Official Gazette of the Republoc of Macedonia no. 77/2003 LAW on fast money transfer I. GENERAL PROVISIONS Article 1 This Law shall regulate the manner and the terms and conditions on fast money transfer in the Republic of Macedonia. The provisions of this Law shall not apply to the banks that have obtained from the National Bank of the Republic of Macedonia (hereinafter: National Bank) special approval for preforming payment operations with abroad. Article 2 Certain terms used in this Law shall have the following meaning: 1. "Fast money transfer" shall mean electronic transfer of money by a physical person from one country to another physical person in another country within 1 hour from the payment, irrespective of whether the transfer is from or to the Republic of Macedonia, whereby the inflow and outflow is performed via a bank; 2. "Provider of fast money transfer" shall be a company registered in the Republic of Macedonia that has obtained from the National Bank a licence to preform fast money transfer in accordance with this Law; 3. "Subagent" shall be a company registered in the Republic of Macedonia with which the provider of fast money transfer has concluded contract on conducting the fast money transfer and 4. "Global electronic money transfer system" shall be a legal entity that, on the basis of the regulations in the country in which it is registered, conducts electronic money transfer and is functional in at least 100 countries. Article 3 Providers of fast money transfer can conduct fast money transfer in the Republic of Macedonia on their behalf and for their account, as well as the subagents on their behalf, but for the account of the provider of fast money transfer. Article 4 The provider of fast money transfer shall be responsible for his/her and for the obligations of the subagents on the basis of conducted fast money transfer. Article 5 Legal entities not having obtained licence from the National Bank of the Republic of Macedonia to conduct fast money transfer or not having concluded contract with the provider of fast money transfer for conducting the fast money transfer as subagent and physical persons that are not employeed at the providers of fast money transfer or at the subagents shall not be allowed to conduct the fast money transfer.
2 II. TERMS AND CONDITIONTS FOR CONDUCTING FAST MONEY TRANSFER 1. Providers of fast money transfer Article 6 A company, in order to obtain licence from the Governor of the National Bank to conduct fast money transfer, shall mandatory fulfill the following terms and conditions: 1. Be registered in the company register for conducting asuxilliary acitivites in financial intermediation; 2. To have available appropriate business premisses, technical equipment and information system; 3. To provide appropriate protection and securing of the funds, property and employees; 4. No bankruptcy or liquidation procedure to be intitiated; 5. No security measure - prohibition to perform profession, activity or duty to be declared against the responsible person and the employees that will conduct fast money transfer, as well as no legal court verdict to be decleared against criminal act in the area of finance and 6. To have authorization in a form of contract from authorized global electronic money transfer system. Article 7 The companies shall submit written request to the National Bank for the purpose of obtaining licence for conducting fast money transfer. The following shall be mandatory attached to the request: 1. Documents, i.e. information confirming the fulfillment of the terms and conditions referred to in Article 6 of this Law; 2. Acts on the manner of operations and program on money laundering prevention; 3. Proof of acquired registration and tax number; 4. Head office of the company and address of the place where it will conduct fast money transfer; 5. Certification by a competent institution that there are no outstanding liabilities on the basis of public duties; 6. Regarding the companies operating longer than 6 months, a positive opinion on the solvency by the Central Registry; 7. Data on the identity (place and address of birth, place and address of living, personal registration number of the citizen and ID number), education and experience of the responsible person and of the employees in the company that will conduct fast money transfer; 8. Certification of the stay and working licence in the Republic of Macedonia for foreign physical persons that will be responsible persons at the providers of fast money transfer or that will conduct fast money transfer; 9. Audit reports for the last two years on the authorized global electronic money transfer system, prepared by an internationally recognized audit company and 10. Proof that the global electronic money transfer system with which it has concluded a contract is a legal entity that performs electronic money transfer pursuant to the regulations of the country in which it is registered, and is functional in at least 100 countries.
