia for the provision of payment services in accordance with the Act regulating banking and banks of Member States that have obtained an authorisation of a competent supervisory authority of a country of residence for the provision of payment services and have in accordance with the Act regulating banking established a branch in the territory of the Republic of Slovenia or are directly performing payment services in the territory of the Republic of Slovenia,2. electronic money undertakings that have obtained an authorisation of the Bank of Slovenia for the provision of electronic money services in accordance with the Act regulating banking, and electronic money undertakings of Member States that have obtained an authorisation of a competent supervisory authority of a country of residence for the provision of electronic money services and have in accordance with the Act regulating banking established a branch in the territory of the Republic of Slovenia or are directly performing electronic money services in the territory of the Republic of Slovenia,3. payment institutions and payment institutions of Member States who have in accordance with this Act established a branch in the territory of the Republic of Slovenia or are performing payment services in the territory of the Republic of Slovenia through an agent or directly,4. waived payment institutions,5. the Bank of Slovenia,6. Administration of the Republic of Slovenia for Public Payments and other state authorities and authorities of self-governing local communities in the Republic of Slovenia in accordance with the regulations regulating the implementation of their tasks and jurisdictions (hereinafter referred to as: payment service providers).(2) Electronic money undertakings referred to in the first paragraph of this Article shall be able to perform only those payment services that are connected with the issuing of electronic money and are not contrary to the special conditions stipulated by the Act regulating banking with regard to activities of electronic money undertakings. (3) When the Bank of Slovenia performs payment services within the framework of exclusive jurisdictions in accordance with the Act regulating the Bank of Slovenia and other Acts regulating the exclusive jurisdictions of the Bank of Slovenia, the provisions of Chapter 5 and 6 of this Act shall apply only if this is stipulated by a special regulation or agreement on the provision of payment services.(4) When the Administration of the Republic of Slovenia for Public Payments or other state authorities or authorities of self-governing local communities perform payment services within the framework of their exclusive jurisdictions on the basis of a special regulation, the provisions of Chapter 5 and 6 of this Act shall apply unless otherwise provided by this Act or other regulation.

Article 18

(prohibition on the provision of payment services)

With the exception of payment service providers referred to in Article 17 of this Act, no one else shall be allowed to perform payment services in the territory of the Republic of Slovenia.

CHAPTER 2 PAYMENT INSTITUTIONS

SUBCHAPTER 1 GENERAL PROVISION

Article 19


(1) Payment institution shall mean a legal person with a head office in the Republic of Slovenia that has been granted an authorisation of the Bank of Slovenia for the provision of payment services as a payment institution.(2) Payment institution of a Member State shall mean a legal person with a head office in another Member State that has been granted an authorisation of a competent supervisory authority of a country of residence for the provision of payment services as a payment institution.

SUBCHAPTER 2 LEGAL FORM OF PAYMENT INSTITUTIONS

Article 20

(organisational form)

(1) Payment institution must be organised in one of the legal organisation forms of legal companies as stipulated by the Act regulating companies.(2) The provisions of the Act regulating companies shall apply to a payment institution, unless otherwise provided by this Act.

Article 21

(activity of payment institutions)

(1) A payment institution may commence the provision of payment services after it has been granted an authorisation by the Bank of Slovenia for the provision of payment services as a payment institution.(2) A payment institution may beside payment services also perform other business activities (hereinafter referred to as: hybrid payment institution), including operation services ofpayment systems if it fulfils the conditions for the provision of operation services of payment systems is accordance with this Act.(3) A payment institution can beside payment services and other business activities perform also ancillary services for the execution of payment transactions, such as granting loans in connection with payment services, foreign exchange, storage and processing of information and safekeeping activities in connection with payment services if it fulfils the conditions for the provision of these services on the basis of this Act or other Acts. Payment institution that beside the payment service provides only ancillary services shall not be considered as a hybrid payment institution.(4) Provisions of this Act shall apply to payment institutions that perform payment services as an exclusive activity or as hybrid payment institutions, unless otherwise provided by the Act that individual provisions shall apply only to hybrid payment institutions.

Article 22

(receiving users' funds in connection with payment services)

(1) For the provision of payment services, a payment institution may receive users’ funds exclusively with the purpose of executing a payment transaction that must be executed on a specific day in accordance with the conditions of the framework contract.(2) Unless it is proven otherwise, it shall be considered that funds are received exclusively for the purposes of executing a payment transaction if the payment institution received the funds simultaneously with the receipt or following the receipt of a payment order for the execution of this payment transaction.(3) Payment institutions shall not be allowed to accept deposits from the public or perform electronic money services according to the Act regulating banking.

(4) Funds that the payment institutions receive from users exclusively for the purposes of executing a payment transaction in accordance with the second paragraph of this Article shall not present the taking of deposits from the public or provision of electronic money services according to the Act regulating banking.

Article 23

(granting of loans in connection with payment services)

(1) If a payment institution offers loans to users in connection with payment services, such loan may be approved only under the following conditions:1. the loan is intended exclusively for the execution of payment transactions in connection with payment services,2. the individual loan, including the revolving loan, shall be approved for maximum 12 months,3. the loan shall not be covered by sources of funds that the payment institution receives from payment service users with the intention of executing a payment transaction,4. the payment institution ensures sufficient own funds with regard to the total amount of approved loans.(2) In addition to the conditions referred to in the first paragraph of this Article, a payment institution must in connection with loans referred to in the first paragraph of this Article that are approved to consumers, also fulfil the conditions that are with regard to the approval of loans to consumers regulated by the Act regulating consumer credits.

Article 24

(area of provision of payment services)

(1) It shall be considered that a payment institution performs payment services in the territory of that country where:1. it concludes legal transactions, the subject of which are payment services, or2. it providers to users payment services through advertisements, communicated to these persons by mail or provides to users payment services in some other way in the territory of this country.(2) It shall be considered that a payment institution performs payment services in the territory of a specific country also in case if in the territory of this country it provides payment services in the manner referred to in the first paragraph of this Article through its branches, agents or directly.(3) It shall be considered that a payment institution performs payment services directly in the territory of a specific country if it performs payment services in the manner referred to in the first paragraph of this Article without the establishment of a branch and without an agent in this country.

Article 25

(initial capital)

(1) Legal person who applies for an authorisation for the provision of payment services as a payment institution must at the time of authorisation of the Bank of Slovenia for the provision of payment services as a payment institution hold initial capital as follows:1. where the payment institution provides only the payment services referred to in item 6 of the first paragraph of Article 5 of this Act, its initial capital shall at no time be less than EUR 20 000;

2. where the payment institution provides only the payment services referred to in item 7 of the first paragraph of Article 5 of this Act, its initial capital shall at no time be less than EUR 50 000; and3. where the payment institution provides any of the payment services referred to in items 1 to 5 of the first paragraph of Article 5 of this Act, its initial capital shall at no time be less than EUR 125 000.(2) If a payment institution intends to perform several payment services, it must ensure initial capital in the amount stipulated for payment services for which the highest amount of initial capital is requested.(3) The following components of own funds shall be considered in the calculation of initial capital referred to in the first paragraph of this Article:1. the paid-up capital paid-in cash and capital reserves without the consideration of capital that was paid in on the basis of cumulative preference shares and capital reserves in connection with these shares, 2. profit reserves and net profit or loss from previous period.(4) Components of own funds referred to in the previous paragraph shall apply within the meaning as stipulated in the Act regulating companies. In the application of the third paragraph for partnerships, the components of own funds shall be adjusted to components that apply to partnerships in accordance with the Act regulating companies.

Article 26

(management and persons directly responsible in the payment institution for management in connection with payment services)

(1) Members of management of a payment institution must, beside the general conditions that are for the members of management or supervision bodies of companies stipulated by the Act regulating companies, also have a repute required for the management of a payment institution.(2) Persons who are in a payment institution directly responsible for management in connection with payment services must have appropriate knowledge and experience to perform payment services. Unless proven otherwise, it shall be considered that a person has appropriate knowledge and experience to perform payment services if he/she has at least three years of experience with management of a company of comparable size and activities as the payment institution or with management of other comparable business.(3) The Bank of Slovenia shall obtain the information on the compliance with the conditions referred to in the first and second paragraph of this Article from the applicant for the issue of the authorisation of the Bank of Slovenia for the provision of payment services as a payment institution, from the payment institution or member of management of a payment institution, from a person who is directly responsible for management in connection with payment services or by official duty from official records of competent authorities.

Article 27

(holders of qualifying holdings)

(1) Holders of qualifying holdings shall mean the persons who are indirectly or directly holders of a business share, shares or other rights that ensure:1. at least a 10-percent share of voting rights or holdings in the capital of a payment institution, or2. share of voting rights or rights in the capital of a payment institution that is smaller than 10 percent, but enables the execution of a significant influence on the management of a payment institution.

(2) For reasons of ensuring sound and prudent governance of a payment institution, the holders of qualifying holdings of a payment institution shall be only persons that are considered as appropriate by the estimation of the Bank of Slovenia.(3) The Bank of Slovenia shall assess the appropriateness of holders of qualifying holdings in the light of performance and influence of a holder of qualifying holdings on the sound and prudent governance of a payment institution. Hereby, the Bank of Slovenia shall consider primarily the legal organisation form and activities that the holder provides, his/her financial positions and other characteristics, important for the assessment of his/her influence on the sound and prudent governance of a payment institution.

SUBCHAPTER 3 AUTHORISATION OF THE BANK OF SLOVENIA FOR THE PROVISION OF PAYMENT SERVICES AS A PAYMENT INSTITUTION

Article 28

(provision of payment services as a payment institution)

(1) A payment institution can perform payment services in the territory of the Republic of Slovenia for which it has been granted an authorisation of the Bank of Slovenia.(2) A payment institution can perform only those payment services for which it is authorised to perform in the territory of the Republic of Slovenia, including:1. in the territory of another Member State through a branch, agent or directly provided that the conditions subject to Article 42 of this Act are fulfilled, and2. in the territory of a third country through a branch, if the branch is entered in the register of payment institutions in accordance with this Act, through an agent or directly in the territory of a third country.

Article 29

(application for the issue of an authorisation)

(1) It shall be necessary to enclose the following documents to the application for the issue of the authorisation of the Bank of Slovenia for the provision of payment services:1. instrument of constitution,2. description of payment services and other business activities that the payment institution intends to perform as well as risks to which it shall be exposed,3. business plan of the provision of payment services for the first three business years from which the following information is derived:- calculation of the minimum own funds in the first year of business according to all three methods referred to in the second paragraph of Article 46 of this Act,- compliance of technical, organisational, personnel and other conditions for sound and prudent conduct of business of a payment institution under Article 44 of this Act,4. evidence that the applicant has disposal of the requested initial capital referred to in Article 25 of this Act,5. description of measures for the protection of users’ funds referred to in Article 59, 60 and 61 of this Act,6. description of the governance system and internal control system referred to in Article 45 of this Act,7. description of the intended use of agents and branches as well as outsourcing contractors for the operative tasks of payment services,8. description of possible participation in payment systems,9. description of internal control mechanisms that the applicant established for the compliance of the obligations in connection with money laundering and financing of terrorism in accordance with the Act regulating the prevention of money laundering and financing of terrorism, and Regulation (EC) No 1781/2006 of the European Parliament and of the Council

of 15 November 2006 on information on the payer accompanying transfers of funds (OJ L No. 345, 8. 12. 2006, hereinafter referred to as: Regulation 1781/2006).10. indication of persons who are holders of qualifying holdings, size of qualifying holdings and evidence on the appropriateness of the holders of qualifying holdings that is assessed in accordance with the third paragraph of Article 27 of this Act,11. indication of persons who are members of management bodies and persons who are directly responsible for management in connection with payment services, including evidence that these persons fulfil the required conditions referred to in the first and second paragraph of Article 26 of this Act,12. indication of certified auditors or audit companies if the annual reports of a payment institution must be audited in accordance with Article 64 of this Act and if the former have already been appointed,13. indication of persons who have close links with the applicant, including the descriptions of these links.(2) In connection with the descriptions referred to in items 5 to 8 in the first paragraph of this Article, the applicant shall also provide a description of organisation solutions and description of internal audit proceedings that were established with the purpose to protect the interests of his users and ensure continuity and reliability of the provision of payment services.(3) The Bank of Slovenia shall prescribe a detailed content of the application for the provision of payment services as a payment institution as well as the documentation and evidence that has to be enclosed to this application.

Article 30

(decision-making on the issuing of the authorisation)

(1) In the decision-making on the issuing of the authorisation for the provision of payment services as a payment institution, the Bank of Slovenia shall determine if the payment institution satisfies the conditions for the provision of payment services in accordance with this Act, especially the following:1. legal form of organisation referred to in Articles 20 to 27 of this Act,2. sound and prudent conduct of business referred to in Article 44 of this Act,3. governance system and internal control system referred to in Article 45 of this Act,4. provision of minimum own funds referred to in Article 46 of this Act, and5. safeguarding of users’ funds referred to in Articles 59 to 63 of this Act.(2) In the authorisation for the provision of payment services as a payment institution, the Bank of Slovenia shall specify the payment services that may be performed by a payment institution.(3) If the governance system referred to in Article 45 of this Act doesn't provide appropriate governance including all risks that the payment institution could be exposed to during the provision of payment services for which the application for the issue of authorisation is requested, and other business activities performed by the payment institution, the Bank of Slovenia may issue the authorisation for the provision of payment services as a payment institution only for specific payment services to which the application for the issue of the authorisation refers.

Article 31

(refusal of authorisation)

The Bank of Slovenia shall refuse the application for the issue of the authorisation for the provision of payment services as a payment institution, if:1. the applicant doesn't satisfy the conditions referred to in the first paragraph of Article 30 of this Act;

2. due to close links of the applicant with other persons it is likely that the implementation of supervision over a payment institution in accordance with the provisions of this Act will be obstructed or significantly difficult;3. under consideration of the regulations of a third country that apply to persons with whom the applicant is in a relationship of close links and practice for the implementation of these regulations, it is likely that the implementation of supervision over a payment institution in accordance with the provisions of this Act will be obstructed or significantly difficult;4. it is likely that, due to the activities of the applicant that are not payment services, the financial stability of a payment institution will be endangered or that, due to these activities, the implementation of supervision over a payment institution in accordance with the provisions of this Act will be difficult.

Article 32

(establishment of a separate legal person)

If the Bank of Slovenia refuses the application for the issue of the authorisation due to the reason referred to in item 4 of Article 31 of this Act, it may inform the applicant in the explanation to the decision to refuse the application with the option to establish a separate legal person for the purpose of provision of payment services and lodge an application for the issue of the authorisation for the provision of payment services as a payment institution for this legal person if it establishes that the indicated reasons at the separate legal person won't be given again.

Article 33

(extension of authorisation)

(1) If a payment institution intends to commence with the provision of payment services that are not included in the already issued authorisation for the provision of payment services as a payment institution, it must obtain a decision of the Bank of Slovenia to extend the authorisation for the provision of payment services as a payment institution in advance.(2) Articles 29 to 31 of this Act shall apply mutatis mutandis for the extension of the authorisation of the Bank of Slovenia for the provision of payment services as a payment institution.

Article 34

(change of circumstances after the issue of the authorisation and safekeeping of documents)

(1) A payment institution must immediately inform the Bank of Slovenia of the facts and circumstances that influence the compliance of conditions referred to in the first paragraph of Article 30 of this Act and of the change of persons who are closely linked with the payment institution or of changes in these links. The properly amended documentation referred to in Article 29 of this Act must be enclosed to this notification.(2) A payment institution must keep the documentation on the compliance with the conditions for the granting and keeping of the authorisation of the Bank of Slovenia for the provision of payment services as a payment institution at least five years from the termination of the relationship or status to which they refer, except if special provisions for specific documents or information stipulate a longer safekeeping period.

Article 35

(withdrawal of authorisation)

(1) Authorisation of the Bank of Slovenia for the provision of payment services as a payment institution shall expire entirely or partly with regard to individual payment services if the payment institution doesn't commence with the provision of payment services within one year from the issue of the authorisation or if the payment institution has ceased to provide payment services for more than six months. Authorisation of the Bank of Slovenia for the provision of payment services as a payment institution shall expire on the day of the expiration as referred to in the first sentence of this paragraph.(2) If a bankruptcy or enforced liquidation proceeding is in progress against the payment institution in accordance with the Act regulating financial business, insolvency proceedings and enforced termination, the authorisation of the Bank of Slovenia for the provision of payment services as a payment institution shall expire entirely on the day of the commencement of the bankruptcy or enforced liquidation proceeding. The decision on the commencement of the bankruptcy or enforced liquidation proceeding against a payment institution shall be served by the court to the Bank of Slovenia.(3) Authorisation of the Bank of Slovenia for the provision of payment services as a payment institution shall expire entirely if the competent bodies of the payment institution adopt a decision on the liquidation of the payment institution. The authorisation shall expire in case of the liquidation of the payment institution on the day when the payment institution is deleted from the court register.(4) Authorisation of the Bank of Slovenia for the provision of payment services as a payment institution shall expire entirely or partly if the competent bodies of the payment institution adopt a decision on the change of activities of the payment institution, so that the payment institution entirely or partly ceases to perform payment services. Authorisation of the Bank of Slovenia for the provision of payment services as a payment institution shall expire in the cases referred to in this paragraph on the day of the entry of the decision on the change of activities into the court register.(5) A payment institution must immediately inform the Bank of Slovenia of the origin of circumstances referred to in the first paragraph of this Article. With regard to the decision referred to in the third and fourth paragraph of this Article, a payment institution must inform the Bank of Slovenia immediately after the adoption.(6) If circumstances referred to in paragraphs 1 to 4 of this Article arise, the Bank of Slovenia shall issue a decision by which it determines that the authorisation for the provision of payment services as a payment institution has entirely or partly expired.(7) On the day of expiry of the authorisation for the provision of payment services as a payment institution, in accordance with paragraphs 1 to 4 of this Article, a payment institution shall not be permitted to enter into new transactions in connection with the provision of payment services for which the authorisation has expired.

SUBCHAPTER 4 PROVISION OF PAYMENT SERVICES THROUGH BRANCHES, AGENTS AND OUTSOURCING CONTRACTORS

Article 36

(agents and branches)

(1) A payment institution that intends to perform payment services through a branch in the host country or third country or through an agent in the Republic of Slovenia or host country, it must communicate this to the Bank of Slovenia.(2) Notification on the provision of payment services through an agent in the Republic of Slovenia or host country must contain the following information:1. firm and head office or name and address of permanent residence of the agent in the Republic of Slovenia or host country,2. description of the internal control mechanisms that will be used by agents in order to comply with the obligations in relation to money laundering and financing of terrorism in

accordance with regulations regulating the prevention of money laundering and financing of terrorism;3. indication of persons who are members of management bodies of agents and persons who are directly responsible for management of the agent in connection with payment services, including evidence that these persons fulfil the conditions referred to in Article 26 of this Act,4. description of payment services that the payment institution intends to perform through an agent.(3) Notification on the provision of payment services through a branch in the host country or third country must contain the following information:1. firm and address of the branch in the host country or third country,2. description of the organisation structure of the branch,3. indication of persons who are members of management bodies of a branch and persons who are directly responsible for management of the branch in connection with payment services, including evidence that they fulfil the conditions referred to in Article 26 of this Act,4. description of payment services that the payment institution intends to perform through a branch.(4) A payment institution shall inform the Bank of Slovenia of the establishment of the first branch in an individual host country or third country. For the purposes of this Act, all business units and branches that are established in the same host country or third country by the payment institution shall be considered as one branch.(5) A payment institution must immediately inform the Bank of Slovenia of the change of circumstances referred to in the second and third paragraph of this Article, especially with regard to the termination of the provision of payment services through an individual agent in the Republic of Slovenia or host country and to the termination of the provision of payment services through a branch in an individual host country or third country.

Article 37

(business of an agent and branch)

(1) A payment institution may commence with the provision of payment services through a branch or through an agent in a host country if the conditions referred to in the first paragraph of Article 42 of this Act are fulfilled. A payment institution or payment institution with suspension can commence with the provision of payment services through a branch in a third country or through an agent in the Republic of Slovenia when the branch or agent was entered into the register of payment institutions in accordance with this Act.(2) A payment institution may perform payment services through an individual agent only in the territory of that Member State where it is entered into the register of payment institutions with this agent.(3) A payment institution must ensure that its branch in a third country and its agent in the Republic of Slovenia or host country will, in an appropriate manner, inform its users that it operates for the account of a payment institution.

Article 38

(execution of operative tasks through outsourcing operators)

(1) A payment institution that intends to perform individual operative tasks in connection with the provision of payment services through outsourcing operators must inform the Bank of Slovenia of the matter.(2) A payment institution may transfer the execution of important operative tasks in connection with the provision of payment services to outsourcing operators if the following conditions are satisfied:

1. that in relation to the operator of these tasks, the appropriate quality of internal control at the level of the payment institution shall be provided,2. that the implementation of supervision over the compliance with the obligations of the payment institution with regard to this Act and other Acts shall not be difficult,3. that the transfer of the execution of these tasks shall not transfer the obligations of the management of the payment institution to outsourcing operators or third persons,4. that the responsibility of a payment institution to its users, as defined in this Act and other Acts, shall not decrease,5. that the payment institution shall despite the transfer of important operative tasks to outsourcing operators ensure the compliance of all conditions that apply to the granting and keeping of the authorisation of the Bank of Slovenia for the provision of payment services as a payment institution.(3) Operative tasks in connection with the provision of payment services shall be considered as important if an error or failure in their implementation could substantially endanger the continuous compliance of the obligations of the payment institution, its financial position or reliability and continuity of the provision of payment services.(4) A payment institution that has transferred the execution of operative tasks in connection with the provision of payment services to outsourcing operators must in connection with the activities of its outsourcing operators ensure the fulfilment of its obligations under this Act and other Acts.

Article 39

(responsibility of a payment institution for the activities of a branch, agent or outsourcing operator)

(1) A payment institution that performs payment services through a branch or through an agent or has transferred the execution of operative tasks in connection with the provision of payment services to outsourcing operators, shall be responsible for the legality and regularity of the activities of a branch or agent in connection with the provision of payment services that a branch or agent performs on behalf of a payment institution and for the legality and regularity of the execution of operative tasks that an outsourcing operator performs on behalf of a payment institution.(2) A payment institution cannot exclude or limit its obligations in relation to its users referred to in the first paragraph of this Article.

SUBCHAPTER 5 PROVISION OF PAYMENT SERVICES AS A PAYMENT INSTITUTION IN THE TERRITORY OF A HOST COUNTRY

Article 40

(notification on the provision of payment services in the territory of a host country)

(1) A payment institution that intends to perform payment services in the territory of a host country through a branch or through an agent, must report this to the Bank of Slovenia in accordance with Article 36 of this Act.(2) A payment institution that intends to perform payment services in the territory of a host country directly, must beforehand inform the Bank of Slovenia regarding this matter and simultaneously with the notification also communicate a description of payment services that it intends to perform directly in this host country.

Article 41

(sending notification to a competent supervisory authority of the host country)

(1) The Bank of Slovenia shall communicate to a competent supervisory authority in the host country, within one month from the receipt of the notification referred to in Article 40 of this Act, a notification on the intention of provision of payment services through a branch or through an agent or on the intention of direct provision of payment services of a payment institution in the territory of this host country and shall inform the payment institution regarding this matter.(2) Simultaneously with the notification referred to in the first paragraph of this Article, the Bank of Slovenia shall communicate to a competent supervisory authority in the host country also the following information:1. firm and address of the payment institution and firm and address of the branch or agent, and2. indication of persons who are members of management bodies of a branch or agent, and persons who are directly responsible for management in connection with payment services of the branch or agent of the payment institution, 3. description of the organisation structure of the branch or agent, and4. description of payment services that the payment institution intends to perform in the territory of this host country.

Article 42

(commencement of the provision of payment services in a host country)

(1) A payment institution may commence the provision of payment services in the territory of a host country through a branch or through an agent on the day:1. when the competent supervisory authority of the host country is informed regarding the intention of performing payment services through a branch of the payment institution or through an agent in accordance with Article 41 of this Act, and2. when the branch or agent of the payment institution is entered into the register of payment institutions in accordance with this Act.(2) A payment institution can commence the direct provision of payment services in the territory of a host country, when the competent supervisory authority of the host country is informed regarding the intention of direct performing payment services in accordance with Article 41 of this Act.(3) A payment institution must immediately inform the Bank of Slovenia of the additional changes of information referred to in the second paragraph of Article 41 of this Act, who transmits this information regarding the change to the competent supervisory authority of the host country.

SUBCHAPTER 6 PROVISION OF PAYMENT SERVICES OF A PAYMENT INSTITUTION OF A MEMBER STATE IN THE TERRITORY OF THE REPUBLIC OF SLOVENIA

Article 43

(provision of payment services of a payment institution of a Member State in the territory of the Republic of Slovenia)

(1) A payment institution of a Member State may perform payment services for which it is authorised in the country of residence, also in the territory of the Republic of Slovenia through a branch, through an agent or directly.(2) A payment institution may commence the provision of payment services in the territory of the Republic of Slovenia when the Bank of Slovenia receives from the competent supervisory authority of the country of residence a notification with the content referred to in the second paragraph of Article 41 of this Act.

(3) For the purposes of this Act, all branches and business units that are established in the Republic of Slovenia by the payment institution of a Member State shall be considered only as one branch.(4) If the Bank of Slovenia estimates that there is reasonable suspicion of money laundering or financing of terrorism in connection with the provision of payment services through a branch or agent of a payment institution of a Member State in the Republic of Slovenia, it shall immediately inform in an appropriate manner the competent supervisory authority in the country of residence of the payment institution.

SUBCHAPTER 7 GOVERNANCE SYSTEM AND INTERNAL CONTROL SYSTEM OF A PAYMENT INSTITUTION

SECTION 1 GENERAL RULES

Article 44

(sound and prudent conduct of business)

A payment institution must always fulfil organisational, personnel, technical and other conditions for sound and prudent conduct of business.

Article 45

(governance system and internal control system)

(1) A payment institution must establish and maintain a reliable and comprehensive governance system and internal control system that ensures sound and prudent governanceof a payment institution. Governance system and internal control system must be in proportion with the nature, scope and complexity of payment services performed by the payment institution.(2) Governance system referred to in the first paragraph of this Article must incorporate:1. a clear organisational structure with well-defined, transparent and consistent relations with regard to responsibilities, and2. efficient proceedings of identifying, evaluating, managing, monitoring and reporting on risks that the payment institution might be exposed to.(3) Internal control system referred to in the first paragraph of this Article shall include also appropriate administrative and accountancy proceedings and proceedings for the verification of compliance with regard to prevention of money laundering and financing of terrorism in accordance with the Act regulating the prevention of money laundering and financing of terrorism, and the Regulation 1781/2006.

SECTION 2 OWN FUNDS AND OWN FUNDS REQUIREMENT OF A PAYMENT INSTITUTION

Article 46

(minimum own funds)

(1) A payment institution must throughout its business hold own funds that always meet or exceed the higher of the following amounts:1. the amount of initial capital that is required on the basis of Article 25 of this Act,2. the amount of own funds requirement that is calculated on the basis of the method referred to in the second paragraph of this Article.(2) Value of the own funds requirement shall be calculated on the basis of the method that is for each payment institution stipulated by the Bank of Slovenia with a decision, considering

the types and complexity of payment services performed by a payment institution as well as scale of payments and risks to which that the payment institution will be exposed. The Bank of Slovenia can determine one of the following methods for the payment institution:1. method of fixed overheads,2. method of range of payments,3. method of operating income.(3) For hybrid payment institutions, the own funds requirement shall be calculated only for that part of its business that is connected with the provision of payment services. (4) A payment institution must immediately inform the Bank of Slovenia of the change of information and circumstances referred to in the second paragraph of this Article.(5) If the facts and circumstances referred to in the second paragraph of this Article substantially change, the Bank of Slovenia may with a decision determine a different method for the calculation of the own funds requirement.

Article 47

(method of fixed overheads)

(1) The own funds requirement of a payment institution according to the method of fixed overheads shall amount to 10% of fixed overheads of a payment institution from the previous business year.(2) In the first year of business as a payment institution, the own funds requirementaccording to the method of fixed overheads shall be calculated by considering the estimate amount of fixed overheads that the payment institution indicated in the business plan during the procedure of obtaining the authorisation of the Bank of Slovenia for the provision of payment services as a payment institution.(3) The Bank of Slovenia may, with a decision, request an adjustment of the amount of fixed overheads that the payment institution considers in the calculation of the own fundsrequirement according to the method of fixed overheads:1. in the first year of business as a payment institution if the amount of fixed overheads of the payment institution substantially deviates from the amount as indicated in the business plan,2. in the current financial year if the amount of fixed overheads of the payment institution substantially deviates from the amount of fixed overheads in the previous business year.(4) A payment institution must immediately inform the Bank of Slovenia of any significant deviation of the amount of fixed overheads from the amount of fixed overheads in the previous business year or from the amount of fixed overheads as indicated in the business plan if the payment services have been performed less than one year.

