Outsourcing of activities

(1) An operator or a payment service provider shall not outsource an aspect of the operation of its system or the provision of its payment service without prior authorisation of the Central Bank, and shall provide the Central Bank with all relevant information in relation to the proposed outsourcing in a request for authorisation. (2) The Central Bank may, upon receipt of the request and information required under sub-section (1), issue authorisation for the outsourcing of an operational function that is not an important operational function that is being outsourced in a manner that, impairs– (a) the quality of the operator’s or payment services provider’s internal control; or (b) the ability of the Central Bank to monitor the operator’s or payment service provider’s compliance with all obligations prescribed under this Act. (3) The Central Bank shall ensure that when an operator or payment services provider outsources an important aspect of its operation or payment service, it complies with the following (a) the outsourcing shall not result in the delegation by senior management of its responsibility; 32 (b) the relationship and obligations of the issuer towards the consumers of any relevant payment instrument shall not be altered; (c) the conditions with which the operator or payment services provider is to comply in order to be licensed and remain so in accordance with this Act shall not be undermined; and (d) none of the other conditions subject to which the licence was granted shall be removed or modified. (4) For the purposes of sub-sections (2) and (3), an aspect of an operation or payment service shall be regarded as important if a defect or failure in its performance would materially impair the continuing compliance of an operator or payment services provider with the requirements of its licence, its financial performance or the soundness or the continuity of its services.