3 Article 8 The National Bank shall, with a decision, more closely stipulate the terms and conditions referred to in Article 6 items 2 and 3 of this Law, as well as the procedures referred to in Article 7 item 2 of this Law. The National Bank shall, with a decision, stipulate the type and the manner of submission of the documentation, the information and the data referred to in Article 7 of this Law, as well as the procedure for their evaluation and control. Article 9 The request referred to in Article 7 of this Law not containing the stipulated documentation shall be rejected with a decision by the Governor of the National Bank. The Governor of the National Bank shall reach a decision for issuance of a licence for conducting fast money transfer, or for refusal of the request, upon the request referred to in Article 7 of this Law, within 30 days from the day the complete request is submitted to the National Bank. The Governor of the National Bank shall reject the request referred to in Article 7 of this Law should: 1) the request contain incorrect or false data; 2) the company fail to meet the terms and conditions referred to in Article 6 of this Law; 3) the operating procedures be contrary to the decision referred to in Article 8 paragraph 1 of this Law and 4) during the procedure of assessment and control of the documentation, the information and the data, be determined that they are contrary to the decision referred to in Article 8 paragraph 2 of this Law. Complaint can be lodged against the decision referred to in paragraphs 1 and 2 within 8 days from the date the decision is received. The Council of the National Bank shall decide upon the complaint, without the participation of the Governor and the Vice Governors of the National Bank. Article 10 The licence for conducting fast money transfer referred to in Article 9 paragraph 2 of this Law shall manadtory contain the following: 1. title, head office and address of the provider of fast money transfer; 2. address of the premises provider of fast money transfer; 3. data on the responsible person with the provider of fast money transfer and 4. other data stipulated by the National Bank. Article 11 The provider of fast money transfer shall be obliged to inform the National Bank in writing on each change in the documentation, the information and the data referred to in Article 7 items 1, 2, 3, 4, 5, 6, 7, 8 and 10 of this Law on the basis of which the licence for conducting fast money transfer is issued.
4 2. Subagents Article 12 A company, in order to conclude contract with the provider of fast money transfer, for the purpose of conducting fast money transfer as a subagent, shall mandatory: 1. meet the terms and conditions referred to in Article 6 items 1 to 5 of this Law; 2. have act on the manner of operations and program on money laundering prevention; 3. have proofe that it has no outstanding liabilities on the basis of public duties and 4. have certification of the stay and working licence in the Republic of Macedonia for foreign physical persons that will be responsible persons or that will conduct fast money transfer. Article 13 The provider of fast money transfer shall not be allowed to conclude contract with a company that does not meet the terms and conditions and does not have the documents referred to in Article 12 of this Law to conduct the service as a subagent. Article 14 The data referred to in Article 7 items 3, 4 and 7 of this Law shall be mandatory listed in the contract concluded between the provider of fast money transfer and the subagent. The subagent shall be obliged to inform the provider of fast money transfer on each change of the terms and conditions referred to in Article 12 items 1, 2 and 4 of this Law, as well as the data referred to in paragraph 1 of this Law. The provider of fast money transfer shall be obliged to treminate the contract with the subagent who has stopped meeting the terms and conditions referred to in Article 12 of this Law or has made changes with respect to the mandatory data contained in the contract. 3. Register of the Fast Money Transfer Provider Article 15 The National Bank shall keep Registry of fast money transfer providers. The Registry of fast money transfer providers shall also contain data on the subagents with which the fast money transfer providers have concluded contracts. The Governor of the National Bank of the Republic of Macedonia shall stipulate the forma, the contents and the manner of keeping the Registry of fast money transfer providers. III. TERMS AND CONDITIONTS FOR CONDUCTING FAST MONEY TRANSFER Article 16 The fast money transfer providers shall conduct the money transfer exclusively in the premises indicated in the licence referred to in Article 10 item 2 of this Law, while the subagents shall conduct it exclusively in the premises indicated in the contract referred to in Article 14 paragraph 1 of this Law.