Article 48

(method of range of payments)

(1) The own funds requirement of a payment institution according to the method of range payments shall mean the amount that is represented by the product between the initial amount referred to in the second paragraph of this Article and the scaling factor referred to in Article 51 of this Act.(2) The initial amount shall be calculated by considering the average monthly amount of payment transactions from the previous business year on the basis of the following scale:

If the average monthly amount of payment transactions from the previous business year is

the initial amount shall be

up to 5.000.000 EUR 4,0 %average monthly amount of payment transactions from the

previous business yearfrom 5.000.000 EUR to 10.000.000 EUR

200.000 EUR + 2,5 %average monthly amount of payment transactions from the previous business year over 5.000.000 EUR

from 10.000.000 EUR to 100.000.000 EUR

325.000 EUR + 1 %average monthly amount of payment transactions from the previous business year over 10.000.000 EUR

from 100.000.000 EUR to 250.000.000 EUR

1.225.000 EUR + 0,5 %average monthly amount of payment transactions from the previous business year over 100.000.000 EUR

over 250.000.000 EUR 1.975.000 EUR + 0,25 %average monthly amount of payment transactions from the previous business year over 250.000.000 EUR

(3) The average monthly amount of payment transactions from the previous business year referred to in the second paragraph shall be equal to one twelfth of the total amount of payment transactions that were executed by the payment institution in the previous business year.(4) In the first year of business as a payment institution, instead of the average monthly amounts of payment transactions from the previous year the own funds requirement according to the method of range of payments shall be calculated by considering the estimate amount of average monthly amounts of payment transactions for the first year of business that the payment institution indicated in the business plan during the procedure of obtaining the authorisation of the Bank of Slovenia for the provision of payment services as a payment institution.(5) The Bank of Slovenia may, with a decision, request an adjustment of the amount of average monthly amounts of payment transactions that the payment institution considers in the calculation of the initial amount referred to in the second paragraph of this Article:1. in the first year of business as a payment institution if the amount of average monthly amounts of payment transactions substantially deviates from the amount as indicated in the business plan,2. in the current financial year, if the average monthly amounts of payment transactions substantially deviates from the average monthly amounts of payment transactions in the previous business year.(6) A payment institution must immediately inform the Bank of Slovenia of any significant deviation of the amount of average monthly amounts of payment transactions from the amount of average monthly amounts of payment transactions in the previous business year or from the amount of average monthly amounts of payment transactions as indicated in the business plan if the payment services have been performed less than one year.

Article 49

(method of operating income)

(1) The own funds requirement of a payment institution according to the method of operating income shall mean the amount that is represented by the multiplication between the initial amount referred to in the second paragraph of this Article and the scaling factor referred to in Article 51 of this Act.(2) The initial amount for the calculation of the own funds requirement according to the method of operating income shall be calculated by considering the income indicator value referred to in Article 50 of this Act on the basis of the following scale:

If the income indicator amounts the initial amount shall be to 2.500.000 EUR 10 % of the income indicator to 2.500.000 EUR

from 2.500.000 EUR to5.000.000 EUR

250.000 EUR+ 8% of the income indicator from 2.500.000 EUR to 5.000.000 EUR

from 5.000.000 EUR to25.000.000 EUR

450.000 EUR+ 6 % of the income indicator from 5.000.000 EUR to 25.000.000 EUR

from 25.000.000 EUR to50.000.000

1.650.000 EUR+ 3 % of the income indicator from 25.000.000 EUR to 50.000.000 EUR

over 50.000.000 EUR 2.400.000 EUR+ 1,5 % of the income indicator from 50.000.000 EUR

(3) Notwithstanding the first paragraph of this Article, the own funds requirement calculated according to the method of operating income shall not fall below 80% of the income indicator average, calculated on the basis of the information from the business in the previous three business years. In the first three years of business as a payment institution, grades can be implemented for the definition of the average income indicator.

Article 50

(income indicator)

(1) The income indicator shall be equal to the sum of interest income, commissions and fees received and other business income, reduced by the interest expenses. Income from extraordinary or occasional items shall not be considered for the calculation of the income indicator.(2) The income indicator can be reduced by service expenses that were performed by the outsourcing operator for the payment institution if this is a payment to other payment institution or payment institution of a Member State.(3) The income indicator shall be calculated on the basis of net profit or loss from the previous business year. (4) In the first year of business as a payment institution, instead of the total income from the previous year the own funds requirement according to the method of operating income shall be calculated by considering the estimate operating income the payment institution indicated in the business plan.(5) The Bank of Slovenia may, with a decision, request an adjustment of the amount of individual items that the payment institution considers in the calculation of the income indicator referred to in the first paragraph of this Article:1. in the first year of business as a payment institution if the amount of an individual item substantially deviates from the amount as indicated in the business plan, or2. in the current financial year if the amount of an individual item substantially deviates from the amount of this item in the previous business year.(6) A payment institution must immediately inform the Bank of Slovenia of any significant deviation of the amount of individual items, which are considered in the calculation of the income indicator under the first paragraph of this Article, from the amount of these items in the previous business year or from the amount of these items as indicated in the business plan if the payment services have been performed less than one year.

Article 51

(scaling factor)

For the calculation of the own funds requirement according to the method of range of payments and method of operating income, the scaling factor shall be used that is equal to:

1. 0.5 where the payment institution provides only the payment service listed in item 6 of the first paragraph of Article 5 of this Act;2. 0.8 where the payment institution provides only the payment service listed in item 7 of the first paragraph of Article 5 of this Act;3. 1.0 where the payment institution provides any of the payment services listed in items 1 to 5 of the first paragraph of Article 5 of this Act;

Article 52

(extraordinary increase of the own funds requirement)

(1) The Bank of Slovenia may, with a decision to the payment institution, order an increase up to 20% of the own funds requirement, calculated in accordance with a method that must be implemented in accordance with the decision of the Bank of Slovenia referred to in the second or fifth paragraph of Article 46 of this Act. In the decision-making about this increase, the Bank of Slovenia shall consider the risk loss databases and quality of the risk governance system and internal control system of the payment institution.(2) The decision by the Bank of Slovenia referred to in the first paragraph of this Article shall also stipulate measures that the payment institution must fulfil in order that the extraordinary increase of own funds requirement ceases to be in force.(3) Provisions of this Act on the measure for the elimination of the violations shall apply to the decision referred to in the first paragraph of this Article.

Article 53

(authorisation of the Bank of Slovenia for a decrease of the own funds requirement)

(1) The Bank of Slovenia may, with a decision to the payment institution, order a decrease up to 20% of the own funds requirement, calculated in accordance with a method that must be implemented in accordance with the decision of the Bank of Slovenia referred to in the second or fifth paragraph of Article 46 of this Act if this doesn't decrease the sound and prudent conduct of the payment institution business. In the decision-making about this decrease, the Bank of Slovenia shall consider the quality of the risk governance system, risk loss databases and internal control system of the payment institution.(2) In the request for the issue of the authorisation of the Bank of Slovenia for a decrease of the own funds requirement, the payment institution must indicate the facts and circumstances of the quality of the risk governance system, risk loss databases and internal control system that substantially contribute to the provision of the sound and prudent conductof the payment institution business, and submit appropriate evidence.(3) Notwithstanding the decrease of the own funds requirement on the basis of the authorisation referred to in the first paragraph of this Article, own funds of the payment institution shall in no instance be lower than the value of initial capital that is required on the basis of Article 25 of this Act.(4) The payment institution that obtained the authorisation for a decrease of the own fundsrequirement must report to the Bank of Slovenia about the further compliance with the conditions for a decrease of the own funds requirement, in the time periods and in the manner laid down in the decision for the issue of the authorisation for a decrease of the own funds requirement.(5) The Bank of Slovenia shall withdraw the authorisation for a decrease of the own fundsrequirement, if:1. the conditions for the decrease of the own funds requirement are not fulfilled anymore,2. the payment institution doesn't report to the Bank of Slovenia about the further compliance with the conditions for a decrease of the own funds requirement, in the time periods and in the manner laid down in the decision for the issue of the authorisation for a decrease of the own funds requirement.

Article 54

(own funds of a payment institution)

(1) Own funds of a payment institution shall be calculated as a sum of individual components of own funds by considering:1. the deductions that decrease the individual components of own funds, and2. the ratio between individual components of own funds.(2) The following components of own funds shall be considered in the calculation of the own funds of a payment institution:1. paid-up capital and capital reserves,2. profit reserves and net profit or loss from previous periods, 3. other items that are by characteristics equal to items referred to in the previous points of this paragraph.(3) Possible surpluses of individual components of own funds above the thresholds under the ratios between individual components of own funds shall not be considered.(4) The following deductions shall be considered in the calculation of the own funds referred to in the first paragraph of this Article:1. own shares,2. intangible fixed assets,3. net loss from the business year,4. investments into shares, business shares or other rights in the own funds of a credit institution, payment institution, investment company or financial institution, and investments into their other instruments and components that can be considered in the calculation of own funds,5. investments into shares, business shares or other rights that guarantee the participation in the own funds of an insurance company, reinsurance company or pension company, and investments into their other instruments and components that can be considered in the calculation of own funds,6. other items that are by characteristics equal to items referred to in the previous points of this paragraph.(5) Components of own funds and deductions referred to in this Article shall apply within the meaning as stipulated in the Act regulating companies. In the application of provisions for partnerships, the content of the components of own funds and deductions shall be adjusted to the components that apply to partnerships in accordance with the Act regulating companies.

Article 55

(prohibition of the multiple consideration of components of own funds)

The following components shall not be used in the calculation of the own funds of a payment institution:1. components that are used in the calculation of the own funds of a payment institution referred to in the first paragraph of Article 19 of this Act, credit institution, investment company, management company, insurance company, reinsurance company or pension company that is part of the same group as a payment institution, or2. components that a hybrid payment institution used for the provision of activities that are not payment services.

Article 56


Terms that are used in Article 54 and 55 of this Act shall mean:1. credit institution, financial institution, investment company and pension company mean the same as in the Act regulating banking,2. insurance company, reinsurance company and management company mean the same as in the Act regulating financial conglomerates,3. participation referred to in item 5 of the fourth paragraph of Article 54 of this Act mean the same as in the Act regulating banking.

Article 57

(calculation of the own funds requirement and own funds and reporting)

(1) A payment institution must regularly calculate the amount of the own funds requirement and the amount of own funds.(2) A payment institution must report to the Bank of Slovenia about the calculations referred to in the first paragraph of this Article and information that presents the basis for these calculations.

Article 58

(issuing of implementing regulations)

The Bank of Slovenia shall prescribe detailed rules in connection with the calculation of the own funds of a payment institution by determining:1. detailed characteristics and types of components of own funds and deductions referred to in Article 54 of this Act,2. method and scope of considering individual components of own funds and deductions referred to in Article 54 of this Act,3. ratios between individual components of own funds,4. detailed content of reports as well as the deadlines and manner of reporting.

SUBCHAPTER 8 SAFEGUARDING OF USERS’ FUNDS

Article 59

(separate keeping of users’ funds)

(1) A payment institution must keep the users’ funds that were received in connection with the execution of payment transactions separate from its own funds and funds that were received from persons who are not users.(2) A payment institution must, for each user, keep separate records of funds that are kept on behalf of this user in connection with the execution of payment transactions.(3) A payment institution must transfer the users’ funds that were received for the execution of payment transactions and were not transferred until the end of the next working day after the receipt to the payee or his/her payment service provider not later than the next working day after the receipt to a special account at a bank with a head office in the Republic of Slovenia or at a bank with a head office in other Member State.(4) Notwithstanding the third paragraph of this Article, a payment institution may invest the funds that were received for the execution of payment transactions and were not transferreduntil the end of the next working day after the receipt to the payee or his/her payment service provider, as follows:1. debt securities, the issuer of which is the Republic of Slovenia or other Member State, European Central Bank, the Bank of Slovenia or a central bank of other Member State, and2. debt securities with the exception of subordinated securities, the issuer of which is a bank with a head office in the Republic of Slovenia or in other Member State.

Article 60

(insurance contract or other guarantee)

(1) Provisions of Article 59 of this Act shall not apply if a payment institution guarantees appropriate insurance of the fulfilment of its financial obligations to users in case the payment institution wouldn't be capable of fulfilling its financial obligations to users.(2) Insurance shall be considered as appropriate if a payment institution insures the fulfilment of its financial obligations to users by an insurance contract or other comparable guarantee, concluded with an insurance company or bank with a head office in the Republic of Slovenia or in other Member State that doesn't belong to the same group as the payment institution.(3) A payment institution shall conclude the insurance contract or other comparable guarantee in favour of users as insurance holders. The insurance contract or other comparable guarantee must guarantee its users a payment of the amount that should be otherwise separate on the basis of the first paragraph of Article 59 of this Act.

Article 61

(safeguarding of users’ funds with the hybrid payment institutions)

(1) When a hybrid payment institution receives users’ funds for the purposes of performing payment transactions as well as for the purposes of the execution of other services that are not payment services, a hybrid payment institution must ensure the safeguarding of users’ funds in accordance with Articles 59 or 60 of this Act only for those funds that the user intended for the execution of payment services.(2) In the case referred to in the first paragraph of this Article when a part of funds that the users intend for the execution of payment services is changed or unknown in advance, a hybrid payment institution may guarantee the safeguarding of users’ funds in the manner referred to in Articles 59 or 60 of this Act only for that part of funds that the users intended for the execution of payment services according to the estimation of the hybrid payment institution. The hybrid payment institution shall determine the share of funds that the users are expected to use for the execution of payment services by using the method for the determination of a share for which it obtained an authorisation of the Bank of Slovenia (hereinafter referred to as: authorisation of the Bank of Slovenia for the application of the method for the determination of the share of funds).(3) The Bank of Slovenia shall issue the authorisation of the Bank of Slovenia for the application of the method for the determination of the share of funds if it estimates that the share determined with the method is appropriate with regard to previous information on the use of users’ funds for the purposes of the execution of payment services or other purposes.(4) A hybrid payment institution must submit, to the request for the issue of the authorisation of the Bank of Slovenia for the application of the method for the determination of the share of funds, the documentation on the method that it will use for the determination of the share and that contains an explanation and presentation of the time series of previous information on the use of users’ funds for the purposes of the execution of payment services or other purposes. At the time of the application of the request, if a hybrid payment institution doesn't have disposal of the appropriate time series of previous information on the use of users’ funds, it can propose in the request that, until the obtainment of this information an estimate share of users’ funds that are expected to be used for the execution of payment services, shall be used. Such proposal must be substantiated.(5) A hybrid payment institution must report to the Bank of Slovenia about the calculation of the share by the method for the determination of the share of users’ funds for which it obtained an authorisation of the Bank of Slovenia and about the previous information with regard to the amount of funds that the users actually intended for the execution of payment

services in the time periods and in the manner laid down in the decision for the issue of the authorisation for the application of the method for the determination of the share of funds.(6) The Bank of Slovenia shall withdraw the authorisation for the application of the method for the determination of the share of funds, if:1. the conditions referred to in the second paragraph of this Article aren't fulfilled anymore or if a share, determined with the application of method, is not appropriate anymore with regard to the previous information on the use of users’ funds,2. a payment institution doesn't report to the Bank of Slovenia about the facts referred to in the fifth paragraph of this Article in the time periods and in the manner laid down in the decision for the issue of the authorisation for the application of the method for the calculation of the safeguarded share of funds of a user.

Article 62

(effects of the enforcement and insolvency proceedings of a payment institution)

(1) If a payment institution guarantees the safeguarding of users’ funds in accordance with Article 59 of this Act, the users’ funds that were received for the execution of payment transactions, including funds that are kept in a separate account referred to in the third paragraph of Article 59 of this Act and investments referred to in the fourth paragraph of Article 59 of this Act, shall be in relation to the creditors considered as assets of its users. In case of an insolvency proceeding against a payment institution, the users shall have the exclusion right for these funds, while in case of a procedure of enforcement or insurance against a payment institution, they shall be exempted from the enforcement.(2) In case of an insolvency proceeding against a payment institution that guarantees the safeguarding of users’ funds in accordance with Article 59 of this Act, the administrator of this proceeding must:1. not later than within 10 days after the commencement of the proceeding determine the status of safeguarded funds by individual users on the day of commencement of the insolvency proceeding and inform the Bank of Slovenia on this;2. in at least two daily newspapers that are issued in the territory of the entire country in which a payment institution performs payment services publish a call to its users to report their exclusion rights of safeguarded funds in accordance with the rules of the insolvency proceeding.(3) In case of an insolvency proceeding of a payment institution that guarantees the safeguarding of users’ funds in accordance with Article 60 of this Act, the administrator of this proceeding must:1. not later than within 10 days after the commencement of this proceeding, in at least two daily newspapers that are issued in the territory of the entire country in which a payment institution performs payment services, publish a call to its users that in time limit that prevail for reporting exclusion rights referred to the previous paragraph report their claims in respect of funds that were transferred to the payment institution for the execution of payment transactions;2. on behalf of and for the account of users who have reported their claims in accordance with item 1 of this paragraph bring forward the claims in respect of an insurance contract or other comparable guarantee, unless a user is exercising these claims on his/her own.(4) If a hybrid payment institution guarantees the safeguarding of users’ funds in accordance with the second paragraph of Article 61 of this Act only for a part of users’ funds, it shall beconsidered, for the purposes of this Article, that an individual user intended from the total funds, which were transferred to the payment institution for the execution of payment services and other purposes, the same share of funds for the execution of payment services, as defined by the payment institution in accordance with the second paragraph of Article 61 of this Act for the purposes referred to in the first paragraph of this Article.

Article 63

(informing and reporting)

A payment institution must inform the Bank of Slovenia in advance on every intended change of the safeguarding manner of users’ funds and submit appropriate evidence on the compliance with the provisions of this Act.

SUBCHAPTER 9 BUSINESS RECORDS AND ANNUAL REPORT

Article 64

(business records and annual report)

(1) Rules stipulated in the Act regulating companies and the Act regulating auditing shall apply to business records and annual report of a payment institution, unless otherwise prescribed in this Article and Article 65 of this Act.(2) A payment institution must, not later than two months after the end of the business year, submit to the Bank of Slovenia unaudited financial statements for the previous business year. A hybrid payment institution must within this time period submit to the Bank of Slovenia also separate accountancy information from the balance sheet and profit and loss statement in connection with the provision of payment services.(3) If a payment institution is under an obligation to auditing, it must submit the following documents to the Bank of Slovenia within eight days after the receipt of the audit report, but not later than within six months after the end of the business year:1. annual report, and2. audit report on the audit of the annual report with the contents as stipulated in the Act regulating companies, including the opinion of an auditor about the separate accountancy information from the balance sheet and profit and loss statement in connection with the provision of payment services.

Article 65

(obligations of a certified auditor in relation to the Bank of Slovenia)

(1) A certified auditor who performs the auditing of an annual report of a payment institution must immediately inform the Bank of Slovenia about any fact or circumstance that was determined during the implementation of auditing tasks and that might present one of the following positions:1. significant violation of regulations regulating the provision of payment services,2. possible influence on the smooth functioning of a payment institution, or3. possible auditor's qualification, negative opinion or refusal of an opinion. (2) The obligation referred to in the first paragraph shall also apply to facts or circumstances in connection with a company that is closely linked to a payment institution on the basis of management.(3) A certified auditor must communicate to the Bank of Slovenia, at the request of the latter, also other information that the Bank of Slovenia needs for the provision of supervision over a payment institution in accordance with this Act.(4) Communication of information to the Bank of Slovenia under paragraphs 1 to 3 of this Article shall not present a violation of the auditor's obligation to protect confidential information under the Act regulating auditing or on the basis of a contract.

CHAPTER 3 PROVISION OF PAYMENT SERVICES OF THE EXECUTION OF MONEY REMITTANCES AS A WAIVED PAYMENT INSTITUTION

Article 66


(1) A waived payment institution shall mean a legal or natural person that performs services of the execution of money remittances referred to in item 6 of the first paragraph of Article 5 of this Act on the basis of the authorisation of the Bank of Slovenia for the provision of these services as a waived payment institution.(2) Provisions of the second chapter of this Act on the requirements for the provision of payment services as a payment institution shall apply also for waived payment institutions, unless the Bank of Slovenia allowed the suspension of the obligations of individual requirements to a waived payment institution in accordance with Article 67 of this Act, or if this Act expressly stipulates that the provision of this Act shall not apply to waived payment institutions.

Article 67

(authorisation of the Bank of Slovenia for the provision of services of the execution of money remittances as a waived payment institution )

(1) A legal or natural person performs services of the execution of money remittancesreferred to in item 6 of the first paragraph of Article 5 of this Act as a waived payment institution if obtains an authorisation of the Bank of Slovenia for the provision of these services as a waived payment institution , so that individual requirements with regard to the legal form of organisation of payment institutions, governance system and internal control system of a payment institution that payment institutions must fulfil in accordance with this Act shall not apply to them.(2) A legal or natural person can obtain the authorisation of the Bank of Slovenia for the provision of services of the execution of money remittances as a waived payment institution if the following conditions are fulfilled:1. if it has a head office or permanent residence in the Republic of Slovenia,2. if the payment services of the execution of money remittances will be performed as an additional activity and will be available only to those users who will simultaneously use other services of this provider that are not payment services,3. if the average annual amount of all payment transactions that a waived payment institution intends to perform, including all transactions performed through its agents, doesn't exceed 100.000 EUR in a single year, and4. if the management and persons directly responsible in the payment institution for management in connection with the services of the execution of money remittances fulfil the conditions stipulated by this Act for the members of management and persons responsible in the payment institution for management in connection with payment services.(3) In the application for the issue of the authorisation for the provision of services of the execution of money remittances as a waived payment institution the applicant must indicate for which individual requirements in connection with the legal form of organisation of payment institutions, governance system and internal control system of a payment institution waiver or limited use is requested, indicate the reasons for these waivers or limited use and submit evidence with regard to the compliance with the conditions referred to in the second paragraph of this Article.(4) The Bank of Slovenia shall issue the authorisation for the provision of services of the execution of money remittances as a waived payment institution, if:1. the applicant fulfils the conditions referred to in the second paragraph of this Article,2. the reasons for the refusal of an authorisation referred to in Article 31 of this Act or second paragraph of Article 33 of this Act are not given, with the exception of those requirements for which the applicant requested waiver or limited use in accordance with the third paragraph of this Article, and

3. it estimates that due to the waiver of individual requirements or their limited use there won't be any special risks for users during the provision of services of the execution of money remittances or that possible risks for users are acceptable due to larger benefits for the users.(5) The Bank of Slovenia shall indicate in the decision on the issue of the authorisation to the waived payment institution which requirements don't apply to a waived payment institution or apply only to a limited extent.(6) A waived payment institution must immediately inform the Bank of Slovenia about facts and circumstances that influence the compliance of conditions referred to in the second paragraph of this Article.(7) Articles 29 to 31, 33, and 34 of this Act shall apply mutatis mutandis for the authorisation of the Bank of Slovenia for the provision of services of the execution of money remittances to a waived payment institution subject to the provisions of paragraphs 2 to 6 of this Article.

Article 68

(provision of services of the execution of waived money remittances)

(1) A waived payment institution may perform payment services of the execution of money remittances in the:1. territory of the Republic of Slovenia, including the agents and branches in the Republic of Slovenia, and2. territory of the third country.(2) A waived payment institution can commence with the provision of payment services through a branch in a third country or through an agent in the Republic of Slovenia when the branch or agent was entered into the register of payment institutions in accordance with this Act.

CHAPTER 4 REGISTER OF PAYMENT INSTITUTIONS

Article 69

(register of payment institutions)

(1) The register of payment institutions shall mean a centralised database on payment institutions and waived payment institutions, their agents in the Republic of Slovenia and host countries and on their branches in host countries and third countries.(2) The following data shall be entered into the register of payment institutions for each payment institution and waived payment institution:1. firm and head office of a payment institution and waived payment institution ,2. payment services for which it obtained an authorisation of the Bank of Slovenia for the provision of payment services as a payment institution or indication that a waived payment institution can perform exclusively services of the execution of money remittances,3. on a branch in an individual host country or third country:- firm and head office of the first branch in a host country or third country,- payment services that are performed through all branches in an individual host country or third country,4. on each individual agent in the Republic of Slovenia or host country:- firm and head office or name and address of permanent residence of the agent in the Republic of Slovenia or host country,- payment services that are performed through an agent.(3) All entries in connection with a waived payment institution shall be entered into the register of payment institutions separately with an explicit indication that this involves waived payment institutions.

(4) The register of payment institutions shall be kept by the Bank of Slovenia, which also ensures its regular updating. The register of payment institutions shall be public and free-of-charge available on the website of the Bank of Slovenia.

Article 70

(entry of a payment institution into the register of payment institutions)

The Bank of Slovenia shall enter a payment institution or waived payment institution into the register of payment institutions at the time of the issue of the authorisation for the provision of payment services as a payment institution or authorisation for the provision of payment services of the execution of money remittances as a waived payment institution.

Article 71

(decision-making on the entry of a branch into the register of payment institutions)

(1) Notification of a payment institution or waived payment institution about the intention of performing payment services through a branch in a host country or third country under the first paragraph of Article 36 of this Act with the content referred to in the third paragraph of Article 36 of this Act shall be considered as a application for the entry of a branch in a host country or third country into the register of payment institutions.(2) The Bank of Slovenia shall refuse the application for the entry of a branch in a host country or third country into the register of payment institutions, if it estimates that:1. the information under the third paragraph of Article 36 of this Act that was submitted by the payment institution or waived payment institution is not correct,2. the persons, who are part of the branch's management or persons directly responsible in the branch for management in connection with the payment services, don't fulfil the conditions referred to in Article 26, or3. there is reasonable suspicion of money laundering or financing of terrorism in connection with the provision of payment services through a branch.(3) The Bank of Slovenia shall refuse the application for the entry of a branch in a third country into the register of payment institutions if under the consideration of the regulations of the third country or under the consideration of the third country practice in the implementation and execution of these regulations it is likely that the exercise of supervision over a payment institution in accordance with the provisions of this Act will be obstructed or significantly difficult.

Article 72

(decision-making on the entry of an agent into the register of payment institutions)

(1) Notification about the intention of performing payment services through an agent in the Republic of Slovenia or host country under the first paragraph of Article 36 of this Act with the content referred to in the second paragraph of Article 36 of this Act shall be considered as an application for the entry of an agent in the Republic of Slovenia or host country into the register of payment institutions.(2) If a payment institution requests the entry of an agent in the host country into the register of payment institutions, the Bank of Slovenia must, prior to the decision on the entry of this agent with regard to the circumstances referred to in the third paragraph of this Article, ask for an opinion of a competent supervisory authority in the host country, and if given, must appropriately consider it.(2) The Bank of Slovenia shall refuse the application for the entry of an agent in the Republic of Slovenia or host country into the register of payment institutions, if it estimates that:

1. the information under the third paragraph of Article 36 of this Act that was submitted by the payment institution or waived payment institution is not correct,2. the persons, who are part of the agent's management or persons directly responsible at the agent for management in connection with the payment services, don't fulfil the conditions referred to in Article 26, or3. there is reasonable suspicion of money laundering or financing of terrorism in connection with the provision of payment services through an agent.

Article 73

(removal from the register)

(1) The Bank of Slovenia shall remove a payment institution or waived payment institution , including its branches and agents who are entered in the register of payment institutions in accordance with Article 69 of this Act, from the register of payment institutions, if:1. the authorisation of the Bank of Slovenia for the provision of payment services as a payment institution or authorisation for the execution of money remittances as a waived payment institution expired entirely under Article 35 of this Act, on the day of the issue of the decision under the sixth paragraph of Article 35 of this Act;2. the authorisation of the Bank of Slovenia for the provision of payment services as a payment institution or authorisation for the execution of money remittances as a waived payment institution was withdrawn in accordance with Article 196 of this Act, on the day of the issue of the authorisation withdrawal decision.(2) The Bank of Slovenia shall remove a branch of a payment institution or payment institution with suspension from the register of payment institutions, if:1. it receives a notification referred to in the fifth paragraph of Article 36 of this Act, on the day of the receipt of this notification, or2. it establishes that the circumstances referred to in the second paragraph of Article 71 of this Act are given, on the day of the issue of the decision on the removal of a branch from the register of payment institutions.(3) The Bank of Slovenia shall remove a branch in an individual third country from the register of payment institutions if it establishes that the circumstances referred to in the thirdparagraph of Article 71 of this Act are given, on the day of the issue of the decision on the removal of a branch from the register of payment institutions.(4) The Bank of Slovenia shall remove an individual agent of a payment institution or waived payment institution from the register of payment institutions, if:1. it receives a notification referred to in the fifth paragraph of Article 36 of this Act, on the day of the receipt of this notification, or2. it establishes that the circumstances referred to in the third paragraph of Article 72 of this Act are given, on the day of the issue of the decision on the removal of an agent from the register of payment institutions.

