THE PAYMENT SERVICES, SERVICES OF ISSUING ELECTRONIC MONEY AND

PAYMENT SYSTEMS ACT (the ZPlaSSIED)

1. GENERAL PROVISIONS

1.1 Subject matter of the Act

Article 1 (Subject matter)

This Act shall regulate 1. the conditions for the establishment, operation, supervision and winding up 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; 4. rules for establishing and operating payment systems; 5. the conditions for the pursuit of the activity of issuing electronic money; 6. the conditions for the establishment, operation, supervision and winding up of electronic

money institutions; 7. rules for the comparability of fees related to payment accounts; 8. rules for payment account switching; and 9. the rules and conditions for access to payment accounts with basic features.

Article 2 (Transposition and implementation of EU legislation)

(1) This Act shall transpose the following directives of the European Union (hereinafter: the EU) into the legislation of the Republic of Slovenia: 1. 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, p. 45), as last amended by Regulation (EU) No 909/2014 of the European Parliament and of the Council of 23 July 2014 on improving securities settlement in the EU and on central securities depositories and amending Directives 98/26/EC and 2014/65/EU and Regulation (EU) No 236/2012 (OJ L 257, 28.8.2014, p. 1) (hereinafter: Directive 98/26/EC);

2. Directive 2009/110/EC of the European Parliament and of the Council of 16 September 2009 on the taking up, pursuit and prudential supervision of the business of electronic money institutions amending Directives 2005/60/EC and 2006/48/EC and repealing Directive 2000/46/EC (OJ L 267, 10.10.2009, p. 7), as last amended by Directive (EU) 2015/2366 of the European Parliament and of the Council of 25 November 2015 on payment services in the internal market, amending Directives 2002/65/EC, 2009/110/EC and 2013/36/EU and Regulation (EU) No 1093/2010, and repealing Directive 2007/64/EC (OJ L 337, 23.12.2015, p. 35) (hereinafter: Directive 2009/110/EC);

3. Directive 2014/92/EU of the European Parliament and of the Council of 23 July 2014 on the comparability of fees related to payment accounts, payment account switching and access to payment accounts with basic features (OJ L 257, 28.8.2014, p. 214) (hereinafter: Directive 2014/92/EU); and

4. Directive (EU) 2015/2366 of the European Parliament and of the Council of 25 November 2015 on payment services in the internal market, amending Directives 2002/65/EC, 2009/110/EC and 2013/36/EU and Regulation (EU) No 1093/2010 and repealing Directive 2007/64/EC (OJ L 337, 23.12.2015, p. 35) (hereinafter: Directive (EU) 2015/2366).

(2) This Act shall regulate in detail the implementation of the following EU regulations: 1. Regulation (EC) No 924/2009 of the European Parliament and of the Council of 16

September 2009 on cross-border payments in the Community and repealing Regulation (EC) No 2560/2001 (OJ L 266, 9.10.2009, p. 11), as last amended by Regulation (EU) No 260/2012 of the European Parliament and of the Council of 14 March 2012 establishing technical and business requirements for credit transfers and direct debits in euro and amending Regulation (EC) No 924/2009 (OJ L 94, 30.3.2012, p. 22) (hereinafter: Regulation (EC) No 924/2009);

2. Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Banking Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/78/EC (OJ L 331, 15.12.2010, p. 12), as last amended by Directive (EU) 2015/2366 (hereinafter: Regulation (EU) No 1093/2010);

3. Regulation (EU) No 260/2012 of the European Parliament and of the Council of 14 March 2012 establishing technical and business requirements for credit transfers and direct debits in euro and amending Regulation (EC) No 924/2009 (OJ L 94, 30.3.2012, p. 22), as last amended by Regulation (EU) No 248/2014 of the European Parliament and of the Council of 26 February 2014 amending Regulation (EU) No 260/2012 as regards the migration to Union-wide credit transfers and direct debits (OJ L 84, 20.3.2014, p. 1) (hereinafter: Regulation (EU) No 260/2012);

4. Regulation (EU) 2015/751 of the European Parliament and of the Council of 29 April 2015 on interchange fees for card-based payment transactions (OJ L 123, 19.5.2015, p. 1) (hereinafter: Regulation (EU) 2015/751); and

5. Regulation (EU) 2015/847 of the European Parliament and of the Council of 20 May 2015 on information accompanying transfers of funds and repealing Regulation (EC) No 1781/2006 (OJ L 141, 5.6.2015, p. 1) (hereinafter: Regulation (EU) 2015/847).

Article 3 (Exclusion from the application of this Act and of the provisions of Regulation (EU)

2015/847)

(1) This Act shall not apply to: 1. payment transactions made exclusively in cash directly from the payer to the payee

without any intermediary intervention; 2. payment transactions from the payer to the payee through a commercial agent

authorised via an agreement to negotiate or conclude the sale or purchase of goods or services on behalf of only the payer or only the payee;

3. professional physical transport of banknotes and coins, including their collection, processing and delivery;

4. non-professional cash collection and delivery within the framework of a non-profit or charitable activity;

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 just before the execution of the payment transaction through a payment for the purchase of goods or services;

6. cash-to-cash currency exchange operations where the funds are not held on a payment account;

7. payment transactions based on any of the following documents: - paper cheques in accordance with the law governing cheques and other paper

documents that are regulated by the legislation of Member States and are in content and effect similar to cheques in accordance with the act governing 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;

- paper-based traveller’s cheques; - paper-based postal money orders;

8. payment transactions that are carried out between the participants of a payment or securities settlement system and are derived from the participation in such a system and payment transactions that are carried out between the participants of a payment system, settlement agents, clearing agents, central banks and payment service providers who are not participants of the payment system, without prejudice to Article 206 of this Act;

9. payment transactions related to the fulfilment 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 related to the redemption or sale of securities, where such transactions are carried out by a member of a securities settlement system or another person who, in accordance with the applicable regulations, may provide investment services and transactions, 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, with the exclusion of payment initiation services and account information services, where the providers of these services do not have at any time the possibility of unlimited disposal of funds that are being transmitted;

11. payment transactions that are based on specific payment instruments that can be used only in a limited way and meet one of the following conditions (hereinafter: a limited network): - they allow the holder to acquire goods or services only on the premises of the issuer or

within a limited network of service providers under direct commercial agreement with a professional issuer;

- they can be used only to acquire a very limited range of goods or services; or - they are valid only in the Republic of Slovenia and are provided at the request of an

undertaking or a public sector entity and are regulated by a state, public or self-governing local community authority for specific social or tax purposes to acquire specific goods or services from suppliers having a commercial agreement with the issuer;

12. payment transactions by a provider of electronic communications networks or services provided in addition to electronic communications services for a subscriber to the network or service: (a) for purchase of digital content and voice-based services, regardless of the device

used for the purchase or consumption of the digital content and charged to the related bill or

(b) performed from or via an electronic device and charged to the related bill within the framework of a charitable activity or for the purchase of tickets, provided that the value of any single payment transaction referred to in points (a) and (b) does not exceed EUR 50 and: - the cumulative value of payment transactions for an individual subscriber does not

exceed EUR 300 per month or - where a subscriber pre-funds its account with the provider of the electronic

communications network or services, the cumulative value of payment transactions does not exceed EUR 300 per month;

13. payment transactions carried out between payment service providers, their agents or branches for their own account;

14. payment transactions and related services between a parent undertaking and its subsidiary or between subsidiaries of the same parent undertaking, without any intermediary intervention by a payment service provider other than an undertaking belonging to the same group;

15. cash withdrawal services offered by means of ATM by providers, 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 those providers do not conduct other payment services. Notwithstanding the exclusion of services referred to in this point, from the application of this Act, with respect to such services, the customer shall be provided with the information on any withdrawal charges referred to in paragraphs one, two and six of Articles 103, 106, 107 and 109 of this Act before carrying out the withdrawal and on receipt of the cash at the end of the transaction after withdrawal;

16. monetary value stored on instruments referred to in point 11 of this paragraph; 17. monetary value used for executing payment transactions referred to in point 12 of this

paragraph.

(2) Only Chapter 9 of this Act shall apply to payment transactions on the basis of paper-based bills of exchange in accordance with the act governing bill of exchange and other paper documents that are in content and effect similar to bills of exchange and are regulated by the legislation of EU Member States (hereinafter: Member States).

(3) Regulation (EU) 2015/847 shall not apply to transfers of funds in the Republic of Slovenia to the payee’s payment account that is used exclusively to pay for goods or services, provided that the conditions referred to in paragraph five of Article 2 of Regulation (EU) 2015/847 are fulfilled.

1.2 Definitions

Article 4 (Definitions)

For the purposes of this Act, the following definitions shall apply: 1. 'authentication' shall mean a procedure which allows the payment service provider to

verify the identity of a payment service user or the validity of the use of a specific payment instrument, including the use of the user’s personalised security credentials;

2. 'bank' shall mean a credit institution that has its head office in the Republic of Slovenia and has obtained authorisation as a bank or savings bank in accordance with the act governing banking;

3. 'value date' shall mean a reference time used by a payment service provider for the calculation of interest on the funds debited from or credited to a payment account;

4. '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 to enable its user to execute payment transactions;

5. 'funds' shall mean banknotes and coins, scriptural money, and electronic money in accordance with point 11 of this Article;

6. 'digital content' shall mean goods or services which are produced and supplied in digital form, the use or consumption of which is restricted to a technical device and which do not include in any way the use or consumption of physical goods or services;

7. 'Member State' shall mean a Member State of the European Union or a signatory state to the European Economic Area Agreement (OJ L 1, 3.1.1994, p. 3);

8. 'host country' shall mean any country other than the home country in which a payment service provider has a branch or an agent, or in which an electronic money issuer has a branch, or in which a payment service provider or an electronic money issuer directly provide services;

9. 'home country' shall mean a Member State in which the head office of the payment service provider or the electronic money issuer is situated;

10. 'electronic communications network' shall mean a network as defined in the act governing electronic communications;

11. 'electronic money' shall mean stored monetary value in the form of the electronic money holder's claim towards the electronic money issuer which: - is stored electronically, including magnetically, - is issued by the electronic money issuer on the basis of receipt of funds for the purpose

of making payment transactions as defined in Article 8 of this Act, and - is accepted as a means of payment by a person other than the electronic money

issuer; 12. 'electronic communications service' shall mean a service as defined in the act governing

electronic communications; 13. 'unique identifier' shall mean a combination of letters, numbers or symbols specified by

the payment service provider to the payment service user (hereinafter: user) and used to identify unambiguously the payment service user and/or the payment account of that payment service user for a payment transaction;

14. 'common symbol' shall mean a common symbol of a standardised presentation format of the fee information document and the statement of fees that is in compliance with the provisions of implementing technical standards adopted by the European Commission in accordance with Article 5(4) of Directive 2014/92/EU;

15. 'credit interest rate' shall mean any rate at which interest is paid to the consumer in respect of funds held in a payment account;

16. 'strong customer authentication' shall mean an authentication based on the use of two or more elements categorised as knowledge (something only the user knows), possession (something only the user possesses) and inherence (something the user is) that are independent, in that the breach of one does not compromise the reliability of the others and is designed in such a way as to protect the confidentiality of the authentication data;

17. 'overrunning' shall mean a tacitly accepted overdraft whereby a payment service provider makes available to a consumer funds which exceed the current balance in the consumer’s payment account or the agreed overdraft facility;

18. 'overdraft facility' shall mean an explicit credit agreement whereby a payment service provider makes available to a consumer funds which exceed the current balance in the consumer’s payment account;

19. 'fees' referred to in Chapter 8 of this Act shall mean all charges and penalties, if any, payable by the consumer to the payment service provider for or in relation to services linked to a payment account;

20. 'sensitive payment data' shall mean data, including personalised security credentials, which might be used to commit fraud or deception. For the purposes of this Act, 'fraud' or 'deception' shall mean any intentional act of deceiving someone or benefiting from causing damage to or deceiving someone. For the activities of payment initiation service providers and account information service providers, the name of the account owner and the account number do not constitute sensitive payment data;

21. 'personalised security credentials' shall mean personalised features provided by the payment service provider to a payment service user for the purposes of authentication;

22. 'paper-based 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 act governing postal services and that the payment transaction is executed to the payee on

the basis of the submission of a paper-based payment order to his postal service provider;

23. 'payment brand' shall mean any material or digital name, term, sign or symbol, or a combination thereof, capable of denoting under which payment card scheme card-based payment transactions are carried out;

24. 'sole trader' shall have the same meaning as in the act governing companies; 25. 'insolvency proceedings' shall mean insolvency proceedings and compulsory winding-up

proceedings as defined in the act governing financial operations, insolvency proceedings and compulsory winding-up;

26. 'consumer' shall mean any natural person who concludes payment service contracts for purposes which are outside his gainful occupation or profession;

27. 'co-badging' shall mean the inclusion of two or more payment brands or payment applications of the same payment brand on the same payment instrument;

28. 'receiving payment service provider' shall mean the payment service provider to which the information required to perform the switching is transferred;

29. 'transferring payment service provider' shall mean the payment service provider from which the information required to perform the switching is transferred;

30. '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 source which can be verified by both parties to a payment service contract;

31. '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 source;

32. 'EBA register' shall mean an electronic central register which is developed, operated and maintained by the European Banking Authority and which contains the information notified by the competent authorities of Member States to the European Banking Authority;

33. 'head office' shall mean the place of the registered office of the payment service provider or the electronic money issuer or, if the payment service provider or electronic money issuer does not have a registered office in accordance with the national legislation, the place where its management is located;

34. 'list of standardised terminology' shall mean a list of standardised terms for the most representative services linked to a payment account for which a fee is paid, this being consistent with the final list set out in regulatory technical standards adopted by the European Commission in accordance with Article 3(4) of Directive 2014/92/EU;

35. 'group' shall mean a group of undertakings consisting of a parent undertaking and subsidiaries, as provided by the act governing companies, or undertakings as defined in Articles 4, 5, 6 and 7 of Commission Delegated Regulation (EU) No 241/2014 of 7 January 2014 supplementing Regulation (EU) No 575/2013 of the European Parliament and of the Council with regard to regulatory technical standards for Own Funds requirements for institutions (OJ L 135, 2.6.2015, p. 1), as last amended by Commission Delegated Regulation (EU) 2015/923 of 11 March 2015 amending Delegated Regulation (EU) No 241/2014 supplementing Regulation (EU) No 575/2013 of the European Parliament and of the Council with regard to regulatory technical standards for Own Funds requirements for institutions (OJ L 150, 17.6.2015, p. 1), which are linked to each other by a relationship referred to in Article 10(1) or in Article 113(6) or (7) of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012 (OJ L 176, 27.6.2013, p. 1), as last amended by Commission Delegated Regulation (EU) 2017/1230 of 31 May 2017 supplementing Regulation (EU) No 575/2013 of the European Parliament and of the Council with regard to regulatory technical standards further specifying the additional objective criteria for the application of a preferential liquidity outflow or inflow rate for cross-border undrawn credit or liquidity facilities within a group or an institutional protection scheme (OJ L 177, 8.7.2017, p. 7) (hereinafter: Regulation (EU) No 575/2013);

36. 'means of distance communication' shall mean a method which, without the simultaneous physical presence of the payment service provider or the payment service user, may be used for the conclusion of a payment services contract;

37. 'services linked to the payment account' shall mean all services related to the opening, operating and closing of a payment account, including payment services and payment transactions referred to in point 7 of paragraph one of Article 3 of this Act and overdraft facilities and overrunning;

38. 'close links' shall mean close links as defined in point 38 of Article 4(1) of Regulation (EU) No 575/2013;

39. 'standing order' shall mean an instruction given by the payer to their payment service provider to execute credit transfers at regular intervals or on predetermined dates;

40. 'durable medium' shall mean any instrument which enables the user to store information addressed personally to that user in a way accessible for future reference for a period of time adequate for the purposes of the information and which allows the unchanged reproduction of the information stored;

41. 'third country' shall mean a country that is not a Member State referred to in point 7 of this Article;

42. 'the Public Payments Administration of the Republic of Slovenia' (hereinafter: the PPA) shall mean a state authority providing payment services under this Act and special regulations which lay down its tasks and responsibilities;

43. 'legally resident in the EU' shall mean where a natural person has the right to reside in a Member State by virtue of EU law or national law, including consumers with no permanent residence and persons seeking asylum under the Geneva Convention of 28 July 1951 Relating to the Status of Refugees and the Protocol thereto of 31 January 1967 (the Notification of Succession in respect of United Nations Conventions and conventions adopted by the IAEA; Official Gazette of the Republic of Slovenia – International Treaties [Uradni list RS – Mednarodne pogodbe], Nos 9/92 and 2/93) and other international treaties regulating the status of refugees and asylum seekers;

44. 'switching' or 'switching service' shall mean, upon a consumer’s request, transferring from one payment service provider to another either information about all or some standing orders for credit transfers, recurring direct debits or recurring incoming credit transfers executed on a payment account or any positive payment account balance from one payment account to the other or both, with or without closing the former payment account;

45. 'private citizen' shall mean a natural person who is not a sole trader and independently carries out a specific registered activity or activity specified by a regulation, such as a notary, physician, lawyer or farmer;

46. 'agent' shall mean a natural or legal person who, on the basis of a power of attorney, acts on behalf of a payment institution in providing payment services.

Article 5 (Payment services)

(1) Under this Act, payment services shall mean the following activities that are performed by the payment service provider as part of their business activity: 1. services enabling cash to be placed on a payment account as well as all the operations

required for operating a payment account; 2. services enabling cash withdrawals from a payment account as well as all the operations

required for operating a payment account; 3. services enabling the execution of payment transactions debited from or credited to a

payment account with the account servicing payment service provider or with another payment service provider;

4. services enabling the execution of payment transactions where the funds are covered by a credit line for a payment service user;

5. issuing of payment instruments and/or acquiring of payment transactions; 6. money remittance; 7. payment initiation services; 8. account information services.

(2) Payment services referred to in points 3 and 4 of the preceding paragraph shall include the execution of payment transactions: 1. by direct debits, including one-off direct debits; 2. by payment cards or similar devices, or 3. by credit transfers.

Article 6 (National and cross-border payment transactions)

(1) 'national payment transaction' shall mean a payment transaction where the payer’s payment service provider and the payee’s payment service provider or the single payment service provider perform or performs payment services for the payer and the 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 and the payee’s payment service provider perform payment services for the payer or the payee in the territory of different Member States. A payment transaction shall also be deemed to be executed cross-border 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 payer, payee or both.

(2) 'payer' shall mean a natural or legal person who orders a payment transaction by making a payment order or consents to the execution of a payment order made 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, remote payment transaction and payment order)

(1) 'payment transaction' shall mean an act, initiated by the payer or on its behalf or by the payee, of placing, transferring or withdrawing funds; a payment transaction shall be carried out through a payment service provider irrespective of any underlying obligations between the payer and the payee.

(2) 'remote payment transaction' shall mean a payment transaction initiated via the internet or through a device that can be used for distance communication.

(3) 'payment order' shall mean an instruction by a payer or payee to its 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, whereby a payment transaction is initiated by the payee on the basis of consent given by the payer to the payee.

(2) The payer may give consent for the execution of a direct debit to the payee, to the payee’s payment service provider or to its own payment service provider.

Article 10 (Money remittance)

'money remittance' shall mean a payment service where a payment service provider receives funds from a payer, without any payment accounts being created in the name of the payer or the payee, for the sole purpose of making the same amount of funds available to the payee or of transferring it to the payee’s payment service provider, which makes such funds available to the payee or which transfers them to the payee’s payment account.