5 Article 17 Fast money transfer, pursuant to the provisions of this Law can be conducted for domestic and foreign physical persons. Article 18 The fast money transfer provider shall be obliged to execute both the inflow and outflow of funds for the fast money transfer via a special account opened with a domestic bank authorized for payment operations with abroad. When opening the account referred to in paragraph 1 of this Article, the fast money transfer provider shall be obliged to present to the bank, as well as submit a copy of the licence for conducting fast money transfer, issued by the National Bank. Article 19 The money transfer shall mandatory be executed in foreign currency cash, subject to sale and purchase on the foreign exchange market in the Republic of Macedonia. Article 20 Payments on the basis of fast money transfer from the Republic of Macedonia shall not exceed EUR 2,500 monthly per physical person, while the payments on the basis of fast money transfer in the Republic of Macedonia shall not exceed EUR 5,000 daily per physical person. Fast money transfer provider and the subagents shall be obliged to adhere to the limits referred to in paragraph 1 of this Article. Article 21 Written document - certification shall be issued for each payment in and out of foreign currency cash, pursuant to the standards of the global electronic money transfer system. The National Bank shall give consent on the form and the contents of the certification referred to in paragraph 1 of this Article. Fast money transfer provider and the subagent shall be obliged to keep single records for each transaction of fast money transfer. The National Bank shall stipulate the manner of keeping the records referred to in paragraph 3 of this Article. Article 22 Fast money transfer provider and the subagents shall charge fee for the service of transfer of foreign currency cash exclusively in Denars, upon determined tariff. The fast money transfer provider and the subagents shall be obliged to place the tariff referred to in paragraph 1 of this Article and the limits referred to in Article 20 paragraph 1 of this Law on a prominent place in the premises where the fast money transfer is conducted. IV. NOTIFICATION Article 23
6 Fast money transfer provider shall be obliged to inform the National Bank on the following: 1. conclusion or termination of the contract for conducting fast money transfer with separate subagents; 2. all changes of the data at the subagent, referred to in Article 12 items 1, 2 and 4 and Article 14 paragraph 1 of this Law and 3. the title and the head office of the bank at which the account is opened, referred to in Article 18 paragraph 1 of this Law. Fast money transfer provider shall be obliged to submit the notification to the National Bank within 5 business days from the date the activity referred to in paragraph 1 of this Article occurred. Copy of the contract shall be mandatory attached to the notification referred to in paragraph 1 item 1 of this Law. Article 24 Fast money transfer provider shall be obliged to submit to the National Bank monthly reports on separate transactions of money transfer within 5 business days following the expiry of the reporting period, also including the data on the money transfer conducted via the subagents. The Governor of the National Bank shall stipulate the type and the manner of submission and the contents of the reports referred to in paragraph 1 of this Article. Article 25 Regarding the issuance and revoking of the licence for conducting fast money transfer, as well as the concluded contracts with the subagents, The National Bank shall inform the Ministry of Finance in writing within 5 business days from the date of issuance and revoking of the licence, i.e. from the date of receipt of the notification for the concluded contracts with the subagents. Notification referred to in paragraph 1 of this Article shall contain: 1. title, head office and address of the provider of fast money transfer; 2. data on the responsible person with the provider of fast money transfer; 3. date of the issuance, i.e. abolishment of the licence of the provider of fast money transfer; 4. reasons for abolishing the licence of the provider of fast money transfer; 5. title, head office and address of the subagent and address of the premises in which the fast money transfer will be carried out; 6. data on the responsible person with the subagent; 7. date on concluding, i.e. terminating the contract with the subagent and 8. reasons for termination of the contract with the subagent. V. ACCOUNTING AND AUDITING Article 26 The provider of fast money transfer and the subagents shall be obliged to keep their business books in orderly and updated manner. The business books and the financial reports on the fast money transfer shall be kept separately of the other activities, and shall be compiled in accordance with the regulations on accounting and accounting standards.
7 The provider of fast money transfer shall be obliged, upon obtaining the licence, to designate auditing company, informing the National Bank thereof. The financial reports and the business books shall be checked and assessed by a chartered auditor, who shall prepare an audit report in accordance with the auditing regulations. VI. PROTECTION AGAINST MONEY LAUNDERING Article 27 The provider of fast money transfer and the subagents shall be obliged to prepare and implement program on money laundering prevention and to act pursuant to the regulations governing the money laundering prevention. V. SURVEILLANCE AND MEASURES Article 28 The National Bank shall perform surveillance over the implementation of this Law and the regulations adopted on the basis thereof, as well as over the operations of the provider of fast money transfer and the subagents. Article 29 The National Bank shall perform direct and indirect surveillance over the operations of the provider of fast money transfer and the subagents recorded in the Register of Providers of the Service of Fast Money Transfer kept by the National Bank. Article 30 The National Bank shall perform direct surveillance over the operations of the provider of fast money transfer, as well as over the subagents on the basis of the received reports pursuant to the provisions of Article 24of this Law. Article 31 During indirect surveillance, the providers of fast money transfer and the subagents shall be obliged to enable the authorized person to smoothly carry out the surveillance, the insight in the operations, and, at its request, to make available all necessary documentation, information and data. Article 32 The authorized person with the National Bank shall compile agreed minutes for the undertaken activities in the surveillance procedure. The providers of fast money transfer and the subagents shall be entitled to lodge a complaint to the agreed minutes for the carried out surveillance to the National Bank within 8 days from the date of receipt.