CHAPTER 5 PROVISION OF PAYMENT SERVICES

SUBCHAPTER 1 GENERAL PROVISIONS

Article 74

(scope)

(1) This Chapter shall regulate:1. obligations of payment service providers for the provision of information in connection with the provision of payment services,2. payment service contracts and rules regarding the amendments and termination of contracts, and

3. rules regarding the execution of payment transactions. (2) This Chapter shall apply to domestic and cross-border payment transactions executed in euro or other currency of a Member State.(3) It shall not be possible to exclude or limit the application of provisions of this Chapter with a payment service contract, unless otherwise provided by this Act that derogations from individual provisions are allowed on the basis of an agreement between parties. Payment service providers can provide payment services to users under conditions that are more favourable to users than conditions stipulated in this Chapter.(4) When a user is not a consumer, it shall be possible to exclude or limit with a payment service contract the application of provisions referred to in Subchapter 2, Chapter 5 of this Act, other than the provisions of Section 5, Subchapter 2, Chapter 5 of this Act.

Article 75

(charges in connection with the fulfilment of obligations)

(1) A payment service provider shall not be allowed to charge the user for the provision of information that must be provided to the user in accordance with Subchapter 2, Chapter 5 of this Act, or the fulfilment of his obligations to the user referred to in Subchapter 3, Chapter 5 of this Act, unless expressly otherwise provided by the Act.(2) A payment service provider and user may agree on charges for the provision of information if the user expressly demands additional and more frequent provision of information, other than provided in Subchapter 2, Chapter 5 of this Act, or transmission of information by means of communication other than those specified in the framework contract.(3) Charges of the payment service provider in accordance with the first and second paragraph of this Article must be appropriate and in line with actual costs of the payment service provider due to the fulfilment of his obligations.(4) Provisions of this Article shall not interfere with the rights of the payment service provider to charge the users for the provision of payment services.(5) Notwithstanding the first paragraph of this Article, a payment service provider and user who is not a consumer may agree also on additional charges for the provision of information on the basis of Subchapter 2, Chapter 5 of this Act and for the fulfilment of the obligations of a payment service provider on the basis of Subchapter 3, Chapter 5 of this Act.

SUBCHAPTER 2 PAYMENT SERVICE CONTRACT

SECTION 1 GENERAL PROVISIONS

Article 76


(1) A payment service contract may be concluded as a framework contract or single payment transaction contract. (2) A payment service provider and user may agree with the framework contract on the execution of individual or more sequential payment transactions in the future. A framework contract may also include an agreement on the electronic money issuing if the payment service provider is a person referred to in items 1 or 2 of the first paragraph of Article 17 of this Act, or an agreement on the opening of a payment account if the payment services are performed through a payment account.(3) A payment service provider and user may agree with the single payment service contract on the execution of a single payment that is not specified in the framework contract.(4) With regard to issues that are not regulated by this Act, the provisions of the Act regulating contractual obligations in connection with the contract on orders shall apply to relations between the payment service provider and user.

(5) When a payment service contract includes also an agreement on the granting of a loan to a consumer, the Act regulating consumer loans shall apply to conditions for the granting of a loan to a consumer, unless otherwise provided by the special conditions of this Act with regard to the granting of loans to consumers in connection with payment services.

Article 77

(provision of information)

(1) When this Act stipulates the obligation of a payment service provider to provide to a user specific information, the payment service provider must provide this information without an explicit request of the user in the manner that doesn't require special activities of the user in order to obtain the information and become acquainted with them.(2) When this Act expressly stipulates that a payment service provider ensures the requested information to the user in the manner that the information make available to the user in the agreed upon manner, the payment service provider may provide the information to the user in the manner that the user must obtain information with the agreed upon action in order to become acquainted with them.

Article 78

(burden of proof)

In case of a dispute, a payment service provider must prove that it has complied with the information requirements in accordance with Subchapter 2, Chapter 5 of this Act.

SECTION 2 FRAMEWORK CONTRACT

Article 79

(general information on the framework contract conditions)

(1) The payment service provider must, prior to the conclusion of a framework contract, provide the following information to the user:1. on the payment service provider,2. on conditions for the implementation of a payment service,3. on charges, interest and exchange rates,4. on methods and means of communication,5. on safeguarding and other measures in connection with the execution of payment transactions,6. on conditions for changes and termination of framework contract, and7. on redress procedures.(2) Information on the payment service provider must include the following information:1. the name and head office of the payment service provider, the name and address of its agent or branch established in the Republic of Slovenia and any other address where the payment service provider is reachable, including his electronic mail address;2. authorities responsible for supervision over the payment service provider, its branch or agent in connection with the provision of payment services in the Republic of Slovenia;3. indication of the register of payment institutions or any other relevant public register of authorisations for the provision of payment services and the registration number, or equivalent means of identification of a payment service provider in that register.(3) Information on the conditions for the implementation of a payment service must include the following information:1. the main characteristics of the payment service to be provided;

2. the unique identifier or other information that has to be provided by the user in order for a payment order to be properly executed;3. the form of and procedure for giving consent to execute a payment transaction and withdrawal of such consent in accordance with Articles 103, 106 and 107 of this Act;4. the point in time when it is considered that a payment service provider received a payment order as defined in Article 104 of this Act and the cut-off time, if any, for the receipt of the orders in an individual business day when the received orders are considered as received on the following business day in accordance with the fourth paragraph of Article 104 of this Act;5. the maximum execution time for the payment services to be provided; 6. the possibility to agree on spending limits for the use of the payment instrument if there is a possibility to agree on spending limits in accordance with Article 118 of this Act.(4) Information on charges, interest and exchange rates must include the following information:1. all charges to be charged from the payment service provider to the user, including the breakdown of the amounts of any charges, in case of total charges charged to the user;2. interest and exchange rates to be applied or, if reference interest and exchange rates areto be also used the method of calculating the actual interests and exchange rates, and the relevant date and index or other base for determining actual interest or exchange rate;3. the possibility that the changes in interest or exchange rate based on reference interest or exchange rate are applied immediately and without prior informing and manner of informing the user regarding these changes in accordance with Article 86 of this Act.(5) Information on methods and means of communication between the user and payment service provider must include the following information:1. the means of communication, including the technical requirements for the user's equipment for the transmission of information in accordance with this Act;2. the manner and frequency the information under this Act to be provided or made available to users;3. the language in which the framework contract will be concluded and communication during this contractual relationship undertaken; 4. the user's right to receive a copy of the framework contract and information and the contractual terms referred to in this Article on paper or on another durable medium in accordance with Article 81 of this Act. (6) Information on safeguarding and other measures in connection with the execution of payment transactions must include the following information:1. measures that the user is to take in order to keep safe a payment instrument and the manner of notifying on the loss, theft or misuse of a payment instrument in accordance with Article 116 of this Act;2. the conditions under which the payment service provider reserves the right to block a payment instrument in accordance with Article 118 of this Act;3. the liability of the payer for an unauthorised transaction in accordance with Article 120 of this Act, including information on the amount of loss covered by the payer in accordance with the first paragraph of Article 120 of this Act;4. the manner and time periods in which the user is to notify the payment service provider of any unauthorised or incorrectly executed payment transactions in accordance with Article 130 of this Act;5. the liability of the payment service provider for unauthorised, non-executed and incorrectly executed payment transactions in accordance with Articles 119 to 125 of this Act;6. the conditions for refund of costs in accordance with Article 131 of this Act.(7) Information on conditions for changes and termination of framework contract must include the following information:1. the contractual possibility that it will be considered that the user had accepted changes in the conditions in accordance with the second paragraph of Article 85 of this Act, if he doesn't notify the payment service provider that he does not accept them before the date of their proposed date of entry into force, including the notification on the rights of the user to terminate the framework contract in accordance with the third paragraph of Article 85 of this

Act if he notified the payment service provider on the rejection of the proposed changes before the date of their proposed date of entry into force;2. on the duration of the framework contract; 3. on conditions for the termination of the framework contract by the user or payment service provider in accordance with Articles 87 and 88 of this Act. (8) Information on procedures due to violations of this Act and redress procedures must include the following information:1. the law applicable to the framework contract and competent courts;2. procedures due to violations in connection with the provision of payment services under this Act and the authority responsible for these procedures;3. redress procedures available to the user in case of a dispute in connection with the provision of payment services and the authority responsible for the settlement of disputes in accordance with Article 218 of this Act.

Article 80

(method of transmission of general information)

(1) A payment service provider must provide to the user the general information referred to in Article 79 of this Act in the manner so that the user has enough time to become acquainted with the conditions of the provision of payment services prior to the conclusion of a framework contract.(2) A payment service provider must provide to the user the general information referred to in Article 79 of this Act on paper or on another durable medium in easily understandable manner and in a clear and comprehensible form, in Slovene language or other language agreed upon between the parties.(3) A payment service provider may provide to the user the general information referred to in Article 79 of this Act also by providing to the user the proposal of the framework contract or general conditions as an integral part of the framework contract, which also contain the information and terms referred to in Article 79 of this Act. The proposal of the framework contract must be provided in accordance with the first and second paragraph of this Article.(4) If the framework contract has been concluded at the request of the user using a means of distance communication which does not enable the payment service provider to provide the general information referred to in Article 79 of this Act in accordance with the provision of paragraphs 1 to 3 of this Article, the payment service provider shall provide this information to the user immediately after the conclusion of the framework contract.

Article 81

(access to general information and information on the conditions of the framework contract)

At any time during the contractual relationship, the user shall have a right to receive, on request, the general information referred to in Article 79 of this Act and provisions of the framework contract on paper or on another durable medium.

Article 82

(information for the payer before an individual payment transaction)

The payer's payment service provider shall before the execution of an individual payment transaction initiated by the payer on the basis of the framework contract, at the payer's request, provide explicit information on the maximum execution time of this payment transaction and the charges payable by the payer, including a breakdown of the amounts in case of total charges for the payer.

Article 83

(information for the payer after an individual payment transaction)

(1) After the amount of an individual payment transaction is debited from the payer's account or, where the payer does not use a payment account, after the receipt of the payment order, the payer's payment service provider who executes an individual payment transaction on the basis of the framework contract shall provide the payer without undue delay with the following information:1. data enabling the payer to identify each individual payment transaction, including the information on the payee, where applicable;2. the amount of the payment transaction in the currency in which the payer's payment account is debited or in the currency used for the payment order, if the payment order was executed without the use of a payment account;3. the amount of any charges payable by the payer for the execution of a payment transaction, including the breakdown of the amounts in case of total charges for the payer;4. amount of possible interests payable by the payer,5. possible exchange rate used in the payment transaction by the payer's payment service provider, and the amount of the payment transaction after that currency conversion; and6. the debit value date or the date of receipt of the payment order.(2) The payer's payment service provider must provide to the payer the information referred to in the first paragraph of this Article in accordance with the second paragraph of Article 80 of this Act. The framework contract may also stipulate that the payment service provider must make available to the payer the information referred to in the first paragraph of this Article in the agreed upon manner which allows the payer to store and reproduce information unchanged.(3) The framework contract may also stipulate that the payment service provider must periodically, but at least once a month, provide or make available to the payer the information referred to in the first paragraph of this Article.(4) Payer who is a consumer may request that his payment service provider shall provide information on individual executed payment transactions on paper once a month free of charge.

Article 84

(information for the payee after an executed individual payment transaction)

(1) After the execution of an individual payment transaction, the payee's payment service provider who, on the basis of the framework contract executes an individual payment transaction, shall provide the payee without undue delay with the following information:1. data enabling the payee to identify each individual payment transaction and, if stipulated by a special regulation, also data enabling the identification of the payer and other information transferred together with a payment transaction; 2. the amount of the payment transaction in the currency in which the payee's payment account is credited;3. the amount of any charges from the payee's payment service provider payable by the payee for the execution of a payment transaction, including the breakdown of the amounts in case of total charges for the payee;4. amount of possible interests payable by the payee,5. possible exchange rate used in the payment transaction by the payment service provider, and the amount of the payment transaction prior to that currency conversion; and6. the credit value date on the payee's payment account.(2) The payee's payment service provider must provide to the payee the information referred to in the first paragraph of this Article in accordance with the second paragraph of Article 80 of this Act. The framework contract may also stipulate that the payment service provider

must make available to the payee the information referred to in the first paragraph of this Article in the agreed upon manner that allows the payee to store and reproduce information unchanged.(3) The framework contract may also stipulate that the payment service provider must periodically, but at least once a month, provide or make available to the payee the information referred to in the first paragraph of this Article.(4) Payee who is a consumer may request that his payment service provider shall provide information on individual executed payment transactions on paper once a month free of charge.

Article 85

(changes in conditions of the framework contract on the proposal of a payment service provider)

(1) A payment service provider may propose the changes in conditions of the framework contract referred to in Article 79 of this Act by providing to the user the proposal of changes no later than two months before their proposed date of application. (2) If agreed upon in the framework contract, the payment service provider may propose changes in conditions of the framework contract referred to in Article 79 of this Act by notifying the user that he is to be deemed to have accepted these changes if he does not notify the payment service provider that he does not accept them before the proposed date of their entry into force. In this case, the change in conditions of the framework contract shall enter into force on the date proposed for the application of the changes, unless the user expressly agrees that the changes may immediately enter into force.(3) The user who, in case of an agreement referred to in the second paragraph of this Article, doesn't accept the proposal for the change of the framework contract, has the right to terminate the framework contract before the date of the proposed application of the changes without a notice period and payment of charges.(4) The payment service provider must provide to the user the proposal of changes in conditions of the framework contract referred to in the first paragraph of this Article in the manner, as stipulated in the second paragraph of Article 80 of this Act.

Article 86

(changes in the interest or exchange rates)

(1) The framework contract shall stipulate that changes in the interest or exchange rates may be applied immediately and without notice, provided that they are based on the changes of the reference interest or exchange rates.(2) The payment service provider must inform the user regarding the changes in interest rates referred to in the first paragraph of this Article at the earliest opportunity and in the manner as provided in the second paragraph of Article 80 of this Act, unless the framework contract stipulates the frequency or manner of informing the user regarding the changes of interest rates.(3) If the interest or exchange rate referred to in the first paragraph of this Article changes to the benefit of the user, the provider shall not be obliged to inform the user regarding the change.(4) The payment service provider shall ensure that the changes of the interest or exchange rate used in payment transactions shall be implemented and calculated in a neutral mannerthat does not discriminate against payment service users.

Article 87

(user's termination of the framework contract)

(1) The user may terminate the framework contract at any time with immediate effect, unless the framework contract stipulates a termination period of notice for the withdrawal of a user from the contract; however, such a period may not exceed one month. The provisions of the framework contract that will contrary to this Act limit the rights of the user to terminate the contract shall be null and void.(2) In case the user terminates the framework contract, the user shall pay the possible charges by the payment service provider for the payment services for a fixed period only in a proportionate share until the termination of the framework contract. If such charges are paid in advance, the payment service provider must be reimbursed a proportionate share of the paid charges.(3) Charges from the payment service provider payable by the user, due to the user's termination of the framework contract, must be reasonable and proportionate with actual costs of the payment service provider due to the termination. The payment service provider shall not impose any special charges to the user, due to the termination of contract, if the user terminates the framework contract concluded for a fixed period exceeding 12 months or for an indefinite period after the expiry of 12 months after the conclusion of contract.(4) Provisions of this Article shall not interfere with the rights of the user to terminate theframework contract under conditions stipulated by a different Act with regard to the termination.

Article 88

(termination of the framework contract by the payment service provider)

(1) The payment service provider may terminate the framework contract concluded for an indefinite period by giving at least two months' notice, while the framework contract may stipulate a longer notice period and additional conditions for the termination of the framework contract by the payment service provider. The payment service provider must provide the notification on the termination of the framework contract to the user in the manner specified in the first and second paragraph of Article 80 of this Act.(2) In case the payment service provider terminates the framework contract, the user shall pay the possible charges by the payment service provider for the payment services for a fixed period only in a proportionate share until the termination of the framework contract. If such charges are paid in advance, the payment service provider must reimburse a proportionate share of the paid charges.(3) Provisions of this Article shall not interfere with the rights of the payment service provider to terminate the framework contract under conditions stipulated by a different Act with regard to the termination.

Article 89

(other methods of the termination of the framework contract)

(1) The framework contract shall be challengeable if it stipulates the conditions with regard to the facts referred to in Article 79 of this Act that the payment service provider didn't provide to the user in accordance with Article 80 of this Act. The framework contract shall also be challengeable if it stipulates the conditions with regard to the facts referred to in Article 79 of this Act that are substantially different than the conditions that the payment service provider provided to the user in accordance with Article 80 of this Act.(2) The rules of the Act regulating contractual obligations regarding the challengeability of contracts shall apply to the challengeability of the framework contract due to reasons referred to in the first paragraph of this Article.(3) This Act shall not interfere with the rights of parties to exercise their right to terminate the contract on the basis of other regulations.

Article 90

(general information in connection with the framework contract for low-value payment instruments)

(1) Notwithstanding Article 79 of this Act, the payment service provider must before the conclusion of the framework contract for low-value payment instrument provide the user withonly the following information on the main characteristics of the payment service:1. possible methods for the use of the low-value payment instrument,2. liabilities of the payment service provider and user, in case of the execution of an unauthorised payment transaction, and in case of non-execution or incorrectly executed payment transaction, 3. charges from the payment service provider payable by the user,4. other significant circumstances when this information is necessary to the user for a decision on the conclusion of a contract for low-value payment instruments, and5. where other general information referred to in Article 79 of this Act are available to the user.(2) Notwithstanding Articles 85 and 86 of this Act, the framework contract for low-value payment instruments may stipulate that a payment service provider doesn't have to propose changes of the framework contract in the manner, as stipulated in the first and second paragraph of Article 80 of this Act.

Article 91

(information on an individual payment transaction in connection with low-value payment instruments)

(1) The framework contract for low-value payment instruments may stipulate that, after the execution of an individual payment transaction, the payment service provider shall provide or make available to the user the following information regarding an individual payment transaction:1. data enabling the payee to identify the individual payment transaction, 2. the amount of the individual payment transaction, or when several payment transactions of the same type are executed to the same user, only the total amount of all payment transactions executed to the same user, and3. all charges from the payment service provider payable by the user for individual payment transactions, or when several payment transactions of the same type are executed to the same user, only the total amount of charges for all payment transactions executed to the same user.(2) The framework contract for low-value payment instruments may stipulate that the payment service provider shall not be obliged to inform the user on individual payment transactions if the low-value payment instrument is used anonymously or if the payment service provider is technically not capable of providing information on individual payment transactions. In this case, the payment service provider must enable the payer to verify the amount of funds that are stored in a payment instrument.

SECTION 3 SINGLE PAYMENT TRANSACTION CONTRACT

Article 92

(general information)

(1) The payment service provider must before the conclusion of the single payment transaction contract make available to the user the following information:

1. a specification of the unique identifier or any other information that has to be provided by the user in order for a payment order to be properly executed;2. the maximum execution time for the payment service to be provided;3. all charges payable by the user to his payment service provider and, where applicable, the breakdown of the amounts of any charges in case of total charges payable by the user;4. the possible exchange rate or reference exchange rate to be applied by the payment service provider to the payment transaction.(2) A payment service provider must provide to the user the information referred to in the first paragraph of this Article in an easy accessible manner so that the user has enough time to become acquainted with the conditions of the execution of the payment transaction, prior to the conclusion of a payment service contract. The payment service provider may make available to the user information referred to in the first paragraph of this Article also by providing to the user the proposal of the single payment transaction contract or payment order that contains the needed information.(3) A payment service provider must provide to the user the information referred to in the first paragraph of this Article in easily understandable manner, in a clear and comprehensible form, and in Slovene language or other language agreed upon between the parties. At the request of the user, the payment service provider must provide to the user the information referred to in the first paragraph of this Article in written form or on another durable medium.(4) If the framework contract has been concluded, at the request of the user, using a means of distance communication which does not enable the payment service provider to act in accordance with paragraphs 1 to 3 of this Article, the payment service provider shall make available the information referred to in the first paragraph of this Article to the user immediately after the execution of the payment transaction.(5) The payment service provider must in an easy accessible way make available to the user also other information referred to in Article 79 of this Act that is relevant for the execution of a single payment transaction.

Article 93

(information for the payer after receipt of the payment order)

Immediately after receipt of the payment order, the payer's payment service provider shall provide or make available to the payer, in the same way as provided for in the third paragraph of Article 92 of this Act, the following information:1. information enabling the payer to identify the payment transaction and, where appropriate, information relating to the payee;2. the amount of the payment transaction in the currency used in the payment order;3. the amount of any charges payable by the payer and, where applicable, a breakdown of the amounts of such charges;4. the exchange rate used in the payment transaction by the payment service provider or a reference thereto, when different from the exchange rate informed by the payment service provider in accordance with Article 92 of this Act, and the amount of the payment transaction after that currency conversion; and5. the date of receipt of the payment order.

Article 94

(information for the payee after the execution of the payment transaction)

Immediately after the execution of the payment transaction, the payee's payment service provider shall provide or make available to the payee, in the same way as provided for in the third paragraph of Article 92 of this Act, the following information:1. information enabling the payee to identify the payment transaction and, where appropriate, also the payer, and any information transferred with the payment transaction;

2. the amount of the payment transaction in the currency in which the funds are at the payee's disposal;3. the amount of any charges payable by the payee and, where applicable, a breakdown of the amounts of such charges in case of total charges payable by the payee;4. the possible exchange rate used in the payment transaction by the payee's payment service provider and the amount of the payment transaction prior to that currency conversion; and5. the payee's credit value date.

Article 95

(derogations from the provision of information obligation)

When a user provides to the payment service provider a payment order for single payment transaction by using a payment instrument that was issued to the user by another payment service provider, on the basis of the framework contract on the issue of a payment instrument, the payment service provider shall not be obliged to provide or make available the information on the single payment transaction that was or will be provided or made available to the user on the basis of the framework contract on the issue of a payment instrument by another payment service provider.

SECTION 4 PROVISION OF OTHER INFORMATION TO THE USER

Article 96

(currency conversion information)

(1) Where currency conversion service is offered by the payee to the payer prior to the initiation of the payment transaction or where that currency conversion service is offered at the point of sale, the party offering the currency conversion service shall provide to the payer the information on the exchange rate as well as all charges payable by the payer for the currency conversion.(2) It shall be considered that the payer agreed to the currency conversion prior to the initiation of the payment transaction, if the party offering the currency conversion service acquainted the payer with the conditions referred to in the first paragraph of this Article prior to the initiation of the payment transaction.

Article 97

(information on additional charges and reductions)

(1) Where, for the payment by using a given payment instrument, the payee requests a charge or offers a reduction, the payee shall inform the payer thereof prior to the initiation of the payment transaction.2. Where, for the use of a given payment instrument, a payment service provider or a third party requests a charge, he shall inform the user thereof prior to the initiation of the payment transaction.

SECTION 5 APPLICATION OF OTHER REGULATIONS WITH REGARD TO THE PROVISION OF INFORMATION

Article 98

(application of other regulations)

Additional requirements with regard to the provision of prior information in connection with the provision of services arising out of special regulations shall bind the payment service provider in connection with the provision of payment services only if expressly stipulated by this Act.

Article 99

(prior information in connection with loans to consumers for the provision of payment transactions)

The payment service provider who offers loans to users for the provision of payment transactions, including loans in form of payment account overdraft, must beside the information referred to in Articles 79 and 92 of this Act, prior to the conclusion of the payment service contract, provide to consumers also the information on the conditions of a loan agreement in accordance with the Act regulating consumer loans.

Article 100

(prior information in case of distance contracts)

(1) The payment service provider who enables users to conclude distance payment service contracts within the meaning of the Act regulating the protection of consumers must, prior to the conclusion of the distance payment service contract, provide the following information to the user, besides the information referred to in Articles 79 and 92 of this Act:1. detailed rules with regard to the manner and time period for the payment of charges payable by the consumer and for the fulfilment of other obligations of the payment service contract,2. in the case where the consumer has a right to withdraw from the contract:- implementation manner of this right,- information on the possible amount that the consumer must pay in case of a withdrawal from the contract,- practical instructions for the implementation of the right to withdraw, including the indication of the address for the communication of the withdrawal statement,- consequences if the consumer doesn't realise the withdrawal right.3. possible additional costs payable by the consumer to the payment service provider for the use of means of distance communication if these costs differ from costs usually paid by the consumer for the use of means of distance communication for other purposes,4. if necessary, appropriate warning that a payment service is connected with the use of instruments that present a special risk due to their special characteristics or procedures for the execution of payment transactions,5. warning regarding the possibility of additional taxes and costs that are not deducted or charged by the payment service provider,6. law that is implemented for relationships between the payment service provider and consumer prior to the conclusion of the contract,7. time limit regarding the validity of information provided to the consumers,8. existence of the system of guarantees or other agreements in connection with the reimbursement of damage, unless these are systems or agreements regulated in Acts regulating banking and market of financial instruments.(2) In concluding distance payment service contracts, the payment service provider must provide to consumers information referred to in the first paragraph of this Article by using means of distance communication in the manner which clearly reflects the business purpose of information and considering the principle of good faith and principle of protection of business incapable persons and business limited capable persons.

Article 101

(prior information for the protection of consumers against unfair business practice)

(1) The payment service provider shall before the conclusion of a single payment transaction, in addition to the information referred to in Article 92 and, where appropriate, in Article 100 of this Act, provide also the following information:1. title and head office of the payment service provider,2. main characteristics of the payment services,3. manner of the execution of a payment transaction and payment of charges, when the latter derogate from the requirements of professional diligence within the meaning of the Act regulating the protection of consumers against unfair business practice,4. right to withdrawal of the single payment transaction, when the single payment transaction contract enables a withdrawal,5. violation procedures in connection with the provision of payment services under this Act and authority responsible for the conduct of these procedures,6. procedure of peaceful settlement of disputes that is available to the user in case of dispute in connection with the provision of payment services, and authority responsible for the settlement of these disputes in accordance with Article 218 of this Act.(2) The payment service provider shall define the business purpose of information that must be provided to consumers in accordance with this Act if such purpose is not clear already from the content of information or other circumstances in which the information is provided to the user.

Article 102

(prior information to users for the conclusion of payment service contracts that are performed as information society services)

The payment service provider who performs payment services in form of information society services, as stipulated in the Act regulating electronic commerce in the market, must before the conclusion of the payment service contract provide to users, along with the information requested on the basis of other provisions of Subchapter 2, Chapter 5 of this Act, also the information that the information society service provider must provide to users before the conclusion of the information society service contract on the basis of the Act regulating electronic commerce in the market.

SUBCHAPTER 3 EXECUTION OF PAYMENT TRANSACTIONS

SECTION 1 AUTHORISATION OF PAYMENT TRANSACTIONS

Article 103

(consent)

(1) A payment service provider shall execute a payment transaction if the payer authorised the payment transaction by giving consent for its execution.(2) The payer give consent for the execution of the payment transaction prior to the execution of the payment transaction, unless agreed by the payment service provider and payer that the payer can give consent also after the execution of the payment transaction.(3) The payer may give consent for the execution of the payment transaction or series of payment transactions in form and following the procedure agreed upon between the payer and his payment service provider.(4) If the payer doesn't give consent for the execution of the payment transaction in accordance with the agreement referred to in the third paragraph of this Article, it shall be considered the payment transaction to be unauthorised.

(5) The payment service provider and payer who is not a consumer may agree that the fourth paragraph of this Article shall not apply.

SECTION 2 EXECUTION OF PAYMENT TRANSACTIONS

Article 104

(receipt of payment orders)

(1) A payment transaction shall be executed on the basis of the payment order provided to the payer's payment service provider by the payer or payee. The payment service provider must execute the payment transaction after the receipt of the payment order, unless the reasons for refusal of a payment order in accordance with this Act are given.(2) It shall be considered that the payment service provider received the payment order when the payment order was provided with the use of means of communication as agreed upon in the payment service contract, notwithstanding the possible prior involvement of the payment service provider in the process of designing and giving a payment order.(3) If the payment service provider receives the payment order not on a business day of the payment service provider, it shall be considered the payment order to have been received on the following business day.(4) The payment service provider may establish a cut-off time near the end of a business day beyond which any payment order received shall be deemed to have been received on the following business day.(5) If the user and his payment service provider agree that the execution of the payment order will start on a specific day or at the end of a certain period or on the day on which the payer has set funds at his payment service provider's disposal, the point in time of receipt for the purposes of Article 111 shall be deemed to be the agreed day. If the agreed day is not a business day for the payment service provider, the payment order received shall be deemed to have been received on the following business day.