Article 11 (Credit transfer)

'credit transfer' shall mean a payment service for crediting a payee’s payment account with a payment transaction or a series of payment transactions, including a standing order, from a payer’s payment account by the payer’s payment service provider on the basis of an instruction given by the payer.

Article 12 (Payment account)

(1) 'payment account' shall mean an account that is opened by a payment service provider in the name of one or more users and used for the execution of payment transactions.

(2) Payment institutions may hold only 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 its head office in the Republic of Slovenia or a branch of a Member State bank in the Republic of Slovenia on behalf of one or more users for the purpose of executing payment transactions and for other purposes related to the provision of banking services for a user. Funds on the transaction account shall be considered as a demand deposit.

(2) For the purposes of this Act, a treasury single account of the state or municipality that is opened at the Bank of Slovenia and an account opened at the PPA as a sub-account of the treasury single account of the state or municipality shall also be considered transactions accounts.

(3) Payment institutions may not hold transaction accounts.

Article 14 (Fiduciary account)

(1) 'fiduciary account' shall mean a transaction account that is opened by the holder in their name for the account of one or more third parties. A fiduciary account may not be converted into an ordinary transaction account and vice versa.

(2) A bank may open a fiduciary account if: - the holder has the status of a notary, lawyer, enforcement agent, administrator of an

estate, guardian for special cases, administrator in insolvency proceedings, or is a person who provides depositary services as part of their regular activity or profession, or is a person who provides the service of purchase of receivables as part of their regular activity;

- through the fiduciary account, the holder settles transactions in claims arising from commercial contracts which were concluded as part of the service provided by the holder to its customers and, to the debit of own funds, assumes the responsibility for the fulfilment of obligations by parties in relation to counterparties to the transactions by entering into each transaction that is settled through the fiduciary account as a new seller to the buyer and as a new buyer to the seller (hereinafter: central counterparty);

- the holder uses the fiduciary account only to receive payments in respect of assigned claims from commercial contracts; in so doing, it receives payments in its own name and for the account of the person which settles transactions in claims arising from commercial contracts by acting as the central counterparty; or

- its use is prescribed by law.

(3) Funds in a fiduciary account shall be considered to be the property of the third parties for whose account the holder holds such an account and not the property of the holder of the account. Creditors of the holder of a fiduciary account which has gone bankrupt may not use coercive measures to interfere with such property with a view to collecting their claims against the holder of the account. Funds on a fiduciary account shall not be considered to be part of the estate of the holder of the account.

Article 15 (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 more natural persons or on behalf of two or more legal persons.

(2) Each individual holder of a joint payment account may dispose of the total amount of funds held in the joint payment account unless the agreement on maintaining the joint payment account stipulates different powers for the disposal of funds in the joint payment account.

(3) Funds in a joint payment account may be used in their entirety for the repayment of liabilities of an individual holder to third parties. The agreement between the holders of a joint payment account regarding the shares of individual holders and their respective obligations shall not limit the rights of third parties to settle their claims against an individual holder during enforcement or bankruptcy proceedings against that individual holder by debiting the joint payment account up to the total amount of funds held in that account.

(4) If a special act lays down that the attachment of certain funds of the debtor is restricted, in enforcement proceedings against an individual holder of a joint payment account, these restrictions shall apply with regard to each individual holder of the joint payment account.

Article 16 (Payment instrument, issuing of payment instruments and acquiring of payment

transactions)

(1) 'payment instrument' shall mean any device and/or set of procedures agreed between the payment service user and the payment service provider and used only by that payment service user in order to initiate a payment order.

(2) 'issuing of payment instruments' shall mean a payment service by a payment service provider contracting with a payer to provide the payer with a payment instrument to initiate and process the payer’s payment transactions.

(3) 'acquiring of payment transactions' shall mean a payment service provided by a payment service provider contracting with a payee to accept and process payment transactions which result in a transfer of funds to the payee.

Article 17 (Low-value payment instruments)

'low-value payment instruments' shall mean payment instruments fulfilling at least one of the following conditions: 1. they can be used to execute individual payment transactions that do not exceed EUR 30; 2. they have a spending limit of EUR 150 for a set period of time or store electronic money

that does not exceed EUR 150.

Article 18 (Payment initiation service)

'payment initiation service' shall mean a service to initiate a payment order at the request of the payment service user with respect to a payment account held at another payment service provider.

Article 19 (Account information service)

'account information service' shall mean an online service to provide consolidated information on one or more payment accounts held by the payment service user either with another payment service provider or with more than one payment service provider.

1.3 Payment service providers

Article 20 (Payment service providers)

(1) In the territory of the Republic of Slovenia, payment services may be provided by the following entities (hereinafter: payment service providers): 1. banks that have obtained authorisation from the Bank of Slovenia to provide payment

services in accordance with the act governing banking, banks of Member States that have obtained authorisation from the competent supervisory authority of the home country to provide payment services and have established a branch in the territory of the Republic of Slovenia or directly provide payment services in the territory of the Republic of Slovenia in accordance with the act governing banking, and third-country banks that have obtained authorisation from the Bank of Slovenia to provide payment services and have established a branch in the territory of the Republic of Slovenia in accordance with the act governing banking;

2. electronic money institutions that have obtained authorisation from the Bank of Slovenia to provide payment services in accordance with this Act, electronic money institutions of Member States that have obtained authorisation from the competent supervisory authority of the home country to provide payment services and have established a branch in the territory of the Republic of Slovenia in accordance with this Act or provide payment services in the territory of the Republic of Slovenia directly or through an agent, and third-country electronic money institutions that have obtained authorisation from the Bank of Slovenia to provide payment services and have established a branch in the territory of the Republic of Slovenia in accordance with this Act, provided that payment services provided by such branches are related to the issuing of electronic money;

3. electronic money institutions benefiting from a waiver that have obtained authorisation from the Bank of Slovenia to provide services of issuing electronic money in accordance with this Act;

4. payment institutions that have obtained authorisation from the Bank of Slovenia to provide payment services in accordance with this Act and payment institutions of Member States that have obtained authorisation from the competent supervisory authority of the home country to provide payment services and have established a branch in the territory of the Republic of Slovenia in accordance with this Act or provide payment services in the territory of the Republic of Slovenia directly or through an agent;

5. payment institutions benefiting from a waiver that have obtained authorisation from the Bank of Slovenia to provide payment services in accordance with this Act;

6. account information service providers which are entered in the register of payment institutions in accordance with this Act and account information service providers which are entered in the registers of payment institutions of Member States of competent supervisory authorities of home countries and have established a branch in the territory of the Republic of Slovenia in accordance with this Act or provide account information services in the territory of the Republic of Slovenia directly or through an agent;

7. the Bank of Slovenia; 8. the PPA and other state authorities and self-governing local community authorities in the

Republic of Slovenia in accordance with the regulations governing the exercise of their tasks and powers.

(2) When the Bank of Slovenia provides payment services within its exclusive competence in accordance with the act governing the Bank of Slovenia or other acts which lay down the exclusive competence of the Bank of Slovenia, the provisions of Chapter 5 and Chapter 6 of this Act shall apply only if a special regulation or a contract on the provision of payment services so provides.

(3) When the PPA or other state authorities or self-governing local community authorities provide payment services within their competence on the basis of a special regulation, the provisions of Chapter 5 and Chapter 6 of this Act shall apply unless otherwise provided by this Act or other regulation.

Article 21 (Account servicing payment service provider)

'account servicing payment service provider' shall mean a payment service provider providing and maintaining a payment account for a payer.

Article 22 (Payment initiation service provider and account information service provider)

(1) 'payment initiation service provider' shall mean a payment service provider providing payment services as referred to in point 7 of paragraph one of Article 5 of this Act.

(2) 'account information service provider' shall mean a payment service provider providing payment services as referred to in point 8 of paragraph one of Article 5 of this Act.

Article 23 (Duty of notification of service providers referred to in points 11 and 12 of paragraph

one of Article 3)

(1) Service providers carrying out either or both of the activities referred to in the first and second indents of point 11 of paragraph one of Article 3 of this Act, where the total value of payment transactions executed over the preceding 12 months exceeds the amount of EUR 1 million, shall send a notification to the Bank of Slovenia containing a description of the services offered and specifying under which exclusion referred to in the first and second indents of point 11 of paragraph one of Article 3 of this Act the activity is considered to be carried out.

(2) If, following the notification referred to in the preceding paragraph, and taking into account the criteria referred to in point 11 of paragraph one of Article 3 of this Act, the Bank of Slovenia establishes that the activity does not qualify as a limited network, it shall impose a special measure on the service provider requiring the service provider to ensure compliance with the criteria for a limited network within 30 days or to submit, within the same time limit, an application for authorisation by the Bank of Slovenia to provide payment services as a payment institution in accordance with this Act. The provisions of paragraph four of Article 257 of this Act shall apply, mutatis mutandis, to the procedure under this paragraph.

(3) Service providers carrying out activities referred to in point 12 of paragraph one of Article 3 of this Act shall send a notification to the Bank of Slovenia and provide it with an annual audit opinion testifying that the activity complies with the limits set out in point 12 of paragraph one of Article 3 of this Act.

(4) The Bank of Slovenia shall inform the European Banking Authority of the services notified in accordance with paragraphs one and three of this Article, stating under which exclusion referred to in point 11 or 12 of paragraph one of Article 3 of this Act the activity is carried out. The notification shall contain information on the registered office and head office of the service provider, a description of the services provided by the service provider, the value and scope of these services, and any additional information on criteria for exclusion.

(5) The registered name and head office of the service provider and the description of the services notified in accordance with paragraphs one and three of this Article shall be published in the register referred to in Articles 79 and 84 of this Act.

2. PAYMENT INSTITUTIONS

2.1 General provisions

Article 24 (Definitions)

(1) 'payment institution' shall mean a legal person having its head office in the Republic of Slovenia which provides at least part of its payment services in the Republic of Slovenia and has been granted an authorisation by the Bank of Slovenia to provide payment services as a payment institution;

(2) 'payment institution of a Member State' shall mean a legal person having its head office in another Member State which provides at least part of its payment services in that Member State and has been granted an authorisation by the competent supervisory authority of the home country to provide payment services as a payment institution.

(3) For the purposes of this Chapter, 'branch' shall mean an organisational unit other than the head office of a payment institution which has no legal personality and which carries out directly some or all of the services inherent in the business of the payment institution. For the purposes of this Chapter, all business units and branches that are established in the same host country or third country by a payment institution shall be considered as one branch. For the purposes of this Chapter, all business units and branches that are established in the Republic of Slovenia by a payment institution of a Member State shall be considered as one branch.

Article 25 (Access to accounts maintained with a payment service provider)

(1) Payment service providers referred to in point 1 of paragraph one of Article 20 of this Act providing services in the territory of the Republic of Slovenia shall ensure that payment institutions and payment institutions of Member States have access to their payment accounts services on an objective, non-discriminatory and proportionate basis. Such access shall be sufficiently extensive as to allow payment institutions and payment institutions of Member States to provide payment services in an unhindered and efficient manner.

(2) Payment service providers referred to in point 1 of paragraph one of Article 20 of this Act providing services in the territory of the Republic of Slovenia shall provide the Bank of Slovenia with duly motivated reasons for rejecting a request made by a payment institution or payment institution of a Member State for accessing their payment accounts services.

2.2 Legal status of payment institutions

Article 26 (Legal form)

(1) A payment institution shall be organised in one of the legal forms of companies as provided by the act governing companies.

(2) The provisions of the act governing companies shall apply to payment institutions unless otherwise provided by this Act.

Article 27 (Activity of payment institutions)

(1) A payment institution may commence providing payment services after it has obtained authorisation from the Bank of Slovenia to provide payment services as a payment institution.

(2) In addition to providing payment services, a payment institution may carry out business activities other than payment services (hereinafter: hybrid payment institution), including services of operating payment systems, provided that it meets the conditions for the provision of services of operating payment systems in accordance with this Act.

(3) In addition to providing payment services and carrying out business activities other than payment services, a payment institution may also provide ancillary services to ensure the execution of payment transactions, such as granting credit relating to payment services, foreign exchange services, safekeeping activities, and the storage and processing of data relating to payment services, provided that it meets the conditions for the provision of such services in accordance with this Act or other acts. A payment institution that, in addition to payment services, provides only ancillary services shall not be considered to be a hybrid payment institution.

(4) The provisions of this Act shall apply to payment institutions providing payment services as their only activity or as hybrid payment institutions unless the law expressly provides that individual provisions apply only to hybrid payment institutions.

Article 28 (Receiving funds from users in connection with payment services)

(1) In providing payment services, a payment institution may receive funds from users for the sole purpose of executing a payment transaction that is to be executed on a specific date in accordance with a payment services contract.

(2) Unless demonstrated otherwise, funds shall be deemed to be received exclusively for the purposes of executing a payment transaction if the payment institution received the funds simultaneously with a payment order for the execution of the payment transaction or following the receipt of such a payment order.

(3) Payment institutions may not accept deposits from the public under the act governing banking or issue electronic money under this Act.

(4) Funds received by a payment institution from users for the sole purpose of executing a payment transaction in accordance with paragraph two of this Article shall not be considered as the acceptance of deposits from the public under the act governing banking or the provision of services of issuing electronic money under this Act.

Article 29 (Granting credit relating to payment services)

(1) If a payment institution offers credit to users in connection with payment services, such credit may be granted only under the following conditions:

1. the credit shall be intended exclusively for the execution of payment transactions in connection with payment services;

2. such credit, including credit on a revolving basis, shall be granted for a period not exceeding 12 months;

3. such credit shall not be granted from the funds received by the payment institution from payment service users for the purpose of executing a payment transaction;

4. the payment institution shall ensure sufficient own funds in view of the overall amount of credit granted.

(2) With respect to credit referred to in the preceding paragraph that is granted to a consumer, a payment institution, in addition to the conditions referred to in the preceding paragraph, shall be required to fulfil the conditions for granting credit to consumers laid down by the act governing consumer credit.

Article 30 (Area of provision of payment services)

(1) It shall be deemed that a payment institution provides payment services in the territory of the country where: 1. it enters into legal transactions the subject of which is payment services or 2. it offers payment services to users through advertisements, communicated to these

users by post, or in any other way provides payment services to users in the territory of that country.

(2) A payment institution that offers payment services in the territory of a particular country in the manner referred to in the preceding paragraph through its branch or agent or directly shall be deemed to provide payment services in the territory of that country.

(3) A payment institution that provides payment services in the territory of a particular country in the manner referred to in paragraph one of this Article without establishing a branch and without having an agent in that country shall be deemed to provide payment services directly in the territory of that country.

Article 31 (Initial capital)

(1) A legal person that applies for authorisation by the Bank of Slovenia to provide payment services as a payment institution shall be required to hold, at the time of issue of the authorisation, initial capital of no less than: 1. EUR 20,000 if it will provide only the payment services referred to in point 6 of paragraph

one of Article 5 of this Act; 2. EUR 50,000 if it will provide only the payment services referred to in point 7 of paragraph

one of Article 5 of this Act; or 3. EUR 125,000 if it will provide any of the payment services referred to in points 1 to 5 of

paragraph one of Article 5 of this Act.

(2) If a payment institution intends to provide several payment services, it shall hold such initial capital as is required for the payment service for which the highest amount of initial capital is required.

(3) Initial capital shall comprise one or more of the items referred to in Article 26(1)(a) to (e) of Regulation (EU) No 575/2013.

Article 32 (Management and persons directly responsible for the management of a payment

institution’s payment services activities)

(1) Members of the management body of a payment institution, in addition to meeting the general conditions for members of management and supervisory bodies of public limited liability companies laid down by the act governing companies, and persons that are directly responsible for the management of a payment institution’s payment services activities shall be of suitably good repute to manage the operations of a payment institution and shall possess appropriate knowledge and experience to perform payment services. Unless proved otherwise, it shall be deemed that a person has appropriate knowledge and experience to perform payment services if he or she has at least three years of experience with managing the operations of a company of a size and activity comparable to that of a payment institution or with managing other comparable activities. Unless proved otherwise, it shall be deemed that a person is of good repute and possesses the personal traits required to manage the operations of a payment institution if his or her conduct does not raise doubt as to his or her ability to ensure the sound and prudent conduct of the business of a payment institution in accordance with risk management rules, professional diligence and the highest ethical standards, and the prevention of conflicts of interest; in establishing this, account shall be taken of the following information: - information from court proceedings, administrative procedures and pre-trial

investigations which may impact on the reputation, integrity and honesty of the person; - information on previous employment; and - any previous assessments of suitability made by another competent authority or the

person’s employer.

(2) The Bank of Slovenia shall obtain the information on the fulfilment of the conditions referred to in the preceding paragraph from the applicant who filed an application for authorisation by the Bank of Slovenia to provide payment services as a payment institution, from the payment institution or from a member of the management body of the payment institution or from a person who is directly responsible for the management of the payment services activities of the payment institution, or ex officio from the official records of competent authorities.

Article 33 (Qualifying holdings)

(1) 'qualifying holding' shall mean a holding as defined in point (36) of Article 4(1) of Regulation (EU) No 575/2013.

(2) Any person intending to acquire a proportion of the voting rights or of the capital in a payment institution in order to achieve or exceed a qualifying holding (hereinafter: future qualifying holder) shall obtain authorisation from the Bank of Slovenia prior to acquiring such a holding.

(3) In the operative part of its decision on issuing an authorisation to acquire a qualifying holding, the Bank of Slovenia shall set the proportion of the voting rights or of the capital of the payment institution for which the authorisation is issued within one of the following ranges: 1. a proportion of the voting rights or capital of the payment institution that is equal to or

greater than the qualifying holding and less than 20%; 2. a proportion of the voting rights or capital of the payment institution that is equal to or

greater than 20% and less than 30%;

3. a proportion of the voting rights or capital of the payment institution that is equal to or greater than 30% and less than 50%;

4. a proportion of the voting rights or capital of the payment institution that is equal to or greater than 50%;

5. a proportion on the basis of which a future qualifying holder becomes the parent entity of the payment institution.

(4) Prior to any further increase in the proportion of the voting rights or the capital of the payment institution on the basis of which a qualified holder would exceed the range to which the issued authorisation to acquire a qualifying holding applies, the qualifying holder shall be required to obtain a new authorisation to acquire a qualifying holding.

(5) The provisions of the act governing banking relating to the following shall apply, mutatis mutandis, to ownership of a qualifying holding: - the content of an application for authorisation to acquire a qualifying holding; - an assessment of the suitability of a future qualifying holder; - reasons for the refusal of an application for authorisation to acquire a qualifying holding; - the time limit for acquiring the proportion to which the authorisation refers; - cessation of the validity of the authorisation to acquire a qualifying holding; - the voting rights of an ineligible holder; - notifications in connection with qualifying holdings; - the withdrawal of an authorisation to acquire a qualifying holding; - an order for the disposal of shares; - a report on the disposal of shares and a declaratory decision on any remedied breaches

and a decision prohibiting the exercise of the rights deriving from shares, unless explicitly provided otherwise by this Article.

(6) Paragraphs one and three of Article 281 of this Act shall apply, mutatis mutandis, to the Bank of Slovenia’s decision-making process regarding the application for authorisation to acquire a qualifying holding.

(7) The Bank of Slovenia shall prescribe the detailed content of an application for authorisation by the Bank of Slovenia to acquire a qualifying holding and the documentation and evidence that must accompany the application.

2.3 Authorisation by the Bank of Slovenia to provide payment services as a payment institution

Article 34 (Provision of payment services as a payment institution)

(1) In the territory of the Republic of Slovenia, a payment institution may provide payment services for which it has obtained authorisation from the Bank of Slovenia.

