The Saeima has adopted and the President promulgated the following laws: the law on payment services to make payment Services Act (Latvian journal 2010, nr. 43) the following amendments: 1. Put the name of the law by the following: "payments and electronic money Services Act".
2. in article 1, paragraph 2: to make the "a" section as follows: "(a)) company that received a license for payment institutions ' activity;
Add to article 2.1, 2.2, 2.3, 2.4 and 2.5 of paragraph by the following: "21) an electronic money institution: (a)), which received the company license issuance of electronic money, b) a legal person under this law, the provisions of article 5.1 is not required to be licensed to issue electronic money;
22) electronic money electronic device (smart card or computer memory) stores monetary value: (a) the form of the claim against) the issuer, (b)), you receive the money issued from the holder of the electronic money to make payments, c) can be used as a means of payment and the adopted person or entity other than the issuer of electronic money;
23) in circulation, the average amount of electronic money from the issuance of electronic money of the electronic money institution financial liabilities the average value, which is calculated by adding the amount of electronic money every calendar day at the end of the preceding six calendar months and dividing that amount by six months the number of days in the calendar. Outstanding electronic money in the average size of each calendar on the first day of the month and apply this calendar month;
24) electronic money holder: person or entity that receives the electronic money issuer of electronic money or its representative;
25) authority, payment authority, and an electronic money institution, other than this Act, the terms used in the "authority in a Member State responsible for payment institutions, payment service termination, liquidation, insolvency, as well as credit and other financial institutions accounting test procedure" and "financial institution", as well as the words "other authority"; ";
Replace paragraph 21 "e" in the word "Commission" with the words "financial and capital market Commission (hereinafter the Commission)";
Express 22 the following: "22) equity: payment institutions and electronic money institutions audited financial statements reflect capital, reserves and liabilities elements that are freely available to the payment institution and of the electronic money institution with operational risks associated, but not yet identified potential losses;".
3. in article 2: make the first paragraph by the following: "(1) this law determines the payment service provider and the payment service user, the issuer of electronic money and electronic money holder's rights, duties and responsibilities, requirements for the provision of payment services, electronic money issuance, distribution and redemption, as well as regulate the payment institutions and electronic money institutions ' legal status, activity and responsibility."
Express 1 and the second subparagraph of paragraph 2 as follows: "1) credit institutions;
2) an electronic money institution; "
Add to article 2.1 part as follows: "(21) electronic money can be issued: 1) the credit institution;
2) an electronic money institution;
3) postal operator, which according to laws or regulations is entitled to issue electronic money;
4) European Central bank, the Bank of Latvia or other national central bank, as it carries out activities that are not monetary policy actions or other public person;
5) direct administration or a public person, derived as it carries out activities that are not public people;
6) Member State licensed electronic money institution that article 31 of this law in accordance with the procedures specified in the operations launched in Latvia;
7) electronic money institutions branch of the foreign country, which received a licence in the Member State. "
4. Replace article 3, paragraph 8, the word "bank" with the words "credit".
5. the title of chapter II be expressed as follows: "licensing and registration".
6. To make article 4 by the following: "article 4. (1) the authority operating in Latvia may be start only after receiving a licence from the Commission, with the exception of this law, in article 5 and 5.1 in certain cases.
(2) the authority shall carry out its activities in this law indicated authority issued the licence.
(3) the authority after it has received a license to start up, or after registration in accordance with article 5 and 5.1 of the law's requirements are considered to be financial and capital market participants. "
7. in article 5: make the first part of paragraph 2 as follows: "2) not one of this law, article 11, first paragraph, point 10 persons referred to in this law, should not be covered by article 21, first paragraph, the restrictions."
Add to the second part of paragraph 4 by the following: "(4)) information on how the payment authority will ensure this law, the first paragraph of article 38 of the requirements if the payment institution in addition to the provision of payment services it intends to take this law article 36 commercial activities referred to in the first subparagraph."
8. To supplement the law with article 5.1 and 5.2 as follows: "article 5.1. (1) an electronic money institution does not require a license from the Commission and its activities in Latvia have the right to start a business in the commercial register, after registration, if its about the planned start-up is notified to the Commission in writing and meet the following conditions: 1) electronic money institutions within the framework of the commercial activities carried out in circulation, the average amount of electronic money shall not exceed five million. Where an electronic money institution in addition to doing some of this law in the first part of article 36.1 the following, and the amount of electronic money is unknown, the electronic money in circulation on average in the calculation of the amount of electronic money institution used in electronic money issued. Electronic money institution that business has not taken the full six months of the calendar, electronic money in circulation on average level determined on the basis of its business plan, unless the Commission has applied for an amendment to the plan;
2) not one of this law, article 11, first paragraph, point 10 persons referred to in this law, should not be covered by article 21, first paragraph, the restrictions.
