Interpretation

In this Act“account” means any account maintained with a payment service provider who holds accounts in accordance with the laws of Belize; “affiliate” has the meaning assigned to it in section 2 of the Domestic Banks and Financial Institutions Act; “bank” has the meaning assigned to it in section 2 of the Domestic Banks and Financial Institutions Act; CAP. 263. “Central Bank” means the Central Bank of Belize established under section 4 of the Central Bank of Belize Act; CAP. 262. “central counter-party” means an entity that is the buyer to every seller and the seller to every buyer in a settlement system; “central securities depository” means an entity which enables– (a) securities to be immobilized or dematerialized; 8 (b) securities transactions to be processed by book-entry; (c) custodial and asset services to be provided; and (d) securities to be held either as an electronic record or in physical form; “clearing” means the process of transmitting, reconciling or confirming funds or securities transfer instructions prior to settlement and includes the netting of instructions and the establishment of final positions for settlement; “clearing house” means an entity that provides clearing or settlement services for a system and includes the Central Bank; “clearing system” means a set of procedures whereby participants present and exchange information relating to the transfer of funds or securities to other participants through a centralized system or at a single location and includes mechanisms for the calculation of participants’ positions on a bilateral or multilateral basis with a view to facilitating the settlement of their obligations; “close-out netting” means a netting arrangement under which, following the occurrence of certain events specified by the parties to the arrangement, all or any of the transactions referred to in the netting arrangement may be terminated, and where so terminated the termination value becomes due and payable; “Council” means the National Payment System Council established under section 6; “counter party” means the opposite party to a financial transaction such as a securities trade or swap agreement; 9 “credit card” means a card that authorizes the person named on it to charge goods or services to the account of an account holder on a credit basis subject to repayment over a period of time; “credit risk” means the risk that a counter party to a financial transaction will not settle that party’s obligation for full value either when due or at any time thereafter; “credit transfer” means the series of transfers, beginning with the payer’s payment order, made for the purpose of making payment to the payee and includes a payment order issued by the payer’s payment services provider, or an intermediary intended to carry out the payer’s payment order; CAP. 314. “credit union” has the meaning assigned to it in section 2 of the Credit Unions Act; “debit card” means a card or other instrument, by which money is automatically deducted from an account at a deposit-taking institution to pay for goods or services purchased; “debit transfer” means the series of transfers, initiated by a payee, on the basis of a payer’s consent given to the payee, to the payee’s payment service provider or to the payer’s own payment services provider and includes a payment order issued by the payee’s payment service provider, or an intermediary intended to carry out the payee’s order; “dematerialized” means the elimination of physical certificates or documents of title which represent ownership of securities so that securities exist only as accounting records; “direct participant” means a participant in a system who is responsible for the settlement of its own payments, those of its consumers and those of other participants who are not entitled to settle through the system on their own behalf; “electronic funds transfer” means a transfer of funds which is initiated by a person, either totally or partially, so as to instruct, 10 authorise, or order a payment service provider to debit or credit an account through an electronic terminal, telephonic instrument or other automated device, excluding the sale of postal money orders, and including– (a) point-of-sale transfers; (b) automated teller machine transactions; (c) transfers initiated by telephonic instruments, including mobile phones; (d) transactions through television, the Internet and other communication channels; and (e) credit card and debit card transfers; “electronic money” means monetary value represented by a claim on the issuer, which is– (a) stored on a payment device such as a chip, prepaid card, mobile phone or on a computer (b) issued on receipt of funds of an amount not less in value than the monetary value issued; and (c) accepted as a means of payment by persons other than the issuer, but the funds referred to in paragraph (b) shall not be treated as a deposit under this or another enactment; CAP. 263. “financial institution” has the meaning assigned to it in section 2 of the Domestic Banks and Financial Institutions Act; 11 “fit and proper person” has the meaning assigned to it in section 5 of the Domestic Banks and Financial Institutions Act; CAP. 263. “gross settlement” means the settlement of funds or securities transfer instructions that occur individually on an instruction by instruction basis; “international remittance service” means a remittance service that includes, in whole or part, the sending from or receiving at or by a location or person within Belize of cash, cheques or other monetary instruments to or from a location or person outside of Belize; “liquidity risk” means the risk that a participant in a settlement system will not settle an obligation for full value when due, even if the participant is not insolvent and may be able to settle the obligation at an unspecified time thereafter; “multilateral netting” means an arrangement among three or more parties to net their obligations; “National Payment System” includes all the institutions, infrastructure, processes, mechanisms; rules, regulations and procedures in Belize, whether wholly or partially, that