(2) A payment institution may also provide payment services which it may provide in the territory of the Republic of Slovenia on the basis of an authorisation: 1. in the territory of another Member State through a branch or agent or directly, provided

that the conditions of Article 49 of this Act are fulfilled and 2. in the territory of a third country through a branch where the branch is entered in the

register of payment institutions in accordance with this Act, through an agent or directly in the territory of the third country.

Article 35 (Application for authorisation)

(1) An application for authorisation by the Bank of Slovenia to provide payment services as a payment institution shall include: 1. the memorandum of association and information on the business address; 2. a description of payment services and other business activities that the applicant intends

to provide and the risks to which it will be exposed; 3. a business plan for the provision of payment services for the first three financial years

showing the following: - information for the calculation of the minimum own funds in the first year of business

using all three methods referred to in paragraph two of Article 55 of this Act; - information on compliance with technical, organisational, personnel and other

conditions for sound and prudent operation of a payment institution under Article 53 of this Act;

4. evidence that the applicant has the required initial capital as referred to in Article 31 of this Act;

5. for an applicant intending to provide services referred to in points 1 to 6 of paragraph one of Article 5 of this Act, a description of the measures taken to safeguard users’ funds as referred to in Articles 68 to 70 of this Act;

6. a description of the governance system and the internal control system referred to in Article 54 of this Act;

7. a description of the procedure in place to monitor, handle and follow up any security incident or security-related customer complaints, including an incidents-reporting mechanism which takes account of the notification obligations of the payment institution laid down in Article 152 of this Act;

8. a description of the procedure in place to file, monitor, track and restrict access to sensitive payment data;

9. a description of business continuity arrangements including a clear identification of critical operations, effective contingency plans, and a procedure to regularly test and review the adequacy and efficiency of such plans;

10. a description of the principles and definitions applied for the collection of statistical data on performance, transactions, and fraud and deception;

11. a security policy document, including a detailed risk assessment in relation to its payment services and a description of security control and mitigation measures taken to adequately protect payment service users against the risks identified, including fraud and deception and illegal use of sensitive and personal data;

12. a description of the applicant’s structural organisation, including a description of the intended use of agents and branches and of the off-site and on-site checks that the applicant undertakes to perform on them at least annually, and a description of the outsourcing of operational functions of payment services;

13. a description of participation in any payment systems; 14. a description of the internal control mechanisms which the applicant has established in

order to comply with the obligations in relation to money laundering and the financing of terrorism in accordance with the act governing the prevention of money laundering and the financing of terrorism and Regulation (EU) 2015/847;

15. the identities of persons holding qualifying holdings within the meaning of point 36 of Article 4(1) of Regulation (EU) No 575/2013, the size of their holdings and evidence of their suitability, this assessed in accordance with Article 33 of this Act;

16. the identities of persons who are members of management bodies and of persons who will be directly responsible for the management of payment services activities and evidence that these persons meet the requirements of Article 32 of this Act;

17. if the applicant’s annual reports will have to be audited in accordance with Article 73 of this Act, the identities of the certified auditors or audit firms and information on whether they have already been appointed.

(2) In connection with the descriptions referred to in points 5 to 7 and points 12 and 13 of the preceding paragraph, the applicant shall also provide a description of its organisational arrangements and internal auditing arrangements it has set up to protect the interests of its users and to ensure the continuity and soundness of payment services.

(3) The description of security control and mitigation measures referred to in point 11 of paragraph one of this Article shall indicate how these measures ensure a high level of technical security and data protection, including for the software and IT systems used by the applicant or the undertakings to which it outsources the whole or part of its operations. The aforementioned measures shall also include the security measures referred to in paragraph one of Article 151 of this Act.

(4) Applicants intending to provide payment services referred to in point 7 of paragraph one of Article 5 of this Act shall be required, as a condition of their authorisation, to hold professional indemnity insurance covering the territories in which they offer services or some other comparable guarantee against liability to ensure that they can cover their liabilities as specified in Articles 136, 140, 141, 142, 145 and 146 of this Act.

(5) The Bank of Slovenia shall prescribe the detailed content of the documents and evidence referred to in paragraph one of this Article.

Article 36 (Conditions for granting authorisation)

(1) In deciding whether to grant authorisation to provide payment services as a payment institution, the Bank of Slovenia shall assess whether the applicant meets the conditions for the provision of payment services as a payment institution referred to in this Act, in particular with respect to: 1. the legal status referred to in Articles 26 to 33 of this Act; 2. professional indemnity insurance in accordance with paragraph four of Article 35 of this

Act in the case of payment institutions providing payment services referred to in points 7 or 8 of paragraph one of Article 5 of this Act;

3. sound and prudent conduct of business under Article 53 of this Act; 4. the governance system and the internal control system referred to in Article 54 of this

Act; 5. the minimum own funds requirement referred to in Article 55 of this Act; and 6. the safeguarding of users’ funds under Subchapter 2.8 of this Act.

(2) In an authorisation to provide payment services as a payment institution, the Bank of Slovenia shall specify the payment services that may be provided by the payment institution.

(3) If the governance system referred to in Article 54 of this Act does not ensure the appropriate management of all the risks to which the payment institution might be exposed during the provision of payment services for which authorisation is required or during the performance of other business activities, 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 authorisation refers.

Article 37 (Refusal of an application for authorisation)

The Bank of Slovenia shall refuse an application for authorisation to provide payment services as a payment institution if: 1. the applicant fails to meet the conditions referred to in paragraph one of Article 36 of this

Act; 2. due to close links as defined in point 38 of Article 4(1) of Regulation (EU) No 575/2013

between the applicant and other persons, it is likely that the exercise of supervision over the payment institution in accordance with the provisions of this Act will be hindered or made considerably more difficult;

3. taking into account the regulations of a third country that apply to persons with which the applicant has close links and practice in implementing these regulations, it is likely that the exercise of supervision over the payment institution in accordance with the provisions of this Act will be hindered or made considerably more difficult;

4. due to the applicant’s activities other than payment services, it is likely that the financial soundness of the payment institution will be impaired or that the exercise of supervision over the payment institution in accordance with the provisions of this Act will be hindered.

Article 38 (Establishment of a separate legal person)

If the Bank of Slovenia refuses an application for authorisation on the grounds referred to in point 4 of Article 37 of this Act, it may, in the explanation of the decision refusing the applicant’s application, inform the applicant of the possibility of establishing a separate legal person for the purpose of providing payment services and of lodging an application for authorisation to provide payment services as a payment institution for that legal person if the applicant assesses that the aforementioned grounds will not exist with respect to that separate legal person.

Article 39 (Extension of authorisation)

(1) If a payment institution intends to provide payment services that are not covered by the authorisation to provide payment services as a payment institution that has been issued to it, the payment institution shall obtain authorisation from the Bank of Slovenia to extend said authorisation to provide payment services as a payment institution prior to commencing the provision of such services.

(2) Articles 35 to 37 of this Act shall apply, mutatis mutandis, to the extension of the authorisation by the Bank of Slovenia to provide payment services as a payment institution.

Article 40 (Change in circumstances after the issue of the authorisation and archiving of

documents)

(1) A payment institution shall immediately notify the Bank of Slovenia of any facts and circumstances affecting the fulfilment of the conditions referred to in paragraph one of Article 36 of this Act and of any change of persons with which the payment institution has close links or of any change in these links. With the notification, it shall enclose appropriately modified documents referred to in Article 35 of this Act.

(2) A payment institution shall keep the documents on the fulfilment of the conditions for granting and maintaining the authorisation by the Bank of Slovenia to provide payment services as a payment institution for at least five years from the termination of the relationship or status to which said documents refer, unless special regulations lay down a longer archiving period for particular documents or data.

Article 41 (Authorisation to provide payment services in the case of a merger or demerger)

(1) If a merger or demerger results in the creation of a new undertaking that will provide payment services, this new undertaking shall obtain authorisation from the Bank of Slovenia to provide payment services prior to the entry of such merger or demerger in the court register.

(2) If a payment institution is involved in the merger or demerger of undertakings in which it continues to provide payment services, it shall obtain authorisation from the Bank of Slovenia prior to such a merger or demerger.

(3) The provisions of Articles 35 to 37 of this Act shall apply, mutatis mutandis, to the decision-making regarding the authorisation referred to in this Article.

(4) An application for authorisation to provide payment services following a merger or demerger shall also be accompanied by documents laid down for that purpose in the act governing companies.

Article 42 (Termination of authorisation)

(1) The authorisation to provide payment services as a payment institution granted by the Bank of Slovenia shall be terminated in whole or with respect to individual payment services if the payment institution concerned does not commence providing payment services within one year of the issue of the authorisation or if the payment institution ceases to provide payment services for more than six months. The authorisation to provide payment services as a payment institution granted by the Bank of Slovenia shall be terminated on the date of expiry of the time limit referred to in the first sentence of this paragraph.

(2) If bankruptcy proceedings or compulsory liquidation proceedings have been initiated against a payment institution in accordance with the act governing financial operations, insolvency proceedings and compulsory winding-up, the authorisation to provide payment services as a payment institution granted by the Bank of Slovenia shall be terminated in whole on the date of the initiation of the bankruptcy proceedings or compulsory liquidation proceedings. The court shall also serve the decision on the initiation of bankruptcy proceedings or compulsory liquidation proceedings against a payment institution on the Bank of Slovenia.

(3) The authorisation to provide payment services as a payment institution granted by the Bank of Slovenia shall be terminated in whole if the competent authorities of the payment institution adopt a decision on the liquidation of the payment institution. In the case of liquidation of the payment institution, the authorisation shall be terminated on the date of removal of the payment institution from the court register.

(4) The authorisation to provide payment services as a payment institution granted by the Bank of Slovenia shall be terminated in whole or in part if the competent authorities of

the payment institution adopt a decision on any change of the payment institution’s activity meaning that the payment institution wholly or partly ceases to provide payment services. In cases referred to in the first sentence of this paragraph, the authorisation to provide payment services as a payment institution granted by the Bank of Slovenia shall be terminated on the date of entry of the decision on the change of activity in the court register.

(5) A payment institution shall immediately notify the Bank of Slovenia of the occurrence of the circumstances referred to in paragraph one of this Article. A payment institution shall notify the Bank of Slovenia of decisions referred to in paragraphs three and four of this Article immediately after their adoption.

(6) If the circumstances referred to in paragraphs one to four of this Article arise, the Bank of Slovenia shall issue a decision declaring that the authorisation to provide services as a payment institution has been terminated in whole or in part.

(7) As of the date of termination of the authorisation to provide services as a payment institution in accordance with paragraphs one to four of this Article, the payment institution shall not be allowed to enter into new transactions in connection with the provision of payment services with respect to which the authorisation was terminated.

2.4 Provision of payment services through branches, agents and outsourcing

Article 43 (Agents and branches)

(1) A payment institution that intends to provide payment services through a branch in the host country or a third country, or through an agent in the Republic of Slovenia or the host country, shall notify the Bank of Slovenia of this in advance.

(2) The notification on the provision of payment services through an agent in the Republic of Slovenia or the host country shall contain the following information: 1. the registered name and head office or the name and permanent residence address of

the agent in the Republic of Slovenia or the host country; 2. a description of the internal control mechanisms that will be used by the agent in order to

comply with the obligations in relation to the prevention of money laundering and the financing of terrorism in accordance with the regulations on the prevention of money laundering and the financing of terrorism, this to be updated in the event of any material change to the particulars communicated in the initial notification;

3. the identity of persons who are members of the management body of the agent and persons who are directly responsible for the management of payment services activities at the agent, including evidence that these persons meet the conditions referred to in paragraph one of Article 32 of this Act, unless the agent is a payment service provider;

4. a description of the payment services that the payment institution intends to provide through the agent; and

5. where applicable, the unique identification code or number of the agent.

(3) The notification on the provision of payment services through a branch in the host country or a third country shall contain the following information: 1. the registered name and address of the branch in the host country or a third country; 2. a description of the organisational structure of the branch; 3. the identity of persons who are part of the management body of the branch and persons

who are directly responsible for the management of payment services activities at the branch;

4. a description of the payment services that the payment institution intends to provide through the branch; and

5. information referred to in points 3 and 6 of paragraph one of Article 35 of this Act concerning payment services activities in the territory of the host country or a third country.

(4) A payment institution shall immediately notify the Bank of Slovenia of any change in circumstances referred to in paragraphs two and three of this Article, in particular of the termination of the provision of payment services through a particular agent in the Republic of Slovenia or the host country, of any additional agents in the Republic of Slovenia or the host country, of the termination of the provision of payment services through a branch in a particular host country or third country, or of any additional branches in a particular host country or third country.

Article 44 (Operation of an agent or a branch)

(1) A payment institution may commence providing payment services through a branch or an agent in a host country when the conditions referred to in Article 49 of this Act are fulfilled. A payment institution or payment institution benefiting from a waiver can commence providing payment services through a branch in a third country or through an agent in the Republic of Slovenia when the branch or agent has been entered in the register of payment institutions in accordance with this Act.

(2) A payment institution may provide payment services through a particular agent or branch only in the territory of the Member State that is listed in the register of payment institutions with this agent or branch.

(3) A payment institution shall ensure that its branch in a host country or agent in the Republic of Slovenia or a host country inform their users in an appropriate manner that they are acting on behalf of the payment institution.

Article 45 (Outsourcing of operational functions)

(1) Where a payment institution intends to outsource individual operational functions relating to payment services, it shall inform the Bank of Slovenia thereof in advance.

(2) A payment institution may outsource important operational functions relating to the provision of payment services if the following conditions are met: 1. in relation to the entity to which functions are outsourced, the appropriate quality of the

internal control at the level of the payment institution shall be ensured; 2. monitoring and supervision of the payment institution’s compliance with the obligations in

accordance with this Act and other acts shall not be impaired; 3. the outsourcing of such functions shall not result in the delegation by senior

management of its responsibility to entities to which functions are outsourced or to third parties;

4. the responsibilities of the payment institution towards its users as laid down in this Act and other acts shall not be reduced; and

5. despite the outsourcing of important operational functions, the payment institution shall ensure that it meets all the conditions for obtaining and maintain the Bank of Slovenia’s authorisation to provide payment services as a payment institution.

(3) Operational functions relating to the provision of payment services, including IT systems, shall be regarded as important if a defect or failure in their performance would materially impair a payment institution’s continuing compliance with its obligations, its financial performance, or the soundness and continuity of its payment services.

(4) A payment institution that outsources operational functions relating to the provision of payment services shall ensure that, in relation to the actions of entities to which functions are outsourced, it complies with its obligations under this Act or other acts.

(5) A payment institution shall immediately inform the Bank of Slovenia of any changes regarding the use of entities to which functions are outsourced.

Article 46 (Liability of a payment institution for the acts of a branch, agent or entity to which

activities are outsourced)

(1) A payment institution which provides payment services through a branch or agent or which has outsourced operational functions relating to the provision of payment services to other entities shall be liable for the legality and regularity of the acts of the branch or agent in relation to the provision of payment services which the branch or agent performs on behalf of the payment institution and for the legality and regularity of operational functions which the entity to which functions are outsourced performs on behalf of the payment institution.

(2) A payment institution may not exclude or limit its liability referred to in the preceding paragraph in relation to its users.

2.5 Provision of payment services as a payment institution in the territory of a host country

Article 47 (Notification of the provision of payment services or outsourcing in the territory of a

host country)

(1) A payment institution that intends to provide payment services in the territory of a host country through a branch or agent shall notify the Bank of Slovenia thereof in advance in accordance with Article 43 of this Act and list the host countries in which it intends to operate.

(2) A payment institution that intends to provide payment services in the territory of the host country directly shall notify the Bank of Slovenia thereof in advance; the notification shall be accompanied by a description of the payment services that the payment institution intends to provide directly in the host country and a list of host countries in which it intends to operate.

(3) Where a payment institution intends to outsource operational functions relating to the provision of payment services in the host country, it shall notify the Bank of Slovenia thereof.

Article 48 (Notifying the competent supervisory authority of the host country)

(1) Within one month of receipt of the notification referred to in the preceding Article, this containing all the required information referred to in Article 43 of this Act, the Bank of Slovenia shall notify the competent supervisory authority of the host country of the intended provision of payment services through a branch or agent or the intended direct provision of payment services in the territory of that host country and shall inform the payment institution concerned thereof.

(2) Together with the notification referred to in the preceding paragraph, the Bank of Slovenia shall communicate the following information to the competent supervisory authority of the host country: 1. the registered name, the address and, where applicable, the authorisation number of the

payment institution; 2. the Member States in which it intends to operate; 3. the payment services that the payment institution intends to provide in the territory of that

host country; 4. where the payment institution intends to make use of an agent, the information referred

to in paragraph two of Article 43 of this Act; 5. where the payment institution intends to make use of a branch, the information referred

to in paragraph three of Article 43 of this Act.

(3) After the Bank of Slovenia has been notified by the competent authority of the host country of relevant information in connection with the intended provision of payment services by the relevant payment institution, in particular any reasonable grounds for concern that the intended engagement of an agent or establishment of a branch may be used for the purposes of money laundering or the financing of terrorism, it shall assess whether it agrees with the assessment of the competent authorities of the host country. Where the Bank of Slovenia does not agree with the assessment of the competent authorities of the host country, it shall provide the latter with the reasons for its decision.

(4) If the Bank of Slovenia, in particular in light of the information received from the competent authorities of the host country in accordance with the preceding paragraph, assesses that there are reasonable grounds to suspect money laundering or financing of terrorism in connection with the intended engagement of an agent or establishment of a branch, or that there are reasonable grounds to suspect that the intended provision of payment services by the relevant payment institution would constitute a breach of the legislation of the host country, it shall issue a decision refusing to register the agent or branch or shall withdraw the registration if already made. The provisions of this Act relating to the withdrawal of authorisation shall apply, mutatis mutandis, to the procedure for issuing a decision refusing registration. If the Bank of Slovenia assesses that no such grounds exist, it shall register the agent or branch.

(5) Within three months of receipt of the notification referred to in the preceding Article, the Bank of Slovenia shall inform the competent authorities of the host country and the payment institution of its decision regarding the intended provision of payment services through a branch or agent or the intended direct provision of payment services.

Article 49 (Commencement of the provision of payment services in the host country)

(1) A payment institution may commence providing payment services in the territory of the host country through a branch or agent on the date: 1. the branch or agent of the payment institution is entered in the register of payment

institutions in accordance with this Act and

2. the competent supervisory authority of the host country and the payment institution are notified, in accordance with paragraph five of the preceding Article, of the Bank of Slovenia’s favourable assessment with respect to the intended provision of payment services through a branch or agent.

(2) A payment institution may commence providing payment services directly in the territory of the host country when the competent supervisory authority of the host country and the payment institution have been notified, in accordance with paragraph five of the preceding Article, of the Bank of Slovenia’s favourable assessment with respect to the intended direct provision of payment services.

(3) A payment institution shall notify the Bank of Slovenia of the date from which it will provide payment services in the relevant host countries. The Bank of Slovenia shall notify the competent supervisory authorities of the host countries thereof.

(4) A payment institution shall immediately inform the Bank of Slovenia of any change in information referred to in paragraph two of the preceding Article, including any additional agents, branches or entities to which its activities are outsourced in the host countries in which it operates. The procedure referred to in the preceding Article shall apply to decision-making by the Bank of Slovenia.

2.6 Provision of payment services by a payment institution of a Member State in the territory of the Republic of Slovenia

Article 50 (Provision of payment services by a payment institution of a Member State in the

territory of the Republic of Slovenia)

(1) A payment institution of a Member State may also provide payment services which it is entitled to provide in the home country in the territory of the Republic of Slovenia through a branch or agent or directly.