(2) simultaneously with the first part of the submission of the notification referred to in an electronic money institution shall provide the Commission with the following information: 1) news on the company, legal address, registration number and place of registration;
2) news on this law, article 11, first paragraph 10. persons referred to in paragraph 1;
3) electronic money institutions business plan or equivalent document, which shows the first part of the condition referred to in paragraph 1.
(3) the Commission within 10 working days after receiving all this article documents referred to in the second subparagraph, shall consider whether the person wishing to launch electronic money institution comply with the first paragraph of this article. If the person concerned satisfies those requirements, it shall record this law article 10 register referred to in the third subparagraph.
(4) an electronic money institution, established in article 10 of this law the register referred to in the third subparagraph, shall be entitled, in addition to the issue of electronic money to provide payment services, if it complies with article 5 of this law.
5.2 article. If this law referred to in article 5 and 5.1 in the authority information is amended after the authority has already registered this law article 10 the third paragraph of the said register, the appropriate authority shall submit details to the Commission within five working days after the change takes place. "
9. in article 6: Supplement to the second part of the article as follows: "(2) If an electronic money institution no longer fulfils this law 5.1 of the first paragraph of article 1, but wants to continue the issuance of electronic money, or does not comply with this law, article 5, first paragraph, the requirements of paragraph 1, but yet continue to provide payment services, so within 30 days from the day of accession of non-compliance shall be submitted to the Commission in article 11 of this law, these documents to get the license to electronic money institutions. ";
believe the current text of article about the first part.
10. Replace the 7, 9, 11, 13, 14, 15, 16, 17, 19, 20, 21, 22, 24, 25, 26, 27, 28, 29, 30, 31, 32, 34, 35 article., in the second paragraph of article 37, article 38 of the second, third and fourth paragraph, 41, 42, 43, 44, 47, 48, 49, 50, 51, 52, 53 and 56 of the article the words "payment authority" (the fold) with the word "authority" (the fold).
11. Express article 8 by the following: ' article 8. Institutions that have applied this law, laid down in article 5 and 5.1 exemption for the license, is not bound by this law, article 4 and 9, article 11 of the first, second and third parts, 12, 13, 14, 15, 16, 17, 18, 19, 20, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 37 and article 45, article 46 of part three as well as 50 and 51 article. "
12. Express article 10 by the following: ' article 10. (1) Licensed institutions, representatives and affiliates, registered in the register of the licensed institutions maintained by the Commission.

(2) the register of licensed institutions indicates the electronic money institution's right to issue electronic money, as well as payment services referred to in the first paragraph are eligible to provide.
(3) the authorities of the start-up do not need a license, their representatives and affiliates registered in the register of establishments maintained by the Commission.
(4) the Commission shall send to the European Commission for information about referred to in the third subparagraph, the representatives of the authorities and the number of branches on the calendar year December 31, in addition to indicating the total amount of payments in the 12 months of the calendar year and the debt outstanding electronic money. "
13. Article 11: Add to the introductory part of the first subparagraph after the word "activities" with the words "or electronic money issuance";
make the first part of paragraph 1 by the following: "1) Authority program, specifying the type of payment services envisaged. If the electronic money institution plans to take only the issuance of electronic money, operating in it indicates information about the planned issuance of electronic money; "
make the first part of paragraph 4 by the following: "4) a description of the measures taken to protect the users of payment services and the electronic money holder money in accordance with this law, the provisions of article 38, the authority in addition to the provision of payment services for other types of commercial activities in accordance with this law, article 36 and 36.1;";
Add to the first part of paragraph 13, after the words "provision of services" with the words "or electronic money issuance";
make the second paragraph as follows: "(2) the first subparagraph of this article 4, 5 and 7 above documents indicate authorities audits and organisational arrangements for the payment service user and the electronic money holder's interests, as well as continuity and reliability, execution of payment services and issuing electronic money."
14. in article 12: Supplement to the second part of the article as follows: "(2) an electronic money institution shall ensure that the day when the decision is taken to issue a licence for the operation of the electronic institution, its original capital is at least eur 350 000.";
believe the current text of article about the first part.
15. To complement the 20 and article 21, first paragraph, introductory paragraph following the words "payment services" with the words "or electronic money issue".