Article 105

(refusal of payment orders)

(1) The payment service provider may refuse the execution of a payment order if all conditions for the execution of a payment order are not fulfilled, as stipulated in the contract. The refusal of the payment order by the payment service provider and, if possible, the reasons for it and the procedure for correcting any factual mistakes that led to the refusal shall be notified to the user, unless prohibited by other regulations.(2) The payment service provider shall provide or make available the notification referred to in the first paragraph of this Article in an agreed upon manner, specified in the contract, at the earliest opportunity, and in any case, within the periods specified for the execution of a payment order in accordance with Article 111 of this Act.(3) The framework contract may stipulate that the payment service provider may charge for the notification on the refusal of the payment order if the refusal is objectively justified.(4) If the payment service provider refused the payment order in accordance with paragraphs 1 to 3 of this Act, it shall be considered not to have received the payment order.

Article 106

(revocation of a payment order)

(1) The payer may revoke the payment order at any time by withdrawing the consent for the execution of a payment transaction or series of payment transactions. Each payment transaction executed after the withdrawal of consent shall be considered as unauthorised.

(2) Notwithstanding the first paragraph of this Article, the payer cannot withdraw the consent for the execution of a payment transaction after the payment order for the execution of a payment transaction has become irrevocable in accordance with Article 107 of this Act.(3) The payer may withdraw the consent for the execution of a payment transaction or series of payment transactions in form and following the procedure agreed upon between the payer and his payment service provider.

Article 107

(irrevocability of payment orders)

(1) The user may not revoke a payment order once it has been received by the payer's payment service provider, unless otherwise specified in this Article for individual cases.(2) Where the payment transaction is initiated by the payee or payer through the payee, the payer may not revoke the payment order after providing the payment order or giving his consent to execute the payment transaction to the payee.(3) Notwithstanding the second paragraph of this Article, where the payment transaction is initiated by the payee with direct debit, the payer may revoke the payment order initiated by the payee at the latest by the end of the business day preceeding the day agreed for debiting the funds. The right to revocation of the payment order in accordance with this paragraph shall not interfere with the payer's refund rights on the basis of Article 130 of this Act.(4) In the case referred to in the fifth paragraph of Article 104 of this Act, the user may revoke a payment order at the latest by the end of the business day preceding the agreed day for the start of the execution of the payment order.(5) After the time limits specified in paragraphs 1 to 4 of this Article, the user may revoke the payment order only on the basis of the agreement with his payment service provider. In case the payment transaction is initiated by the payee or payer through the payee, the payee's agreement shall also be required in connection with the revocation of the payment order after the time limit referred to in the second or third paragraph of this Article.(6) The framework contract may also stipulate that the payment service provider may specially charge the user for the revocation of a payment order after the expiration of the time limits referred to in paragraphs 1 to 4 of this Article.(7) The payment service provider and user who is not a consumer may agree that this Article shall partly or entirely not apply.

Article 108

(currency of the payment transaction)

A payment transaction shall be executed in currency agreed between the user and his provider.

Article 109

(charges to the provider)

(1) In connection with the execution of a payment transaction, the payment service provider may levy to the user only the charges, about which he had in advance informed the user in accordance with the fourth paragraph of Article 79, first paragraph of Article 82, first paragraph of Article 90 or first paragraph of Article 92 of this Act.(2) In connection with the execution of a payment transaction, the payer shall pay the charges levied by the payer's payment service provider, while the payee pays the charges levied by the payee's payment service provider. A different agreement between the payment service provider and user shall be permitted only if the payment transaction also involves a currency conversion with the payer's payment service provider.

(3) In the execution of the payment transaction, the payer's payment service provider, payee's payment service provider and possible intermediary who participates in the execution of a payment transaction for the account of the payment service provider must transfer the entire amount of the payment transaction from the payer to the payee.(4) Notwithstanding the third paragraph of this Article, the payee and his payment service provider may agree that the payment service provider deducts his charges from the transferred amount prior to the authorisation on the payee's payment account, or makes it available for the payee. In this case, after the execution of the payment transaction referred to in Articles 84 or 94 of this Act, the payment service provider must separately indicate in a notification to the user the total amount of the payment transaction, including the deducted charges.(5) In case other charges that are not charges referred to in the fourth paragraph of this Article are deducted from the transferred amount, the payer's payment service provider must ensure that the payee received the total amount of the payment transaction. If the payment transaction is initiated by the payee or payer through the payee, in the case referred to in the first sentence of this paragraph, the payee's payment service provider must ensure that the payee receives the total amount of the payment transaction.(6) Provisions of this Article shall not interfere with the agreements between the payment service providers regarding the mutual charge of costs in connection with the execution of payment services.

Article 110

(charges to the payee)

(1) This Act shall not interfere with the right of the payee for a special charge payable by the payer, or offering him discount for the use of a given payment instrument.(2) The payment service provider shall not prevent or in any manner limit the payee in his demands for the payment of charges, or offering reduction for the payment for goods or services for the use of a given payment instrument.

Article 111

(execution time of a payment transaction)

(1) The payer's payment service provider must ensure that in case of a domestic payment transaction executed in euro, the amount of the payment transaction is credited to the account of the payee's payment service provider the same day as the payer's payment service provider receives the payment order in accordance with Article 104 of this Act.(2) The payer's payment service provider must ensure that in case of a cross-border payment transaction executed in euro, the amount of the payment transaction is credited to the account of the payee's payment service provider at the latest by the end of the next business day after the day the payer's payment service provider received the payment orderin accordance with Article 104 of this Act. This time limit shall be extended by an additional business day for payment transactions initiated by the user in paper form.(3) The second paragraph of this Article shall also apply to domestic and cross-border payment transactions executed in the currency of a Member State that is not euro, unless the payment service provider and the user agree on a different execution time, but no longer than four business days after the receipt of the payment order.

Article 112

(transmission of the payment order through the payee's payment service provider)

The payee's payment service provider shall transmit the payment order initiated by the payee or payer through the payee to the payer's payment service provider in time limits agreed upon by the payee's payment service provider and payee, so that the payment transaction can be executed on the arranged upon day.

Article 113

(disposal of funds)

(1) The payee's payment service provider must enable the payee disposal of funds in his payment account, or if the payee doesn't have a payment account with this payment service provider, he must immediately put the funds at the payee's disposal:1. when the amount of the payment transaction for the payee is credited to the account of the payee's payment service provider in accordance with Article 111 of this Act, and2. when the payee's payment service provider has received all information needed for crediting the payee's account or payee.(2) If the day when the funds are credited to the account of the payee's payment service provider is not a business day of the payment service provider, for the purposes of the first paragraph of this Article, it shall be considered that the payee's payment service provider received the funds for the payee on the following business day.

Article 114

(credit and debit value date)

(1) The payer's payment service provider must ensure that the debit value date of the payer's payment account in connection with the execution of the payment transaction shall be the same or later than the date when this payment account is debited for the amount of the payment transaction.(2) The payee's payment service provider must ensure that the credit value date of the payee's payment account in connection with the execution of the payment transaction shall be, at the latest, on the day when the funds of the payment transaction are credited to the account of the payee's payment service provider.

Article 115

(value date and disposal of funds in case of cash placed in a payment account)

(1) When a consumer places cash in a payee's payment account, who is a consumer with that payment service provider who is keeping this account, and the cash is in currency of that payment account, the payment service provider must, notwithstanding Articles 113 and 114 of this Act ensure that the credit value date of the consumer's payment account is immediately when the payment service provider receives the funds and that the funds are available to the consumer immediately after the receipt of the funds.(2) When a consumer places cash in a payee's payment account, who is not a consumer with that payment service provider who is keeping this account, and the cash is in currency of that payment account, the payment service provider must ensure that the credit value date of the payee's payment account is, at the latest, on the next business day after the receipt of the funds and that the funds are available to the payee at the latest on the next business day after the receipt of the funds.(3) When a user places cash in the currency of a Member State that is not euro in the payee's payment account with a payment service provider who is keeping this account, the user and payment service provider may agree on different time limits than those specified in the first and second paragraph of this Article, but not longer than four business days after the receipt of cash.

SECTION 3 USE OF PAYMENT INSTRUMENTS

Article 116

(obligations of the user in relation to payment instruments)

(1) The user shall use the payment instrument in accordance with the terms governing the issue and use of the payment instrument, and as soon as he receives a payment instrument, take all reasonable steps to keep the personal security elements of the payment instrument safe, which enable the identification of the user and are personally bound to him (hereinafter referred to as: personal security elements).(2) The user shall, without undue delay notify the payment service provider, or person specified by the payment service provider, on the loss, theft or misappropriation of the payment instrument.

Article 117

(obligations of the payment service provider in relation to payment instruments)

(1) The payment service provider who issues a payment instrument to a user must, in relation to the user, ensure the following: 1. that the personal security elements of the payment instrument are accessible only to the user who received the payment instrument, without prejudice to the obligations of the user referred to in Article 116 of this Act,2. that the user can, at all times and in the appropriate manner, make a notification referred to in the second paragraph of Article 116 of this Act, or make a claim for the release of the payment instrument in accordance with the fourth paragraph of Article 118 of this Act,3. that all further use of the payment instrument once the user has made a notification is prevented in accordance with the second paragraph of Article 116 of this Act.(2) The payment service provider shall not send the payment instrument to the user without his explicit request, except where the already issued payment instrument is to be replaced with a new one. The payment service provider shall bear the risk of sending a payment instrument or sending any personal security elements of the payment instrument to the user.(3) The payment service provider must, within 18 months after the receipt of the user's notification referred to in item 2 of the first paragraph of this Article, provide the user with the means to prove, at his request, that he made such notification.

Article 118

(limits of use)

(1) In cases in which a specific payment instrument is used for the transmission of the payer's consent for the execution of a payment transaction, the payer and payment service provider may agree on spending limits for payment services executed through that payment instrument by determining the highest amount of individual payment transactions or series of payment transactions, which the payer can authorise with the use of a payment instrument in a specific period.(2) The payment service provider and the payer may agree in the framework contract that the payment service provider can disable the use of a payment instrument (hereinafter referred to as: block a payment instrument) that is used for the authorisation of payment transactions, if:1. there are objectively justified reasons related to the security of a payment instrument, or2. there is suspicion of unauthorised or fraudulent use of the payment instrument, or

3. in case the use of a payment instrument is related to the granting of a loan to the payer, there is a significantly increased risk that the payer may be unable to fulfil his liability to pay.(3) In such cases as that referred to in the second paragraph of this Article, the payment service provider shall inform the payer of the blocking of the payment instrument and the reasons for it, where possible, before the payment instrument is blocked and, otherwise, immediately thereafter. The payment service provider shall transmit the notification on the blocking of the payment instrument to the payer in the manner agreed upon in the framework contract.(4) The payment service provider shall again enable the use of the payment instrument or replace it with a new payment instrument once the reasons for blocking no longer exist.(5) Notwithstanding the third paragraph of this Article, the payment service provider shall not inform the payer of the blocking of the payment instrument, if giving such information would be contrary to objectively justified security reasons or is prohibited by other relevant regulations.

SECTION 4 LIABILITY AND REFUNDS FOR PAYMENT TRANSACTIONS

Article 119

(payment service provider's liability for unauthorised payment transactions)

(1) The payer's payment service provider shall be responsible for the execution of a payment transaction without the payer's consent to the execution in accordance with Article 103 of this Act (hereinafter referred to as: unauthorised payment transaction).(2) If the payer's payment service provider is responsible for the execution of an unauthorised payment transaction, he shall immediately refund the payer the amount of the unauthorised payment transaction, and if the unauthorised payment transaction was debitedto the payer's payment account, restore the payer's payment account to the state in which it would have been had the unauthorised payment transaction not taken place. (3) The payer's payment service provider, who is responsible for the execution of a payment transaction, must also refund the payer all charges payable by the payer, as well as interests, to which the payer is eligible in connection with the execution of an unauthorised payment transaction.(4) The payer's payment service provider may be relieved of the liability for the loss of amounts referred to in the second and third paragraph of this Article:1. when the user bears the loss in accordance with Article 120 of this Act,2. when the execution of an unauthorised payment transaction is a consequence of extraordinary and unpredictable circumstances, which the payment service provider could not influence, or the consequences of such circumstances would be unavoidable despite the efforts of the payment service provider,3. when the responsibility of executing a payment transaction without consent is based on other regulations that bind the payment service provider.(5) The user may request from the payment service provider a refund for further losses that are a consequence of an unauthorised payment transaction for which the payment service provider is responsible in accordance with the general rules of law of obligations.

Article 120

(user's liability for unauthorised payment transactions)

(1) The user shall bear the losses referred to in the second and third paragraph of Article 119 of this Act to a maximum of EUR 150 if the execution of unauthorised payment transactions, due to which the loss incurred, results from the use of a:1. lost or stolen payment instrument, or

2. payment instrument that was misused, if the payer has failed to keep his personalised security elements safe.(2) The user shall bear all the losses referred to in the second and third paragraph of Article 119 of this Act if the execution of unauthorised payment transactions results from the user's fraud, or if the user acted fraudulently or failed to fulfil one or more of his obligations in connection with a payment instrument in accordance with Article 116 of this Act.(3) Notwithstanding the first and second paragraph of this Article, the payment service provider shall refund the user all the losses referred to in the second and third paragraph of Article 119 of this Act if the payment service provider failed to provide the means of communication regarding the lost, stolen or misappropriated payment instrument in accordance with item 2 of the first paragraph of Article 117 of this Act. The payment service provider shall be relieved of the liability under this paragraph only if the losses result from the user's fraud.(4) Notwithstanding the first and second paragraph of this Article, the payment service provider shall refund the user all the losses referred to in the second and third paragraph of Article 119 of this Act incurred after the user informed the payment service provider in accordance with Article 116 of this Act that a payment instrument was lost, stolen or misappropriated. The payment service provider shall be relieved of the liability under this paragraph only if the losses result from the user's fraud.(5) The payment service provider and user who is not a consumer may agree that this Article shall partly or entirely not apply.

Article 121

(exclusion of liability for unauthorised electronic money payment transactions)

(1) Notwithstanding the provisions of Articles 119 and 120 of this Act, the payer's payment service provider shall not be responsible to the payer for the execution of an unauthorised electronic money payment transaction if the payer's payment service provider cannot block the payer's payment account in which the payer's electronic money is kept, or block the payer's payment instrument for the use of electronic money.(2) Exclusion of liability referred to in the first paragraph of this Article shall apply to electronic money payment accounts or payment instruments for the use of electronic money, where the value of issued electronic money doesn't exceed EUR 150.

Article 122

(liability for incorrect execution of a payment transaction, initiated by the payer)

(1) The payer's payment service provider shall be responsible to the payer for the correct execution of a payment transaction initiated by the payer with that payment service provider, to the payee's payment service provider in accordance with Article 111 of this Act.(2) If the payer's payment service provider is responsible for the non-execution or incorrect execution of a payment transaction on the basis of the first paragraph of this Article, he shall immediately refund the payer the amount of the unauthorised or incorrectly executed payment transaction, or if the unauthorised payment transaction was debited to the payer's payment account, restore the payer's payment account to the state in which it would have been had the incorrect payment transaction not taken place. (3) If the payer's payment service provider can prove that the payee's payment service provider was credited with the amount of the payment transaction in accordance with Article 111 of this Act, the payee's payment service provider shall be responsible to the payee for the correct execution of a payment transaction in accordance with Articles 113 and 114 of this Act, and shall ensure that the amount of the incorrectly executed payment transaction is at the payee's disposal immediately, or if the payment transaction is credited to the payee's payment account, that this amount is credited to the payee's payment account.

(4) The payment service provider who is responsible to the user for the non-execution or incorrect execution of a payment transaction shall also be responsible for the refund of losses with regard to charges payable by the user, and interests, to which the payer is eligible in connection with the execution of an incorrectly executed payment transaction.(5) The payment service provider and user who is not a consumer may agree that this Article shall partly or entirely not apply.

Article 123

(liability for the correct execution of a payment transaction initiated by the payee or the payer through the payee)

(1) In case the payment transaction is initiated by the payee or the payer through the payee, the payee's payment service provider shall be responsible to the payee for the correct transmission of the payment order to the payer's payment service provider within the time limit agreed upon between the payee and the payee's payment service provider on the basis of Article 112 of this Act. If the payee's payment service provider is responsible for the non-execution or incorrect execution of a payment transaction under this paragraph, he shall immediately re-transmit the appropriate payment order to the payer's payment service provider.(2) When the amount of the payment transaction, initiated by the payee or payer through the payee, is credited to the payee's payment service provider's account, the payee's payment service provider shall be responsible to the payee for the correct execution of a payment transaction in accordance with Articles 113 and 114 of this Act.(3) In case the payee's payment service provider is not responsible to the payee on the basis of the first or second paragraph of this Article, the payer's payment service provider shall be responsible to the payer for the non-execution or incorrect execution of a payment transaction initiated by the payee or payer through the payee.(4) If the payer's payment service provider is responsible under the third paragraph of this Article, he shall refund the payer, when necessary and immediately, the amount of the unauthorised or incorrectly executed payment transaction, or if the payment transaction was debited to the payer's payment account, restore the payment account to the state in which it would have been had the incorrect execution not taken place.(5) The payment service provider, who is responsible on the basis of this Article, shall also be responsible for the refund of losses with regard to charges payable by the user, and interests, to which the payer is eligible in connection with an incorrectly executed payment transaction.(6) The payment service provider and user who is not a consumer may agree that this Article shall partly or entirely not apply.

Article 124

(liability for the use of unique identifiers)

(1) If the payee in the payment order was determined with a unique identifier, it shall be considered that the payment order was executed correctly with regard to the payee if executed in accordance with the unique identifier.(2) If the unique identifier provided by the user to the payment service provider is incorrect, the payment service provider shall not be liable for the incorrect execution of the payment transaction within the meaning of Articles 122 or 123 of this Act.(3) In addition to the unique identifier or other information requested by the payment service provider for the execution of the payment order in accordance with the third paragraph of Article 79 or the first paragraph of Article 92 of this Act, if the user also provides other information to the payment service provider, the payment service provider shall be liable only

for the execution of the payment transaction in accordance with the unique identifier provided by the user.(4) If the payment service provider executed the payment transaction in accordance with an incorrect unique identifier provided by the user, the payment service provider shall make reasonable efforts to recover the funds involved in the payment transaction.(5) For the recovery of costs of the executed payment transaction under the fourth paragraphof this Article, the payment service provider may charge the user if agreed upon in the framework contract.

Article 125

(exclusion of liability for non-execution or incorrect execution of a payment transaction)

(1) The payment service provider shall not be liable to the user for non-execution or incorrect execution of a payment transaction on the basis of Articles 122 or 123 of this Act if the non-execution or incorrect execution of a payment transaction results from abnormal and unforeseeable circumstances that the payment service provider couldn't avoid or prevent.(2) The payment service provider shall not be liable to the user if the non-execution or incorrect execution of a payment transaction results from the fulfilment of the obligations by the payment service provider on the basis of other regulations, which bind the payment service provider.

Article 126

(liability of agents and other persons)

(1) The payment service provider shall be liable to the user for non-execution or incorrect execution of a payment transaction on the basis of Articles 122 or 123 of this Act also in cases where the agent or other person involved in the execution of the payment transaction is responsible for the non-execution or incorrect execution.(2) The payment service provider may, from an agent or other person responsible for the incorrect execution of a payment transaction, in accordance with the general rules of law of obligations, assert the refund of amounts, paid to the user in accordance with Articles 122 or 123 of this Act as well as of other losses incurred due to non-execution or incorrect execution of a payment transaction.

Article 127

(other obligations of a payment service provider in case of a non-executed or incorrectly executed payment transaction)

(1) In the case of a non-executed or incorrectly executed payment transaction, the payment service provider shall, regardless of his liability for the correct execution of a payment transaction, at the request of his user, make immediate efforts to trace the payment transaction and transmit to the user the available information in connection with the non-executed or incorrectly executed payment transaction to enable the user to assert the refunds in connection with an incorrectly executed payment transaction.(2) The payment service provider and user who is not a consumer may agree that this Article shall partly or entirely not apply.

Article 128

(liability for further losses due to an incorrect execution of a payment transaction)

The user may, in accordance with the general rules of law of obligations, request from the payment service provider a refund for further losses that are a consequence of a non-execution or incorrect execution of a payment transaction for which the payment service provider is responsible.

Article 129

(evidence on authentication and execution of payment transactions)

(1) In cases where the user denies having authorised an executed payment transaction or claims that the payment transaction was not correctly executed, it is for his payment service provider to prove that the payment transaction was authenticated, accurately recorded, entered in the accounts and not affected by a technical breakdown or some other deficiency.(2) The verification of authentication of the payment transaction referred to in the first paragraph of this Article shall be a procedure that enables the payment service provider to verify the use of a payment instrument and its security elements, bound to the user.(3) Where a payment service user denies having authorised an executed payment transaction, the use of a payment instrument recorded by the payment service provider shall, in itself, not necessarily be sufficient to prove either that the payment transaction was authorised by the payer or that the payer acted fraudulently or failed with intent or gross negligence to fulfil one or more of his obligations under Article 116 of this Act.(4) The payment service provider and user who is not a consumer may agree that this Article shall partly or entirely not apply.

Article 130

(refunds for unauthorised or incorrectly executed payment transactions)

(1) The payment service provider who is responsible for the execution of an unauthorised or incorrectly executed payment transaction in accordance with this Act, shall, at the user's request, provide rectification by:1. refunding the amounts of unauthorised or incorrectly executed payment transactions in accordance with Articles 119, 120, 122 or 123 of this Act, or2. ensuring a correct execution of the payment transaction.(2) The user shall obtain rectification from the payment service provider if he notifies his payment service provider without undue delay on becoming aware of any unauthorised or incorrectly executed payment transactions, but no later than 13 months after the debit date.(3) In case the payment service provider didn't provide information to the user on the execution of an unauthorised or incorrectly executed payment transaction in accordance with Subchapter 2, Chapter 5 of this Act, the payment service provider who is responsible for the execution of an unauthorised payment transaction or incorrectly executed payment transaction must still provide rectification to the user after the expiry of the 13-month time limit, if the user notifies his payment service provider without undue delay on becoming aware of any unauthorised or incorrectly executed payment transactions.(4) The user who requested the rectification in accordance with the first paragraph of this Article may request, from the payment service provider, a refund for further losses that are a consequence of an unauthorised or incorrectly executed payment transaction for which the payment service provider is responsible in accordance with the general rules of law of obligations.(5) The payment service provider and user who is not a consumer may agree on different time limits than defined in this Article.

Article 131

(refunds for payment transactions initiated by the payee or payer through the payee)

(1) The payee's payment service provider shall refund the payer, at his request, the total amount of an authorised and correctly executed payment transaction initiated by the payee or payer through the payee, if:1. the payer did not specify the exact amount of the payment transaction when the authorisation was made, and2. the amount of the payment transaction exceeded the amount that the payer could reasonably have expected, taking into account the amounts of the previous payment transaction, the conditions in his framework contract and relevant circumstances of the case.(2) The payee's payment service provider may request that the payer must provide evidence on circumstances referred to in the first paragraph of this Article. The payer shall not claim the circumstances referred to in item 2 of the first paragraph, if the exceeded amount resulted from currency exchange based on the use of an agreed upon reference exchange rate.(3) The payer may request a refund of the payment transaction amount referred to in the first paragraph of this Article within eight weeks from the debit date.(4) Within ten business days after the receipt of the payer's request for a refund in accordance with the third paragraph of this Article, the payment service provider shall either refund the full amount of the payment transaction to the payer or provide justification for refusing the refund. The payment service provider may refuse the payer's request for refund only if all conditions referred to in the first paragraph of this Article are not fulfiled. If the payment service provider refuses the payer's request, he shall, along with the notification regarding reasons for the refusal of the payer, inform the payer of the procedures of the settlement of disputes and violation procedures as well as authorities responsible for the conduct of these procedures.(5) The payer and the payer's payment service provider may agree, in the framework contract on the realisation of direct debit, that the payer may request a refund of the authorised payment transaction amount, executed by direct debit, even in cases when the conditions referred to in the first paragraph of this Article are not fulfilled.(6) The payer and the payer's payment service provider may agree, in the framework contract, that the payer has no right to refund of the payment transaction amount referred to in the first paragraph of this Article, if:1. the payer has given his consent to execute the payment transaction directly to his payment service provider, and2. the information on the future payment transaction was provided in an agreed upon manner to the payer at least four weeks before the due date by the payment service provider or by the payee.(7) The payment service provider and user who is not a consumer may agree that this Article shall partly or entirely not apply.

SECTION 5 LOW-VALUE PAYMENT INSTRUMENTS

Article 132

(application of provisions for low-value payment instruments)

The payment service provider and the user may agree, in the framework contract, on the issue of a low-value payment instrument:1. if the payment instrument doesn't enable blocking, the exclusion of the application of the following provisions of this Act: the second paragraph of Article 116, items 2 and 3 of the first paragraph and third paragraph of Article 117 and the third and fourth paragraph of Article 120;2. if the payment instrument is used anonymously or if the payment service provider cannot prove for other reasons characteristic for a payment instrument that a payment transaction

was authorised, the exclusion of the application of the following provisions of this Act: Article 119, the first and second paragraph of Article 120 and Article 129;3. if, notwithstanding Article 104 of this Act, the payment service provider is not obliged to communicate to the user of refusal of payment order, if non-execution of payment order arise from the circumstance of this case;4. if, notwithstanding Article 106 of this Act, the payer cannot withdraw a payment order after the transmission of the payment order or consent for the execution of a payment transaction to the payee;5. if, notwithstanding Article 111 of this Act, different time limits for the execution of a payment transaction apply.

CHAPTER 6 APPLICATION OF PROVISIONS OF CHAPTER 5 OF THIS ACT IN CONNECTION WITH OTHER PAYMENT TRANSACTIONS

Article 133

(other payment transactions)

Other payment transactions shall mean transactions that are executed:1. in the currency of a third country, if the payment transaction is executed with the transfer of funds between the payment service provider performing payment services in the territory of the Republic of Slovenia and the payment service provider performing payment services in the territory of the Republic of Slovenia, other Member State or third country; or2. in euro or other currency of a Member State, if the payment transaction is executed with the transfer of funds between the payment service provider performing payment services in the territory of the Republic of Slovenia and the payment service provider performing payment services in the territory of a third country.

Article 134

(application of general provisions and provisions for payment service contracts)

(1) For payment service contracts regulating the execution of other payment transactions, Articles 74 and 75 of this Act and provisions of Subchapter 2, Chapter 5 of this Act shall apply, except for the cases referred to in paragraphs 2 to 4 of this Article.(2) Notwithstanding the third paragraph of Article 79 or first paragraph of Article 92 of this Act, the payment service provider shall not be obliged to provide to the user, prior to the conclusion of a payment service contract, the information on the maximum execution time for the payment service to be provided by the payee's payment service provider in a third country, if he doesn't have this information at his disposal at the time of the conclusion of the framework contract. In this case, the payment service provider shall make his best efforts to provide the information on the expected execution time to the user.(3) If it is agreed upon in the payment service contract in connection with the execution of a payment transaction that the payment service provider also levies charges to his user for the execution of a payment transaction that is being charged by another payment service provider or intermediary involved in the execution of a payment transaction, the payment service provider shall inform the user about the amount of these charges before the initiation of the transaction. If the payment service provider doesn't have this information at his disposal at the time of the initiation of the transaction, he shall make his best efforts to provide the information on the expected amount of charges to the user.(4) Articles 90 and 91 of this Act shall not apply to the framework contract regulating other payment transactions with the use of payment instruments.

Article 135

(application of provisions for the execution of payment transactions)

(1) The payment service provider and the user may agree that individual provisions of Subchapter 3, Chapter 5 of this Act shall entirely or partly not apply to other payment transactions.(2) If the user and his payment service provider did not agree regarding the maximum execution time for the execution of other payment transaction, the payer's payment service provider shall, notwithstanding the Article 111 of this Act, ensure that the amount of the payment transaction is credited on the account of the payee's payment service provider at the latest by the end of the fourth business day after the day when the payer's payment service provider received the payment order.(3) In the contract, the payment service provider and the user cannot exclude or limit the application of Articles 113 and 114 of this Act in connection with the execution of payment transactions referred to in item 2 of Article 133 of this Act.