(2) The Bank of Slovenia, within one month of being notified by the competent authority of the home country that a payment institution intends to provide payment services in the Republic of Slovenia, shall assess this information and communicate to the competent authority of the home country relevant information in connection with the intended provision of payment services by the relevant payment institution, in particular any reasonable grounds for concern that the intended engagement of an agent or establishment of a branch may be used for the purposes of money laundering or financing of terrorism.

(3) A payment institution of a Member State may commence providing payment services in the territory of the Republic of Slovenia through a branch or agent on the day: 1. the branch or agent of the payment institution is entered in the register of payment

institutions in the home country and 2. the competent authority of the home country notifies the Bank of Slovenia of its

favourable assessment with respect to the intended provision of payment services in the Republic of Slovenia through a branch or agent.

(4) A payment institution of a Member State may commence providing payment services directly in the territory of the Republic of Slovenia when the competent authority of the home country notifies the Bank of Slovenia of its favourable assessment with respect to the intended direct provision of payment services in the Republic of Slovenia.

Article 51 (Reporting by payment institutions having agents or branches in the territory of the

Republic of Slovenia)

The Bank of Slovenia may require that payment institutions having agents or branches in the territory of the Republic of Slovenia report to it periodically on the activities carried out in the territory of the Republic of Slovenia. The Bank of Slovenia shall require such reports for information or statistical purposes and, insofar as the agents and branches conduct the payment service business on the basis of exercising the right of establishment, to monitor compliance with the provisions of Chapters 5, 13 and 16 of this Act. Such agents and branches shall be subject to professional secrecy requirements at least equivalent to those referred to in Articles 269 to 273 of this Act.

Article 52 (Appointment of a central contact point)

Payment institutions operating in the territory of the Republic of Slovenia through agents on the basis of exercising the right of establishment, the head office of which is situated in another Member State, shall appoint a central contact point in the territory of the Republic of Slovenia to ensure adequate communication and information reporting on compliance with the provisions of Chapters 5, 13 and 16 of this Act, this without prejudice to any provisions of regulations governing the prevention of money laundering and the financing of terrorism, and to facilitate supervision by competent authorities of the home country and by the Bank of Slovenia, including by providing the competent authorities with documents and information on request.

2.7 The governance system and the internal control system of a payment institution

2.7.1 General rules

Article 53 (Sound and prudent operation)

Throughout the period of validity of the authorisation to provide payment services, a payment institution shall fulfil organisational, personnel, technical and other conditions for sound and prudent operation in accordance with this Act.

Article 54 (The governance system and the internal control system)

(1) A payment institution shall establish and maintain a reliable and comprehensive governance system and internal control system which ensure the sound and prudent management of the payment institution. The governance system and the internal control system shall be proportionate to the nature, scale and complexity of the payment services provided by the payment institution.

(2) The governance system referred in the preceding paragraph shall include: 1. a clear organisational structure with well-defined, transparent and consistent lines of

responsibility and 2. effective procedures to identify, assess, manage, monitor and report the risks to which

the payment institution is or might be exposed.

(3) The internal control system referred to in paragraph one of this Article shall also include appropriate administrative and accounting procedures and procedures for verifying compliance with obligations with regard to the prevention of money laundering and the financing of terrorism in accordance with the act governing the prevention of money laundering and the financing of terrorism and Regulation (EU) 2015/847.

2.7.2 Own funds and the own funds requirement of a payment institution

Article 55 (The minimum level of own funds)

(1) Throughout its operation, a payment institution shall hold own funds which are at all times equal to or in excess of the higher of the following amounts: 1. the amount of initial capital that is required pursuant to Article 31 of this Act; 2. the amount of the own funds requirement that is calculated in accordance with a method

referred to paragraph two of this Article.

(2) The amount of the own funds requirement for payment institutions, with the exception of payment institutions providing only services referred to in point 7 or 8, or points 7 and 8, of paragraph one of Article 5 of this Act, shall be calculated in accordance with the method determined by the Bank of Slovenia for a particular payment institution by way of a decision, taking into account the type and complexity of payment services to be provided by the payment institution, the volume of payments and the risks to which the payment institution will be exposed. The Bank of Slovenia may determine one of the following methods for a payment institution: 1. fixed overheads method; 2. payment volume method; 3. operating income method.

(3) For hybrid payment institutions, the own funds requirement shall be calculated only for the part of their operation that is related to the provision of payment services.

(4) A payment institution shall immediately inform the Bank of Slovenia of any change in the facts and circumstances referred to in paragraph two of this Article.

(5) In the event of any material change in the facts and circumstances referred to in paragraph two of this Article, the Bank of Slovenia may, by way of a decision, determine a different method for the calculation of the own funds requirement.

Article 56 (Fixed overheads method)

(1) A payment institution’s own funds requirement calculated in accordance with the fixed overheads method shall amount to 10% of the payment institution’s fixed overheads for the preceding financial year.

(2) In the first year of a payment institution’s operation as a payment institution, the own funds requirement of that payment institution shall be calculated in accordance with the fixed overheads method taking into account the fixed overheads as projected in the payment institution’s business plan in the process of obtaining authorisation from the Bank of Slovenia to provide payment services as a payment institution.

(3) The Bank of Slovenia may, by way of a decision, require an adjustment to the amount of the fixed overheads that are taken into account by the payment institution in the calculation of own funds in accordance with the fixed overheads method: 1. in the first year of the payment institution’s operation as a payment institution where the

amount of fixed overheads of the payment institution differs considerably from the amount projected in the business plan;

2. in the current financial year where the amount of fixed overheads of the payment institution differs considerably from the amount of fixed overheads in the preceding financial year.

(4) A payment institution that has been providing payment services for less than a year shall immediately inform the Bank of Slovenia of any material discrepancy between the amount of fixed overheads and the amount of fixed overheads in the preceding financial year or the amount of fixed overheads as projected in the business plan.

Article 57 (Payment volume method)

(1) A payment institution’s own funds requirement calculated in accordance with the payment volume method shall amount to the initial amount referred to paragraph two of this Article multiplied by the scaling factor referred to in Article 60 of this Act.

(2) The initial amount shall be calculated taking into account the monthly average amount of payment transactions executed in the preceding financial year, this in accordance with the following scale:

Monthly average amount of payment transactions executed in the preceding financial year

Initial amount

up to EUR 5,000,000 4.0% of the monthly average amount of payment transactions executed in the preceding financial year

above EUR 5,000,000 up to EUR 10,000,000

EUR 200,000 + 2.5% of the monthly average amount of payment transactions executed in the preceding financial year above EUR 5,000,000

above EUR 10,000,000 up to EUR 100,000,000

EUR 325,000 + 1% of the monthly average amount of payment transactions executed in the preceding financial year above EUR 10,000,000

above EUR 100,000,000 up to EUR 250,000,000

EUR 1,225,000 + 0.5% of the monthly average amount of payment transactions executed in the preceding financial year above EUR 100,000,000

above EUR 250,000,000 EUR 1,975,000 + 0.25% of the monthly average amount of payment transactions executed in the preceding financial year above EUR 250,000,000

(3) The monthly average amount of payment transactions executed in the preceding financial year referred to in the preceding paragraph shall be equal to one twelfth of the total amount of payment transactions executed by the payment institution in the preceding financial year.

(4) In the first year of a payment institution’s operation as a payment institution, instead of the monthly average amounts of payment transactions in the preceding year, the monthly average amounts of payment transactions for the first year of operation as projected by the payment institution in its business plan in the process of obtaining authorisation from the Bank of Slovenia to provide payment services as a payment institution shall be taken into account in the calculation of the own funds requirement of that payment institution in accordance with the payment volume method.

(5) The Bank of Slovenia may, by way of a decision, require an adjustment to the monthly average amounts of payment transactions taken into account by the payment institution in the calculation of the initial amount referred to in paragraph two of this Article: 1. in the first year of the payment institution’s operation as a payment institution where the

monthly average amount of payment transactions differs considerably from the amount projected in the business plan;

2. in the current financial year where the monthly average amounts of payment transactions differ considerably from the monthly average amounts of payment transactions in the preceding financial year.

(6) A payment institution that has been providing payment services for less than a year shall immediately inform the Bank of Slovenia of any material discrepancy between the monthly average amounts of payment transactions and the monthly average amounts of payment transactions executed in the preceding financial year or the monthly average amounts of payment transactions as projected in the business plan.

Article 58 (Operating income method)

(1) A payment institution’s own funds requirement calculated in accordance with the operating income method shall be the initial amount referred to paragraph two of this Article multiplied by the scaling factor referred to in Article 60 of this Act.

(2) The initial amount for the calculation of the own funds requirement in accordance with the operating income method shall be calculated taking into account the income indicator referred to in article 59 of this Act, this in accordance with the following scale:

Income indicator Initial amount up to EUR 2,500,000 10% of the income indicator up to EUR

2,500,000 above EUR 2,500,000 up to EUR 5,000,000

EUR 250,000 + 8% of the income indicator above EUR 2,500,000 up to EUR 5,000,000

above EUR 5,000,000 up to EUR 25,000,000

EUR 450,000 + 6% of the income indicator above EUR 5,000,000 up to EUR 25,000,000

above EUR 25,000,000 up to EUR 50,000,000

EUR 1,650,000 + 3% of the income indicator above EUR 25,000,000 up to EUR 50,000,000

above EUR 50,000,000 EUR 2,400,000 + 1.5% of the income indicator above EUR 50,000,000

(3) Notwithstanding paragraph one of this Article, the own funds requirement calculated in accordance with the operating income method shall not fall below 80% of the average of the income indicator calculated on the basis of data on operation for the previous three financial years. In the first three years of the financial institution’s operation as a payment institution, estimates may be used for defining the average of the income indicator.

Article 59 (Income indicator)

(1) The income indicator shall be equal to the sum of interest income, commissions and fees received and other operating income, reduced by interest expenses. Income from extraordinary or irregular items shall not be used in the calculation of the income indicator.

(2) The income indicator may be reduced by expenditure on the outsourcing of services performed by other entities on behalf of the payment institution if the expenditure is incurred in making payment to another payment institution or a payment institution of a Member State.

(3) The income indicator shall be calculated on the basis of the profit and loss account for the preceding financial year.

(4) In the first year of a payment institution’s operation as a payment institution, instead of the total income for the previous year, the operating income as projected by the payment institution in its business plan shall be taken into account in the calculation of the own funds requirement of that payment institution in accordance with the operating income method.

(5) The Bank of Slovenia may, by way of a decision, require an adjustment to individual items that are taken into account by the payment institution in the calculation of the income indicator pursuant to paragraph one of this Article: 1. in the first year of the payment institution’s operation as a payment institution where the

amount of a particular item differs considerably from the amount projected in the business plan or

2. in the current financial year where the amount of a particular item differs considerably from the amount of that item in the preceding financial year.

(6) A payment institution that has been providing payment services for less than a year shall immediately inform the Bank of Slovenia of any material discrepancy between the amounts of individual items taken into account in the calculation of the income indicator pursuant to paragraph one of this Article and the amounts of these items in the preceding financial year or the amounts of these items as projected in the business plan.

Article 60 (Scaling factor)

For the calculation of the own funds requirement in accordance with the payment volume method and the operating income method, a scaling factor shall be used, which shall be:

1. 0.5 where the payment institution provides only the payment service as referred to in point 6 of paragraph one of Article 5 of this Act;

2. 1.0 where the payment institution provides any of the payment services as referred to in points 1 to 5 of paragraph one of Article 5 of this Act.

Article 61 (Extraordinary increase in the own funds requirement)

(1) The Bank of Slovenia may, by way of an order, increase a payment institution’s own funds requirement, calculated by application of the method chosen in accordance with the decision of the Bank of Slovenia referred to in paragraph two or five of Article 55 of this Act, by up to a maximum of 20%. In deciding on such an increase, the Bank of Slovenia shall take into account loss databases and the quality of the risk management system and internal control system of the payment institution.

(2) By way of an order referred to in the preceding paragraph, the Bank of Slovenia shall also define measures to be taken by the payment institution in order for the extraordinary increase in the own funds requirement to cease to apply to it.

(3) The provisions of this Act relating to the remedying of breaches shall apply, mutatis mutandis, to an order referred to in paragraph one of this Article.

Article 62 (Authorisation by the Bank of Slovenia to reduce the own funds requirement)

(1) The Bank of Slovenia may, by way of a decision, reduce a payment institution’s own funds requirement, calculated by application of the method chosen in accordance with the decision of the Bank of Slovenia referred to in paragraph two or five of Article 55 of this Act, by up to a maximum of 20% provided that this does not impair the sound and prudent operation of the payment institution. In deciding on authorisation to reduce the own funds requirement, the Bank of Slovenia shall take into account loss databases and the quality of the risk management system and internal control system of the payment institution.

(2) In the application for authorisation by the Bank of Slovenia to reduce the own funds requirement, a payment institution shall state the facts and circumstances relating to the quality of the risk management system, loss databases and internal control system which significantly contribute to the sound and prudent operation of the payment institution and submit appropriate evidence.

(3) Notwithstanding a reduction in the own funds requirement on the basis of the authorisation referred to in paragraph one of this Article, the amount of own funds of the payment institution may not be less than the amount of initial capital required pursuant to Article 31 of this Act.

(4) A payment institution that has obtained authorisation to reduce the own funds requirement shall report to the Bank of Slovenia on further compliance with the conditions for reduction in the own funds requirement within the time limits and in the manner laid down in the decision granting authorisation to reduce the own funds requirement.

(5) The Bank of Slovenia shall withdraw the authorisation to reduce the own funds requirement if: 1. the conditions for reduction in the own funds requirement are no longer met or

2. the payment institution fails to report to the Bank of Slovenia on further compliance with the conditions for reduction in the own funds requirement within the time limits and in the manner laid down in the decision granting authorisation to reduce the own funds requirement.

Article 63 (Own funds of a payment institution)

(1) 'own funds' of a payment institution shall mean funds as defined in point 118 of Article 4(1) of Regulation (EU) No 575/2013 where at least 75% of the Tier 1 capital is in the form of Common Equity Tier 1 capital as referred to in Article 50 of Regulation (EU) No 575/2013 and Tier 2 capital is equal to or less than one-third of Tier 1 capital.

(2) The elements of own funds and deductions referred to in this Article shall apply within the meaning laid down in the act governing companies. In the case of companies that are not organised as public limited liability companies, the elements of own funds and deductions shall be appropriately adjusted to the elements of own funds and deductions that apply to such companies in accordance with the act governing companies.

Article 64 (Prohibition of multiple use of elements of own funds)

(1) The following elements may not be used in the calculation of the own funds of a payment institution:

1. elements that are used in the calculation of the own funds of an electronic money institution, other payment institution, credit institution, investment firm, asset management company, insurance undertaking, reinsurance undertaking or pension fund company that is part of the same group as the payment institution or

2. elements used by a hybrid payment institution for carrying out activities other than payment services.

(2) For the purposes of the preceding paragraph, the terms 'payment institution' and 'electronic money institution' shall include payment institutions and electronic money institutions with their head office in the Republic of Slovenia, another Member State or a third country. Payment institutions or electronic money institutions from third countries shall be entities that provide as part of their activity payment services or electronic money issuance services as defined in this Act.

Article 65 (Use of terms)

(1) The terms 'financial institution', 'investment firm' and 'pension fund company', which are used in Articles 63 and 64 of this Act, shall have the same meaning as in the act governing banking.

(2) The terms 'insurance undertaking', 'reinsurance undertaking' and 'asset management company', which are used in Articles 63 and 64 of this Act, shall have the same meaning as in the act governing financial conglomerates.

Article 66

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

(1) A payment institution shall, on a regular basis, calculate its own funds requirement and own funds.

(2) A payment institution shall report to the Bank of Slovenia on the calculations referred to in the preceding paragraph and on information that is the basis for these calculations.

Article 67 (Issue of implementing regulations)

The Bank of Slovenia shall prescribe the detailed content of reports, time limits and the method of reporting on the own funds of a payment institution as referred to in the preceding Article.

2.8 Safeguarding of users’ funds

Article 68 (Separate keeping of users’ funds)

(1) A payment institution providing payment services as referred to in points 1 to 6 of paragraph one of Article 5 of this Act shall keep funds received from users in connection with the execution of payment transactions separately from its own funds and the funds received from persons other than users.

(2) A payment institution shall keep separate records of funds for each user on whose behalf the funds are held in connection with the execution of payment transactions.

(3) Where a payment institution receives funds from users for the purpose of executing a payment transaction and does not transfer such funds to the payee or the payee’s payment service provider by the end of the business day following the day of receipt of the funds, the payment institution shall deposit the funds in a separate account in a bank with its head office in the Republic of Slovenia or a bank with its head office in another Member State no later than on the business day following the day of receipt of the funds.

(4) Notwithstanding the preceding paragraph, where a payment institution receives funds from users for the purpose of executing a payment transaction and does not transfer such funds to the payee or the payee’s payment service provider by the end of the business day following the day of receipt of the funds, the payment institution may also invest these funds in: 1. debt securities issued by the Republic of Slovenia or another Member State, the

European Central Bank, the Bank of Slovenia, or the central bank of another Member State or

2. debt securities other than subordinated securities issued by a bank with its head office in the Republic of Slovenia or another Member State.

Article 69 (Insurance policy or other guarantee)

(1) The provisions of the preceding Article shall not apply if a payment institution provides appropriate insurance to ensure the fulfilment of its financial obligations towards users in the event that the payment institution is unable to meet them.

(2) Insurance shall be considered to be appropriate if a payment institution secures the fulfilment of its financial obligations towards users with an insurance policy or other comparable guarantee from an insurance undertaking or a bank with its head office in the Republic of Slovenia or another Member State which does not belong to the same group as the payment institution itself.

(3) A payment institution shall conclude an insurance policy or other comparable guarantee in favour of users as insurance holders. Under the insurance policy or guarantee, users shall be guaranteed a payment of the amount that should otherwise be kept separately pursuant to paragraph one of the preceding Article.

Article 70 (Safeguarding of users’ funds in hybrid payment institutions)

(1) When a hybrid payment institution receives funds from users for the purpose of executing payment transactions and providing services other than payment services, the hybrid payment institution shall ensure the safeguarding of users’ funds in accordance with Article 68 or 69 of this Act only in respect of funds received from users for the execution of payment transactions.

(2) In the case referred to in the preceding paragraph, where a part of funds received from users for the execution of payment transactions is variable or not known in advance, a hybrid payment institution may ensure the safeguarding of users’ funds in the manner referred to in Article 68 or 69 of this Act in respect of the part of users’ funds which the hybrid payment institution expects to be used by users for the execution of payment transactions. A hybrid payment institution shall determine the portion of funds that is expected to be used by users for the execution of payment transactions by applying the method for the determination of the portion of funds for which it has obtained authorisation from the Bank of Slovenia (hereinafter: authorisation by the Bank of Slovenia to apply the method for the determination of the portion of funds).

(3) The Bank of Slovenia shall issue the authorisation to apply the method for the determination of the portion of funds if it assesses that the portion determined by the application of such a method will be appropriate given the previous data on the use of users’ funds for the purpose of execution of payment transactions or other purposes.

(4) A hybrid payment institution’s application for authorisation by the Bank of Slovenia to apply the method for the determination of the portion of funds shall be accompanied with documents on the method to be applied for the determination of the portion, these to contain an explanation and the timeline detailing the previous data on the use of users’ funds for the purpose of execution of payment transactions or other purposes. If the hybrid payment institution does not have an appropriate timeline detailing the previous data on the use of users’ funds at the time of submitting the application, it may propose in its application that the estimated share of users’ funds that is expected to be used for the execution of payment transactions be used until such data are obtained. Such a proposal shall be substantiated.