16. Article 23: Supplement to the second part of the article as follows: "(2) If an electronic money institution in addition to the issuance of electronic money and payment services to other types of business that weaken or undermine the financial stability of this authority, or the Commission's ability to monitor the electronic money institution's compliance with the requirements of this Act, the Commission may require a separate legal persons establishing electronic money issuance or payment services.";
believe the current text of article about the first part.
17. Supplement article 27 with 1.1 part as follows: "(11) in addition to the first part of this article, the provisions of the electronic money institution through a representative may distribute and redeem electronic money."
18. Article 33 of the expression as follows: "article 33. (1) licensed institution in Latvia started the provision of payment services or the issuance of electronic money in another Member State, without having to open the branch, in accordance with the procedure laid down in this article.
(2) the authority in writing, submitting the application, inform the Commission that it wishes to commence provision of payment services or the issuance of electronic money in another Member State, without having to open the branch. The application authority indicating the Member State in which the payment is intended to provide the services or perform the issuance of electronic money and payment services it intends to provide.
(3) the application for the provision of payment services or the issuance of electronic money in another Member State, without having to open the branch, the Commission shall, within 30 days after all necessary, according to the legislative requirements for the receipt of documents drawn up and of its decision, in writing, inform the authorities of the Member State concerned and the relevant supervisory bodies of the authority.
(4) the authority may initiate an action in another Member State, without having to open the branch, if the authorities of the relevant Member State supervisory authority has confirmed that it has received the third subparagraph the Commission communication on its decision. "
19. the title of chapter IV, Expressed as follows: "the activities of the authority in regulatory requirements".
20. Replace article 34, third subparagraph, the introductory part, the word "bank" with the words "credit".
21. Article 35: replace the third paragraph, the words "payment authority" (the fold) with the word "authority" (the fold) and the words "first paragraph"-with the words "the first or sixth";
to supplement the article with the fourth, fifth, sixth and seventh paragraph as follows: "(4) if the electronic money institution provides payment services, the provision of services, it shall ensure that the provisions of the first paragraph for the same amount of capital.
(5) where an electronic money institution carries out only the issuance of electronic money, that authority shall ensure that its equity is always greater than or equal to two percent of electronic money in circulation on average in size.
(6) an electronic money institution which, in addition to the issuance of electronic money also provides payment services, ensure that its equity is always greater than or equal to the capital requirement corresponding to the first and fifth conditions calculated the amount of the equity amount.
(7) where an electronic money institution carries out payment services or any of this law, the first paragraph of article 36.1 the following, and the outstanding amount of electronic money is not known in advance, the calculation of capital requirements for the use of electronic money in circulation, the amount of which is determined on the basis of the emission of electronic money the previous period data. Electronic money institution that business has not taken the full six months of the calendar, electronic money in circulation on average level determined on the basis of its business plan, unless the Commission has applied for the amendment of this plan. "
22. To supplement the law with 36.1 and 36.2 of the article as follows: "article 36.1. (1) in addition to the issuance of electronic money, electronic money institution may: 1) to provide payment services;
2) provide with the issuance of electronic money or the provision of payment services-related services;
3) to ensure the functioning of the payment system;
4) perform other business activities in accordance with legislative requirements.
(2) an electronic money institution shall ensure that the money received from the payment service users or other payment service provider payments, payment of accounts are kept, which must only be used for payments.
Article 36.2. Electronic money institution money that it receives from the electronic money holder, immediately exchanged for electronic money. "
23. Add to article 37, paragraph 3, after the words "payments" by the words "or received in Exchange for electronic money".
24. Article 38: make the introductory part of the first subparagraph by the following: "(1) the authority shall, in addition to the provision of payment services made this law, article 36 of the business referred to in the first paragraph, and an electronic money institution which, in addition to electronic money emissions conducted 36.1 of the Act referred to in the first paragraph, ensure that the business the money received from the payment service users or other payment service provider payments would be backed by the insurer or the guarantee of a credit institution issued the insurance policy or other guarantee that does not fit on one company in a group with authority, or ensure that this money is: ";
to supplement the article with the fifth and sixth the following: "(5) an electronic money institution provides the first, second and third part in fulfilling the requirements laid down in respect of money received in Exchange for electronic money, issued not later than five working days after the issuance of electronic money.