CHAPTER 7 ELECTRONIC MONEY ISSUING SERVICES

Article 136

(electronic money issuing services)

(1) An electronic money issuing contract shall mean a contract by which the electronicmoney undertaking (hereinafter referred to as: electronic money undertaking) undertakes to issue electronic money to the holder in the value of a cash amount paid by the holder, reduced by the possible commission payable by the holder.(2) Unless otherwise provided by this Act, the rules of the Act regulating contract obligations in connection with the purchase contract shall apply to legal relations between the electronic money undertaking and holder.

Article 137

(right of the holder to request the payment of funds)

(1) The holder may at any time request that the issuer pay the issued electronic money equivalent in cash or by transfer to the payment account. The electronic money undertakingshall pay the holder in electronic money at the latest within eight days from the receipt of the request for payment.(2) The issuer shall not levy the holder for the charges or other costs for the implementation of rights referred to in the first paragraph of this Article other than the costs directly connected with the payment of cash or transfer to the payment account.(3) Rights of the holder referred to in the first and second paragraph of this Article cannot be excluded or limited with a contract. The electronic money issuing contract must clearly specify the conditions for the realisation of electronic money.(4) Notwithstanding the third paragraph of this Article, the issuer and the holder may agree, in the contract, on the lowest value of electronic money that may be requested under the first paragraph of this Article. The lowest amount referred to in the previous sentence cannot be higher than EUR 10.(5) The electronic money undertaking shall be liable to the holder for the lost amount of electronic money notwithstanding the guilt, even if the reason for the loss is a failure of the medium that is provided by the electronic money undertaking and where the electronic money is stored, or failure of equipment provided by the electronic money undertaking that is not directly or exclusively under the supervision of the electronic money undertaking. The issuer shall not be liable to the holder for the loss of electronic money if the holder used a medium or equipment unauthorised by the electronic money undertaking.

CHAPTER 8 REALISATION OF DOMICILED DRAFTS

Article 138

(agreement on the realisation of domiciled bills of exchange)

(1) It shall be considered that a paper-based bill of exchange that is, in accordance with the Act regulating bill of exchange, issued or authorised by a user who is a legal person, privatecitizen or sole proprietor in connection with the pursuit of business, and is payable in debit to the funds that are kept on the user's payment account with the payment service provider (hereinafter referred to as: domiciled bill of exchange) also including the following:1. irrevocable authorisation of the user to the bill of exchange holder who is eligible to request a payment on the basis of the domiciled bill of exchange in accordance with the Act regulating bill of exchange to initiate the execution of a payment transaction debited to the payer's funds with the payer's payment service provider in accordance with the domiciled bill of exchange, and2. irrevocable consent of the user to his payment service provider to execute a payment transaction debited to the user's funds initiated by the bill of exchange holder in accordance with item 1 of this paragraph.(2) The provisions of this Chapter shall not interfere with the rights of the user, bill of exchange holder or other persons who obtained them on the basis of the Act regulating bill of exchange.

Article 139

(execution of a payment transaction on the basis of a domiciled bill of exchange)

(1) The domiciled bill of exchange holder shall initiate the execution of a payment transaction on the basis of a domiciled bill of exchange by submitting to the user's payment service provider the domiciled bill of exchange and information for the execution of a payment transaction debited to the user's payment account with this payment service provider, and with a transfer of funds to the bill of exchange holder (hereinafter referred to as: payment order for the realisation of a domiciled bill of exchange).(2) The payment service provider may refuse the execution of a payment transaction on the basis of the payment order for the realisation of a domiciled bill of exchange, if:1. the domiciled bill of exchange holder initiated the payment order for the realisation of a domiciled bill of exchange that is manifestly contrary to the domiciled bill of exchange (for instance, regarding the amount, domicile, maturity of the bill of exchange),2. the payment order for the realisation of a domiciled bill of exchange was initiated by a person who is not the bill of exchange creditor or other person authorised by the bill ofexchange creditor for the initiation of the payment transaction for the payment of the domiciled bill of exchange.(3) The Bank of Slovenia shall prescribe uniform rules for the execution of payment transactions on the basis of the payment order for the realisation of a domiciled bill of exchange.

CHAPTER 9 ENFORCEMENT TO DEBTOR'S FUNDS WITH THE PAYMENT SERVICE PROVIDER

Article 140

(payment transactions and disposal restrictions on the basis of the enforcement decision)

(1) Notwithstanding the other provisions of this Act on the execution of payment transactions, the payment service provider shall execute a payment transaction or prevent the user

disposal of funds on the basis of a decision by the court or other authority responsible for enforcement and insurance, in accordance with regulations regulating the enforcement and insurance proceedings to debtor's funds with the payment service provider, unless otherwise provided by this Act.(2) The provisions of the Act regulating the enforcement and insurance of debtor's funds with the payment transactions organisation shall not apply in connection with the payment accounts used exclusively for the purpose of executing payment transactions in accordance with this Act.(3) Enforcement and insurance of funds of direct and indirect users of the national budget and budgets of self-governing local communities may be executed in accordance with Chapter 9 of this Act only through sub-accounts of the treasury single account of the state or self-governing local community that are opened with the Administration of the Republic of Slovenia for Public Payments.

Article 141

(issue of regulations)

The minister responsible for finance shall prescribe the manner of acting of payment service providers in connection with the implementation of decisions on enforcement or insurance, issued by tax authorities in accordance with their competencies.

Article 142

(costs of the implementation of the decision on enforcement and insurance)

(1) If the payment service provider shall charge the debtor for the execution of actions on the basis of the decision on enforcement and insurance of debtor's funds with this payment service provider, these charges must be appropriate and in accordance with actual costs incurred with the payment service provider in connection with the implementation of the decision on enforcement and insurance.(2) The debtor's payment service provider shall inform the debtor and court, or other authority that issued the decision on enforcement and insurance, about the type and amount of charges referred to in the first paragraph of this Article.

CHAPTER 10 REGISTER OF CURRENT ACCOUNTS

Article 143

(register of transaction accounts)

(1) The register of transaction accounts shall mean a uniform information database of transaction accounts and transaction account holders.(2) The register of transaction accounts shall be established and kept by the Agency of the Republic of Slovenia for Public Legal Records and Related Services (hereinafter referred to as: the Agency).

Article 144

(provision of information for the register of transaction accounts)

(1) Banks that keep transaction accounts and the Administration of the Republic of Slovenia for Public Payments with regard to sub-accounts, kept in accordance with the law, shall continuously provide the Agency with the information for the establishment and keeping of the register of transaction accounts.

(2) The following information shall be processed in the register of transaction accounts:1. information on the transaction account holder:- name, surname and address of the holder who is a natural person, or firm, head office and address of the transaction account holder who is a legal person, or firm, head office, address, name and surname of the transaction account holder who is a sole proprietor or private citizen, or name and address of another transaction account holder;- tax number of the holder, if the holder is entered in the tax register in accordance with the Act regulating the tax register,- identification number of the holder or country of residence of the holder, if the holder isn't entered in the tax register in accordance with the Act regulating the tax register,- registration number of the holder who is a legal person, sole proprietor or private citizen, if the holder is entered in the Business Register of Slovenia;2. transaction account information:- account number,- name and registration number of the provider keeping the transaction account,- account type mark, determined with the regulation referred to in the sixth paragraph of this Article,- information that the transaction account funds are not sufficient for the implementation of the decision on enforcement or insurance,- account opening date,- account closure date.(3) At the time of the closure of the transaction account, information referred to in the second paragraph of this Article shall be deleted from the register of transaction accounts and transferred to the archives of the register of transaction accounts with the Agency.(4) The register of transaction accounts shall be established in such a manner that enables the unique identification of transaction account holders. In case of a joint transaction account, the information referred to in the second paragraph of this Article on all holders of the joint transaction account shall be kept in the register of transaction accounts.(5) Information referred to in the second paragraph of this Article may be stored in the archives of the register of transaction accounts five years after the closure of the account, except the information that the transaction account funds are not sufficient for the implementation of the decision on enforcement or insurance that is stored for only one year.(6) The Agency in consent with the Bank of Slovenia shall prescribe detailed rules on the establishment and keeping of the register of transaction accounts.

Article 145

(purpose of the register)

(1) Information on transaction accounts and their holders shall be processed in the register of transaction accounts with the purpose to ensure a centralised access to data on the transaction accounts of individual holders.(2) Information on transaction accounts of natural persons shall mean personal data that is processed in the register of transaction accounts with the purpose to enable the persons referred to in the third paragraph of Article 146 of this Act, through the centralised access to this information, the continuous pursuit of activities in the enforcement or insurance proceedings and other proceedings due to enforced execution of claims against the transaction account holders who are natural persons. Information on transaction accounts of natural persons shall also be processed in the register of transaction accounts with the purpose that this information be provided to persons for whom a special Act stipulates a legal basis and purpose of the processing of personal data.

Article 146

(access to information from the register of transaction accounts)

(1) Information in the register of transaction accounts shall be public and available free-of-charge on the website of the Agency. The provision of the previous sentence shall not apply to the personal data of natural persons. Information on transaction accounts of soleproprietors and private citizens that are used for the pursuit of activities shall become public with the entry of these accounts into the Business Register of Slovenia in accordance with the Act regulating the Business Register of Slovenia.(2) The Agency must protect the information on natural persons and their transactionaccounts, as confidential, in accordance with the Act regulating the protection of personal data, unless the information on the transaction accounts of sole proprietors and private citizens has become public in accordance with the first paragraph of this Article.(3) Personal data on transaction accounts of natural persons may be obtained by:1. persons who are, on the basis of a final decision, eligible to propose an enforcement or insurance proceeding against the current account holder in accordance with the Act regulating enforcement and insurance, or with another Act regulating the enforcement procedure of claims,2. courts and other authorities performing activities in the enforcement proceeding or other proceedings conducted within its competencies.(4) Personal data on transaction accounts of natural persons that is processed in the register of transaction accounts may also be obtained by the transaction account holder regarding the data referring to him and by other persons for whom a special Act stipulates a legal basis and purpose of the processing of personal data.

Article 147

(request for the provision of information from the register of transaction accounts)

(1) The Agency shall transmit the personal data on the transaction account of a natural person referred to in the third and fourth paragraph of Article 146 of this Act to the applicant on the basis of the request for the provision of information from the register of transactionaccounts.(2) Request for the provision of information from the register of transaction accounts on the account of a natural person must contain the following:1. name and surname, or firm and address of the applicant and his signature,2. name, surname and tax number of the natural person who is a holder of the transactionaccount,3. indication of the legal basis and purpose of the processing of personal data.(3) A court may obtain the information on the transaction account of a natural person by direct electronic access to data from the register of transaction accounts on the basis of an inquiry that can contain only the name, surname and address of residence of the naturalperson who is the holder of a transaction account. If the register contains two or more persons with the same name, surname and address, the court must supplement the inquiry with the tax number of the person.(4) Request for the provision of information from the register of transaction accounts shall be filed in written or electronic form. The Agency shall stipulate the conditions and manner of applications in electronic form.(5) The Agency shall ensure the courts, tax authority and other authorities responsible for enforcement, direct electronic access to information from the register of transactionaccounts. The Agency may agree on the direct electronic access to information from the register of transaction accounts with other state authorities, bearers of public authorities or other persons who are, on the basis of a special Act, authorised to obtain the informationfrom the register.(6) The Agency may agree on the electronic transmission of requested information with individual applicants who are, on the basis of Article 146 of this Act, eligible to obtain information from the register of transaction accounts.

(7) Unless otherwise provided by the Act that an applicant is eligible for free-of-charge obtainment of information, the Agency shall charge the applicant for the transmission of information from the register of transaction accounts in accordance with the tariff. The tariff shall be determined in agreement with the minister responsible for finance.

Article 148

(decision-making on the request for the provision of information from the register of transaction accounts)

(1) The Act regulating the general administrative procedure shall apply to the decision-making proceedings on the requests for the provision of information from the register of transaction accounts, unless otherwise provided by this Act.(2) If the Agency grants the request, it shall transmit to the applicant a confirmation on the information from the register of transaction accounts in accordance with the regulation referred to in Article 144 of this Act.(3) If the Agency doesn't grant the request, it shall issue a written decision. The rules on service shall apply to the transmission of the confirmation on the information from the register of transaction accounts.

CHAPTER 11 PAYMENT SYSTEMS


Article 149

(scope)

(1) This Chapter shall regulate the conditions for the establishment and operation of payment systems as well as the conditions for the provision of payment system operation services.(2) The term payment system used in this Chapter only refers to payment systems for which the Slovene law shall apply.

Article 150

(payment system)

(1) A payment system shall mean an agreement between three or more payment system participants referred to in Article 155 without counting the payment system operator and the possible indirect participants, on standardised proceedings and common rules for the clearing and/or settlement of settlement orders between payment system participants.(2) An arrangement, where a sole payment service provider acts or can act as the payment service provider for both the payer and the payee and is exclusively responsible for the operation of the system, shall not be considered as a payment system pursuant to this Act.

Article 151

(important payment systems)

An important payment system shall mean a payment system that, due to the scale or type of payment transactions settled in the payment system or other circumstances, has significantly influences on smooth execution of payment transactions in the country or the confidence of users in the safety and efficiency of the execution of making such transactions.

Article 152

(payment systems of the Bank of Slovenia)

(1) Notwithstanding the other provisions of this Chapter, the Bank of Slovenia may establish and operate a payment system by adopting the rules of the operation of a payment system.(2) In the payment system rules referred to in the first paragraph, the Bank of Slovenia shall determine the following:1. conditions for participation in the payment system,2. the method of settlement of obligations between payment system participants,3. whether the payment system is considered as an important payment system within the meaning of this Act.

Article 153

(settlement order and settlement accounts)

(1) A settlement order shall mean an instruction that has, in accordance with the rules of apayment system, as a consequence the creation or termination of financial obligationsbetween payment system participants, including an instruction by which a transfer of funds between payment system participants is initiated.(2) Settlement accounts shall mean accounts that are used for the settlement of claims and liabilities between payment system participants by transfer of funds on the basis of settlement orders.

Article 154

(settlement, netting and clearing of settlement orders)

(1) Settlement in a payment system shall mean an act of partial or complete termination of financial liabilities and claims between payment system participants by transfer of funds on the basis of settlement orders.(2) Netting shall mean a process of partial termination of financial liabilities and claims of the payment system participants on the basis of settlement orders by:1. calculating a single net financial liability or a single net financial claim of an individual payment system participant towards other payment system participants as a whole, or2. offsetting mutual financial liabilities or claims between two individual payment system participants.(3) The single net financial liability or single net financial claim of an individual payment system participant shall mean the difference between the sum of all financial liabilities and sum of all financial claims of an individual payment system participant on the basis of settlement orders that this participant sends or receives in the payment system within a certain period.(4) If the payment system rules stipulate a settlement by the process of netting referred to in item 1 of the second paragraph of this Article, individual financial liabilities or claims of a user resulting from the send and received settlement orders shall cease by the calculation of the new single net financial liability or claim of each individual participant towards other participants as a whole. The single net financial liability or claim shall replace the individual financial claims or liabilities of the participant resulting from the received and sent settlement orders included in the netting.(5) Clearing shall mean the process of transmitting, checking, sorting and/or confirmingsettlement orders and possibly calculating the financial liability and/or claim of an individual payment system participant towards other payment system participants, whereby the underlying financial liabilities and/or claims of a participant do not cease.

Article 155

(payment system participants)

(1) The following may become payment system participants:1. banks with a head office in the Republic of Slovenia or other Member State,2. institutions referred to in Article 2 of the Directive 2006/48/EC of the European Parliament and of the Council of 14 June 2006 relating to the taking up and pursuit of the business of credit institutions, (recast) (OJ L No. 177, 30. 6. 2006, p. 1, last amended by OJ L No. 81, 20.3. 2008, p. 38) for which the indicated Directive shall not apply,3. electronic money undertakings with a head office in the Republic of Slovenia or other Member State,4. investment companies as defined in the Act regulating the market in financial instruments,with a head office in the Republic of Slovenia or other Member State,5. banks, electronic money undertakings and investment companies with a head office in a third country which are entitled to provide banking services, electronic money issuing services, investment services and investment transactions in a third country, and whosebusiness is subjected to rules that are at least as strict as those stipulated in the Act regulating banking or in the Act regulating the market in financial instruments6. state authorities and bearers of public authorisations,7. operators of other payment systems or operators of settlement systems for the settlement of transactions in financial instruments within the meaning of the Act regulating the market infinancial instruments, and8. payment service providers under this Act that do not belong to any of the abovecategories.(2) In addition to persons referred to in the first paragraph of this Article, the operator of a payment system is also a participant in that payment system.(3) Notwithstanding the first paragraph of this Article, payment service providers referred to in item 8 of the first paragraph of this Article may not become participants or indirect participants of an important payment system other than in the role of a payment system operator pursuant to the second paragraph of this Article. Entities referred to in items 1 to 7 of the first paragraph of this Article shall be considered as participants of an importantpayment system under this Act if they are responsible for the fulfilment of financial liabilities arising settlement orders within that system.(4) Notwithstanding the first paragraph of this Article, institutions referred to in the first paragraph of Article 2 of the Directive 2004/39/EC of the European Parliament and of the Council of 21 April 2004 on markets in financial instruments (OJ L No. 145, 30. 4. 2004, p. 1, last amended by OJ L No. 76, 19. 3. 2008, p. 33) for which the indicated Directive shall not apply can not become participants of a payment system.

Article 156

(indirect participation in a payment system)

(1) Indirect participation in a payment system shall mean an arrangement between an individual payment system participant referred to in the first paragraph of Article 155 of this Act and an indirect participant, which enables the indirect participant to send and receive settlement orders through the payment system in accordance with the payment system rules in the manner, so that the indirect participant is known to the system.(2) For the purposes of Articles 163 and 164 of this Act, the indirect participant who is aperson referred to in items 1 or 2 of the first paragraph of Article 155 of this Act shall be considered as a payment system participant.

Article 157

(payment system rules)

(1) Participants shall determine the standardised procedures and common rules for the clearing and/or settlement of settlement orders in a payment system by the payment system rules.(2) The payment system rules shall especially stipulate the following:1. conditions for the participation in the payment system, manner and conditions for the inclusion of new participants in the payment system and for the exclusion of an individual participant from the payment system,2. manner of transmitting settlement orders, manner of verification of the regularity of settlement orders and notification time limits for the refusal of a settlement order,3. moment of irrevocability of a settlement order,4. moment of entry of a settlement order into the payment system,5. procedure for the calculation of financial liabilities on the basis of clearing and/or settlement of mutual financial liabilities of payment system participants, derived from the settlement orders,6. rules on the governance of financial, operational and other risks in the payment system,7. law governing the payment system.(3) Payment system rules may determine the moment of irrevocability of a settlement order at the latest by the moment of entry of a settlement order into the payment system.(4) If at least one payment system participant has his head office in a Member State, the payment system participants shall select the law of a Member State to govern the payment system. They may only select the law of that Member State in which at least one of them has its head office.

Article 158

(conditions for participation in a payment system)

(1) The payment system rules shall determine objective, non-discriminatory and proportionate conditions for the participation of payment service providers who are legal persons in the payment system. The payment system rules may restrict the participation of payment service providers who are legal persons in the payment system only to the extent that is necessary to safeguard against financial, operational, business and other risks as well as for the protection of financial and operational stability of the payment system.(2) The following shall be considered as impermissible restrictions within the meaning of the first paragraph of this Article, in particular:1. any restrictive rules regarding with participation in other payment systems,2. any rules that discriminate between payment service providers regarding their rights, obligations and entitlements related to participation in the payment system; or3. any restrictions on the basis of the institutional status of payment service providers.(3) The first and second paragraph of this Article shall not apply to:1. important payment systems;2. payment systems in which all participants belong to a group of entities linked by capitalthat gives one of the connected entities effective control to over the other linked entities;3. payment systems in which one participant or group within the meaning of item 18 of Article 4 of this Act decides on the participation of other participants in the system and unilaterally determines charges payable by participants in connection with their participation in the payment system notwithstanding if the participants set prices for the payment services in relation to payers or payees on their own; and4. payment systems in which all payment system participants compose a group within the meaning of item 18 of Article 4 of this Act.

Article 159

(authorisation for the establishment of a payment system)

(1) A payment system shall be established when the participants referred to in the first paragraph of Article 155 of this Act adopt the payment system rules and obtain the authorisation of the Bank of Slovenia for the establishment of a payment system in accordance with this Act.(2) The applicants shall accompany the request for authorisation for the establishment of a payment system with the adopted payment system rules and other evidence demonstrating that the payment system satisfies the conditions stipulated by this Act and regulations issued on its basis.(3) The Bank of Slovenia shall issue the authorisation for the establishment of a payment system if the payment system satisfies the conditions stipulated in Articles 157 and 158 of this Act and regulations issued on the basis of Article 179 of this Act.(4) If the Bank of Slovenia determines that the applicant does not satisfy the conditions referred to in the third paragraph of this Article, it shall refuse the request for the authorisation for the establishment of a payment system.(5) If the Bank of Slovenia determines, in the decision-making procedure regarding the issue of authorisation for the establishment of a payment system, that the payment system satisfies the criteria for important payment systems pursuant to Article 151 of this Act and the regulation issued on the basis of item 1 of Article 179 of this Act, it shall request from the applicant to align the payment system rules with the requirement referred to in the third paragraph of Article 155 of this Act. If the applicant does not align the payment system rules within the time limit determined by the Bank of Slovenia, the Bank of Slovenia shall refuse the request for the establishment of a payment system.(6) The payment system participants referred to in the first paragraph of Article 155 of this Act may commence the clearing and/or settlement through the payment system once they obtain the authorisation of the Bank of Slovenia for the establishment of a payment system.(7) Authorisation of the Bank of Slovenia for the establishment of a payment system shall cease to be valid:1. if the participants, within one year of the issue of authorisation of the Bank of Slovenia for the establishment of a payment system, do not commence with the settlement or clearing of settlement orders through the payment system on the day of the one year mark from the issue of the authorisation,2. if the participants of the payment system agree on the termination of the payment system, on the day of termination,3. if the participants of the payment system, for more than six months, cease to execute the settlement or clearing of settlement orders through the payment system, on the day of the six month mark from the last settlement or clearing of settlement orders.

Article 160

(amendments of payment system rules)

(1) An amendments of the payment system rules in the part regulating the content referred to in the second paragraph of Article 157 of this Act shall enter into force once the payment system participants obtain authorisation of the Bank of Slovenia for the amendment of payment system rules.(2) Inclusion or exclusion of a payment system participant shall not be considered to be anamendment of payment system rules.(3) Article 159 of this Act shall apply mutatis mutandis for the decision-making of the Bank of Slovenia on issuing of the authorisation of the Bank of Slovenia an amendment of payment system rules under the first paragraph of this Article.

Article 161

(determination of the status of an important payment system)

(1) A payment system shall obtain the status of an important payment system on the basis of a decision by the Bank of Slovenia, through which the Bank of Slovenia establishes that the circumstances referred to in Article 151 of this Act are given, and determines that a payment system is considered as an important payment system (hereinafter referred to as: decision on the determination of the status of an important payment system).(2) In the case referred to in the fifth paragraph of Article 159 of this Act, the Bank of Slovenia shall, simultaneously with the decision regarding the issue of authorisation for the establishment of a payment system, issue a decision on the determination of the status of animportant payment system. In this case, a payment system shall obtain the status of a relevant payment system on the day of the issue of the authorisation for the establishment of a payment system.(3) In case the Bank of Slovenia issues the decision on the determination of the status of animportant payment system to participants of a payment system that does not satisfy the conditions referred to in the third paragraph of Article 155 of this Act, the participants shall, within three months after the issue of the decision on the determination of the status of animportant payment system, appropriately amend the payment system rules. The payment system shall, in this case, obtain the status of as important payment system on the day of the issue of the authorisation of the Bank of Slovenia for the amendment of payment system rules in accordance with the requirement referred to in the third paragraph of Article 155 of this Act.(4) If, after the issue of the decision on the determination of the status of an importantpayment system, the Bank of Slovenia establishes that the reasons referred to in Article 151 ceased to exist, it shall issue to payment system participants a decision by which it determines the termination of the status of an important payment system. The Bank of Slovenia shall, in the decision on the termination of the status of an important payment system, determine the time limit by which the payment system participants must align the payment system rules with the provisions of Article 158 of this Act.(5) The Bank of Slovenia shall inform the European Commission on the important payment systems.

Article 162

(informing and reporting)

(1) The payment system participants must immediately inform the Bank of Slovenia regarding facts and circumstances that influence the fulfilment of conditions referred to in the third paragraph of Article 159 of this Act.(2) The payment system operator must regularly inform the Bank of Slovenia on the inclusion or exclusion of payment system participants, including the inclusion or exclusion of possible intermediary participants.(3) A person referred to in the first and second paragraph of Article 155 of this Act who has a head office in the Republic of Slovenia must inform the Bank of Slovenia on its participation or indirect participation in payment systems governed by the law of other Member State or third country.(4) A person referred to in the first paragraph of Article 155 of this Act who has a head office in the Republic of Slovenia must, at the request of a customer or other person demonstrating a legitimate interest, inform this person regarding the payment systems in which itparticipates, and the main rules of operation of those systems.(5) The payment system operator or other payment system participants must report information on the operations of the payment system to the Bank of Slovenia.

Article 163

(insolvency proceeding against a payment system participant)

(1) The commencement of an insolvency proceeding or other proceeding or measure by a competent authority of the Republic of Slovenia or other Member State against a payment system participant that suspend of impose limitations on the execution of orders of this participant, shall have no effect on the rights and obligations of payment system participants in connection with the participation in this system assumed before the commencement of such a proceedings.(2) In the event of a proceeding or measure referred to in the first paragraph of this Articlethe rights and obligations of payment system participants in connection with participation in the system shall be determined by the law governing that payment system.(3) The commencement of the proceeding or measure referred to in the first paragraph of this Article shall be, for the purpose of this Act, the moment when the competent authority decides on the commencement of such a proceeding or measure. If the laws that regulate a proceeding or measure referred to in the first paragraph of this Article link the incurrence of legal consequences of the proceeding or measure to another official act in the proceeding, the moment of such act shall be considered as the commencement of the proceeding or measure.(4) The competent authority of the Republic of Slovenia that decided on the commencement of the proceeding or measure referred to in the first paragraph of this Article mustimmediately inform the Bank of Slovenia on the commencement of such a proceedings or measure,. The authority that decides on the commencement of such a proceeding or measure shall, in the decision, indicate the day, hour and minute of the adoption of the decision.(5) On the basis of the information referred to in the fourth paragraph of this Article on the commencement of the proceeding or measure referred to in the first paragraph of this Article against a payment system participant, the Bank of Slovenia shall notify the payment system operator, and in case of a proceeding or measure against a participant of an importantpayment system, the competent authorities of other Member States.

Article 164

(effects of insolvency proceedings and other proceedings or measures on the validity of settlement orders)

(1) A settlement order sent into a payment system by a participant in connection to whom a proceeding or measure referred to in the first paragraph of Article 163 of this Act was commenced shall be valid, provided that the settlement order entered the payment system prior to the commencement of this proceeding or measure.(2) A settlement order that is executed on the day of the commencement of the proceeding or measure referred to in the first paragraph of Article 163 of this Act shall be valid even if in case it entered the payment system after the commencement of such proceeding or measure, provided that the payment system operator, at the time of the execution of the settlement order, was not aware nor could have been aware of the commencement of such proceeding or measure.(3) Provisions of other regulations that, in connection with the commencement of the proceeding or measure referred to in the first paragraph of Article 163 of this Act, stipulate the right to terminate the contract or to annul the executed transactions as well as to declare invalidity or prohibition of offsetting, shall not apply in cases where financial liabilities and financial claims of a payment system participant cease to exist on the basis of netting in accordance with the payment system rules.

Article 165

(effects of insolvency proceedings and other proceedings or measures on the validity of rights to collateral security)

(1) The commencement of the proceeding or measure referred to in the first paragraph of Article 163 of this Act against an individual payment system participant shall not influence the validity and enforcement of rights of other participants to collateral security raarding assets provided by such participant to secure its obligations in connection with participation in a payment system:1. if the right to collateral security regarding such assets was established prior to the commencement of the proceeding or measure, and if the participant provided the assets as collateral prior to the commencement of the proceeding or measure, or2. if the right to collateral security regarding such assets was established on the day of the commencement of the proceeding or measure, and if the participant against whom such a proceeding or measure was commenced provided the assets on the day of the commencement of this proceeding or measure, while the payment system participants werenot aware nor could have been aware at the time of establishment of right to collateral security regarding such assets or provision of such assets of the commencement of such a proceeding or measure.(2) The first paragraph shall also apply in case an individual person provides assets as collateral security for its obligations towards the Bank of Slovenia, a national central bank of a Member State or the European Central Bank.(3) For the purpose of this Article a right to collateral security regarding assets shall mean a right to pledge or to title transfer provided by a payment system participant in connection with participation in a payment system or by another person in connection with transactions with the Bank of Slovenia, a national central bank of a Member State or the European Central Bank.