(5) A hybrid payment institution shall report to the Bank of Slovenia on the calculation of the portion in accordance with the method for the determination of the portion of users’ funds for which it obtained authorisation from the Bank of Slovenia and on previous

data on the amount of funds that were actually received from users for the execution of payment transactions within the time limits and in the manner laid down in the decision granting authorisation to apply the method for the determination of the portion of funds.

(6) The Bank of Slovenia shall withdraw the authorisation to apply the method for the determination of the portion of funds: 1. if the conditions referred to in paragraph two of this Article are no longer met or if the

share determined by application of the method is no longer appropriate given the previous data on the use of users’ funds or

2. if a payment institution fails to report to the Bank of Slovenia on the facts referred to in the preceding paragraph within the time limits and in the manner laid down in the decision granting authorisation to apply the method for calculating the safeguarded portion of the user’s funds.

Article 71 (Effects of enforcement and insolvency proceedings against a payment institution)

(1) If a payment institutions ensures the safeguarding of users’ funds in accordance with Article 68 of this Act, funds received by the payment institution from users for the execution of payment transactions, including funds kept in a separate account referred to in paragraph three of Article 68 of this Act and investments referred to in paragraph four of Article 68 of this Act, shall be deemed to be the property of the payment institution’s users in relation to the creditors of the payment institution. In the event of insolvency proceedings against the payment institution, users shall have the right of exclusion in respect of such funds, and, in the event of enforcement or security proceedings against the payment institution, such funds shall be exempt from enforcement.

(2) In the case of insolvency proceedings against a payment institution that ensures the safeguarding of users’ funds in accordance with Article 68 of this Act, the administrator of the proceedings shall: 1. within 10 days of the initiation of the proceedings, for each user establish the state of the

safeguarded funds on the day of initiation of insolvency proceedings and inform the Bank of Slovenia thereof;

2. in at least two daily newspapers circulated in the territory of the entire country in which the payment institution provides payment services, publish a call to users to report their exclusion rights in respect of the safeguarded funds in accordance with the rules of insolvency proceedings.

(3) In the case of insolvency proceedings against a payment institution that ensures the safeguarding of users’ funds in accordance with Article 69 of this Act, the administrator of the proceedings shall: 1. within 10 days of the initiation of the proceedings, in at least two daily newspapers

circulated in the territory of the entire country in which the payment institution provides payment services, publish a call to users to report, within the time limit that applies to the reporting of exclusion rights under the preceding paragraph, their claims in respect of funds they transferred to the payment institution for the purpose of execution of payment transactions;

2. on behalf of and for the account of users who have reported their claims in accordance with point 1 of this paragraph, make claims under an insurance policy or other comparable guarantee, unless individual users make such claims on their own.

(4) When a hybrid payment institution ensures the safeguarding of users’ funds in accordance with paragraph two of the preceding Article only in respect of a part of the users’ funds, for the purposes of this Article, it shall be deemed that an individual user, out of the

total funds transferred to the payment institution for the execution of payment services and for other purposes, designated the same share of funds for the execution of payment services as defined by the payment institution in accordance with paragraph two of the preceding Article for the purposes referred to in paragraph one of this Article.

Article 72 (Notification and reporting)

A payment institution shall notify the Bank of Slovenia in advance of any intended change in the manner of safeguarding of users’ funds and submit appropriate evidence of its compliance with the provisions of this Act.

2.9 Books of account and annual reports

Article 73 (Books of account and annual reports)

(1) Books of account and annual reports of payment institutions and the auditing of annual reports of payment institutions shall be subject to general rules laid down in the act governing companies, the act governing auditing, and Regulation (EC) No 1606/2002 of the European Parliament and of the Council of 19 July 2002 on the application of international accounting standards (OJ L 243, 11.9.2002, p. 1), as last amended by Regulation (EC) No 297/2008 of the European Parliament and of the Council of 11 March 2008 amending Regulation (EC) No 1606/2002 on the application of international accounting standards, as regards the implementing powers conferred on the Commission (OJ L 97, 9.4.2008, p. 62), unless otherwise provided by this Article or Article 74 of this Act.

(2) A payment institution shall be required to submit unaudited financial statements for the preceding financial year to the Bank of Slovenia no later than two months after the end of the financial year. Within the aforementioned time limit, a hybrid payment institution shall also provide the Bank of Slovenia with separate accounting information from the balance sheet and the profit and loss account in respect of the provision of payment services.

(3) A payment institution that is subject to auditing, within eight days of receipt of an auditor’s report and no later than six months after the end of the financial year, shall submit to the Bank of Slovenia: 1. an annual report and 2. an auditor’s report on the auditing of the annual report with contents as laid down in the

act governing companies, including the auditor’s opinion on separate accounting information from the balance sheet and the profit and loss account in respect of the provision of payment services.

Article 74 (Obligations of an audit firm towards the Bank of Slovenia)

(1) An audit firm that audits a payment institution’s annual report shall notify the Bank of Slovenia immediately of any fact or circumstance identified during the audit that might: 1. constitute a significant breach of regulations governing the provisions of payment

services; 2. affect the payment institution’s smooth operation; or

3. result in a qualified auditor’s opinion, a negative opinion or refusal to issue an opinion.

(2) The obligation referred to in the preceding paragraph shall also apply to facts or circumstances in relation to a company that has close links with a payment institution on the basis of control.

(3) An audit firm shall also provide the Bank of Slovenia on request with other information required by the latter to conduct supervision of a payment institution in accordance with this Act.

(4) The submission of information to the Bank of Slovenia pursuant to paragraphs one to three of this Article shall not be deemed a breach of the auditor’s duty to safeguard confidential information in accordance with the act governing auditing or on the basis of the relevant agreement.

3. SPECIAL RULES FOR PAYMENT INSTITUTIONS BENEFITING FROM A WAIVER AND PROVIDERS PROVIDING ONLY ACCOUNT INFORMATION SERVICES

Article 75 (Payment institutions benefiting from a waiver)

(1) 'payment institution benefiting from a waiver' shall mean legal or natural person that provides money remittance services referred to in point 6 of paragraph one of Article 5 of this Act on the basis of authorisation from the Bank of Slovenia to provide such services as a payment institution benefiting from a waiver.

(2) The provisions of Chapter 2 relating to requirements for the provision of payment services as a payment institution shall also apply to payment institutions benefiting from a waiver unless the Bank of Slovenia allowed a payment institution benefiting from a waiver to waive the fulfilment of certain requirements in accordance with Article 76 of this Act or unless this Act expressly provides that certain provisions of this Act shall not apply to payment institutions benefiting from a waiver.

Article 76 (Authorisation to provide money remittance services granted by the Bank of Slovenia

to a payment institution benefiting from a waiver)

(1) A legal or natural person may provide money remittance services referred to in point 6 of paragraph one of Article 5 of this Act as a payment institution benefiting from a waiver if it has obtained authorisation from the Bank of Slovenia to provide such services as a payment institution benefiting from a waiver so that it is not bound by individual requirements regarding the legal status of payment institutions and the governance and internal control systems of a payment institution which payment institutions are required to fulfil in accordance with this Act.

(2) A legal or natural person may obtain authorisation from the Bank of Slovenia to provide money remittance services as a payment institution benefiting from a waiver subject to the following conditions: 1. it has its head office or permanent residence in the Republic of Slovenia; 2. money remittance services will be provided as an additional activity and will be

accessible only to users who simultaneously use services other than payment services provided by that payment service provider;

3. the average monthly amount of all payment transactions which the payment institution benefiting from a waiver intends to execute in a particular year, including transactions executed through its agents, does not exceed EUR 100,000; and

4. members of the management body and persons that will be directly responsible for the management of money remittance services fulfil the conditions for members of management bodies and persons directly responsible for the management of money remittance services laid down in this Act.

(3) In the application for authorisation to provide money remittance services as a payment institution benefiting from a waiver, the applicant shall indicate the requirements with regard to the legal status of payment institutions and the governance and internal control systems of a payment institution in respect of which a waiver of application or a limited application is requested, provide the reasons for such a waiver or limited application, and submit evidence of fulfilment of the conditions referred to in the preceding paragraph.

(4) The Bank of Slovenia shall grant authorisation to provide money remittance services as a payment institution benefiting from a waiver if: 1. the applicant fulfils the conditions referred to in paragraph two of this Article; 2. there are no reasons for the refusal of authorisation referred to in Article 37 of this Act,

with the exception of requirements in respect of which the applicant requested a waiver of application or a limited application; and

3. it assesses that a waiver of application or a limited application of individual requirements will not result in specific risks for users in the provision of money remittance services or that any risks for users are acceptable as they are outweighed by benefits to them.

(5) In the decision on granting authorisation to a payment institution benefiting from a waiver, the Bank of Slovenia shall state the requirements that do not apply to the payment institution benefiting from a waiver or apply to it to only a limited extent.

(6) A payment institution benefiting from a waiver shall immediately inform the Bank of Slovenia of any facts and circumstances affecting the fulfilment of the conditions referred to in paragraph two of this Article.

(7) Articles 35 to 37 and Articles 39, 40 and 41 shall apply, mutatis mutandis, to the authorisation to provide money remittance services granted by the Bank of Slovenia to a payment institution benefiting from a waiver, subject to the provisions of paragraphs two to six of this Article.

Article 77 (Provision of money remittance services by a payment institution benefiting from a

waiver)

(1) A payment institution benefiting from a waiver may provide money remittance services: 1. in the territory of the Republic of Slovenia, including through agents and branches in the

Republic of Slovenia and 2. in the territory of a third country.

(2) A payment institution benefiting from a waiver may commence providing payment services through a branch in a third country or through an agent in the Republic of Slovenia when the branch or agent has been entered in the register of payment institutions in accordance with this Act.

Article 78 (Account information service providers)

(1) 'account information service provider' shall mean a legal or natural person who provides only account information services referred to in point 8 of paragraph one of Article 5 of this Act and who is exempt from the application of the procedure and the fulfilment of conditions referred to in Chapter 2 of this Act, with the exception of points 1 to 3, points 6 to 9, and points 11, 12 and 16 of paragraph one of Article 35, the provisions of Articles 47 to 52 of this Act, and paragraph three of this Article.

(2) An entity that applies for registration to provide account information services shall enclose with the application proof of professional indemnity insurance covering the territories in which it offers services or some other comparable guarantee against its liability vis-à-vis account servicing payment service providers or payment service users resulting from non-authorised or fraudulent access to payment account information or use of deception to access payment account information or non-authorised or fraudulent or deceitful use of payment account information.

(3) An account information service provider shall be considered to be a payment institution and, unless otherwise provided by this Act, shall, mutatis mutandis, be subject to the provisions of this Act relating to payment institutions, except the provision of Chapter 5, with the exception of Articles 89 and 90, and, where appropriate, Articles 102, 119, 132 and Articles 151 to 153, and points 3 and 4 of paragraph one of Article 257 of this Act.

(4) When an entity that intends to provide only services referred to in point 8 of paragraph one of Article 5 of this Act submits an application for entry in the register of payment institutions and relevant documents in accordance with paragraphs one and two of this Article to the Bank of Slovenia, the Bank of Slovenia shall enter it in the register.

4. REGISTER OF PAYMENT INSTITUTIONS

Article 79 (Register of payment institutions)

(1) 'register of payment institutions' shall mean a centralised database on payment institutions and payment institutions benefiting from a waiver, their agents in the Republic of Slovenia and host countries, and their branches in host countries and third countries. For the purposes of this Chapter, 'branch' shall mean an organisational unit other than the head office of a payment institution which has no legal personality and which carries out directly some or all of the services inherent in the business of the payment institution. For the purposes of this Chapter, all business units and branches that are established in the same host country or third country by a payment institution shall be considered as one branch. For the purposes of this Chapter, all business units and branches that are established in the Republic of Slovenia by a payment institution of a Member State shall be considered as one branch.

(2) For each payment institution or payment institution benefiting from a waiver, the following information shall be entered in the register of payment institutions: 1. the registered name and head office of the payment institution or payment institution

benefiting from a waiver; 2. payment services for which it obtained authorisation from the Bank of Slovenia to

provide payment services as a payment institution or an indication that a payment institution benefiting from a waiver may perform exclusively money remittance services;

3. information on the branch in a particular host country or third country: - the registered name and head office of the first branch in the host country or third

country; - payment services that it provides through all branches in a particular host country or

third country; 4. information on each individual agent in the Republic of Slovenia or the host country:

- the registered name and the head office or the name and surname and the permanent residence address of the agent in the Republic of Slovenia or the host country;

- payment services provided through an agent.

(3) All entries in connection with payment institutions benefiting from a waiver and account information service providers shall be entered in the register of payment institutions separately, these explicitly stating whether they concern payment institutions benefiting from a waiver or account information service providers.

(4) The register of payment institutions shall be kept by the Bank of Slovenia, which shall ensure that it is regularly updated. The register of payment institutions shall be public and accessible free of charge on the website of the Bank of Slovenia.

Article 80 (Entry of a payment institution in the register of payment institutions)

The Bank of Slovenia shall enter a payment institution or a payment institution benefiting from a waiver in the register of payment institutions upon granting authorisation to provide payment services as a payment institution or authorisation to provide money remittance services as a payment institution benefiting from a waiver.

Article 81 (Decision-making on the entry of a branch in the register of payment institutions)

(1) The notification by a payment institution or a payment institution benefiting from a waiver of its intention to provide payment services through a branch in the host country or a third country under paragraph one of Article 43 of this Act, with the content as referred to in paragraph three of Article 43 of this Act, shall be considered to be an application for the entry of the branch in the host country or a third country in the register of payment institutions.

(2) The Bank of Slovenia shall refuse the application for the entry of a branch in the host country or a third country in the register of payment institutions, or shall withdraw the registration if already made, if it assesses that: 1. information submitted under paragraph three of Article 43 of this Act by the payment

institution or payment institution benefiting from a waiver is incorrect; 2. persons who are part of the management body of the branch or persons who are directly

responsible for the management of payment services activities at the branch do not fulfil the conditions referred to in Article 32 of this Act; or

3. there are reasonable grounds to suspect money laundering or financing of terrorism or an attempt at money laundering or financing of terrorism in connection with the intended provision of payment services through the branch.

(3) The Bank of Slovenia shall also refuse the application for the entry of a branch in the host country in the register of payment institutions if, after the completion of the procedure referred to in Article 48 of this Act, its assessment with regard to the intended use of the branch is unfavourable.

(4) The Bank of Slovenia shall also refuse the application for the entry of a branch in a third country in the register of payment institutions if, taking into account the regulations of the third country or the practice of the third country in the use and implementation of these regulations, it is likely that the exercise of supervision over the payment institution in accordance with the provisions of this Act will be hindered or made considerably more difficult.

Article 82 (Decision-making on the entry of an agent in the register of payment institutions)

(1) The notification of the intention to provide payment services through an agent in the Republic of Slovenia or the host country under paragraph one of Article 43 of this Act, with the content as referred to in paragraph two of Article 43 of this Act, shall be considered to be an application for the entry of the agent in the Republic of Slovenia or the host country in the register of payment institutions.

(2) If a payment institution applies for the entry of an agent in the Republic of Slovenia in the register of payment institutions, the Bank of Slovenia, within two months of receipt of the information referred to in paragraph two of Article 43 of this Act, shall inform the payment institution of whether the agent has been entered in the register. If the Bank of Slovenia has doubts as to whether the information submitted under paragraph two of Article 43 of this Act is correct, it shall take additional measures to verify this information prior to entering the agent in the register. The Bank of Slovenia shall immediately notify the payment institution of any refusal of entry in the register. If a payment institution applies for the entry of an agent in the host country, the procedure referred to in Article 48 of this Act shall be used.

(3) The Bank of Slovenia shall refuse the entry of an agent in the Republic of Slovenia or the host country in the register of payment institutions, or shall withdraw the registration if already made, if it assesses that: 1. information submitted under paragraph two of Article 43 of this Act by the payment

institution or payment institution benefiting from a waiver is incorrect; 2. persons who are members of the management body of the agent or persons who are

directly responsible for the management of payment services activities at the agent do not fulfil the conditions referred to in Article 32 of this Act; or

3. there are reasonable grounds to suspect money laundering or financing of terrorism or an attempt at money laundering or financing of terrorism in connection with the intended provision of payment services through the agent.

(4) The Bank of Slovenia shall also refuse the application for the entry of an agent in the host country in the register of payment institutions if, after the completion of the procedure referred to in Article 48 of this Act, its assessment with regard to the intended use of the agent is unfavourable.

Article 83 (Removal from the register)

(1) The Bank of Slovenia shall remove a payment institution or a payment institution benefiting from a waiver, including its branches and agents which are entered in the register of payment institutions in accordance with Article 79 of this Act, from the register of payment institutions: 1. if the authorisation to provide payment services as a payment institution or the

authorisation to provide money remittance services as payment institution benefiting from a waiver granted by the Bank of Slovenia to a payment institution or a payment

institution benefiting from a waiver was terminated in whole in accordance with Article 42 of this Act, this on the date of issue of a declaratory decision under paragraph six of Article 42 of this Act or

2. if the authorisation to provide payment services as a payment institution or the authorisation to provide money remittance services as payment institution benefiting from a waiver granted by the Bank of Slovenia to a payment institution or a payment institution benefiting from a waiver was withdrawn in whole in accordance with Article 258 of this Act, this on the date of issue of a decision on the withdrawal of authorisation.

(2) The Bank of Slovenia shall remove a branch of a payment institution or a branch of a payment institution benefiting from a waiver from the register of payment institutions: 1. if it receives notification as referred to in paragraph four of Article 43 of this Act of the

termination of the provision of payment services through a particular branch in a particular host country or third country, this on the date of receipt of said notification or

2. if it establishes that circumstances exist as referred to in paragraph two of Article 81 of this Act, this on the date of issue of a decision on the removal of the branch from the register of payment institutions.

(3) If the Bank of Slovenia establishes that circumstances as referred to in paragraph three of Article 81 of this Act exist with respect to a branch of a payment institution in a particular host country, it shall remove the branch from the register of payment institutions on the date of issue of a decision on the removal of the branch from the register of payment institutions.

(4) If the Bank of Slovenia establishes that circumstances as referred to in paragraph four of Article 81 of this Act exist with respect to a branch in a particular third country, it shall remove the branch from the register of payment institutions on the date of issue of a decision on the removal of the branch from the register of payment institutions.

(5) The Bank of Slovenia shall remove an agent of a payment institution or an agent of a payment institution benefiting from a waiver from the register of payment institutions: 1. if it receives notification as referred to in paragraph four of Article 43 of this Act of the

termination of the provision of payment services through a particular agent in the Republic of Slovenia or a particular host country, this on the date of receipt of said notification or

2. if it establishes that circumstances as referred to in paragraph three of the preceding Article exist with respect to the agent, this on the date of issue of a decision on the removal of the agent from the register of payment institutions.

(6) If the Bank of Slovenia establishes that circumstances as referred to in paragraph four of the preceding Article exist with respect to an agent of a payment institution in a particular host country, it shall remove the agent from the register of payment institutions on the date of issue of a decision on the removal of the agent from the register of payment institutions.

Article 84 (Notifying the European Banking Authority)

For entry of information in the register of the European Banking Authority, the Bank of Slovenia shall immediately officially notify the European Banking Authority of the information referred to in Articles 79 to 83 of this Act that has been entered in its register as referred to in Article 79 of this Act in a language customary in the field of finance. The Bank

of Slovenia shall be responsible for the accuracy of the aforementioned information and for keeping that information up-to-date.