(6) in the fifth subparagraph of this article, those requirements do not apply to money that the electronic money institution has received with payment instrument in the form of carried out until the money is credited to the electronic money institution's payment account or otherwise come electronic money the authority to make the payment in the payment specified in the law. "
25. To supplement the law with article 38.1 the following: ' article 38.1. The money received from the payment service users or other payment service provider for the execution of payment, in the event of the insolvency of the institution are not included, in addition to the provision of payment services or electronic money emissions conducted 36 of this law and article 36.1 of the business referred to in the first paragraph, the assets from which the insolvency proceedings are covered or liquidation expenses and satisfied the claims of creditors. That money after the bankruptcy proceedings are paid immediately to the payment service users or to another payment service provider, from whom it received the payments. "
26. Express article 39 as follows:

"article 39. Documentation relating to the licensing authority, representatives, affiliates and outsourcing authority structures, regulatory requirements and set out its surveillance authority shall keep not less than five years. "
27. Article 40: Supplement to article 1.1 part as follows: "(11) an electronic money institution that received a license from the Commission, the funding of the activities of the Commission paid to 0.02 percent (inclusive) of the electronic money institutions average about a quarter of the assets, but no less than 2500 lats year.";
replace the second paragraph, the words "payment institution" with the word "authority".
28. To supplement the law with article 24.9 the following: ' article 24.9. (1) the authority to commence pursuant to this law, the provisions of article 5 and 5.1 do not require a license, and the registration of this law article 10 the third paragraph of the said register for financing the activities of the Commission pay 100 lats a year.
(2) the Commission shall issue regulatory provisions on the first part of the fee referred to in the order. "
29. the title of chapter V be expressed as follows: "institutions and payment service user relationship".
30. the title of Chapter VI to express the following: "institution supervision and responsibility".
31. the express article 45 as follows: "article 45. The Commission is entitled, in addition to determine the other licensed institutions regulatory requirements to reduce the risk of institutions and the protection of bearers of electronic money and payments service users. "
32. in article 46: Add to the first and second subparagraph after the word "company" with the words "and electronic money institution carrying out payment services;
Add to article 2.1 part as follows: "(21) an electronic money institution annual report and the consolidated annual accounts indicate the outstanding electronic money issued in the report about December 31."
33. Article 56: to supplement the first subparagraph following the words "or issued by the Commission of the acts" with the words "Crime of money laundering and terrorist financing Prevention Act";
to complement the second part with a 3.1 point as follows: "31) partially or completely stop the issuance of electronic money;"
Replace paragraph 5 of the second paragraph, the number "1000" to the number "100 000".
34. To make the title of Chapter VII, the following wording: "the provision of payment services, electronic money and electronic money holding buy-back conditions and information requirements".
35. Supplement article 59 with the third subparagraph by the following: "(3) the issuer of electronic money shall be prohibited to grant the holder of the electronic money percentage or other financial benefit for activities associated with the rearing of electronic money over time."
36. the supplement to Chapter VII article 62.1 as follows: "article 62.1. (1) the electronic money issuer is obliged at the request of the holder of the electronic money anytime at face value to buy back its holding electronic money monetary values.
(2) electronic money withdrawal shall determine the conditions and modalities of the issuer of electronic money and electronic money holder's agreement, specifying the with the withdrawal of electronic money-related fees. The electronic money holder is informed of these conditions before it takes on obligations under the contract or before you accept the electronic money issuer's offering.
(3) the fee for the redemption of electronic money shall be determined in proportion to the actual costs incurred by the issuer of electronic money. A fee may apply only if it is provided for in the second paragraph of this article, this agreement, and in one of the following cases: 1) the withdrawal is requested before the expiry of the contract;
2) of the Treaty, the Treaty and the electronic money holder terminates the contract before that date;
3) withdrawal is requested more than a year after the contract expiration date.
(4) requiring electronic money redemptions during the year after this article referred to in the second paragraph of the agreement expires, the electronic money issuer repurchases holding electronic money the total monetary value. If the issuer of electronic money is an electronic money institution which made this law, the first paragraph of article 36.1 of the business referred to in paragraph 4, and it is not known what part of it will be used as electronic money, electronic money institution repurchases all the electronic money holder to buy back the requested features.
(5) if the electronic money withdrawal is requested before this article referred to in the second paragraph of the agreement expires, the holder of the electronic money, electronic money may require full or partial redemptions.
(6) a Person who is not a consumer of the consumer protection law and accepting electronic money settlements, about the right to redeem electronic money agreed with the issuer of electronic money, switch to the contract referred to in the second subparagraph. "
37. the title of chapter XIV be expressed as follows: "the payment service provider and the accountability of issuers of electronic money".