SUBCHAPTER 2 OPERATION OF PAYMENT SYSTEMS

Article 166

(payment system operation services)

(1) Payment system operation services shall include, in particular, the following services:1. clearing of settlement orders,2. netting of claims and liabilities on the basis of settlement orders,3. maintaining of settlement accounts and/or transferring funds on the basis of settlement orders.(2) Payment system operation services may be provided by:1. the Bank of Slovenia,2. a bank that obtained authorisation of the Bank of Slovenia for the provision of payment system operation services on the basis of the Act regulating banking,3. a bank of a Member State or a bank with a head office in a third country that obtained authorisation of the Bank of Slovenia for the provision of payment system operation services in accordance with this Act,4. other legal person with a head office in the Republic of Slovenia that obtained authorisation of the Bank of Slovenia for the provision of payment system operation services as a clearing company on the basis of this Act,5. other legal person with a head office in another Member State or third country that obtained authorisation of the Bank of Slovenia for the provision of payment system operationservices as a clearing company of a Member State or a clearing company of a third country on the basis of this Act (hereinafter referred to as: payment system operator).(3) No one except the persons referred to in the second paragraph of this Article may perform payment system operation services.(4) Persons referred to in items 2 to 5 in the second paragraph of this Article must obtain authorisation of the Bank of Slovenia for the provision of individual services of operating each individual payment system.

(5) The payment system operator may perform only those payment system operation services for which it obtained an authorisation of the Bank of Slovenia.(6) If the payment system operator intends to commence the provision of payment system operation services that are not incorporated in the already issued authorisation for the provision of operation services of an individual payment system, it must obtain a decision of the Bank of Slovenia on the extension of the authorisation for the provision of payment system operation services in advance.

SECTION 1 CLEARING COMPANIES

Article 167

(legal form of organisation)

(1) A clearing company must be organised in one of the organisational forms of capitalcompanies as stipulated by the Act regulating companies. Provisions of the Act regulating companies shall apply to a clearing company, unless otherwise provided by this Act.(2) A clearing company may commence the provision of payment system operation services after it has been granted an authorisation by the Bank of Slovenia for the operation of a payment system as a clearing company.

Article 168

(initial capital)

(1) A legal person who applies for the authorisation of the Bank of Slovenia for the provision of payment system operation services as a clearing company must, at the time of issue of the authorisation for the provision of payment system operation services, hold initial capital in the amount of at least EUR 125,000.(2) The third and fourth paragraph of Article 25 of this Act shall apply mutatis mutandis for the calculation of the initial capital of a clearing company.

Article 169

(management and persons directly responsible for management and holders of qualifying holdings in a clearing company)

The provisions of Articles 26 and 27 of this Act shall apply mutatis mutandis for the members of management and persons directly responsible for management in connection with the provision of payment system operation services and for holders of qualifying holdings in a clearing company.

Article 170

(request for the issue of the authorisation for the provision of payment system operationservices as a clearing company)

It shall be necessary to enclose the following documents to the request for the issue of the authorisation of the Bank of Slovenia for the provision of payment system operation services as a clearing company:1. instrument of constitution;2. description of services referred to in the first paragraph of Article 166 of this Act, to which the application refers;3. business plan of the provision of payment system operation services for the first three business years, which clearly indicates that the applicant satisfies the technical,

organisational, personnel and other conditions for sound and prudent provision of payment system operation services (first paragraph of Article 175 of this Act);4. evidence that the applicant has disposal of the initial capital referred to in Article 168 of this Act;5. description of the governance system and internal control system referred to in paragraphs 2 to 4 of Article 175 of this Act;6. description of possible participation in other payment systems;7. indication of persons who are holders of qualifying holdings, size of qualifying holdings and evidence on the suitability of the holders of qualifying holdings that is assessed in accordance with the third paragraph of Article 27 of this Act, mutatis mutandis;8. indication of persons who are members of management bodies and persons who will be directly responsible for management in connection with the payment system operation and evidence that these persons fulfil the required conditions referred to in the first and second paragraph of Article 26 of this Act,9. indication of certified auditors or audit companies if already appointed, and10. other documentation prescribed by the Bank of Slovenia that indicates that the clearing company satisfies the conditions for the provision of payment system operation services as a clearing company.

Article 171

(decision-making on the authorisation for the provision of payment system operation services as a clearing company)

(1) The Bank of Slovenia shall issue the authorisation for the provision of payment system operation services as a clearing company if the applicant satisfies the conditions for the granting of the authorisation for the provision of these services as defined in Articles 168, 169 and 175 of this Act, and regulations issued on its basis.(2) In the authorisation, the Bank of Slovenia shall indicate the services referred to in the first paragraph of Article 166 of this Act, to which the authorisation refers. A clearing company may perform only those payment system operation services for which it has obtained the authorisation of the Bank of Slovenia.(3) If the Bank of Slovenia determines that the applicant does not satisfy the conditions referred to in the first paragraph of this Article, the request for the authorisation for the provision of payment system operation services shall be refused.(4) If the clearing company intends to commence the provision of payment system operationservices that are not incorporated in the already issued authorisation for the provision of payment system operation services as a clearing company, it must obtain a decision of the Bank of Slovenia on the extension of the authorisation for the provision of payment system operation services as a clearing company in advance. Paragraphs 1 to 3 of this Article shall apply mutatis mutandis to the extension of the authorisation.

Article 172

(change of circumstances after the issue of the authorisation and record-keeping)

(1) A clearing company must immediately inform the Bank of Slovenia about the facts and circumstances that influence its compliance with the conditions referred to in the first paragraph of Article 171 of this Act. Such information shall be accompanied by the relevant documentation referred to in Article 170 of this Act, amended accordingly.(2) A clearing company must keep the documentation on the compliance with the conditions for obtaining and maintaining the authorisation of the Bank of Slovenia for the provision of payment system operation services as a clearing company for at least five years from the termination of the relationship or situation to which it refers, except when special laws stipulate a longer safekeeping period for specific documents or information.

Article 173

(expiry of authorisation)

(1) Authorisation of the Bank of Slovenia for the provision of payment system operationservices as a clearing company shall expire entirely or partly with regard to individual payment system operation services, if the clearing company does not commence with the provision of payment system operation services within one year from the issue of the authorisation, or if the clearing company has ceased to provide payment system operationservices for more than six months. In the case referred to in this paragraph, the authorisation shall expire on the day of the expiration of the time limit referred to in the first sentence.(2) If a bankruptcy or enforced liquidation proceeding is in progress against the clearing company in accordance with the Act regulating financial business, insolvency proceedings and enforced termination, the authorisation of the Bank of Slovenia for the provision of payment system operation services shall expire entirely on the day of the commencement of such proceeding. The decision on the commencement of the bankruptcy or enforced liquidation proceeding against a clearing company shall be served by the court also to the Bank of Slovenia.(3) Authorisation of the Bank of Slovenia for the provision of payment system operationservices as a clearing company shall expire entirely if the competent bodies of the clearingcompany adopt a decision on the liquidation of the clearing company. The authorisation shall expire in the case referred to in this paragraph on the day when the clearing company is deleted from the court register.(4) Authorisation of the Bank of Slovenia for the provision of payment system operationservices as a clearing company shall expire entirely or partly if the competent bodies of the clearing company adopt a decision on the change of activities of the clearing company, so that the clearing company entirely or partly ceases to perform payment system operationservices. The authorisation shall expire in cases referred to in this paragraph on the day when the the decision to change the activities of the clearing company is entered into the court register.(5) A clearing company must immediately inform the Bank of Slovenia about the occurrenceof circumstances referred to in the first paragraph of this Article. With regard to decisions referred to in the third and fourth paragraph of this Article, the clearing company must immediately inform the Bank of Slovenia after their adoption.(6) If circumstances referred to in paragraphs 1 to 4 of this Article arise, the Bank of Slovenia shall issue a decision by which it determines that the authorisation for the provision of payment system operation services as a clearing company has entirely or partly expired.(7) On the day of expiry of the authorisation for the provision of payment system operationservices as a clearing company in accordance with paragraphs 1 to 4 of this Article, a clearing company shall not be permitted to enter into new transactions in connection with the provision of payment system operation services for which the authorisation has expired.

Article 174

(minimum own funds)

(1) A clearing company must, throughout its business, hold own funds that always meet or exceed the higher of the following amounts:1. the amount of initial capital that is required on the basis of Article 168 of this Act,2. the amount of the own funds requirement that is calculated as the multiplication of the clearing company income indicator, calculated in accordance with the second paragraph of this Article, and the scaling factor stipulated in accordance with the third paragraph of this Article.

(2) The income indicator shall be equal to the 10% share of the sum of income of the clearing company business in connection with the provision of payment system operation services. For the calculation of the income indicator, commissions and fees received and other business income of the clearing company from the provision of operation services of an individual payment system shall be considered. Income from extraordinary or occasional items shall not be considered for the calculation of the income indicator.(3) The scaling factor shall be equal to:1. 0.8 where the clearing company provides only the payment system operation services listed in items 1 or 2 of the first paragraph of Article 166 of this Act;2. 1.0 where the clearing company provides the payment system operation services listed in item 3 of the first paragraph of Article 166 of this Act.(4) If the clearing company provides also services other than payment system operationservices, the own funds requirement pursuant to the first paragraph of this Article shall be calculated only for the part of its business that is connected with the provision of payment system operation services. (5) Provisions of Articles 54 to 57 of this Act and implementing regulations issued on the basis of Article 58 of this Act shall apply mutatis mutandis for the calculation of the own fundsand own funds requirement of the clearing company.

Article 175

(sound and prudent conduct of business and governance and internal control systems)

(1) A clearing company must always fulfil organisational, personnel, technical and other conditions for sound and prudent conduct of business in the provision of payment system operation services.(2) A clearing company must establish and maintain a reliable and comprehensive governance system and internal control system that ensures sound and prudent conduct ofbusiness. The governance system and internal control system must be in proportion with the nature, scale and complexity of payment system operation services.(3) The governance system referred to in the second paragraph of this Article must incorporate:1. a clear organisational structure with well-defined, transparent and consistent relations with regard to responsibilities of the clearing company, and2. efficient proceedings of identifying, evaluating, managing, monitoring and reporting on risks that the clearing company might be exposed to.(4) The internal control system referred to in the second paragraph of this Article shall also include appropriate administrative and accountancy proceedings.

Article 176

(business records and annual report)

(1) Rules stipulated in the Act regulating companies and the Act regulating auditing shall apply to business records and annual reports of a payment system operator and for the auditing of annual reports, unless otherwise prescribed in this Act.(2) Annual reports of a clearing company must be verified by an auditor in the manner and under conditions stipulated by the Act regulating auditing.(3) A clearing company must, not later than two months after the end of the business year, submit unaudited financial statements for the previous business year to the Bank of Slovenia. If a clearing company is also engaged in activities or services other than payment system operation services under this Act, it must submit to the Bank of Slovenia, along with the financial statements, separate accountancy information from the balance sheet and profit and loss statement with respect to its provision of payment system operation services.

(4) A clearing company must submit the following to the Bank of Slovenia within eight days after the receipt of the audit report, but not later than within six months after the end of the business year:1. annual report, and2. audit report on the audit of the annual report with the contents as stipulated in the Act regulating companies, including the opinion of an auditor about the separate accountancy information with respect to provision of payment system operation services.(5) Article 65 of this Act shall apply mutatis mutandis to the liabilities of a certified auditor of aclearing company in relation to the Bank of Slovenia.

SECTION 2 CLEARING COMPANY OF A MEMBER STATE OR THIRD COUNTRY

Article 177

(application of provisions for a clearing company of a Member State or third country)

(1) A clearing company of a Member State may perform payment system operation services through a branch in the Republic of Slovenia or directly if it obtains the authorisation of the Bank of Slovenia for the provision of payment system operation services as a clearing company of a Member State.(2) A clearing company of a third country may perform payment system operation services through a branch in the Republic of Slovenia if it obtains the authorisation of the Bank of Slovenia for the provision of payment system operation services as a clearing company of a third country.(3) Provisions of Section 1, Subchapter 2, Chapter 11 of this Act shall apply mutatis mutandis with respect to the conditions for the provision of payment system operation services as a clearing company of a Member State or third country and to the authorisation of the Bank of Slovenia for the provision of payment system operation services as a clearing company of a Member State or third country.

SECTION 3 PROVISION OF PAYMENT SYSTEM OPERATION SERVICES AS A BANK OF A MEMBER STATE OR THIRD COUNTRY

Article 178

(application of provisions for a bank of a Member State or third country)

(1) A bank of a Member State may perform payment system operation services through a branch in the Republic of Slovenia or directly if it obtains the authorisation of the Bank of Slovenia for the provision of payment system operation services as a bank of a Member State.(2) A bank of a third country may perform payment system operation services through a branch in the Republic of Slovenia if it obtains the authorisation of the Bank of Slovenia for the provision of payment system operation services as a bank of a third country.(3) Provisions of the Act regulating banking with regard to the conditions that a bank must satisfy in order to obtain authorisation of the Bank of Slovenia for the provision of payment system operation services shall apply mutatis mutandis with respect to the conditions for the provision of payment system operation services as a bank of a Member State or third country and to the authorisation of the Bank of Slovenia for the provision of payment system operation services as a bank of a Member State or third country.

SUBCHAPTER 3 ISSUE OF IMPLEMENTING REGULATIONS

Article 179

(adoption of implementing regulations)

The Bank of Slovenia may prescribe detailed rules regarding the:1. criteria for the definition of an important payment system in accordance with Article 151 of this Act,2. requirements for the management of financial, operational and other risks in a payment system in accordance with item 6 of the second paragraph of Article 157 of this Act,3. contents, form, manner and time limits for reporting on the operation of payment systems in accordance with the fifth paragraph of Article 162 of this Act,4. contents of the request for authorisation of the Bank of Slovenia for the provision of payment system operation services as a clearing company in accordance with Article 170 of this Act.

CHAPTER 12 PROTECTION OF CONFIDENTIAL INFORMATION

Article 180

(confidential information)

(1) The payment service provider must protect, as confidential, all information, facts and circumstances on an individual user that he has at his disposal.(2) Members of bodies of a payment service provider, shareholders and partners, workers and other persons who have at their disposal confidential information referred to in the first paragraph of this Article in connection with their work with the payment service provider shall not report this information to third persons, use it on their own or enable their use by third persons, unless:1. the user agrees that this information can be transmitted,2. this information is needed by a supervisory authority for the needs of supervision, executed within its jurisdictions,3. information is submitted to parent companies in connection with supervision on a consolidated basis in accordance with the Act regulating financial conglomerates, or other regulation that is applied for consolidated supervision,4. in other cases stipulated by the Act.(3) The Bank of Slovenia or other authorities and persons may use the information obtained on the basis of the second paragraph of this Article exclusively for the purpose for which this information was obtained.

Article 181

(processing of confidential information)

(1) Payment service providers and payment system participants may collect, process and exchange confidential information, including personal data on users with the purpose of preventing, investigating or detecting fraud in connection with payment systems.(2) Payment service providers and payment system participants must protect the personal data referred to in the first paragraph of this Article in accordance with the Act regulating the protection of personal data.(3) Payment service providers and payment system participants who process the personal data referred to in the first paragraph of this Article must, at request, transmit this information to a court, state prosecutor's office, police or other authority, who needs this information in a procedure conducted in accordance with their jurisdictions in the area of prevention, investigation, proving and prosecution of criminal acts or offences in connection with payment fraud.

CHAPTER 13 SUPERVISION BY THE BANK OF SLOVENIA


Article 182

(powers of the Bank of Slovenia for supervision)

(1) The Bank of Slovenia shall be competent and responsible for supervision over a payment institution regarding the payment and ancillary services that are performed in the territory of the Republic of Slovenia, another Member State or third country.(2) The Bank of Slovenia shall be competent and responsible for supervision over payment systems and payment system operators regarding the payment system operating and regarding the provision of payment system operation services.(3) To the extent stipulated in Subchapter 4, Chapter 13 of this Act, the Bank of Slovenia shall be competent and responsible for supervision over persons who are contrary to the prohibition referred to in Article 18 of this Act, performing payment services, persons who are contrary to Article 159 of this Act, establishing a payment system, and persons who are contrary to the prohibition referred to in the third paragraph of Article 166 of this Act performing payment system operation services.

SUBCHAPTER 2 SUPERVISION OVER PAYMENT INSTITUTIONS

Article 183

(scope and purpose of supervision over payment institutions)

(1) The Bank of Slovenia shall exercise supervision over a payment institution with the purpose of checking whether, throughout its business, a payment institution satisfies the requirements referred to in Chapter 2 of this Act and regulations issued on its basis. (2) In providing supervision over a payment institution, the Bank of Slovenia shall check the following, in particular:1. conditions for sound and prudent conduct of business,2. governance system and internal control system,3. adequacy and implementation of measures for safeguarding of users’ funds,4. adequacy of holders of qualifying holdings, and5. fulfilment of conditions that are stipulated by this Act for the members of the management and persons directly responsible in the payment institution for the management in connection with payment services.(3) The Bank of Slovenia shall exercise supervision over a payment institution taking into account the size and system relevance of a payment institution as well as characteristics, scope and complexity of transactions performed by a payment institution. Supervision must be proportional and adjusted to risks to which a payment institution is exposed.

Article 184

(manner of executing supervision)

(1) The Bank of Slovenia shall exercise supervision over payment institutions by:1. monitoring, collection and verification of reports and notifications of payment institutions and other persons who must under the provisions of this and other Acts report to the Bank of Slovenia or inform it on individual facts or circumstances,2. carrying out inspections of the business of payment institutions, and3. imposing supervision measures.(2) The Bank of Slovenia may impose the following supervision measures to a payment institution under conditions stipulated in this Act:

1. recommendation and warning,2. imposition of the remedy of violations,3. imposition of special measures, or4. withdrawal of the authorisation of the Bank of Slovenia for the provision of payment services as a payment institution.(3) The Bank of Slovenia may, for the need of supervision over a payment institution, request appropriate reports and information from agents of a payment institution and outsourcing contractors of a payment institution and carry out an inspection of their business.(4) If another authority is responsible for the supervision of an agent or outsourcing contractor of a payment institution, the Bank of Slovenia shall carry out an inspection of business of this agent or outsourcing contractor in cooperation with this supervisory authority in accordance with provisions of Subchapter 7, Chapter 13 of this Act. Provisions of this Act on supervision over a payment institution shall apply mutatis mutandis for the supervision over agents and outsourcing contractors of a payment institution.

Article 185

(annual charges for supervision)

(1) For the provision of supervision over payment institutions in accordance with items 1 and 2 of the first paragraph of Article 184 of this Act, payment institutions shall pay, to the Bank of Slovenia, an annual charge for supervision that is determined by the tariff of the Bank of Slovenia according to the scope of payment transactions.(2) The Bank of Slovenia shall determine the charge referred to in the first paragraph of this Article maximum to the amount that the sum of charges payable by all payment institutions for an individual year doesn't exceed the actual supervision costs for this year.(3) If a payment institution doesn't pay the charge for supervision in an individual year until the June 30th of the following year, the Bank of Slovenia shall, with a decision, impose a payment to the payment institution.(4) The decision referred to in the third paragraph of this Article shall be an executive instrument.

SECTION 1 REPORTING AT THE REQUEST OF THE BANK OF SLOVENIA

Article 186

(reporting commitment)

(1) A payment institution must, at the request of the Bank of Slovenia, transmit reports and information on all matters relevant for the provision of supervision or execution of other jurisdiction and tasks of the Bank of Slovenia under this Act.(2) Reports and information referred to in the first paragraph of this Article may be requested by the Bank of Slovenia from members of management of the payment institution and persons directly responsible for management in connection with payment services and employees of the payment institution.(3) The Bank of Slovenia may invite the persons referred to in the second paragraph of this Article to create a written report on the matters referred to in the first paragraph of this Article within a time limit than cannot be shorter than three days from the day of the receipt of the invitation, or invite them to give an oral statement on these matters.

SECTION 2 REVIEW OF BUSINESS

Article 187

(authorised persons of the Bank of Slovenia)

(1) Review of business of a payment institution shall be carried out by a professional employee of the Bank of Slovenia (hereinafter referred to as: inspector of the Bank of Slovenia), who is authorised for the execution of reviews by the governor of the Bank of Slovenia.(2) For the execution of individual tasks in connection with reviews of business, the governor of the Bank of Slovenia may authorise a certified auditor or other professionally qualified person.(3) Authorised persons referred to in the second paragraph of this Article shall have, for the execution of reviewing tasks of business for which they were authorised by the governor of the Bank of Slovenia, the same powers as an inspector of the Bank of Slovenia.

Article 188

(review of business)

(1) A payment institution must enable an authorised person of the Bank of Slovenia, at his request, to carry out a review of business at the head office of the payment institution and in other premises where a payment institution pursues its activities and business in connection with payment and ancillary services.(2) The review of business referred to in the first paragraph of this Article shall be carried out by the Bank of Slovenia as a general rule on working days between 6 AM and 6 PM. When necessary due to the scope or nature of the review, the Bank of Slovenia may also carry out the review of business after 6 PM or on not working days.(3) The Bank of Slovenia must carry out the review of business in such a manner that it disturbs the normal business of the payment institution only to the extent necessary for the purpose of supervision.

Article 189

(request for review of business)

(1) A request for the review of business must be served to the payment institution at least eight days prior to the commencement of the review of business.(2) Notwithstanding the first paragraph of this Article, the authorised person of the Bank of Slovenia may serve the request for the review of business only at the commencement of the review of business, unless the purpose of individual supervision couldn't be achieved.(3) The request for the review of business shall include:1. the specific statement of business books business documentation and administrative and business records that are subject to review, and2. the statement of business books, business documentation and administrative and business records that a payment institution must serve in the form of computer statements or copies as well as the submission deadline.(4) The request for the review of business must include the legal instructions on legal consequences that may occur if the payment institution doesn't act in accordance with the request for the review of business or doesn't enable the Bank of Slovenia to carry out the review of business in the manner stipulated in this Act.(5) The Bank of Slovenia may, during the performance of the review of business, supplement the request for the review of business. The third and fourth paragraph of this Article shall apply mutatis mutandis for the supplementation of the request.

Article 190

(carrying out of the review of business)

(1) A payment institution must enable the authorised person of the Bank of Slovenia to review all business books, business documentation and administrative and business records as well as other documentation indicated in the request for the review of business.(2) A payment institution must serve the authorised person of the Bank of Slovenia the computerised records or copies of business books, business documentation and administrative and business records as well as other documentation indicated in the request for the review of business.(3) Members of management and persons directly responsible for management in connection with payment services and employees in the payment institution must, at the request of the authorised person of the Bank of Slovenia, transmit reports and information on all matters relevant for the carrying out of the review of business.(4) A payment institution must provide the authorised persons of the Bank of Slovenia appropriate premises, where they can carry out the review of business in an undisturbed manner and without the presence of other persons.(5) A payment institution must ensure that, during the carrying out of the review of business by the authorised persons of the Bank of Slovenia in the premises referred to in the first paragraph of Article 188 of this Act, there are, in these premises, present authorised persons of the payment institution who can, at the request of authorised persons of the Bank of Slovenia, provide appropriate explanations in connection with business books, business documentation, business events and administrative or business records that are subject of the review.

Article 191

(conditions for the review of computerised business books and documentation)

(1) In case the payment institution keeps computerised information or computerised business books and other documentation, it must provide the authorised person of the Bank of Slovenia with appropriate equipment for the review of business books and documentation and testing of the adequacy of computerised information.(2) A payment institution must serve the authorised person of the Bank of Slovenia the documentation that clearly indicates the complete description of accountancy system work.The documentation must clearly indicate the subsystems and files of the accountancy system. The documentation must provide access to:1. computerised solution,2. procedures within the framework of computerised solution,3. supervision that ensures correct and reliable processing of information,4. supervision that prevents unauthorised addition, change or deletion of safeguarded computerised files.(3) Any change of the computer solution (computer programmes) referred to in the first paragraph of this Article must be documented in a chronological order of the origin of change, together with the date of change. The documentation must also clearly indicate any change in the form of files.

SECTION 3 RECOMMENDATIONS AND WARNINGS

Article 192

(recommendations and warnings)

(1) If, during the review of business, the authorised person of the Bank of Slovenia determines irrationality or inconsistency in the business of the payment institution that doesn't show characteristics of the violation of regulations referred to in the first paragraph of Article 183 of this Act, the Bank of Slovenia shall issue appropriate recommendations for the improvement of the payment institution's business.

(2) If, during the review of business, the authorised person of the Bank of Slovenia determines violations of the regulations referred to in the first paragraph of Article 183 of this Act, but these violations, according to their characteristics and scope, do not have significant effects, the Bank of Slovenia may, instead of the decision on the remedy of violations, issue to the payment institution a warning to alert the payment institution of these violations (hereinafter referred to as: warning).(3) The Bank of Slovenia shall, with a warning, impose the payment institution the remedy of the established violations, and stipulate the deadline for their remedy. If, within the stipulated deadline, the payment institution doesn't remedy the violations, the Bank of Slovenia shall issue an appropriate decision on the remedy of violations.

SECTION 4 REMEDY OF VIOLATIONS

Article 193

(order for the remedy of violations)

(1) If, during the execution of supervision, the Bank of Slovenia determines violations referred to in the first paragraph of Article 183 of this Act or if a payment institution doesn't act in accordance with the first paragraph of Article 186 of this Act, it shall impose to the payment institution an order to remedy the violations or remedy or abandon specific acts (hereinafter referred to as: remedy of violations).(2) If the Bank of Slovenia determines violations in keeping of business books or administrative and other documentation that a payment institution must keep, or other relevant violations in the payment institution's business, it may also impose to the payment institution, with an order for the remedy of violations, the need for submission of a report on the remedy of violations with a positive opinion of a certified auditor that the determined violations are eliminated.(3) The Bank of Slovenia shall determine the deadline for the remedy of violations in the order for the remedy of violations.

Article 194

(report on the remedy of violations)

(1) A payment institution must, within the deadline stipulated with the order for the remedy of violations, eliminate the established violations and submit to the Bank of Slovenia the report that describes the measures for the remedy of violations (hereinafter referred to as: report on the remedy of violations).(2) To the report on the remedy of violations, it shall be necessary to submit documents and other evidence that indicate that the established violations were eliminated and in cases such as the one referred to in the second paragraph of Article 193 of this Act, also the report of the certified auditor on the remedy of violations.(3) If the report on the remedy of violations is incomplete or the report and enclosed evidence doesn’t indicates that the established violations were eliminated, the Bank of Slovenia shall, with an order, impose the payment institution the supplementation of the report and determine a deadline for supplementation (hereinafter referred to as: order for the supplementation of the report on the remedy of violations).(4) If the report on the remedy of violations and enclosed evidence indicate that the violations were eliminated, the Bank of Slovenia shall issue a decision by which it establishes that the violations were eliminated (hereinafter referred to as: order for the remedy of violations).(5) Prior to the issue of the decision on the remedy of violations, the Bank of Slovenia may carry out another review of business within the scope necessary for the determination if the violations were eliminated. If the payment institution, prior to the end of the review of business, eliminates the violations that were determined during the review, the Bank of

Slovenia shall issue a decision on the remedy of violations without issuing an order for the remedy of violations.(6) The Bank of Slovenia must issue the order for the supplementation of the report on the remedy of violations or decision on the remedy of violations within two months after the receipt of the report on the remedy of violations; otherwise it shall be considered that the violations were eliminated.