5. PROVISION OF PAYMENT SERVICES

5.1 General provisions

Article 85 (Subject matter)

(1) This Chapter shall regulate: 1. obligations of payment service providers in providing information in connection with the

provision of payment services; 2. payment service contracts and rules regarding any changes in and termination of

contracts; and 3. rules for the execution of payment transactions.

(2) This Chapter shall apply to national and cross-border payment transactions executed in euros or another currency of a Member State.

(3) This Chapter, with the exception of point 5 of paragraph three of Article 90, the provision of Article 93 relating to the maximum execution time, point 2 of paragraph one of Article 103, paragraphs three to five of Article 125, Articles 127 and 128, paragraph one of Article 129, and Article 131 of this Act, shall also apply to national and cross-border transactions executed in a currency that is not the currency of a Member State.

(4) Notwithstanding paragraph one of this Article, this Chapter, with the exception of point 5 of paragraph three of Article 90, point 7 of paragraph six of Article 90, the provision of Article 93 relating to the maximum execution time, point 2 of paragraph one of Article 103, paragraphs two to five of Article 125, paragraph three of Article 126, paragraphs one and two of Article 127, paragraphs one to five of Article 140, paragraph two of Article 145, paragraph one of Article 146, and paragraphs three, four and five of Article 150 of this Act, shall also apply to payment transactions executed in all currencies where at least one of payment service providers is located in the Republic of Slovenia and the other payment service provider or providers are located outside the EU in respect of those parts of the payment transaction which are carried out in the EU.

(5) It shall not be possible to exclude or limit the application of the provisions of this Chapter by a payment service contract unless the law expressly provides that any derogation from individual provisions is allowed on the basis of an agreement between the parties. Payment service providers may provide payment services to users under conditions that are more favourable to users than those stipulated in this Chapter.

(6) Where a user is not a consumer, the application of the provisions of Subchapter 5.2 of this Act, with the exception of the provisions of Section 5.2.5 of this Act, may be excluded or limited by a payment service contract.

Article 86 (Charges in connection with the fulfilment of obligations)

(1) A payment service provider may not charge a user for the provision of information that it is obliged to provide to the user in accordance with Subchapter 5.2 of this

Act, or for the fulfilment of its obligations towards the user as referred to in Subchapter 5.3 of this Act, unless expressly provided otherwise by the law.

(2) If a user explicitly requests the provision of additional information or the provision of information on a more frequent basis than is provided for in Subchapter 5.2 of this Act or transmission by means of communication other than those specified in the framework contract, the payment service provider and the user may agree on charges for such provision or transmission.

(3) Charges imposed by a payment service provider in accordance with paragraphs one and two of this Article shall be reasonable and in line with the actual costs incurred by the payment service provider in fulfilling its obligations.

(4) The provisions of this Article shall be without prejudice to a payment service provider’s right to charge users for the provision of payment services.

(5) Notwithstanding paragraph one of this Article, a payment service provider and a user who is not a consumer may agree on special charges for the provision of information by the payment service provider under Subchapter 5.2 of this Act and for the fulfilment of obligations by the payment service provider under Subchapter 5.3 of this Act.

5.2 Payment service contract

5.2.1 General provisions

Article 87 (General provisions)

(1) A payment service contract may be concluded as a framework contract or a single payment service contract.

(2) By means of a framework contract, the payment service provider and the user agree on the execution of individual or successive payment transactions in the future. A framework contract may also include an agreement on the issuing of electronic money if the payment service provider is a person referred to in point 1 or 2 of paragraph one of Article 20 of this Act, or an agreement on the opening of a payment account if payment services are provided through a payment account.

(3) By means of a single payment service contract, the payment service provider and the user agree on the execution of a single payment transaction which is not covered by the framework contract.

(4) With regard to issues that are not regulated by this Act, the provisions of the act governing obligations relating to the contract of mandate shall apply to relations between the payment service provider and the user.

(5) When a payment service contract includes an agreement on granting credit to a consumer, the act governing consumer credit shall apply in respect of conditions for granting credit to consumers unless this Act lays down special conditions for granting credit to consumers in connection with payment services.

Article 88

(Provision of information)

(1) Where this Acts provides that a payment service provider is obliged to provide certain information to a user, the payment service provider shall provide such information without the user’s explicit request in a manner that does not require the user to carry out any specific activities to obtain and acquaint himself with such information.

(2) Where this Act expressly provides that a payment service provider may provide requested information to a user by making such information available to the latter in an agreed manner, the payment service provider may provide such information to the user by requiring the latter to carry out certain agreed actions to obtain and acquaint himself with such information.

Article 89 (Burden of proof)

In the event of a dispute, the burden of proof shall lie with the payment service provider to prove that it has complied with the information requirements in accordance with Subchapter 5.2 of this Act.

5.2.2 Framework contract

Article 90 (General information on the conditions of the framework contract)

(1) Before entering into a contract with a user, a payment service provider shall provide the user with the following information: 1. information on the payment service provider; 2. information on the conditions for the use of the payment service; 3. information on charges, interest and exchange rates; 4. information on the method and means of communication; 5. information on safeguards and other measures in relation to the execution of payment

transactions; 6. information on changes to, and termination of, the framework contract; and 7. information on dispute resolution.

(2) Information on the payment service provider shall include the following: 1. the name and the head office of the payment service provider, the name and the head

office of the agent or branch in the Republic of Slovenia, if any, and any other address, including email addresses, at which the payment service provider may be contacted by users;

2. the particulars of the authorities responsible for supervision over the payment service provider or its branch or agent in connection with the provision of payment services in the Republic of Slovenia;

3. the register of payment institutions or any other relevant public register containing information on authorisation to provide payment services and the registration number or equivalent means of identification of the payment service provider in that register.

(3) Information on the conditions for the use of the payment service shall include the following: 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 payment service user in order for a payment order to be properly initiated or executed;

3. the form of and procedure for giving consent to initiate a payment order or execute a payment transaction and withdrawal of such consent in accordance with Articles 116, 122 and 123 of this Act;

4. a reference to the time of receipt of a payment order by the payment service provider within the meaning of Article 120 of this Act and the cut-off time, if any, for receipt of payment orders on a particular business day beyond which any payment order received shall be deemed to have been received on the following business day in accordance with paragraph four of Article 120 of this Act;

5. the maximum execution time for a payment transaction; 6. the possibility of agreement on spending limits for the use of the payment instrument if

there is a possibility of agreement on spending limits in accordance with Article 134 of this Act;

7. in the case of co-branded, card-based payment instruments, the payment service user’s rights under Article 8 of Regulation (EU) 2015/751.

(4) Information on charges, interest and exchange rates shall include the following: 1. all charges payable by the payment service user to the payment service provider,

including those connected to the manner in which and frequency with which information under this Act is provided or made available and the breakdown of the amounts of such charges if the aggregate amount of charges is payable by the user;

2. where applicable, the interest and exchange rates to be applied or, if reference interest and exchange rates are to be used, the method of calculating the actual interest and the relevant date and index or base for determining such reference interest or exchange rate;

3. the possibility of applying, immediately and without prior notification, changes in interest or exchange rate based on changes in reference interest and exchange rate and the method of notifying such changes to the user in accordance with Article 97 of this Act.

(5) Information on the method and means of communication between the user and the payment service provider shall include the following: 1. the means of communication, including the technical requirements for the user’s

equipment and software that will be used for the transmission of information in accordance with this Act;

2. the manner in which and the frequency with which information is to be provided or made available to users in accordance with this Act;

3. the language in which the framework contract will be concluded and communication during the contractual relationship undertaken;

4. the user’s right to receive at any time, on request, a copy of the framework contract or the information and conditions specified in this Article on paper or on another durable medium in accordance with Article 92 of this Act.

(6) Information on safeguards and other measures in relation to the execution of payment transactions shall include the following: 1. a description of the steps that the user is to take in order to keep safe a payment

instrument and how to notify the payment service provider of the loss, theft or misappropriation of the payment instrument in accordance with Article 132 of this Act;

2. the secure procedure for notification of the user by the payment service provider in the event of suspected or actual fraud or deception or security threats;

3. the conditions under which the payment service provider reserves the right to block a payment instrument in accordance with Article 134 of this Act;

4. the liability of the payer for an unauthorised payment transaction in accordance with Article 137 of this Act, including information on the amount of loss that is to be borne by the payer in accordance with paragraph one of Article 137 of this Act;

5. how and within what period of time the user is to notify the payment service provider of any unauthorised or incorrectly initiated or executed payment transaction in accordance with Article 149 of this Act;

6. the liability of the payment service provider for the initiation or execution of payment transactions and for unauthorised, non-executed, defective or late payment transactions in accordance with Articles 136 and 144 of this Act;

7. the conditions for claiming a refund in accordance with Article 150 of this Act.

(7) Information on changes to, and termination of, the framework contract shall include the following: 1. a contractual possibility that the user will be deemed to have accepted changes in the

conditions in accordance with paragraph two of Article 96 of this Act, unless the user notifies the payment service provider before the proposed date of their entry into force that they are not accepted, including the notification of the right of the user to terminate the framework contract in accordance with paragraph three of Article 96 of this Act if the user has notified the payment service provider that the proposed changes are not accepted before the proposed date of their entry into force;

2. the duration of the framework contract; 3. information on conditions for the termination of the framework contract by the user or the

payment service provider in accordance with Articles 98 and 99 of this Act.

(8) Information on procedures initiated due to violations of this Act and out-of-court dispute resolution procedures shall include information on: 1. the law applicable to the framework contract and the competent court; 2. procedures for minor offences in relation to the provision of payment services under this

Act and the authority responsible for the conduct of such procedures; 3. the dispute resolution procedure that is available to the user at the payment service

provider in the event of a dispute in relation to the provision of payment services in accordance with Article 285 of this Act;

4. the out-of-court dispute resolution procedure that is available to the user in the event of a dispute in relation to the provision of payment services and the body responsible for the resolution of such disputes in accordance with Article 286 of this Act.

Article 91 (Method of transmission of general information)

(1) A payment service provider shall provide to the user general information referred to in the preceding Article such that the user has sufficient time to become acquainted with the conditions for the provision of the payment service before entering into the framework contract.

(2) The payment service provider shall provide the user with general information referred to in the preceding Article on paper or on another durable medium; the information shall be communicated in easily understandable words and in a clear and comprehensible form in the Slovenian language or in any other language agreed upon between the parties.

(3) The payment service provider may provide the user with general information referred to in the preceding Article by supplying a draft framework contract, or draft general conditions as an integral part of the framework contract, provided that such a contract or conditions include the information and conditions referred to in the preceding Article. The draft framework contract shall be provided in accordance with paragraphs one and two 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 general information referred to in the preceding Article in accordance with the provisions of paragraphs one to three of this Article, the payment service provider shall provide the user with such information immediately after the conclusion of the framework contract.

Article 92 (Accessibility of general information and the conditions of the framework contract)

At any time during the contractual relationship, the user shall have the right to receive, on request, the general information referred to in Article 90 of this Act and the terms of the framework contract on paper or on another durable medium.

Article 93 (Prior information for the payer on a payment transaction)

Prior to the execution of a payment transaction initiated by the payer on the basis of the framework contract, the payer’s payment service provider shall, at the payer’s request, provide explicit information on the maximum execution time for this payment transaction and the charges payable by the payer, including a breakdown of the amounts of such charges if the aggregate amount of charges will be payable by the payer.

Article 94 (Subsequent information for the payer on a payment transaction)

(1) After the payer’s payment service provider has debited the payer’s account with the amount of an individual payment transaction on the basis of the framework contract or, where the payer does not use a payment account, after receipt of the payment order, the payer’s payment service provider shall, without undue delay, provide the payer with the following information: 1. data enabling the payer to identify each payment transaction and, where appropriate,

information relating to the payee; 2. the amount of the payment transaction in the currency in which the payer’s payment

account has been debited or in the currency stated by the payer in the payment order if the payment transaction has been executed without the use of a payment account;

3. the amount of any charges for the execution of the payment transaction, including a breakdown of the amounts of such charges if the aggregate amount of charges is payable the payer;

4. the interest payable by the payer; 5. where applicable, the 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; and

6. the debit value date or the date of receipt of the payment order.

(2) The payer’s payment service provider shall provide the payer with the information referred to in the preceding paragraph in accordance with paragraph two of Article 91 of this Act. The framework contract shall provide that the payer may require the information referred to in the preceding paragraph to be provided periodically, at least once a month, free of charge and in an agreed manner which allows the payer to store and reproduce such information unchanged.

(3) A payer who is a consumer may request his payment service provider to provide him with information on individual executed payment transactions on paper or on another durable medium at least once a month free of charge.

Article 95 (Subsequent information for the payee after the execution of a payment transaction)

(1) After the execution of a payment transaction for the payee on the basis of the framework contract, the payee’s payment service provider shall, without undue delay, provide the payee with the following information: 1. data enabling the payee to identify the payment transaction and the payer and any other

information transferred with the payment transaction; 2. the amount of the payment transaction in the currency in which the payee’s payment

account has been credited; 3. the amount of any charges charged by the payee’s payment service provider for the

execution of a particular payment transaction, including a breakdown of the amounts of such charges if the aggregate amount is payable by the payee;

4. the interest payable by the payee; 5. where applicable, the exchange rate used in the payment transaction by the payee’s

payment service provider and the amount of the payment transaction before that currency conversion;

6. the credit value date for the payee’s payment account.

(2) The payee’s payment service provider shall provide the payee with the information referred to in the preceding paragraph in accordance with paragraph two of Article 91 of this Act. The framework contract may provide that the information referred to in the preceding paragraph is to be provided or made available to the payee by the payment service provider periodically, at least once a month and in an agreed manner which allows the payee to store and reproduce such information unchanged.

(3) A payee who is a consumer may request his payment service provider to provide him with information on individual executed payment transactions on paper or on another durable medium at least once a month free of charge.

Article 96 (Changes in conditions of the framework contract proposed by the payment service

provider)

(1) The payment service provider may propose changes in the conditions of the framework contract referred to in Article 90 of this Act by submitting to the user the proposed changes at least two months before the proposed date of application of the changed conditions. The payment service user may either accept or reject the changes before the proposed date of their entry into force.

(2) If so agreed in the framework contract, the payment service provider may propose changes in the conditions of the framework contract referred to in Article 90 of this Act by informing the user that it will be deemed that the user has accepted the proposed changes in the conditions of the framework contract if the user does not notify the payment service provider before the proposed date of their entry into force that they are not accepted. In this case, the change in the conditions of the framework contract shall enter into force on the proposed date of application of the changed conditions unless the user expressly agrees that the change may enter into force immediately.

(3) In addition to the notification referred to in the preceding paragraph, the payment service provider shall also inform the user that, in the event that the user rejects the proposed changes, the user has the right to terminate the framework contract free of charge and with effect at any time until the date when the changes would have applied.

(4) The payment service provider shall submit to the user the proposed changes in the conditions of the framework contract referred to in paragraph one of this Article in the manner specified in paragraph two of Article 91 of this Act.

Article 97 (Changes in the interest or exchange rate)

(1) The framework contract may stipulate that changes in the interest and/or exchange rates that are based on changes in the agreed reference interest and/or exchange rates may be applied immediately and without prior notice to the user.

(2) The payment service provider shall inform the user of any change in the interest rate referred to in the preceding paragraph at the earliest opportunity in the manner specified in paragraph two of Article 91 of this Act, unless the framework contract stipulates a specific frequency or manner in which the user is to be informed of changes in the interest rate.

(3) If changes in the interest and/or exchange rate referred to in paragraph one of this Article are more favourable to the user, the payment service provider shall not be obliged to inform the user of such changes.

(4) The payment service provider shall ensure that changes in the interest and/or exchange rate used in payment transactions are implemented and calculated in a neutral manner that does not discriminate against payment service users.

Article 98 (Termination of the framework contract by the user)

(1) The user may terminate the framework contract at any time with immediate effect unless the framework contract stipulates a period of notice, which shall not exceed one month. Any provisions of the framework contract that limit the right of the user to terminate the framework contract in contravention of this Act shall be null and void.

(2) If the user terminates the framework contract, charges for payment services levied by the payment service provider for a specific period of time shall be payable by the user only proportionally up to the termination of the contract. If such charges are paid in advance, they shall be reimbursed proportionally by the payment service provider.

(3) Charges for the termination of the framework contract payable by the user to the payment service provider shall be appropriate and proportional to the actual costs incurred by the payment service provider due to the termination. The payment service provider may not charge the user for the termination of a framework contract concluded for a fixed period of more than six months or for an indefinite period after the expiry of six months of the conclusion of the framework contract.

(4) The provisions of this Article shall be without prejudice to the rights of the user to terminate a framework contract under the conditions laid down in another act with regard to the withdrawal from a contract.

Article 99 (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, and 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 shall notify the user of the termination of the framework contract in the manner specified in paragraphs one and two of Article 91 of this Act.

(2) If the payment service provider terminates the framework contract, charges for payment services levied by the payment service provider for a specific period of time shall be payable by the user only proportionally up to the termination of the contract. If such charges are paid in advance, they shall be reimbursed proportionally by the payment service provider.

(3) The provisions of this Article shall be without prejudice to the rights of the payment service provider to terminate a framework contract under the conditions laid down in another act with regard to the withdrawal from a contract.

Article 100 (Other methods of termination of the framework contract)

(1) The framework contract shall be voidable if it stipulates conditions with regard to facts referred to in Article 90 of this Act which the payment service provider did not provide to the user in accordance with Article 91 of this Act. The framework contract shall also be voidable if it stipulates conditions with regard to facts referred to in Article 90 of this Act that considerably differ from the conditions provided to the user by the payment service provider in accordance with Article 91 of this Act.

(2) The rules for challenging contracts laid down in the act governing obligations shall apply to the challenging of a framework contract for reasons referred to in the preceding paragraph.

(3) This Act shall be without prejudice to the rights of parties to seek the annulment of the contract on the basis of other regulations.

Article 101 (General information on the framework contract for a low-value payment instrument)

(1) Notwithstanding Article 90 of this Act, prior to the conclusion of the framework contract for a low-value payment instrument, the payment service provider shall provide the user only with the following information on the main characteristics of the payment service: 1. the possible ways in which the low-value payment instrument can be used; 2. the liability of the payment service provider and the user in the event of the unauthorised

execution, non-execution or defective execution of a payment transaction; 3. charges payable by the user to the payment service provider; 4. other material circumstances where the user needs such information to decide on the

conclusion of the contract for a low-value payment instrument; and 5. an indication of where other general information referred to in Article 90 of this Act are

made available to the user.

(2) Notwithstanding Articles 96 and 97 of this Act, the framework contract for a low-value payment instrument may stipulate that the payment service provider shall not be

obliged to propose changes in the framework contract in the manner specified in paragraphs one and two of Article 91 of this Act.

Article 102 (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 only the following information regarding an individual payment transaction: 1. information enabling the user to identify the payment transaction; 2. the amount of the payment transaction or, in the case of several payment transactions of

the same kind made to the same payee, the total amount of all payment transactions made to the same payee; and

3. all charges payable by the user to the payment service provider for individual payment transactions or, in the case of several payment transactions of the same kind made to the same payee, the total amount of charges for all payment transactions made to the same payee.

(2) The framework contract for a low-value payment instrument 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 not technically in a position to provide information on individual payment transactions. In this case, the payment service provider shall enable the payer to verify the amount of funds stored in the payment instrument.