are related to systems, operators, payment service providers, payment services, participants, other users of systems and users of payment services; “net settlement” means a settlement procedure in which final settlement of transfer instructions occurs on a net basis at one or more discrete and pre-specified times during the processing period; “net termination value” means the net amount obtained after setting off or otherwise netting the settlement obligations between the parties in accordance with settlement rules issued by the Central Bank or a netting arrangement entered into between the parties; 12 “netting” means the determination of the net payment obligations or the determination of the net termination value of settlement obligations between two or more participants within “netting arrangement” means an arrangement in writing to convert several claims or obligations into one net claim or one net obligation and includes bilateral netting, multilateral netting, netting by novation, close-out netting, payments netting or a combination of any of these; “netting by novation” means a netting arrangement between the parties to a series of transactions where an account of amounts due is kept and the rights and obligations of the parties in respect of the account are continuously extinguished and replaced by a new single amount payable by one party to the other; CAP. 263. “officer” has the meaning assigned to it in section 2 of the Domestic Banks and Financial Institutions Act; “operator” means the Central Bank or any entity licensed by the Central Bank to operate a system; “participant”, in relation to a system, means a party who is recognized in the rules of a system as eligible to exchange, clear and settle through the system with other participants either as a direct participant or through the services of a direct participant; “payment card” means a card, coupon book, or other device, including a code or any other means of access to an account, that may be used to obtain money or to make payment, and includes a debit, credit and stored-value card; “payment instrument” means an instrument, whether tangible or intangible, that enables a person to obtain money, goods or services or to otherwise make payment or transfer money and includes, but is not limited to, a cheque, a fund transfer initiated by any paper or paperless device such as automated teller 13 machines, point of sale, internet, telephone, mobile and payment cards, including those involving storage of electronic money; “payment service” means a service which enables cash deposits and withdrawals, execution of a payment, the issue or acquisition of a payment instrument, the provision of a remittance service, and any other service functional to the transfer of money and includes the issue of electronic money and an electronic funds transfer but excludes the provision of a solely online or telecommunication service or network access; “payment service agent” means a person who is authorised to provide a payment service as an agent on behalf of a payment service provider and who is authorised under section 24; “payment service provider” means a person that is licensed to “payment system” means any system that consists of a set of instruments, banking procedures and, typically, interbank funds transfer systems that ensure the circulation of money; “Register” means the register required under section 24; “remittance service” means a domestic or international service, excluding the sale of a postal money order and an electronic funds transfer, where cash, cheques, other monetary instruments are sent from one location and a corresponding sum in cash or other monetary instruments is received by a designated recipient in another location by means of a communication, a message, transfer or through a clearing system in which the remittance service provider is a participant; “securities” means negotiable or non-negotiable financing or investment instruments that denote ownership, a right or other interest and include, but are not limited to bonds, debentures, notes, options, shares and warrants; 14 “settlement” means the act of discharging obligations by transferring funds or securities between two or more parties; “settlement account” means an account at the Central Bank, a settlement agent or central counter-party used to hold funds and securities and to settle transactions between participants in a “settlement agent” means a company providing accounts for the participants in a system to hold funds and to settle transactions between participants in the system; “settlement risk” means the risk that a party will default on one or more settlement obligation to the opposite party or to a settlement agent; “settlement rules” means the rules, that provide the basis upon which payment obligations are calculated, netted or settled and includes rules for the taking of action in the event that a participant is unable or likely to become unable to meet its obligations to a payment system, clearing house, central counter-party or other participants and includes settlement of obligations from securities; “settlement system” means a system established and operated by the Central Bank for the discharge of payment obligations as well as of settlement of obligations in relation to securities or another system which is approved by the Central Bank for this purpose; “system” includes a payment system, clearing system or settlement system but excludes– (a) a clearing house recognized under any other law; (b) an in-house system operated by a person solely for his own administrative purposes that does not transfer, clear or settle funds for third parties; or (c) any other system or arrangement as may be prescribed by law; and “systemic risk” means the risk that the failure of one participant in a system, or in financial markets, to meet its required obligations will cause other participants or financial institutions to be unable to meet their obligations, including settlement obligations in a system, when due and that this may cause significant liquidity or credit problems and may threaten the stability of a financial market.