SECTION 5 SPECIAL MEASURES

Article 195

(special measures)

(1) The Bank of Slovenia may, for the provision of compliance of the payment institution business, with this Act and regulations issued on its basis, impose the following special measures:1. impose the body of the payment institution or persons who are, according to the law or Acts of the payment institution, responsible for the appointment of members of management or persons who are directly responsible for management in connection with payment services, to change a member of management or person who is directly responsible for management in connection with payment services, if it ceases to satisfy the conditions referred to in Article 26 of this Act, or if it doesn't satisfy them if he is newly appointed,2. impose a qualifying holder the reduction of his business share, shares or other rights in the payment institution under the qualifying holding if it ceases to satisfy the condition referred to in the second paragraph of Article 27 of this Act, or if it doesn't satisfy it if he has obtained a new qualifying holding, 3. impose on the payment institution an increase of the own funds requirement calculated according to the method that must be implemented in accordance with the decision of the Bank of Slovenia referred to in the second or fifth paragraph of Article 46 of this Act,4. impose the hybrid payment institution to establish a separate legal person for the purpose of provision of payment services.(2) The Bank of Slovenia, may with the order referred to in item 3 of the first paragraph of this Article, impose an increase of the own funds requirement for a maximum of 20%. In decision-making, the Bank of Slovenia shall consider the quality of the governance system with risks, loss databases and internal control system of the payment institution. The Bank of Slovenia shall, with the order referred to in item 3 of the first paragraph of this Article, also determine the measures that the payment institution must satisfy so that the extraordinary increase of the own funds requirement would end.(3) The Bank of Slovenia shall issue the order referred to in item 4 of the first paragraph of this Article if it estimates that the activities of the hybrid payment institution that are not payment services could likely endanger the financial stability of the hybrid payment institution or make the exercise of supervision over the hybrid payment institution difficult in accordance with the provisions of this Act and if it estimates that these circumstances will be eliminated with the establishment of a separate legal person.(4) Provisions of Section 4, Subchapter 2, Chapter 13 of this Act on the order for the remedy of violations, shall apply mutatis mutandis for the imposition of special measures on the basis of this Act. In the mutatis mutandis application of the provisions of Section 4, Subchapter 2, Chapter 13 of this Act, the text »imposition of special measures« shall be used instead of the text »remedy of violations«.

SECTION 6 WITHDRAWAL OF AUTHORISATION

Article 196

(withdrawal of authorisation)

(1) The Bank of Slovenia may withdraw the authorisation for the provision of payment services as a payment institution if it establishes that:1. the authorisation has been obtained through false information,2. the conditions referred to in Article 30 of this Act are no longer fulfilled,3. it doesn't act in accordance with the order for the remedy of violations or order for the implementation of special measures or in another way disturbs the exercise of supervision over its business,4. the payment system stability would be endangered with further provision of payment services.(2) If the payment institution doesn't fulfil the technical, personnel, organisational or other conditions for the provision of individual types of payment services, the Bank of Slovenia may, instead of the withdrawal of authorisation with a decision, prohibit the payment institution to perform these payment services. Provisions of the Act regulating banking regarding the procedure for the withdrawal of authorisation for the provision of banking services shall apply mutatis mutandis for the procedure in connection with the imposition of the prohibition for the provision of individual types of payment services.(3) The Bank of Slovenia shall, on its web site, publish the information on the withdrawal of the authorisation for the provision of payment services as a payment institution.

Article 197

(conditional withdrawal of authorisation)

(1) The Bank of Slovenia may, to the payment institution for which circumstances referred to in the first paragraph of Article 196 of this Act are given, with a decision, impose a conditional withdrawal of authorisation for the provision of payment services as a payment institution, if it, according to the circumstances, estimates that this is well-founded due to the gravity of the violation and that the payment institution will appropriately eliminate these violations within a determined time period.(2) The Bank of Slovenia shall, in the decision for the conditional withdrawal of authorisation, impose that the withdrawal of authorisation not be executed if the payment institution will not commit new violations for which it is possible to withdraw the authorisation, in the period of probation stipulated by the Bank of Slovenia, which cannot be shorter than six months and longer than two years since the day of the issue of the decision.(3) When the Bank of Slovenia imposes a conditional withdrawal of authorisation, it shall determine that the withdrawal of authorisation will be executed even if the payment institution doesn't eliminate the violations within a determined deadline for which the conditional withdrawal of authorisation was imposed or if, in the determined period of probation, it commits a new violation for which it is possible to withdraw the authorisation. The deadline for the remedy of violations shall be determined by the Bank of Slovenia within the limits of the period of probation.

SUBCHAPTER 3 SUPERVISION OVER A PAYMENT INSTITUTION WITH SUSPENSION

Article 198

(supervision over waived payment institutions )

(1) Provisions of this Act on the supervision over payment institutions shall apply mutatis mutandis for the supervision over waived payment institutions, unless otherwise provided in this Article.(2) If the Bank of Slovenia determines that a payment institution with suspension no longer satisfies the conditions referred to in items 2 or 3 of the second paragraph of Article 67 of this Act, it shall impose a special measure that it must ensure the compliance with these

conditions within 30 days, or that within this deadline, it must file a request for the issue of the authorisation of the Bank of Slovenia for the provision of payment services in accordance with this Act.(3) The Bank of Slovenia shall withdraw the authorisation for the provision of money remittance services as a waived payment institution if the waived payment institution doesn't act in accordance with the order for the implementation of a special measure referred to in the second paragraph of this Article.

SUBCHAPTER 4 SUPERVISION OVER THE FUNCTIONING OF PAYMENT SYSTEMS AND PAYMENT SYSTEM OPERATORS

Article 199

(scope and purpose of the supervision over the functioning of payment systems and payment system operators)

(1) The Bank of Slovenia shall carry out supervision over the functioning of payment systems and payment system operators with the purpose of checking if a payment system and payment system operator fulfil the requirements referred to in Chapter 11 of this Act and regulations issued on its basis.(2) The Bank of Slovenia shall carry out supervision over the functioning of payment systems with the exercise of supervision over the payment system participants.(3) Provisions of Subchapter 2, Chapter 13 of this Act other than provisions of Section 5, Subchapter 2, Chapter 13 of this Act shall apply mutatis mutandis for the supervision of the Bank of Slovenia over the functioning of payment systems. In the mutatis mutandis application of the provisions referred to in the first sentence, the text »payment system participant« shall be used instead of the text »payment institution«.(4) Provisions of Subchapter 2, Chapter 13 of this Act shall apply mutatis mutandis for the supervision of the Bank of Slovenia over the payment system operators. In the mutatis mutandis application of the provisions referred to in the first sentence, the text »payment system participant« shall be used instead of the text »payment institution«.

Article 200

(annual charges for supervision)

(1) For the provision of supervision over payment systems and payment system operators in accordance with Article 199 of this Act, payment system participants and operators shall pay to the Bank of Slovenia an annual charge for supervision that is determined by the tariff of the Bank of Slovenia according to the scope of payment transactions in the payment system.(2) Notwithstanding the first paragraph of this Article, the annual charge for supervision over payment systems shall not be paid by:1. payment system participants who pay the annual charge for supervision of the Bank of Slovenia on the basis of the Act regulating banking,2. payment institutions, unless they are providing operation services for this payment system, and3. state authorities and bearers of public authorisations.(3) The Bank of Slovenia shall determine the charge referred to in the first paragraph of this Article maximum to the amount that the sum of charges payable by payment system participants and operators for an individual year doesn't exceed the actual supervision costs in that year.(4) If a payment system participant or operator doesn't pay the charge for supervision in an individual year until the June 30th of the following year, the Bank of Slovenia shall, with a decision, impose a payment on the participant or operator.

(5) The decision referred to in the fourth paragraph of this Article shall be an executive instrument.

SUBCHAPTER 5 SUPERVISION OVER OTHER PERSONS

Article 201

(order for the termination of provision of payment services)

(1) If a person contrary to the prohibition stipulated in Article 18 of this Act performs payment services, the Bank of Slovenia shall issue an order by which it imposes the termination of the provision of these activities (hereinafter referred to as: order for the termination of provision of payment services).(2) Prior to the issue of the order for the termination of provision of payment services, the Bank of Slovenia may carry out a review of business books and other documentation of the person and collect evidence if a person performs payment services.(3) In the order for the termination of provision of payment services, the Bank of Slovenia shall impose that a person must, within the deadline that cannot be shorter than 8 days and longer than 15 days, submit a report that describes the measures that he has performed in connection with the termination of the provision of payment services and evidence that indicates that these measures were implemented. In the report, the person can also make a statement on the justification of reasons for the issue of the order.

Article 202

(order for the termination of the functioning of a payment system and termination of the provision of payment system operation services)

(1) If a person performs payment system operation services without the authorisation of the Bank of Slovenia for the provision of payment system operation services under this Act, the Bank of Slovenia shall issue an order by which it imposes the termination of the provision of these activities (hereinafter referred to as: order for the termination of provision of payment system operation services).(2) If persons referred to in the first paragraph of Article 155 of this Act perform the settlement of mutual financial obligations in the payment system without the authorisation of the Bank of Slovenia, the Bank of Slovenia shall issue an order by which it imposes that these persons cease the settlement of mutual financial obligations in the payment system (hereinafter referred to as: order for the termination of the functioning of a payment system).(3) The second and third paragraph of Article 201 of this Act shall apply mutatis mutandis for the order referred to in the first and second paragraph of this Article.

Article 203

(decision on the determination of the reason for liquidation)

(1) The Bank of Slovenia may issue a decision by which it determines that there is reason for liquidation of a legal person, (hereinafter referred to as: decision on the determination of the reason for liquidation) in the following cases:1. if the legal person doesn't act in accordance with the order for the termination of the provision of payment services referred to in Article 201 of this Act,2. if the legal person doesn't act in accordance with the order for the termination of theprovision of payment system operation services or in accordance with the order for the termination of the functioning of a payment system referred to in Article 202 of this Act.(2) The decision on the determination of the reason for liquidation must be explained.

(3) On the basis of the final decision on the determination of the reason for liquidation, the competent court shall begin the liquidation proceeding at the proposal of the Bank of Slovenia.(4) The court shall issue a decision on the commencement of the liquidation proceeding without another review of the conditions for the commencement of this proceeding within the deadline of three business days from the submission of the proposal referred to in the third paragraph of this Article.(5) There shall be no appeal against the decision on the commencement of the liquidation proceeding referred to in the fourth paragraph of this Article.(6) The Bank of Slovenia shall be excused of paying tax during the liquidation proceeding that the court commences at its proposal referred to in the third paragraph of this Article.

SUBCHAPTER 6 COLLECTING AND EXCHANGE OF INFORMATION

Article 204

(collecting and processing of information)

(1) The Bank of Slovenia shall be responsible for collecting and processing of information on facts and circumstances that are important for the execution of its tasks and powers stipulated by this Act.(2) For information that is obtained from registers and records kept by courts and other state authorities as well as bearers of public authorisations, the Bank of Slovenia shall be exempt from the payment of court and administrative fees and other charges that are paid for the transmission of information.

Article 205

(protection of confidential information)

(1) Employees of the Bank of Slovenia, auditors and other professionals who have worked under the authorisation of the Bank of Slovenia, must protect all information they obtained during the execution of supervision or other tasks under this Act as confidential (hereinafter referred to as: confidential information).(2) Confidential information shall not be disclosed to any other person or state authority other than in form of summary, from which individual persons to which the information refers cannot be recognised.(3) The obligation referred to in the first paragraph of this Article shall not apply to:1. confidential information needed for the execution of a criminal proceeding, or2. in case of a bankruptcy or enforced liquidation proceeding against the payment institution,confidential information that is needed for the implementation of creditor's claims to the payment institution or for other needs in the bankruptcy or enforced liquidation proceeding, or a civil proceeding connected to these two proceedings, other than those also referring to other persons who were included in the financial reorganisation of the payment institution.(4) Obligation of protection of confidential information referred to in paragraphs 1 to 3 of this Article shall also apply to information that the Bank of Slovenia or persons referred to in the first paragraph of this Article obtain on the basis of the exchange of information with other supervisory authorities.

Article 206

(application and disclosure of confidential information)

(1) The Bank of Slovenia may apply the confidential information referred to in Article 205 of this Act only for the purposes of the execution of its tasks and powers on the basis of this or

other Acts and in court proceedings against the decisions that were issued and in other court proceedings in connection with this.(2) The Bank of Slovenia may transmit confidential information to the following persons:1. persons who the Bank of Slovenia may transmit confidential information that was obtained in the exercise of supervision over banks in accordance with the Act regulating banking,2. authorities of the Republic of Slovenia or other Member State who are responsible for the issue of authorisations to payment institutions and for the supervision over payment institutions,3. authorities of the Republic of Slovenia or other Member State who are responsible for the prevention of money laundering and financing of terrorism, and4. authorities of the Republic of Slovenia or other Member State who are responsible for the supervision over the protection of personal data.(3) A person to whom the Bank of Slovenia discloses confidential information in accordance with the second paragraph of this Article must protect this information as confidential in accordance with Article 205 of this Act, and may use it only for the execution of its supervision powers or tasks in accordance with the regulations.(4) The Bank of Slovenia may disclose confidential information to persons from a third country who have a status of a person referred to in the first paragraph of this Article if the following conditions are fulfilled:1. if he has concluded a cooperation agreement with this third country that stipulates the mutual exchange of information between persons referred to in the first paragraph of this Article from the Republic of Slovenia and this third country,2. if rules on the obligation of protecting confidential information apply to the persons of this third country in this country, with the content stipulated in the Article 205 of this Act, and3. if the information that is subject of disclosure to a person from a third country is only intended for the needs of the exercise of supervision powers or tasks of persons referred to in the second paragraph of this Article.(5) If the Bank of Slovenia obtained confidential information from a supervisory authority of another Member State or during the execution of review of business of a branch, agent or outsourcing contractor of a Member State payment institution under this Act, this information may be disclosed only with the consent of the supervisory authority of this Member State.

SUBCHAPTER 7 COOPERATION OF SUPERVISORY AUTHORITIES

Article 207

(cooperation of supervisory authorities in the Republic of Slovenia)

(1) The Bank of Slovenia and authorities of the Republic of Slovenia responsible for supervision over payment service providers must, at the request of an individual supervisory authority, transmit to this authority all requested information regarding a payment service provider that this authority needs in the proceeding of the issue of authorisation, exercise of supervision or in decision-making on other individual matters in accordance with its competences.(2) The supervisory authorities referred to in the first paragraph of this Article must, at their own initiative, inform each other on irregularities or other circumstances that are determined during the exercise of supervision or other tasks and competences if these conclusions are relevant to the work of other supervisory authorities.

Article 208

(cooperation with supervisory authorities of Member States)

(1) The Bank of Slovenia must cooperate with supervisory authorities of other Member States and if necessary with the European Central Bank, national central banks of Member

States and other authorities of Member States responsible for the implementation of regulations that apply to payment service providers.(2) The Bank of Slovenia must transmit to the supervisory authority of a Member State, at its request, all appropriate information that is needed for the exercise of supervision tasks of this supervisory authority. The Bank of Slovenia shall, on its own initiative, transmit to the supervisory authority of a Member State all information that is essential for the exercise of supervision tasks of this supervisory authority.(3) Information shall be considered as essential under the second paragraph of this Article if it could have an important influence on the financial soundness of the supervised financial company of another Member State.

Article 209

(cooperation in the exercise of supervision over a branch, agent and outsourcing contractor of the payment institution in a host country)

(1) During the exercise of supervision over branches, agents and outsourcing contractors of the payment institution in a host country, the Bank of Slovenia must cooperate with the competent supervisory authority of the host country.(2) The Bank of Slovenia shall inform the competent supervisory authority of the host country in advance, when it intends to carry out the review of business of a branch, agent or outsourcing contractor of the payment institution in the territory of this Member State.(3) The Bank of Slovenia shall transmit to the supervisory authority of the host country at its request, all the needed information on facts and circumstances that is determined during the exercise of supervision over branch, agent and outsourcing contractor of the payment institution in the host country, especially regarding the established or alleged violations.(4) The Bank of Slovenia may ask the competent supervisory authority of the host country to carry out the review of business of the branch, agent or outsourcing contractor of the payment institution in this host country if this will accelerate or simplify the supervision proceeding or if it is in the interests of the efficiency, simplicity, speed and smaller proceeding costs. Under the same conditions, the authorised persons of the Bank of Slovenia may participate in the review executed by the competent supervisory authority of the host country.

Article 210

(cooperation in the exercise of supervision over a branch, agent or outsourcing contractor of the payment institution of a Member State in the Republic of Slovenia)

(1) During the exercise of supervision over branches, agents and outsourcing contractors of the payment institution of a Member State in the territory of the Republic of Slovenia, the Bank of Slovenia must cooperate with the competent supervisory authority of this Member State.(2) The Bank of Slovenia shall transmit to the competent supervisory authority of the Member State, at its request, all the needed information on facts and circumstances that is determined in connection with the operating of the branch, agent or outsourcing contractor of the payment institution of a Member State in the Republic of Slovenia, especially regarding the established or alleged violations.(3) The supervisory authority of the Member State or persons authorised by it may, in the territory of the Republic of Slovenia, carry out the review of business of the branch, agent or outsourcing contractor of the payment institution of this Member State. The supervisory authority of the Member State must inform the Bank of Slovenia on the intended review in advance.(4) In the case referred to in the third paragraph of this Article, the supervisory authority of the Member State or persons authorised by it shall have the same powers in the

implementation of the review of business as the Bank of Slovenia in the exercise of supervision over a payment institution.(5) The Bank of Slovenia must, at the request of the competent supervisory authority of the Member State, carry out the review of business of the branch, agent or outsourcing contractor of the payment institution of this Member State in the territory of the Republic of Slovenia. The competent supervisory authority of the Member State may participate in the review of business referred to in the first sentence of this paragraph, if so requested.

Article 211

(powers of authorities in connection with the prevention of money laundering and financing of terrorism and protection of personal data)

Provisions of this Act shall not interfere with the obligations and powers of supervisory authorities on the basis of the Act regulating the prevention of money laundering and financing of terrorism, and Decree regulating the implementation of Decree (EC) No. 1781/2006.

CHAPTER 14 DECISION-MAKING PROCEDURE OF THE BANK OF SLOVENIA IN INDIVIDUAL MATTERS

Article 212

(application of provisions on procedures)

The Bank of Slovenia shall decide on individual matters for which it is responsible under this Act, under procedures stipulated for the decisions of the Bank of Slovenia in individual matters in accordance with the Act regulating banking, unless expressly otherwise provided in this Chapter for an individual type of procedure.

SUBCHAPTER 1 DECISION-MAKING PROCEDURE ON THE ISSUE OF AUTHORISATIONS

Article 213

(time limit for a decision and time limit for the issue of the decision on the remedy of problems)

(1) The Bank of Slovenia must decide on the application for the issue of authorisation for which it is responsible on the basis of this Act, within three months from the receipt of the application for the issue of authorisation.(2) Notwithstanding the first paragraph of this Article, the Bank of Slovenia must decide on the application for the issue of authorisation for the establishment of a payment system, authorisation for the provision of payment system operation services and authorisation for the change of payment system rules within six months from the receipt of the application for the issue of authorisation.(4) If the application for the issue of authorisation issued by the Bank of Slovenia, on the basis of this Act, doesn't fulfil the procedural assumptions for decision-making in accordance with the Act regulating banking, the Bank of Slovenia shall issue the decision on the remedy of problems within one month from the receipt of the application.

SUBCHAPTER 2 DECISION-MAKING PROCEDURE ON THE ENTRY AND DELETION OF A BRANCH OR AGENT FROM THE REGISTER OF PAYMENT INSTITUTIONS

Article 214

(application of provisions on the decision-making procedure for the issue of authorisations)

(1) Provisions of this Act on the decision-making procedure of the Bank of Slovenia for the issue of authorisations shall apply mutatis mutandis to the decision-making of the Bank of Slovenia on the application for the entry of a branch or agent into the register of payment institutions under Articles 71 and 72 of this Act, unless otherwise provided in Subchapter 2, Chapter 14 of this Act.(2) Provisions of this Act on the procedure for the withdrawal of the authorisation of the Bank of Slovenia for the provision of payment services as a payment institution shall apply mutatis mutandis to the decision-making of the Bank of Slovenia on the deletion of a branch under item 2 of the second paragraph or under the third paragraph of Article 73 of this Act and on the deletion of an agent under item 2 of the fourth paragraph of Article 73 of this Act.(3) In the mutatis mutandis application of provisions of this Act, on the basis of the first and second paragraph of this Article, the text »entry of a branch or agent into the register of payment institutions« shall apply instead of the text »issue of authorisation«, and the text »deletion of a branch or agent from the register of payment institutions« shall apply instead of the text »withdrawal of authorisation«.

Article 215

(decision-making procedure on the application for the entry of a branch or agent of a payment institution or procedure of deletion from the register of payment institutions)

(1) The Bank of Slovenia must decide on the application for the entry of a branch or agent of a payment institution into the register of payment institutions within one month from the receipt of the application. If the application for entry doesn't fulfil the procedural assumptions for decision-making, the Bank of Slovenia shall issue a decision on the remedy of problems within eight days from the receipt of the application.(2) If the Bank of Slovenia grants the application for the entry of a branch or agent, it shall not issue a decision, but enter the branch or agent into the register of payment institutions and notify the payment institution and agent on the entry.(3) The Bank of Slovenia shall commence the procedure for the deletion of a branch or agent from the register of payment institutions if the information that it has at its disposal indicates a reasonable suspicion that one of the reasons for the deletion of a branch or agent from the register of payment institutions referred to in Article 73 of this Act is given.

SUBCHAPTER 3 SUPERVISION PROCEDURE

Article 216

(supervision procedure)

(1) Provisions of the Act regulating the general administrative procedure on the minutes shall not apply in the supervision procedure.(2) During the review of business of a payment institution in accordance with this Act, if the Bank of Slovenia doesn't determine any violations of regulations referred to in the first paragraph of Article 183 of this Act, the procedure of the review of business shall be suspended.

Article 217

(order for the remedy of violations)

(1) Provisions of the Act regulating banking on the procedure with the order for the remedy of violations shall apply to the procedure with the order for the remedy of violations referred to in Section 4, Subchapter 2, Chapter 13 of this Act.(2) Provisions of the Act regulating banking on the procedure with the order for the remedy of violations shall apply mutatis mutandis to the procedure with the order for the implementation of special measures referred to in Article 195 of this Act, for the procedure with the order for the termination of the provision of payment services referred to in Article 201 of this Act, and for the procedure with the order for the termination of the provision of payment system operation services and order for the termination of functioning of a payment system referred to in Article 202 of this Act.

CHAPTER 15 PEACEFUL SETTLEMENT OF DISPUTES

Article 218

(procedure of peaceful settlement of disputes in connection with payment services)

(1) The payment service provider must on his own or in cooperation with other payment service providers ensure the procedure of peaceful settlement of disputes with consumers in connection with the provision of payment services, so that the consumer can in a fast and simple manner address to the competent authority his complaint in connection with the alleged violations of the payment service provider in provision of payment services under this Act, and that the consumer is provided with a fast and professional decision in connection with this complaint.(2) The payment service provider must, in connection with the functioning of the body for the peaceful settlement of disputes, ensure cooperation of independent professionals from the legal area. Payment service providers may agree on the establishment of a joint body for the peaceful settlement of disputes with consumers.(3) The instrument of constitution of the body for the peaceful settlement of disputes must also regulate the rules and cooperation procedure of this body with authorities that are, in other Member States, responsible for the peaceful settlement of disputes in connection with the provision of payment services if the settlement of an individual dispute also belongs to the jurisdiction of such authority of another Member State.(4) Rules for the peaceful settlement of disputes must be designed in a clear and understandable manner and must determine the following, in particular:1. name, form and constitution of the body responsible for the peaceful settlement of disputes;2. procedure of the submission of application for the peaceful settlement of disputes to the competent body, including the address to which the consumer can transmit the application and form of application;3. the maximum time limit in which the competent body will decide on the dispute, which cannot be longer than two months from the day when the payment service provider received the first application of the consumer for the peaceful settlement of disputes;4. that the submission of the application for the peaceful settlement of disputes to the competent body under this Article and decision of this body don't interfere with the right of the consumer to initiate a legal proceeding before a competent court at any time, against a payment service provider with the purpose of settling a dispute in connection with the provision of payment services.(5) The payment service provider shall not charge the consumer for the procedure of peaceful settlement of disputes regarding the provision of payment services.(6) Paragraphs 1 to 5 of this Article shall not apply to the Administration of the Republic of Slovenia for Public Payments and other state authorities and authorities of self-governing local communities, when they perform payment services within the framework of their exclusive powers on the basis of a special Act.

CHAPTER 16 REPORTING

Article 219

(reporting commitment of payment service providers)

(1) Payment service providers who keep transaction accounts of holders who are entered in the Business Register of the Republic of Slovenia in accordance with the Act regulating the Business Register of the Republic of Slovenia, shall, for tax, statistic and other regulatory purposes, collect information on the arrived unsettled liabilities of these holders and on the turnover and balance on their transaction accounts.(2) Payment service providers shall transmit the information referred to in the first paragraph of this Article to the Tax Administration of the Republic of Slovenia, Customs Administration of the Republic of Slovenia and the Agency.(3) The Agency shall prescribe the contents, manner and time limits for the collection and transmission of information referred to in the first paragraph of this Article, following the consent of the minister responsible for finance. After the receipt of the consent, the Agency shall transmit the regulation referred to in this paragraph for publication in the Official Gazette of the Republic of Slovenia.

CHAPTER 17 PENAL PROVISIONS

Article 220

(violations of payment service providers)

(1) A fine of EUR 2,500 to EUR 80,000 shall be imposed on a payment service provider who, during the provision of payment services in the Republic of Slovenia:1. charges the user contrary to Article 75 of this Act,2. doesn't provide the user with general information referred to in Article 79 of this Act prior to the conclusion of the payment services framework contract or doesn't provide it in the manner referred to in Article 80 of this Act,3. doesn't provide the user with general information and provisions of the framework contract in accordance with Article 81 of this Act,4. doesn't provide the user with information on individual payment transactions in accordance with Articles 82, 83 or 84 of this Act,5. charges the user in case of termination of the framework contract contrary to the second and third paragraph of Article 87 of this Act, or second paragraph of Article 88 of this Act,6. doesn't provide the user, in connection with the framework contract on the low-value payment instruments, with the information on the main characteristics of a payment service in accordance with the first paragraph of Article 90 of this Act,7. doesn't provide the user with information on individual payment transactions in connection with low-value payment instruments in accordance with Article 91 of this Act,8. doesn't provide the user with general information in accordance with Article 92 of this Act prior to the conclusion of the contract on the execution of a single payment transaction,9. doesn't provide the user with information on an individual payment transaction after the receipt of the payment order on the basis of the contract on a single payment transaction in accordance with Article 93 of this Act, or doesn't provide the payee with the information on an individual payment transaction after the execution of a payment transaction on the basis of the contract on a single payment transaction in accordance with Article 94 of this Act,10. before the initiation of a payment transaction doesn't inform the user on a special charge payable for the use of a specific payment instrument (second paragraph of Article 97 of this Act),

11. doesn't provide the user, who is a consumer prior to the conclusion of a distance payment service contract, with the preliminary information in accordance with Article 100 of this Act,12. doesn't provide the user, who is a consumer prior to the conclusion of a single payment transaction contract, with the preliminary information in accordance with Article 101 of this Act,13. doesn't execute the payment transaction after the receipt of a payment order (Article 104 of this Act),14. doesn't inform the user on the refusal of the execution of a payment order (first and second paragraph of Article 105 of this Act),15. doesn't enable the user to withdraw the payment order in accordance with Articles 106 and 107 of this Act,16. charges the user for the execution of a payment transaction contrary to the first or second paragraph of Article 109 of this Act,17. doesn't provide the transfer of the total amount of a payment transaction in accordance with the third paragraph of Article 109 of this Act or in case of the agreement referred to in the fourth paragraph of Article 109 of this Act, he doesn't inform the user on the total amount of the payment transaction and the deducted charges,18. prevents the payee or limits him in any other manner to request from the payer the payment of charges or offers him a reduction for the use of a specific payment instrument (Article 110 of this Act),19. doesn't execute the payment transaction in the stipulated time limit (Article 111 of this Act),20. doesn't transfer the payment order initiated by the payee or payer through the payee to the payer's payment service provider in stipulated time limits, so that the payment transaction can be executed on the agreed upon day of maturity (Article 112 of this Act),21. doesn't enable the user disposal of financial funds in the payment account and doesn't provide the appropriate credit or debit value date of the payment account (Articles 113, 114 and 115 of this Act),22. doesn't fulfil the requirements in connection with the safe use of a payment instrument (first and second paragraph of Article 117 of this Act),23. doesn't provide funds that enable the user to prove, at his request, the transmission of the notification on the lost, stolen or misappropriated payment instrument, or doesn't enable them in the requested period (third paragraph of Article 117 of this Act),24. doesn't refund the amount of unauthorised or incorrectly executed payment transactions and corresponding charges or interests in accordance with Articles 119, 120, 122 or 123 of this Act,25. doesn't provide the user a correction of the unauthorised or incorrectly executed payment transaction in accordance with Article 130 of this Act,26. doesn't return the user the amount of the authorised or correctly executed payment transaction in accordance with Article 131 of this Act,27. doesn't establish the procedure or rules for the peaceful settlement of disputes in connection with the provision of payment services or if such procedure or rules don't satisfy the requirements referred to in Article 218 of this Act.(2) A fine of EUR 400 to EUR 4,000 shall be imposed on the responsible person of the payment service provider who commits an offence referred to in the first paragraph of this Article.