38. Article 104 of the expression as follows: "article 104. The payment service provider and the electronic money issuer shall ensure effective payment service user and the electronic money holder application and complaint (the dispute) on the provision of examination procedure. Complete written information about the application and complaint (dispute) the examination procedure is readily available to the payment service provider or issuer of electronic money institution and the payment service provider, or the electronic money issuer's website on the internet, if any. "
39. Article 105: to supplement the first and second subparagraph after the word "user" (the number and fold) with the words "or" bearers of electronic money (the number and fold);
make the third paragraph as follows: "(3) the consumer rights protection centre and the Commission, within its field of competence is entitled to claim the payment service users, the electronic money holder, payment service providers and electronic money issuers to proceedings required information and determine its submission deadline.";
adding to the fourth subparagraph, the first sentence after the words "service provider" by the words "or electronic money issuer";
to make a fifth by the following: "(5) If the Commission, in examining the Administrative Affairs, notes that this law, VII, VIII, IX, X, XI, XII, XIII and XIV of the non-compliance with the provisions of chapter created or may cause significant damage to the payment service user or the electronic money holder, collective interests which are not considered as consumers, consumer protection law, it is entitled to adopt a decision ordering the payment service provider, or the electronic money issuer to terminate this law VII , VIII, IX, X, XI, XII, XIII and XIV of the rules of the chapter or prevent removal of irregularities, and to determine the action required for this purpose are due. "
40. Supplement article 106 following the words "service user" (the fold) with the words "or electronic money holder" (fold).
41. Article 107 of the expression as follows: "article 107. If the authority which initiated the provision of payment services in Latvia, without opening the branch, violated this law, VII, VIII, IX, X, XI, XII, XIII and chapter XIV of the rules or has a reasonable suspicion for such infringements, the authorities empowered to ensure compliance with these rules of law (referred to in this article, the competent authorities), the relevant payment institutions and electronic money institutions (registration) of origin, the competent authorities of the Member States. If the authority uses to provide services representatives and branches, the competent authorities shall be the competent authority in the Member State in which the service is provided. "
42. the transitional provisions be supplemented with 5, 6, 7, 8 and 9 in paragraph by the following: "5. the electronic money institution until 2011 30 April according to the requirements of the law of credit institutions has informed the Bank of Latvia on the electronic money institution's inception until 30 June 2011 October according to payment services and electronic cash provisions of article 5.1 of the law shall submit to the Commission a statement of registration in the register of institutions.
6. Electronic money institution until 2012 30 April is not registered this law the authorities referred to in article 10, the following 30 April 2012 is prohibited from issuing electronic money.
7. A payment institution which under the operation of this law, the provisions of article 5 does not require a license and up to 2011 30 April is already registered in this law article 10 the third paragraph of the said register, until July 1, 2011 to provide the Commission with information on how the payment authority supports this law, the first paragraph of article 38 of the requirements if the payment institution in addition to the provision of payment services made this law, article 36 of the business referred to in the first subparagraph of as well as confirmation that the payment institution complies with article 5 of this law, the first subparagraph of paragraph 2.

8. payment institution until 1 July 2011 does not have complied with the provisions of this Act, section 7 of the transitional requirements for submission of information and assurance, the Commission excluded from this law, article 10 referred to in the third subparagraph, register and it is prohibited to provide payment services.
9. A payment institution which under the operation of this law, the provisions of article 5 does not require a license and up to 2011 30 April is already registered in this law article 10 the third paragraph of the said register until September 1, 2011 will pay 56.1 this law in the first part of the fee provided for in the financing of the activities of the Commission in the order laid down by this law, article 24.9 of the Commission referred to in the second paragraph of the normative rules. "
43. Make informative reference to European Union directives as follows: "Informative reference to European Union directives, the law includes provisions resulting from: 1) the European Parliament and of the Council of 13 November 2007 of Directive 2007/64/EC on payment services in the internal market amending Directives 97/7/EC, 2002/65/EC, 2005/60/EC and 2006/48/EC and repealing Directive 97/5/EC;
2) of the European Parliament and of the Council of 16 September 2009. directive 2009/110/EC on electronic money institutions on the taking up, pursuit and prudential supervision of the business, amending Directive 2005/60/EC and 2006/48/EC and repealing Directive 2000/46/EC ".
The law shall enter into force on 30 April 2011.
The Saeima adopted the law on 17 March 2011.
The President of the Parliament instead of the President s. Āboltiņ in Riga in 2011. April 1,