5.2.3 Single payment service contract

Article 103 (General information)

(1) Prior to the conclusion of a single payment service contract, the payment service provider shall make available to the user the following information: 1. a specification of the unique identifier or other information to be provided by the payment

service user in order for a payment order to be properly initiated or executed; 2. the maximum execution time for the payment transaction; 3. all charges payable by the user to the payment service provider, including the

breakdown of the amounts of such charges if the aggregate amount of charges is payable by the user;

4. where applicable, the exchange rate or reference exchange rate used in the payment transaction by the payment service provider.

(2) In addition, the payment initiation service provider shall, prior to initiation, make available to the payer the following clear and comprehensive information: 1. the name and the head office of the payment service provider, the name and the head

office of the agent or branch in the Republic of Slovenia, if any, and any other contact details, including email addresses, relevant for communication with the payment service provider;

2. the contact details of the competent authority.

(3) The payment service provider shall provide the user with information referred to in paragraph one of this Article in an easily accessible manner such that the user has sufficient time to become acquainted with the conditions of the execution of the payment transaction before being bound by a payment service contract in any way. The payment service provider may also provide the user with information referred to in paragraph one of this Article by supplying a draft single payment service contract or a draft payment order that includes the required information.

(4) The payment service provider shall ensure that information referred to in paragraph one of this Article is communicated in easily understandable words and in a clear and comprehensible form in the Slovenian language or in any other language agreed upon between the parties. At the user’s request, the payment service provider shall provide the information referred to in paragraph one of this Article on paper or on another durable medium.

(5) If the single payment service 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 comply with paragraphs one to three of this Article, the payment service provider shall provide or make available to the user information referred to in paragraph one of this Article immediately after the execution of the payment transaction.

(6) The payment service provider shall also provide or make available to the user, in an easily accessible manner, other information referred to in Article 90 of this Act that is relevant to the execution of a single payment transaction.

Article 104 (Information for the payer and payee after the initiation of a payment order)

In addition to the information and conditions specified in Article 103 of this Act, where a payment order is initiated through a payment initiation service provider, the payment initiation service provider shall, immediately after initiation, provide or make available the following information to the payer and, where applicable, the payee: 1. confirmation of the successful initiation of the payment order with the payer’s account

servicing payment service provider; 2. information enabling the payer and the payee to identify the payment transaction and,

where appropriate, the payee to identify the payer and any information transferred with the payment transaction;

3. the amount of the payment transaction; 4. where applicable, the amount of charges payable to the payment initiation service

provider for the transaction, including a breakdown of the amounts of such charges if the aggregate amount of charges is payable by the payee.

Article 105 (Information for the payer’s account servicing payment service provider in the event of

a payment initiation service)

Where a payment order is initiated through a payment initiation service provider, the payment initiation service provider shall make available to the payer’s account servicing payment service provider information enabling the identification of the payment transaction.

Article 106 (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 specified in paragraphs three and four of Article 103 of this Act, the following information with regard to its own services: 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, including a breakdown of the amounts

of such charges if the aggregate amount of charges is payable by the payer; 4. the exchange rate used in the payment transaction by the payment service provider or a

reference thereto, when the exchange rate used is different from the rate notified to the user by the payment service provider in accordance with Article 103 of this Act, and the amount of the payment transaction after that currency conversion;

5. the date of receipt of the payment order.

Article 107 (Information for the payee after the execution of the payment transaction)

Immediately after the execution of the single payment transaction, the payee’s payment service provider shall provide or make available to the payee, in the same way as specified in paragraphs three and four of Article 103 of this Act, the following information with regard to its own services: 1. information enabling the payee to identify the payment transaction and, where

appropriate, the payer and any other 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 for the payment transaction payable by the payee, including a breakdown of the amounts of such charges if the aggregate amount of charges is payable the payee;

4. where applicable, the exchange rate used in the payment transaction by the payee’s payment service provider and the amount of the payment transaction before that currency conversion;

5. the credit value date for the payee.

Article 108 (Exemptions from the obligation to provide information)

When the user transmits a payment order for a single payment transaction to the payment service provider using a payment instrument issued by another payment service provider on the basis of a framework contract for the issue of a payment instrument, the payment service provider shall not be obliged to provide or make available information on the single payment transaction which has been or will be given or made available to the user on the basis of the framework contract for the issue of a payment instrument concluded with another payment service provider.

5.2.4 The provision of other information to the user

Article 109 (Information on currency conversion)

(1) Where, prior to the initiation of the payment transaction, a currency conversion service is offered to the payer by the payee or at an automatic teller machine or at a point of sale, the party offering the currency conversion service to the payer shall disclose to the payer the exchange rate to be used for the conversion and all charges payable by the payer for the currency conversion service.

(2) It shall be deemed that the payer has agreed to the currency conversion service prior to the initiation of the payment transaction if the party offering the currency conversion service informed the payer of the conditions referred to in the preceding paragraph prior to the initiation of the payment transaction.

Article 110 (Information on additional charges and reductions)

(1) Where, for the use of a particular payment instrument, the payee requests the payer to pay a special charge or offers a reduction to the payer, the payee shall inform the payer thereof prior to the initiation of the payment transaction.

(2) Where the payment service provider or another party involved in the transaction requests the user to pay a special charge for the use of a particular payment instrument, it shall inform the user thereof prior to the initiation of the payment transaction.

(3) The payer shall only be obliged to pay for the charges referred to in paragraphs one and two of this Article if their full amount was made known to the payer prior to the initiation of the payment transaction.

5.2.5 Application of other regulations regarding the provision of information

Article 111 (Application of other regulations)

In the provision of payment services, the payment service provider shall be bound by additional requirements for the provision of prior information on the provision of services arising from special regulations only if expressly stipulated by this Act.

Article 112 (Prior information on credit granted to consumers for the execution of payment

transactions)

A payment service provider which offers credit to users for the execution of payment transactions, including credit in the form of an overdraft, shall, prior to the conclusion of a payment service contract, in addition to information referred to in Articles 90 and 103 of this Act, provide the consumer with information on the conditions of the credit agreement in accordance with the act governing consumer credit.

Article 113 (Prior information in the case of distance contracts)

A payment service provider which enables consumers to conclude distance payment service contracts within the meaning of the act governing consumer protection shall, prior to the conclusion of a distance payment service contract, in addition to information

referred to in Articles 90 and 103 of this Act, provide the consumer with information on the conclusion of distance contracts that it is obliged to provide in accordance with the act governing consumer protection.

Article 114 (Prior information for the purposes of protection of consumers against unfair

commercial practices)

Prior to the conclusion of a payment service contract, the payment service provider shall, in addition to information referred to in Articles 90 and 103 of this Act and, where appropriate, Article 113 of this Act, provide the consumer with information that it is obliged to provide in accordance with the act governing the protection of consumers against unfair commercial practices.

Article 115 (Providing prior information to users for the purposes of conclusion of contracts for

payment services that are provided as information society services)

A payment service provider which provides payment services as information society services as defined in the act governing electronic commerce in the market shall, prior to the conclusion of a payment service contract, in addition to information required in accordance with other provisions of Subchapter 5.2 of this Act, provide users with information that an information society service provider is obliged to provide to users prior to the conclusion of a contract for information society services under the act governing electronic commerce in the market.

5.3 Execution of payment transactions

5.3.1 Authorisation of payment transactions

Article 116 (Consent)

(1) The payment service provider shall execute a payment transaction if the payer has authorised the payment transaction by giving consent to its execution.

(2) The payer shall give consent to the execution of a payment transaction before the execution of the payment transaction unless the payment service provider and the payer have agreed that the payer may give consent after the execution of the payment transaction.

(3) The payer may give consent to the execution of a particular payment transaction or a series of payment transactions in the form and in accordance with the procedure agreed between the payer and the relevant payment service provider. Consent to the execution of a payment transaction may also be given via the payee or a payment initiation service provider.

(4) If the payer does not give consent to the execution of a payment transaction in accordance with the agreement referred to in paragraph three of this Article, it shall be deemed that the payment transaction has not been authorised.

Article 117 (Confirmation on the availability of funds)

(1) An account servicing payment service provider shall, upon the request of a payment service provider issuing card-based payment instruments, immediately confirm whether an amount necessary for the execution of a card-based payment transaction is available on the payment account of the payer, provided that all of the following conditions are met: 1. the payment account of the payer is accessible online at the time of the request; 2. the payer has given explicit consent to the account servicing payment service provider to

respond to a request from a specific payment service provider to confirm that the amount corresponding to a certain card-based payment transaction is available on the payer’s payment account; and

3. the consent referred to in the preceding point has been given before the first request for confirmation is made.

(2) The payment service provider issuing card-based payment instruments may request the confirmation referred to in the preceding paragraph where all of the following conditions are met: 1. the payer has given explicit consent to the payment service provider issuing card-based

payment instruments to request the confirmation referred to in the preceding paragraph; 2. the payer has initiated the card-based payment transaction for the amount in question

using a card-based payment instrument issued by the payment service provider issuing card-based payment instruments; and

3. the payment service provider issuing card-based payment instruments identifies itself to the account servicing payment service provider before each request for confirmation and communicates securely with the account-servicing payment service provider in compliance with regulatory technical standards adopted by the European Commission in accordance with Article 98(4) of Directive (EU) 2015/2366.

(3) In accordance with regulations governing personal data protection, the confirmation referred to in paragraph one of this Article may consist only in a simple 'yes' or 'no' answer and not in a statement of the account balance. The payment service provider issuing card-based payment instruments may not store or use that answer for purposes other than the execution of the card-based payment transaction.

(4) The confirmation referred to in paragraph one of this Article may not allow the account servicing payment service provider to block funds on the payer’s payment account.

(5) The payer may request the account servicing payment service provider to communicate to the payer the identification of the payment service provider issuing card-based payment instruments and the answer provided.

(6) This Article shall not apply to payment transactions initiated through card-based payment instruments on which electronic money is stored.

Article 118 (Rules on access to a payment account in the case of payment initiation services)

(1) A payer shall have the right to make use of a payment initiation service provider to obtain payment services as referred to in point 7 of paragraph one of Article 5 of this Act. The right to make use of a payment initiation service provider shall not apply where the payment account is not accessible online.

(2) When the payer gives its explicit consent for a payment to be executed in accordance with Article 116 of this Act, the account servicing payment service provider shall perform the actions specified in paragraph four of this Article to ensure the payer’s right to use the payment initiation service.

(3) The payment initiation service provider shall: 1. not hold at any time the payer’s funds in connection with the provision of the payment

initiation service; 2. ensure that the personalised security credentials of the payment service user are not

accessible to parties other than the user and the issuer of the personalised security credentials and that they are transmitted by the payment initiation service provider through safe and efficient channels;

3. ensure that any other information about the payment service user obtained when providing payment initiation services is only provided to the payee and only with the payment service user’s explicit consent;

4. every time a payment is initiated, identify itself to the payer’s account servicing payment service provider and communicate securely with the account servicing payment service provider, the payer and the payee in compliance with regulatory technical standards adopted by the European Commission in accordance with Article 98(4) of Directive (EU) 2015/2366;

5. not store sensitive payment data of the payment service user; 6. not request from the payment service user any data other than that necessary to provide

the payment initiation service; 7. not use, access or store any data for purposes other than the provision of the payment

initiation service as explicitly requested by the payer; and 8. not modify the amount, the payee or any other feature of the transaction.

(4) The account servicing payment service provider shall: 1. communicate securely with payment initiation service providers in compliance with

regulatory technical standards adopted by the European Commission in accordance with Article 98(4) of Directive (EU) 2015/2366;

2. immediately after receipt of the payment order from a payment initiation service provider provide or make available to the payment initiation service provider all information on the initiation of the payment transaction and all information accessible to the account servicing payment service provider regarding the execution of the payment transaction;

3. treat payment orders transmitted through a payment initiation service provider, in particular in terms of timing, priority or charges, in the same way as payment orders transmitted directly by the payer, unless there are objective reasons for treating them differently.

(5) The provision of payment initiation services shall not be dependent on the existence of a contractual relationship between the payment initiation service providers and the account servicing payment service providers for that purpose.

Article 119 (Rules on access to and use of payment account information in the case of account

information services)

(1) A payment service user shall have the right to make use of services enabling access to account information as referred to in point 8 of paragraph one of Article 5 of this Act. That right shall not apply where the payment account is not accessible online.

(2) The account information service provider shall: 1. provide services only on the basis of the payment service user’s explicit consent;

2. ensure that the personalised security credentials of the payment service user are not accessible to parties other than the user and the issuer of the personalised security credentials and that they are transmitted by the account information service provider through safe and efficient channels;

3. for each communication session, identify itself to the account servicing payment service provider of the payment service user and communicate securely with the account servicing payment service provider and the payment service user in compliance with regulatory technical standards adopted by the European Commission in accordance with Article 98(4) of Directive (EU) 2015/2366;

4. access only the information from designated payment accounts and associated payment transactions;

5. not request sensitive payment data linked to the payment accounts; and 6. not use, access or store any data for purposes other than performing the account

information service explicitly requested by the payment service user in accordance with data protection rules.

(3) In relation to payment accounts, the account servicing payment service provider shall: 1. communicate securely with account information service providers in compliance with

regulatory technical standards adopted by the European Commission in accordance with Article 98(4) of Directive (EU) 2015/2366 and

2. treat data requests transmitted through the services of an account information service provider without any discrimination unless there are objective reasons for treating them differently.

(4) The provision of account information services shall not be dependent on the existence of a contractual relationship between the account information service providers and the account servicing payment service providers for that purpose.

5.3.2 Execution of payment transactions

Article 120 (Receipt of payment orders)

(1) A payment transaction shall be executed on the basis of a payment order. A payment service provider shall execute a payment transaction after the receipt of a payment order, unless the conditions for refusal of the payment order in accordance with this Act are met.

(2) The payer’s account shall not be debited before receipt of the payment order. It shall be deemed that the payment service provider receives a payment order when the payment order is transmitted to the payment service provider using the means of communication agreed in the payment service contract, irrespective of any prior involvement of the payment service provider in the process of drawing up and initiating the payment order.

(3) If the payment service provider receives a payment order on a day that is not a business day for the payment service provider, the payment order shall be deemed 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 payment service user and the payment service provider agree that execution of the payment order shall start on a specific day or at the end of a certain period or on the day on which the payer has put funds at the payment service provider’s disposal, the time of receipt of the payment order shall be deemed to be the agreed day for the purposes of Article 127 of this Act. If the agreed day is not a business day for the payment service provider, the payment order shall be deemed to have been received on the following business day.

Article 121 (Refusal of payment orders)

(1) If all the conditions for the execution of a payment order set out in the framework contract are met, the payer’s account servicing payment service provider may not refuse to execute an authorised payment order irrespective of whether the payment order is initiated by a payer, including through a payment initiation service provider, or by or through a payee, unless this is prohibited by other regulations.

Where the payment service provider refuses to execute a payment order or to initiate a payment transaction, the refusal 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 payment service user, unless this is prohibited by other regulations.

(2) The payment service provider shall provide or make available to the user the notification referred to in the preceding paragraph in the manner agreed in the contract at the earliest opportunity and at the latest within the time limit specified for the execution of a payment order in accordance with Article 127 of this Act.

(3) The framework contract may stipulate that the payment service provider may charge a reasonable fee for notification of a refusal of a payment order if the refusal is objectively justified.

(4) If the payment service provider refuses a payment order in accordance with paragraphs one to three of this Article, it shall be deemed that it has not received the payment order.

Article 122 (Revocation of a payment order)

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

(2) Notwithstanding the preceding paragraph, the payer may not withdraw its consent to the execution of a payment transaction after the payment order for the execution of the payment transaction has become irrevocable in accordance with Article 123 of this Act.

(3) The payer may withdraw its consent for the execution of a payment transaction or a series of payment transactions in the form and in accordance with the procedure agreed between the payer and the payer’s payment service provider.

(4) The payment service provider and the payer who is not a consumer may agree that paragraphs one and two of this Article shall not apply.

Article 123 (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 provided by this Article in specific cases.

(2) Where the payment transaction is initiated by a payment initiation service provider, the payee or the payer through the payee, the payer may not revoke the payment order after giving consent to the payment initiation service provider to initiate the payment transaction or after giving consent to the execution of the payment transaction to the payee.

(3) Notwithstanding the preceding paragraph, when a direct debit is initiated by the payee, the payer may revoke the payment order initiated by the payee by the end of the business day preceding the day agreed for debiting the payer’s account. The right to revocation of a payment order in accordance with this paragraph shall be without prejudice to the payer’s refund rights on the basis of Article 149 of this Act.

(4) In the case referred to in paragraph five of Article 120 of this Act, the user may revoke the payment order at the latest by the end of the business day preceding the day agreed for the start of the execution of the payment order.

(5) After the expiry of the time limits referred to in paragraphs one to four of this Article, the user may revoke a payment order only if this is agreed between the user and the relevant payment service providers. If the payment transaction is initiated by the payee or the payer through the payee, the revocation of the payment order after the expiry of the time limit referred to in paragraph two or three of this Article shall be subject to agreement by the payee.

(6) The framework contract may stipulate that the payment service provider may charge the user for the revocation of a payment order after the expiry of the time limits referred to in paragraphs one to four of this Article.

(7) The payment service provider and the user who is not a consumer may agree that this Article shall not apply in part or in whole.

Article 124 (Currency of payment transactions)

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

Article 125 (Charges levied by the provider)

(1) The payment service provider may only charge the user for the execution of a payment transaction if it has informed the user in advance of such a charge in accordance with paragraph four of Article 90, Article 93, paragraph one of Article 101 or paragraph one of Article 103 of this Act.

(2) With regard to the execution of national and cross-border payment transactions, the payee shall pay the charges levied by his payment service provider and the payer shall pay the charges levied by his payment service provider.

(3) In the execution of a payment transaction, the payment service providers of the payer, the payment service providers of the payee and any intermediaries of the payment service providers involved in the execution of the payment transaction shall transfer the full amount of the payment transaction from the payer to the payee.

(4) Notwithstanding the preceding paragraph, the payee and his payment service provider may agree that the payment service provider may deduct its charges from the amount transferred before crediting it or making it available to the payee. In this case, as part of the information provided to the payee after the execution of the payment transaction as referred to in Article 95 or 107 of this Act, the payment service provider shall state separately the full amount of the payment transaction and the charges deducted.

(5) If any charges other than those referred to in the preceding paragraph are deducted from the amount transferred, the payment service provider of the payer shall ensure that the payee receives the full amount of the payment transaction initiated by the payer. If the payment transaction is initiated by the payee or by the payer through the payee, in the case referred to in the first sentence of this paragraph, the payment service provider of the payee shall ensure that the full amount of the payment transaction is received by the payee.

(6) The provisions of this Article shall be without prejudice to agreements between payment service providers on charging each other for costs incurred in connection with the execution of payment transactions.

Article 126 (Charges levied by the payee)

(1) This Act shall be without prejudice to the right of the payee to request payment of a charge by the payer or offer him a reduction for the use of a particular payment instrument.

(2) The payment service provider may not prevent the payee from requesting payment of a charge by the payer, offering him a reduction for the goods or services, or otherwise steering him towards the use of a particular payment instrument or restrict in any way the payee’s ability to do so. Any charges applied shall not exceed the direct costs borne by the payee for the use of the specific payment instrument.

(3) In no case may the payee request charges for the use of payment instruments for which interchange fees are regulated under Chapter II of Regulation (EU) 2015/751 or for those payment services to which Regulation (EU) No 260/2012 applies.

Article 127 (Time limit for the execution of a payment transactions)

(1) The payer’s payment service provider shall ensure that, for a national payment transaction executed in euros, the amount of the payment transaction is credited to the account of the payee’s payment service provider on the day on which the payer’s payment service provider receives the payment order in accordance with Article 120 of this Act.