Article 221

(other violations of payment service providers)

(1) A fine of EUR 2,500 to EUR 80,000 shall be imposed on a payment service provider who, during the provision of payment services in the Republic of Slovenia:

1. enables the user disposal of financial funds contrary to the first paragraph of Article 140 of this Act,2. if charges by the payment service provider for the execution of distraint and transfer of financial funds and for the execution of other acts on the basis of a decision on the enforcement or insurance are not in accordance with the requirement referred to in the first paragraph of Article 142 of this Act,3. doesn't provide information for the establishment and keeping of the register of currentaccounts in accordance with the first paragraph of Article 144 of this Act,4. violates the duty of the protection of confidential information referred to in Article 180 of this Act,5. doesn't report in accordance with Article 219 of this Act,6. doesn't calculate the costs and inform the user in accordance with Articles 3, 4 and 5 of the Regulation 2560/2001.(2) A fine of EUR 400 to EUR 4,000 shall be imposed on the responsible person of the payment service provider who commits an offence referred to in the first paragraph of this Article.

Article 222

(violations in connection with other payment transactions)

(1) A fine of EUR 2,500 to EUR 80,000 shall be imposed on a payment service provider referred to in items 1 to 12 of the first paragraph of Article 220 of this Act in connection with the execution of other payment transactions referred to in Article 133 of this Act, unless the provider acted in accordance with Article 134 of this Act.(2) A fine of EUR 2,500 to EUR 80,000 shall be imposed on a payment service provider who, in connection with the execution of other payment transactions:1. doesn't execute the payment transaction in the stipulated time limit (second paragraph of Article 135 of this Act), unless explicitly agreed different time limit,2. doesn't enable the user disposal of financial funds in the payment account and doesn't provide the appropriate credit or debit value date of the payment account (third paragraph of Article 135 of this Act),(3) A fine of EUR 400 to EUR 4,000 shall be imposed on the responsible person of the payment service provider who commits an offence referred to in the first or second paragraph of this Article.

Article 223

(violations in the provision of payment services in another Member State)

(1) A payment service provider with its head office in the Republic of Slovenia shall not be liable for an offence referred to in the first paragraph of Article 220 of this Act committed in connection with the provision of payment services through a branch or through an agent in another Member State.(2) A payment service provider with its head office in the Republic of Slovenia shall be penalised for an offence referred to in the first paragraph of Article 220 of this Act committed during the direct provision of payment services in another Member State.(3) A payment service provider shall be penalised for an offence on the basis of the second paragraph of this Article, if the offence is also punishable by the law of the Member State in which the violation was committed.(4) A payment service provider with its head office in the Republic of Slovenia shall not be penalised for an offence on the basis of the second paragraph of this Article, if:1. the competent body in the country where the payment service provider is directly performing payment services has already imposed a sanction to the payment service

provider due to a violation and the sanction was already executed or it has been decided with an international agreement that it will be executed in the Republic of Slovenia,2. the payment service provider was excused in the country where he is directly performing payment services with a final decision, the sanction was remitted or the execution of the sanction was statute-barred,3. according to the law of the country where the payment service provider is directly performing payment services, a perpetrator is prosecuted for a violation at the request of the aggrieved party, while such a request was not filed.(5) A responsible person of the payment service provider shall be penalized for an offence committed by the payment service provider with the head office in the Republic of Slovenia during the direct provision of payment services in another Member State, if the conditions referred to in the third or fourth paragraph of this Article in connection with the violation of a responsible persons are fulfilled.

Article 224

(violations in the direct provision of payment services in the Republic of Slovenia)

(1) If the payment service provider with its head office in another Member State commits an offence referred to Article 220 of this Act during the direct provision of payment services in the Republic of Slovenia, the Bank of Slovenia shall inform the supervisory authority of the country of residence on the established violations under the procedure referred to in Subchapter 7 of Chapter 13 of this Act.(2) Notwithstanding the first paragraph of Article 220 of this Act, the payment service provider with its head office in another Member State who commits an offence referred to in Article 220 of this Act, during the direct provision of payment services in the Republic of Slovenia, shall not be penalised for the offence under this Act if the competent supervisory authority of the country of residence commences an appropriate proceeding against this provider due to this violation.

Article 225

(other violations of electronic money undertakings)

(1) A fine of EUR 2,500 to EUR 80,000 shall be imposed on a electronic money undertakingif it doesn't pay the electronic money to the holder, at his request, at the latest within eight days from the receipt of the payment request (first paragraph of Article 137 of this Act).(2) A fine of EUR 400 to EUR 4,000 shall be imposed on the responsible person of the electronic money undertaking who commits an offence referred to in the first paragraph of this Article.

Article 226

(other violations of payment institutions and waived payment institutions )

(1) A fine of EUR 2,500 to EUR 80,000 shall be imposed on a payment institution and waived payment institution ,if:1. it offers loans to users in connection with payment services contrary to the first paragraph of Article 23 of this Act,2. it performs payment services without having been granted an authorisation of the Bank of Slovenia for the provision of these services (Article 28 of this Act),3. it doesn't inform the Bank of Slovenia on facts and circumstances referred to in the first paragraph of Article 34 of this Act,4. it doesn't safeguard the documentation in accordance with the second paragraph of Article 34 of this Act,

5. it doesn't inform the Bank of Slovenia on facts and circumstances in accordance with the fifth paragraph of Article 35 of this Act,6. after the termination of the authorisation for the provision of payment services, it concludes new transactions contrary to the prohibition referred to in the seventh paragraph of Article 35 of this Act,7. it commences to perform payment services in the host country or third country through a branch or agent contrary to the first paragraph of Article 37 of this Act,8. it commences the direct provision of payment services in the host country without informing the Bank of Slovenia (second paragraph of Article 40 of this Act),9. it doesn't inform the Bank of Slovenia in accordance with the first paragraph of Article 38 of this Act or in accordance with the third paragraph of Article 42 of this Act,10. it doesn't establish or maintain a reliable and comprehensive governance system and internal control system (first paragraph of Article 45 of this Act),11. it doesn't provide the minimum own funds(first paragraph of Article 46 of this Act),12. it doesn't report to the Bank of Slovenia in accordance with the second paragraph of Article 57 of this Act or in accordance with the requirements and rules prescribed by the Bank of Slovenia in accordance with Article 58 of this Act,13. it doesn't provide the safeguarding of users' financial funds in accordance with Articles 59 and 60 of this Act,14. it provides the safeguarding of users' financial funds for the expected share of users' financial funds without the authorisation of the Bank of Slovenia (Article 61 of this Act),15. it doesn't inform the Bank of Slovenia on changes in connection with the measures for the safeguarding of users' funds (Article 63 of this Act),16. it keeps business books, draws up accountancy documents, evaluates accountancy items or draws up accountancy reports contrary to the first paragraph of Article 64 of this Act,17. it doesn't submit, to the Bank of Slovenia in due time, the unaudited financial statements or it submits them without separate accountancy information (second paragraph of Article 64 of this Act),18. it doesn't submit, to the Bank of Slovenia in due time, the annual report and auditor's report on the audit of the annual report or submits it without the auditor's opinion on separate accountancy information (third paragraph of Article 64 of this Act),(2) A fine of EUR 400 to EUR 4,000 shall be imposed on a payment institution or waived payment institution that committed the offence referred to in the first paragraph of this Article.(3) A fine of EUR 2,500 to EUR 80,000 shall be imposed on a waived payment institution if it doesn't inform the Bank of Slovenia on facts and circumstances that influence the fulfilment of conditions for the provision of payment services of the execution of money remittances as a waived payment institution (sixth paragraph of Article 67 of this Act).

Article 227

(violations of other persons in the payment institution)

(1) A fine of EUR 800 to EUR 8,000 shall be imposed on the member of management or person who is, in the payment institution, directly responsible for management in connection with payment services, if:1. he doesn't transmit to the Bank of Slovenia reports or information on matters relevant for the exercise of supervision or execution of other jurisdictions and tasks of the Bank of Slovenia (second paragraph of Article 186 of this Act),2. he doesn't act in accordance with the appeal of the Bank of Slovenia (third paragraph of Article 186 of this Act),3. he doesn't transmit, to an authorised person of the Bank of Slovenia, at his/her request, the reports and information on matters relevant for the execution of the review of business (third paragraph of Article 190 of this Act),(2) A fine of EUR 200 to EUR 2,000 shall be imposed on the employee of a payment institution if he commits an offence referred to in the first paragraph of this Article.

Article 228

(violations of the audit company and certified auditor)

(1) A fine of EUR 25,000 to EUR 125,000 shall be imposed on a audit company:1. if it doesn't provide the audit review and opinions on separate accountancy information from the balance sheet and profit and loss statement in connection with the provision of payment services in accordance with the third paragraph of Article 64 of this Act,2. if the certified auditor doesn't immediately inform the Bank of Slovenia on facts or circumstances referred to in the first and second paragraph of Article 65 of this Act, or if he doesn't transmit the information in accordance with the third paragraph of Article 65 of this Act.(2) A fine of EUR 2,500 to EUR 10,000 shall be imposed on the certified auditor who commits an offence referred to in the first paragraph of this Article.

Article 229

(violations in connection with the establishment and operation of payment systems)

(1) A fine of EUR 2,500 to EUR 80,000 shall be imposed on a payment system participants, who:1. perform clearing and/or settlement through the payment system without the authorisation of the Bank of Slovenia for the establishment of a payment system (sixth paragraph of Article 159 of this Act),2. don't harmonise the payment system rules with the requirement for relevant payment systems in accordance with the fourth paragraph of Article 161 of this Act,3. don't inform the Bank of Slovenia on facts and circumstances referred to in the first paragraph of Article 162 of this Act,4. don't report to the Bank of Slovenia on the basis of the fifth paragraph of Article 162 of this Act.(2) A fine of EUR 2,500 to EUR 80,000 shall be imposed on a payment system operator, who:1. doesn't inform the Bank of Slovenia on facts and circumstances referred to in the second paragraph of Article 162 of this Act,2. doesn't report to the Bank of Slovenia in accordance with the requirements and rules issued by the Bank of Slovenia on the basis of the fifth paragraph of Article 162 of this Act,3. performs payment system operation services without the authorisation of the Bank of Slovenia (fifth paragraph of Article 166 of this Act).(3) A fine of EUR 2,500 to EUR 80,000 shall be imposed on a clearing company that:1. provides payment system operation services without having been granted an authorisation of the Bank of Slovenia for the provision of these services (second paragraph of Article 171 of this Act),2. doesn't inform the Bank of Slovenia on facts and circumstances referred to in the first paragraph of Article 172 of this Act,3. doesn't safeguard the documentation in accordance with the second paragraph of Article 172 of this Act,4. doesn't inform the Bank of Slovenia on circumstances referred to in the fifth paragraph of Article 173 of this Act,5. after the termination of the authorisation for the provision of payment services, concludes a new transaction contrary to the prohibition referred to in the seventh paragraph of Article 173 of this Act,6. doesn't provide the minimum own funds in accordance with the first paragraph of Article 174 of this Act,

7. doesn't provide a sound and prudent operation and governance system and internal control system in accordance with Article 175 of this Act,8. keeps business books contrary to the requirement referred to in the first paragraph of Article 175 of this Act,9. doesn't submit, to the Bank of Slovenia in due time, the unaudited financial statements or submits them without separate accountancy information (third paragraph of Article 176 of this Act),10. doesn't submit, to the Bank of Slovenia in due time, the annual report and auditor's report on the audit of the annual report or submits it without the auditor's opinion on separate accountancy information (fourth paragraph of Article 176 of this Act),(4) A fine of EUR 400 to EUR 4,000 shall be imposed on the responsible person of the payment system participant who committed an offence referred to in the first paragraph of this Article, responsible person of the payment system operator who committed an offence referred to in the second paragraph of this Article, or clearing company that committed an offence referred to in the third paragraph of this Article.(5) A fine of EUR 800 to EUR 8,000 shall be imposed on the member of management of the clearing company or person who is, in the clearing company, directly responsible for management in connection with payment system operation services if: 1. he doesn't transmit to the Bank of Slovenia reports or information on matters relevant for the exercise of supervision or execution of other jurisdictions and tasks of the Bank of Slovenia (second paragraph of Article 186 of this Act),2. he doesn't act in accordance with the appeal of the Bank of Slovenia (third paragraph of Article 186 of this Act),3. he doesn't transmit, to an authorised person of the Bank of Slovenia at his/her request, the reports and information on matters relevant for the execution of the review of business (third paragraph of Article 190 of this Act),(6) A fine of EUR 200 to EUR 2,000 shall be imposed on an employee of a clearing company if he commits an offence referred to in the fifth paragraph of this Article.(7) A fine of EUR 25,000 to EUR 125,000 shall be imposed on an audit company if it commits an offence referred to in Article 228 of this Act in connection with the carrying out of the audit review of the clearing company. If the offence referred to in Article 228 of this Act is committed by the certified auditor in connection with the carrying out of the audit review of the clearing company, a fine of EUR 2,500 to EUR 10,000 shall be imposed.

Article 230

(violations of other persons)

(1) A fine of EUR 2,500 to EUR 80,000 shall be imposed on a legal person or proprietor, who:1. performs payment services contrary to the prohibition referred to in Article 18 of this Act,2. performs payment system operation services contrary to the prohibition referred to in the third paragraph of Article 166 of this Act.(2) A fine of EUR 800 to EUR 8,000 shall be imposed on a legal person or proprietor, who:1. doesn't inform the payer prior to the initiation of the payment transaction on the information of the exchange rate and charges of the payee payable by the payer for the currency exchange (Article 96 of this Act),2. doesn't inform the user prior to the initiation of the payment transaction that the user must pay a special charge for the use of a specific payment instrument (first and second paragraph of Article 97 of this Act).(3) A fine of EUR 800 to EUR 8,000 shall be imposed on a person referred to in the first or second paragraph of Article 155 of this Act with his head office in the Republic of Slovenia, who:1. doesn't inform the Bank of Slovenia on the participation or indirect participation in payment systems in accordance with the third paragraph of Article 162 of this Act,

2. doesn't inform the client or other person on payment systems in which it participated (fourth paragraph of Article 162 of this Act).(4) A fine of EUR 200 to EUR 2,000 shall be imposed on the responsible person of a legal person who committed an offence referred to in paragraphs one to three of this Article.(5) A fine of EUR 400 to EUR 4,000 shall be imposed on a natural person who commits an offence referred to in the first or second paragraph of this Article.

Article 231

(liability of the Republic of Slovenia and self-governing local communities)

(1) The Republic of Slovenia and self-governing local communities shall not be liable for an offence committed by the state authority or authority of a self-governing local community under this Act.(2) Notwithstanding the exclusion of liabilities for the offence under the first paragraph of this Article, a responsible person of the state authority or responsible person of a self-governing local community shall be responsible for the offence committed by state authority or authority of a self-governing local community under this Act.

Article 232

(offence body)

The offence body that, in accordance with the Act regulating offences, decides on the offences committed under this Act and imposes sanctions for offences under this Act, shall be the Bank of Slovenia.

Article 233

(decision-making on offences of the Bank of Slovenia)

(1) The offence procedure under this Act shall be conducted and decided by an authorised official person of the Bank of Slovenia who fulfils the conditions under the Act regulating offences and regulations adopted on its basis.(2) The Bank of Slovenia shall, with an internal act regulating the organisation and systematisation of workplaces, determine the conditions and manner for the granting and withdrawal of the authorisation to the authorised official person referred to in the first paragraph of this Article.(3) Notwithstanding Article 212 of this Act, the Act regulating offences shall, under this Act, apply to the offence procedure of the Bank of Slovenia.(4) Fines prescribed by this Act may also be imposed in a quick procedure to a higher amount than the lowest prescribed amount for a fine; however, they may not exceed the highest amounts of fines that are prescribed for an offence under this Act.

CHAPTER 18 TRANSITIONAL AND FINAL PROVISIONS

Article 234

(harmonisation with the requirement of the authorisation for the provision of payment services as a payment institution)

(1) Legal persons with a head office in Republic of Slovenia who before 25 December 2007 commenced the activities of payment institutions referred to in Article 5 of this Act and are not considered as a payment service provider referred to in Article 17 of this Act at the time of the enforcement of this Act, may continue with the provision of these services without

having been granted an authorisation of the Bank of Slovenia for the provision of payment services as a payment institution until 30 April 2011.(2) Legal and natural persons with a head office or permanent residence in the Republic of Slovenia that fulfil the conditions referred to in the second paragraph of Article 67 of this Act and before 25 December 2007 commenced the services of the execution of money remittances referred to in item 6 of the first paragraph of Article 5 of this Act and are not considered as a payment service provider referred to in Article 17 of this Act at the time of the enforcement of this Act, may continue with the provision of these services without having been granted an authorisation of the Bank of Slovenia for the provision of payment services as a payment institution by 30 April 2011.(3) If a person referred to in the first or second paragraph of this Article doesn't obtain the authorisation of the Bank of Slovenia for the provision of payment services as a payment institution or authorisation for the provision of payment services as a waived payment institution by 30 April 2011, and it doesn't stop the provision of payment services by this day, the Bank of Slovenia shall react in accordance with Article 201 of this Act.(4) The transitional period referred to in the first or second paragraph of this Article shall not apply to the implementation of regulations in the area of the prevention of money laundering and financing of terrorism and other regulations for persons referred to in the first or second paragraph of this Article.

Article 235

(harmonisation of financial institutions)

(1) Legal persons referred to in the first paragraph of Article 234 of this Act who have the status of a subsidiary company of the bank and are included in the consolidated supervision of the bank within the meaning of the Act regulating banking (hereinafter referred to as: financial institutions) and before 25 December 2007 commenced any of the payment services referred to in Article 5 of this Act, may notwithstanding the prohibition referred to in Article 18 of this Act, continue with the provision of these services without having been granted an authorisation of the Bank of Slovenia for the provision of payment services as a payment institution.(2) A financial institution must inform the Bank of Slovenia by 25 December 2009 on the circumstances referred to in the first paragraph of this Article and enclose to the notification, the following:1. instrument of constitution,2. description of payment services that were commenced before 25 December 2007 and were performed after the enforcement of this Act on the basis of the first paragraph of this Article without having been granted an authorisation of the Bank of Slovenia for the provision of payment services as a payment institution,3. description of measures for the safeguarding of users' financial funds in accordance with requirements from Articles 59 to 61 of this Act,4. description of the organisational structure with precisely specified, transparent and consistent relations regarding the liabilities in accordance with the requirements referred to in item 1 of the second paragraph of Article 45 of this Act,5. description of the possible use of agents and branches as well as outsourcing contractors of operative functions of payment services and evidence that they satisfy the conditions referred to in Subchapter 4, Chapter 2 of this Act,6. description of possible participation in payment systems,7. indication of persons who are holders of qualifying holdings, scope of qualifying holdings and evidence on the appropriateness of the holders of qualifying holdings and evidence that they satisfy the conditions referred to in the third paragraph of Article 27 of this Act,8. indication of persons who are members of management bodies and persons who will be directly responsible for management in connection with payment services, including evidence

that these persons fulfil the required conditions referred to in the first and second paragraph of Article 26 of this Act,(3) If the Bank of Slovenia determines that a financial institution fulfils the conditions referred to in the first and second paragraph of this Article, it shall enter the financial institution in the register of payment institutions as a payment institution.(4) Provisions of this Act on the decision-making of the Bank of Slovenia on the issue of authorisation for the provision of payment services as a payment institution shall apply mutatis mutandis to the decision-making of the Bank of Slovenia on entry of the financial institution into the register of payment institutions.(5) Notwithstanding the fourth paragraph of this Article, in case the Bank of Slovenia determines that a financial institution fulfils the conditions referred to in the first and second paragraph of this Article, it shall not issue a decision on the entry of the financial institution into the register, but it shall enter the financial institution into the register of payment institutions and inform it about the matter. If the Bank of Slovenia determines that the conditions for the entry of the financial institution into the register of payment institutions are not fulfilled, it shall issue a decision on the refusal of entry into the register of payment institutions.

Article 236

(validity of authorisations for the establishment of payment systems and provision of payment system operation services)

(1) Authorisations for the establishment of a payment system and authorisations for the provision of payment system operation services that were issued in accordance with the Payment Transactions Act (Official Gazette RS, No. 110/06 – official consolidated text, 114/06 – ZUE, 131/06 – ZBan-1, 102/07 and 126/07 – ZFPPIPP, hereinafter referred to as: Payment Transactions Act) and are in force at the time of the enforcement of this Act, shall be considered, on the day this Act enters into force, as authorisations issued under this Act. (2) Payment systems, on which the Bank of Slovenia informed the European Commission in accordance with the fifth paragraph of Article 56 of the Payment Transactions Act, shall be considered, on the day this Act enters into force, as relevant payment systems within the meaning of Article 151 of this Act.(3) Payment system operators who have obtained the authorisation of the Bank of Slovenia for the provision of payment system operation services on the basis of the Payment Transactions Act and regulations issued on its basis must harmonise their business with the provisions of this Act and regulations adopted on its basis at the latest by 1 June 2010.(4) Persons who are, on the day this Act enters into force, providing payment system operation services referred to in item 1 of the first paragraph of Article 166 of this Act, and payment system participants who were not obliged before the day this Act enters into force to obtain an authorisation under the Payment Transactions Act, must harmonise their business with the provisions of this Act and obtain authorisation of the Bank of Slovenia for the provision of payment system operation services or authorisation for the establishment of a payment system by 30 April 2011.

Article 237

(execution time of a payment transaction)

(1) Notwithstanding the second paragraph of Article 111 of this Act, the payer and his payment service provider may agree that in case of a cross-border payment transaction in euro executed by 1 January 2012, the amount of the payment transaction shall be authorised on the account of the payee's payment service provider within the time limit that is not longer than three business days after the receipt of the payment order in accordance with Article 104 of this Act.

(2) In case a user initiates a payment transaction referred to in the first paragraph of this Article on paper, the payer and his payment service provider may agree on a time limit that is not longer than four business days after the receipt of the payment order in accordance with Article 104 of this Act.(3) Notwithstanding the first paragraph of Article 111 of this Act, the payer's payment service provider must ensure that, in case of a domestic transaction executed by 31 December 2011 and initiated by the payer through a special money order, the amount of the payment transaction shall be authorised on the account of the payee's payment service provider at the latest by the end of the next business day after the day when the payer's payment service provider received the payment order in accordance with Article 104 of this Act. The special money order referred to in the first sentence of this paragraph shall mean a credit payment order issued in standardised paper-based form by the payee to the payer for the purpose of the payment execution of the payer's liabilities and enables automated processing of a payment order in accordance with the agreement between payment service providers that is in force on the day this Act enters into force.

Article 238

(register of transaction accounts)

Notwithstanding the second paragraph of Article 143 of this Act, the register of transactionaccounts shall be, until 1 July 2010, managed by the Bank of Slovenia. Until 1 July 2010, Chapter 10 of this Act and implementing regulations issued on the basis of Articles 28 and 29 of the Payment Transactions Act, if not contrary to the provisions of Chapter 10 of this Act, shall apply mutatis mutandis for the obligations and powers of the Bank of Slovenia in connection with the management of the register of transaction accounts. In the mutatis mutandis application of the provisions of Chapter 10 of this Act, the words »the Bank of Slovenia« shall apply instead of the word »Agency«. From 1 July 2010, the obligations and powers in connection with the management of the register of transaction accounts shall be taken by the Agency.

Article 239

(validity of contractual relations)

(1) Contractual relations in connection with the provision of payment services concluded before the enforcement of this Act shall remain in force and will be implemented after 1 November 2009 under the terms stipulated in this Act.(2) The provisions of this Act that partly or entirely stipulate the contents of the contract referred to in the first paragraph of this Article shall be an integral part of these contracts, shall supplement them or act in place of the contractual provisions that are not compliant with them.

Article 240

(issuing of regulations)

(1) The Bank of Slovenia shall issue the regulations on the basis of this Act by 31 October 2009 other than the regulation referred to in the third paragraph of Article 139, which will be issued by 1 January 2010.(2) The minister responsible for finance shall issue the regulation referred to in Article 141 of this Act by 1 January 2010. Until the issue of the regulation referred to in the first sentence, the regulation issued on the basis of Article 19 of the Payment Transactions Act shall apply mutatis mutandis in connection with tax enforcement.

(3) The Agency shall issue the regulation referred to in the third paragraph of Article 219 of this Act by 1 January 2010 and the regulation referred to in the sixth paragraph of Article 144 of this Act by 1 July 2010.

Article 241

(repeal of regulations)

(1) The following regulations that will be used until 31 October 2009 shall be repealed on the day this Act enters into force:1. Payment Transactions Act (Official Gazette RS No. 30/02, 75/02 – ZIZ-A, 15/03, 45/03 –official consolidated text, 2/04 – ZPNNVSM, 37/04, 105/04 – official consolidated text, 100/05 – decision of the Constitutional Court: U-I-298/04-26, 39/06, 110/06 – official consolidated text, 131/06 – ZBan-1, 102/07, 126/07 – ZFPPIPP), 2. Decision on the management of the giro clearing system (Official Gazette RS No. 65/02, 42/05, 105/06), 3. Decision on the settlements between payment system operators (Official Gazette RS No. 7/03, 25/04, 111/06, 41/07), 4. Rules on the manner of payment transaction providers in connection with the implementation of decisions on forcible collection and decisions for the insurance of the fulfilment of tax liability (Official Gazette RS No. 91/02), 5. Rules on payment with cash and cashbox maximum (Official Gazette RS No. 103/02 and 141/06), 6. Instructions on the realisation of bills of exchange at banks (Official Gazette RS No. 35/03), 7. Decision on standards for inter-bank payment transactions in the state (Official Gazette RS No. 72/03, 122/03, 42/05, 105/06, 93/07), 8. Instructions for the reporting of payment system operators in connection with the execution of settlements between the payment transaction providers (Official Gazette RS No. 11/04), 9. Decision on the consent to the agreement on the manner of business with payment instruments: special invoice, special money order, standing order, direct debit and direct granting, and on the uniform use of these payment instruments (Official Gazette RS No. 27/04), 10. Instructions on the register of transaction accounts (Official Gazette RS No. 105/06, 91/08), 11. Decision on the establishment and keeping of the register of transaction accounts and opening and keeping of transaction accounts with special status (Official Gazette RS No. 78/06), 12. Decision on the criteria and conditions for granting of the authorisation for the provision of payment transactions services (Official Gazette RS No. 41/07), 13. Decision on the uniform and comprehensive informing of users of payment transaction services on rates for the payment transaction services (Official Gazette RS No. 17/07, 18/07 – corr.), 14. Instructions on the transmission of the application for the obtainment of personal data from the register of transaction accounts in electronic form (Official Gazette RS No. 122/06), 15. Instructions on the contents, manner and time limits in which payment transactions providers provide information for statistical and other regulatory purposes (Official Gazette RS No. 8/09), 16. Instructions on the manner, procedures and participants for the implementation of statistical research on the receipts on accounts and expenditures from the accounts of business subjects (Official Gazette RS No. 8/09), 17. Decision on the provision of payment transactions through the transaction account of natural persons (Official Gazette RS No. 65/02).

(2) Notwithstanding the first paragraph of this Article, Articles 70 to 74 of the Payment Transactions Act and regulations issued on their basis shall remain in force, other than the first sentence of the fifth paragraph of Article 71 and regulations issued on its basis.(3) Notwithstanding the first paragraph of this Article, Article 30 of the Payment Transactions Act and the regulation issued on its basis shall be used until the issue of a new regulation regulating the business with cash or at the latest by 1 January 2010.(4) Notwithstanding the first paragraph of this Article, provisions issued on the basis of Article 68 of the Payment Transactions Act shall apply mutatis mutandis in connection with the reporting on unsettled liabilities and status and turnover on holders' transaction accounts that are entered in the Business Register of Slovenia until the issue of the regulation referred to in the third paragraph of Article 240 of this Act or at the latest by 1 January 2010.

Article 242

(entry into force and applicability of the Act)

(1) This Act shall come into force on the fifteenth day following its publication in the Official Gazette of the Republic of Slovenia and shall begin to apply on 1 November 2009.(2) Notwithstanding the first paragraph of this Article, Article 240 shall apply on the day this Act enters into force.

Documents

PAYMENT SERVICES AND SYSTEMS ACT (ZPlaSS) · 2010. 9. 13. · 2. Directive 98/26/EC of the European Parliament and of the Council of 19 May 1998 on settlement finality in payment