8 Article 33 The National Bank can undertake the following measures against the providers of fast money transfer, as well as against, for which it shall determine that they have not operated in compliance with the provisions of this Law and the regulations adopted thereof: 1. submit written warning or written recommendation; 2. issue written order and determine a deadline for harmonization of the operations and the acts with the provisions of this Law and the regulations of the National Bank governing the carrying out of fast money transfer; 3. impose termination of the agreement with the subagent and 4. repeal the licence for provision of fast money transfer. Article 34 A complaint can be lodged against the decision by the Governor of the National Bank stipulating the measures in Article 33, items 2, 3 and 4 of this Law to the National Bank Council within 8 days from the day of receiving the decision. The Council of the National Bank shall decided upon the complaint, with out participation of the Governor and the Vice Governor of the National Bank. Article 35 Inspection surveillance over legal entities not having licence to carry out fast money transfer from the National Bank or not having agreement to carry out fast money transfer as subagent, and fast money transfer providers, subagents and physical persons carrying out fast money transfer outside the premises referred to in Article 16 of this Law, The Ministry of Finance - State Foreign Exchange Inspectorate shall perform The State Foreign Exchange Inspectorate shall reach decision for prohibition to perform the activity against the legal entities referred to in paragraph 1 of this Article, and shall require deletion from the Registry in which they are registered. A complaint can be lodged against the decision referred to in paragraph 2 of this Article to the Ministry of Finance within 8 days from the day of receiving the decision. The complaint referred to in paragraph 3 of this Article shall not defer the effectiveness of the decision. Should the State Foreign Exchange Inspectorate be aware or should during the surveillance determine that the fast money transfer providers, subagents and physical persons carry out fast money transfer outside the premises referred to in Article 16 of this Law, it shall be obliged to inform the National Bank thereof. Should the National Bank be aware that certain legal entities or physical persons are not registered in the Registry referred to in Article 15 of this Law carry out the fast money transfer, it shall be obliged to inform the Ministry of Finance - State Foreign Exchange Inspectorate as competent surveillance body.
9 VI. PENALTY PROVISIONS Criminal deeds Article 36 The responsible person with the legal entity and the physical person referred to in Article 5 of this Law for the carried out fast money transfer shall be sentenced to one to three years of imprisonment. When determining the sentence referred to in paragraph 1 of this Law, the level of damage caused by the activities and the number of damaged entities shall be of especial significant. Offences Article 37 Provider of fast money transfer, having obtained licence from the Governor of the National Bank shall be fined Denar 250,000 to Denar 300,000 if: 1) it fails to inform the National Bank on each change in the documents, i.e. the information and the data referred to in Article 11 of this Law; 2) it concludes agreement with the subagent that does not meet the requirements referred to in Article 12 of this Law (Article 13); 3) it fails to indicate, in the contract with the subagent, the data referred to in Article 14 paragraph 1 of this Law; 4) it fails to terminate the agreement with the subagent that has stopped meeting the requirements referred to in Article 14 paragraph 3; 5) it carries out fast money transfer contrary to the manner and the terms and conditions for carrying out fast money transfer (Articles 16, 17, 18 paragraphs 1, 19, 20, 21 and 22); 6) it fails to inform or informs the National Bank non-timely and fails to attach agreement (Article 23); 7) it fails to submit monthly reports to the National Bank (Article 24); 8) it fails to keep accounting and audit pursuant to this Law (Article 26); and 9) it fails to prepare and to implement program for money laundering prevention, and acts contrary to the regulations governing the money laundering prevention (Article 27). The responsible person with the provider of fast money transfer shall be fined Denar 40.000 to Denar 50.000 for offence referred to in Article 1 of this Law. Article 38 Subagent shall be fined Denar 250,000 to Denar 300,000 for an offence if: 1) it fails to inform the provider of fast money transfer for each changes of the terms and conditions referred to in Article 14 2 of this Law; 2) it carries out fast money transfer contrary to the manner and the terms and conditions for carrying out fast money transfer (Articles 16, 17, 18, 19, 20, 21 and 22); 3) it fails to keep accounting and audit pursuant to this Law (Article 26) and
10 4) it fails to prepare and to implement program for money laundering prevention, and acts contrary to the regulations governing the money laundering prevention (Article 27). The responsible person with the subagent shall be fined Denar 40.000 to Denar 50.000 for offence referred to in Article 1 of this Law. VII. TRANSITIONAL AND FINAL PROVISIONS Article 39 The National Bank shall adopt the bylaws envisaged by this Law within 60 days from the date this Law enters into force. Article 40 This Law shall enter into force on the eight day it is published in the "Official Gazette of the Republic of Macedonia".