(3) The payer’s payment service provider shall ensure that, for a cross-border payment transaction executed in euros, 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 business day following the day on which the payer’s payment service provider receives the payment

order in accordance with Article 120 of this Act. If the payment transaction is initiated by the user on paper, this time limit shall be extended by an additional business day.

(3) The preceding paragraph shall also apply to national and cross-border payment transactions executed in the currency of a Member State other than the euro, unless the payment service provider and the user agree on a different time limit for execution, which shall not exceed four business days following the receipt of the payment order.

Article 128 (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 the payer through the payee to the payer’s payment service provider within the time limits agreed by the payment service provider and the payee such that the payment transaction may be executed on the agreed day.

Article 129 (Disposal of funds)

(1) The payee’s payment service provider shall ensure that the funds on the payee’s payment account are at the payee’s disposal or, if the payee does not have a payment account with that payment service provider, make the funds available to the payee immediately after: 1. the amount of the payment transaction has been credited to the account of the payee’s

payment service provider in accordance with Article 127 of this Act where, on the part of the payee’s payment service provider, there is: - no currency conversion or - a currency conversion between the euro and another Member State currency or

between two other Member State currencies and 2. the payee’s payment service provider has received all information necessary for

crediting the payee’s account or the payee.

(2) The obligation laid down in the preceding paragraph shall also apply to payments within one payment service provider.

(3) If the day on which the funds are credited to the account of the payee’s payment service provider is not a business day for the payee’s payment service provider, for the purposes of paragraph one of this Article, it shall be deemed that the payee’s payment service provider has received the funds for the payee on the first subsequent business day.

Article 130 (Credit and debit value date)

(1) The payer’s payment service provider shall ensure that the debit value date for the payer’s payment account is the same as or later than the date on which the amount of the payment transaction is debited from that payment account.

(2) The payee’s payment service provider shall ensure that the credit value date for the payee’s payment account is no later than the date on which the amount of the payment transaction is credited to the account of the payee’s payment service provider.

Article 131 (Value date and disposal of funds in the case of cash placed in a payment account)

(1) Where a user places cash on a payment account of the payee who is a consumer held with the account servicing payment service provider in the currency of that payment account, the payment service provider, notwithstanding Articles 129 and 130 of this Act, shall ensure that the amount is credited to the consumer’s payment account and made available to the consumer immediately after receipt of the funds by the payment service provider.

(2) Where a user places cash on a payment account of the payee who is not a consumer held with the account servicing payment service provider in the currency of that payment account, the payment service provider shall ensure that the amount is credited to the payee’s payment account and made available to the payee no later than the next business day following the receipt of the funds.

(3) When a user places cash in the currency of a Member State other than the euro on a payment account of the payee held with the account-servicing payment service provider, the user and the payment service provider may agree on different time limits than those laid down in paragraphs one and two of this Article; these may not exceed four business day following the receipt of cash.

5.3.3 Use of payment instruments

Article 132 (Obligations of the user in relation to payment instruments and personalised security

credentials)

(1) The user shall use a payment instrument in accordance with the terms governing the issue and use of the payment instrument, which must be objective, non-discriminatory and proportionate, and shall, in particular, as soon as in receipt of the payment instrument, take all reasonable steps to keep the personalised security credentials of the payment instrument safe.

(2) The user shall notify the payment service provider, or the entity specified by the latter, without undue delay on becoming aware of the loss, theft or misappropriation of the payment instrument.

Article 133 (Obligations of the payment service provider in relation to payment instruments)

(1) The payment service provider issuing a payment instrument to a user shall, in relation to the latter: 1. ensure that the personalised security credentials are accessible only to the user who

received the payment instrument, without prejudice to the obligations of the user laid down in Article 132 of this Act;

2. ensure that appropriate means are available at all times to enable the user to make a notification pursuant to paragraph two of Article 132 of this Act or to request that he no longer be precluded from using the payment instrument (hereinafter: blocking of a payment instrument) in accordance with paragraph four of Article 134 of this Act;

3. enable the user to make a notification pursuant to paragraph two of Article 132 of this Act free of charge and to charge, if at all, only replacement costs directly attributed to the payment instrument;

4. prevent any further use of the payment instrument once the user has made a notification pursuant to paragraph two of Article 132 of this Act.

(2) The payment service provider may not send a payment instrument to the user without his explicit request, except where a payment instrument already issued to the user is to be replaced. The payment service provider shall bear the risk of sending a payment instrument or any personalised security credentials of the payment instrument to the user.

(3) The payment service provider shall, within 18 months of receipt of the user’s notification as referred to in point 2 of paragraph one of this Article, provide the user with the means to prove, on request, that he made such a notification.

Article 134 (Limits on use)

(1) Where a payment instrument is used to transmit the payer’s consent to the execution of a payment transaction, the payer and the payment service provider may agree on a spending limit for payment services performed using such a payment instrument by defining the maximum amount of individual or successive payment transactions that the payer may authorise using the payment instrument in a particular period.

(2) The payment service provider and the payer may agree in a framework contract that the payment service provider may block the payment instrument used to authorise payment transactions: 1. if there are objectively justified reasons relating to the security of the payment

instrument; 2. if there is a suspicion of unauthorised or fraudulent use of the payment instrument or

deceitful use of the payment instrument; or 3. where the use of the payment instrument is related to the granting of credit to the payer if

there is a significantly increased risk that the payer may be unable to fulfil its obligation to pay.

(3) In the case referred to in the preceding paragraph, 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 at the latest immediately thereafter. The payment service provider shall transmit the notification on the blocking of the payment instrument to the payer in the manner agreed in the framework contract.

(4) The payment service provider shall unblock the payment instrument or replace it with a new payment instrument once the reasons for blocking no longer exist.

(5) Notwithstanding paragraph three of this Article, the payment service provider shall not be obliged to inform the payer of the blocking of the payment instrument if such notification would compromise objectively justified security reasons or is prohibited by other regulations.

Article 135 (Limits on access to payment accounts by payment service providers)

(1) An account servicing payment service provider may deny an account information service provider or a payment initiation service provider access to a payment account for objectively justified and duly evidenced reasons relating to unauthorised or fraudulent access to the payment account by that account information service provider or that payment initiation service provider or to the use of deception by that account information service provider or that payment initiation service provider to access the payment account, including the unauthorised or fraudulent initiation of a payment transaction or the use of deception in the initiation of a payment transaction. In such cases the account servicing payment service provider shall inform the payer of the denial of access to the payment account and the reasons for denying access in the form agreed.

(2) In the case referred to in the preceding paragraph, the payment service provider shall inform the payer of the denial of access to the payment account and the reasons for denying access, where possible, before access is denied and at the latest immediately thereafter. The payment service provider shall transmit the notification on the blocking of the payment instrument to the payer in the manner agreed in the framework contract.

(3) The account servicing payment service provider shall allow access to the payment account once the reasons for denying access no longer exist.

(4) Notwithstanding paragraph two of this Article, the payment service provider shall not be obliged to inform the payer of the blocking of the payment instrument if such notification would compromise objectively justified security reasons or is prohibited by other regulations.

(5) In the cases referred to in paragraph one of this Article, the account servicing payment service provider shall immediately report the incident relating to the account information service provider or the payment initiation service provider to the competent authority which is responsible for the supervision of that account information service provider or that payment initiation service provider. The information shall include the relevant details of the case and the reasons for taking action.

(6) When the Bank of Slovenia, as the authority responsible for the supervision of an account information service provider or payment initiation service provider, receives the notification referred to in the preceding paragraph, it shall assess the case and shall, if necessary, take appropriate measures in accordance with this Act or another act.

5.3.4 Liability and refund for payment transactions

Article 136 (Payment service provider’s liability for unauthorised payment transactions)

(1) The payer’s payment service provider shall be liable to the payer for the execution of a payment transaction without the payer’s consent for execution in accordance with Article 116 of this Act (hereinafter: unauthorised payment transaction).

(2) If the payer’s payment service provider is liable for the execution of an unauthorised payment transaction, the payer’s payment service provider shall refund to the payer the amount of the unauthorised payment transaction without delay, and in any event no later than by the end of the following business day, after noting or being notified of the transaction, except where the payer’s payment service provider has reasonable grounds for suspecting fraud or deception and communicates those grounds in writing to the Bank of

Slovenia and, in the case of suspicion of a criminal offence prosecuted ex officio, to the police or to the State Prosecutor’s Office. If the unauthorised payment transaction was debited from the payer’s payment account, the payer’s payment service provider shall restore the debited payment account of the payer to the state in which it would have been had the unauthorised payment transaction not taken place and ensure that the credit value date for the payer’s payment account is no later than the date the amount was debited.

(3) If the payer’s payment service provider is liable for the execution of an unauthorised payment transaction, the payer’s payment service provider shall refund to the payer any charges charged to the payer and the interest to which the payer is entitled in connection with the execution of the unauthorised payment transaction.

(4) The payer’s payment service provider may be relieved of liability for the loss of amounts referred to in paragraphs two and three of this Article: 1. up to the amount of loss that is borne by the user in accordance with Article 137 of this

Act or 2. if the execution of the unauthorised payment transaction is due to exceptional and

unforeseeable circumstances which are beyond the control of the payment service provider and the consequences of which would have been unavoidable despite all efforts by the payment service provider to the contrary.

(5) Where the payment transaction is initiated through a payment initiation service provider, the account servicing payment service provider shall refund the amount of the unauthorised payment transaction without delay, and in any event no later than by the end of the following business day. If the unauthorised payment transaction was debited from the payer’s payment account, the payer’s account servicing payment service provider shall restore the debited payment account of the payer to the state in which it would have been had the unauthorised payment transaction not taken place.

(6) If the payment initiation service provider is liable for the unauthorised payment transaction, it shall immediately compensate the account servicing payment service provider at its request for the losses incurred or sums paid as a result of the refund to the payer, including the amount of the unauthorised payment transaction. In accordance with paragraph two of Article 148 of this Act, the burden shall be on the payment initiation service provider to prove that, within its sphere of competence, the payment transaction was authenticated, accurately recorded, and not affected by a technical breakdown or other deficiency linked to the payment service of which it is in charge.

(7) The user may request that the payment service provider or, where appropriate, the payment initiation service provider reimburse the user for any damage incurred as the result of the execution of the unauthorised payment transaction for which the payment service provider or the payment initiation service provider is liable in accordance with the general rules of the law of obligations.

Article 137 (The user’s liability for unauthorised payment transactions)

(1) If agreed in the framework contract, the user may be liable up to a maximum of EUR 50 for losses referred to in paragraphs two and three of the preceding Article if such losses were incurred in respect of the execution of unauthorised payment transactions resulting from: 1. the use of a lost or stolen payment instrument or 2. the misappropriation of a payment instrument.

(2) The preceding paragraph shall not apply if: 1. the loss, theft or misappropriation of a payment instrument was not detectable prior to a

payment, except where the payer has acted fraudulently or deceitfully or 2. the loss was caused by acts or lack of action on the part of an employee, agent or

branch of a payment service provider or of an entity to which its activities were outsourced.

(3) The user shall be liable for all of the losses referred to in paragraphs two and three of the preceding Article if such losses were incurred in respect of the execution of an unauthorised payment transaction where the user acted fraudulently or deceitfully or with intent or through gross negligence failed to fulfil one or more of the obligations in relation to the payment instrument in accordance with Article 132 of this Act. In such cases, the maximum amount referred to in paragraph one of this Article shall not apply.

(4) Where the payer’s payment service provider does not require strong customer authentication, the payer shall not bear any financial losses unless the payer has acted fraudulently or deceitfully. Where the payee or the payment service provider of the payee fails to accept strong customer authentication, it shall refund the financial damage caused to the payer’s payment service provider.

(5) Notwithstanding paragraphs one to four of this Article, the payment service provider shall refund to the user all of the losses referred to in paragraphs two and three of the preceding Article if the payment service provider did not provide appropriate means for the notification of a lost, stolen or misappropriated payment instrument in accordance with point 2 of paragraph one of Article 133 of this Act. The payment service provider shall be relieved of liability under this paragraph only if the damage results from fraud or deception on the part of the user.

(6) Notwithstanding paragraphs one to four of this Article, the payment service provider shall refund to the user all of the losses referred to in paragraphs two and three of the preceding Article if such losses were incurred after the user had notified the payment service provider of the loss, theft or misappropriation of the payment instrument in accordance with Article 132 of this Act. The payment service provider shall be relieved of liability under this paragraph only if the damage results from fraud or deception on the part of the user.

(7) The payment service provider and the user who is not a consumer may agree that this Article shall not apply in part or in whole.

Article 138 (Exclusion of liability for unauthorised payment transactions transferring electronic

money)

(1) Notwithstanding the provisions of Articles 136 and 137 of this Act, the payer’s payment provider shall not be liable to the payer for the execution of an unauthorised payment transaction transferring electronic money if the payer’s payment service provider is unable to block the payer’s payment account on which the payer’s electronic money is stored or the payer’s payment instrument for the use of electronic money.

(2) Exclusion of liability as referred to in the preceding paragraph shall apply to payment accounts on which electronic money is stored or payment instruments for the use of electronic money that have a spending limit of up to EUR 150.

Article 139 (Payment transactions where the transaction amount is not known in advance)

(1) Where a payment transaction is initiated by or through the payee in the context of a card-based payment transaction and its exact amount is not known at the moment when the payer gives consent to the execution of the payment transaction, the payer’s payment service provider may block funds on the payer’s payment account only if the payer has given consent to the exact amount of the funds to be blocked.

(2) The payer’s payment service provider shall release the funds blocked on the payer’s payment account under the preceding paragraph without undue delay after receipt of the information about the exact amount of the payment transaction and at the latest immediately after receipt of the payment order.

Article 140 (Liability of the payment service provider for non-execution or defective or late

execution of a payment transaction initiated by the payee)

(1) The payer’s payment service provider shall be liable to the payer for the proper execution of a payment transaction initiated directly by the payer with that payment service provider to the payee’s payment service provider in accordance with Article 127 of this Act.

(2) If the payer’s payment service provider is liable for non-execution or defective execution of a payment transaction under the preceding paragraph, it shall, without undue delay, refund to the payer the amount of the non-executed or defective payment transaction or, where the payment transaction was debited from the payer’s payment account, restore the debited payment account to the state in which it would have been had the defective payment transaction not taken place. The credit value date for the payer’s payment account shall be no later than the date on which the amount was debited.

(3) If the payer’s payment service provider shows that the amount of the payment transaction was credited to the account of the payee’s payment service provider in accordance with Article 127 of this Act, the payee’s payment service provider shall be liable to the payee for the correct execution of the payment transaction in accordance with Articles 129 and 130 of this Act and shall immediately place the amount of the defectively executed payment transaction at the payee’s disposal or, where the payment transaction is credited to the payee’s payment account, credit the corresponding amount to the payee’s payment account. The credit value date for the payee’s payment account shall be no later than the date on which the amount would have been value dated had the transaction been correctly executed in accordance with Article 130.

(4) Where a payment transaction is executed late, the payee’s payment service provider shall ensure, upon the request of the payer’s payment service provider acting on behalf of the payer, that the credit value date for the payee’s payment account is no later than the date on which the amount would have been value dated had the transaction been correctly executed.

(5) The payment service provider that is liable to its user for the non-execution or defective, including late, execution of the payment transaction shall also compensate said user for any losses incurred as a result of charges charged to the user and for any interest to which the payer is entitled in connection with the defectively executed payment transaction.

(6) The payment service provider and the user who is not a consumer may agree that this Article shall not apply in part or in whole.

Article 141 (Liability in the case of payment initiation services for non-execution or defective or

late execution of payment transactions)

(1) The payer’s account servicing payment service provider shall be liable to the payer for the proper execution of a payment transaction initiated by the payer through a payment initiation service provider in accordance with Article 127 of this Act. The payer’s account servicing payment service provider shall refund to the payer the amount of the non-executed or defective payment transaction or, where the payment transaction was debited from the payer’s payment account, restore the debited payment account to the state in which it would have been had the defective payment transaction not taken place.

(2) The burden shall be on the payment initiation service provider to prove that the payment order was received by the payer’s account servicing payment service provider in accordance with Article 120 of this Act and that, within its sphere of competence, the payment transaction was authenticated, accurately recorded, and not affected by a technical breakdown or other deficiency linked to the non-execution, defective or late execution of the transaction.

(3) If the payment initiation service provider is liable for the non-execution, defective or late execution of the payment transaction, it shall immediately compensate the account servicing payment service provider at the latter’s request for the losses incurred or sums paid as a result of the refund to the payer.

Article 142 (Liability for non-execution or defective or late execution of a payment transaction

initiated by the payee or the payer through the payee)

(1) If the payment transaction is initiated by the payee or the payer through the payee, the payee’s payment service provider shall be liable to the payee for the proper 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 128 of this Act. If the payee’s payment service provider is liable for the non-execution or defective execution of a payment transaction under this paragraph, it shall immediately re-transmit the payment order in question to the payment service provider of the payer.

(2) In the case of a late transmission of the payment order, the amount shall be value dated on the payee’s payment account no later than the date the amount would have been value dated had the transaction been correctly executed.

(3) When the amount of the payment transaction initiated by the payee or the payer through the payee is credited to the payee’s payment service provider’s account, the payee’s payment service provider shall be liable to the payee for the proper execution of a payment transaction in accordance with Articles 129 and 130 of this Act. The amount shall be value dated on the payee’s payment account no later than the date the amount would have been value dated had the transaction been correctly executed.

(4) If the payee’s payment service provider is not liable to the payee under paragraph one or two of this Article, the payer’s payment service provider shall be liable to the payer for the non-execution or incorrect execution of a payment transaction initiated by the payee or the payer through the payee.

(5) If the payer’s payment service provider is liable under the preceding paragraph of this Article, it shall, as appropriate and without undue delay, refund to the payer the amount of the non-executed or defectively executed payment transaction or, if the payment transaction was debited from the payer’s payment account, restore the payment account to the state in which it would have been had the defective execution not taken place. The credit value date for the payer’s payment account shall be no later than the date on which the amount was debited.

(6) The obligation under the preceding paragraph shall not apply to the payer’s payment service provider where the latter shows that the payee’s payment service provider has received the amount of the payment transaction, even if execution of payment transaction is delayed. In that case, the payee’s payment service provider shall value date the amount on the payee’s payment account no later than the date the amount would have been value dated had it been executed correctly.

(7) The payment service provider which is liable under this Article shall also compensate the user for any losses incurred as a result of charges charged to the user and for any interest to which the payer is entitled in connection with the non-execution or defective, including late, execution of the payment transaction.

(8) The payment service provider and the user who is not a consumer may agree that this Article shall not apply in part or in whole.

Article 143 (Liability for the use of unique identifiers)

(1) If the payee in a payment order is specified by a unique identifier, the payment order shall be deemed to have been executed correctly with regard to the payee if it was 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 to the user for the non-execution of the payment transaction within the meaning of Articles 140, 141 or 142 of this Act.

(3) If, 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 paragraph three of Article 90 or paragraph one of Article 103 of this Act, 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. The payee’s payment service provider shall cooperate in those efforts also by communicating to the payer’s payment service provider all relevant information for the collection of funds.

(5) In the event that the collection of funds under the preceding paragraph is not possible, the payer’s payment service provider shall provide to the payer, upon written request, all information available to the payer’s payment service provider and relevant to the payer in order for the payer to file a legal claim to recover the funds.

(6) If agreed in the framework contract, the payment service provider may charge a special fee to the user for the recovery of funds of the executed payment transaction under paragraph four of this Article.

Article 144 (Exclusion of liability for the non-execution or defective or late execution of a payment

transaction)

(1) The payment service provider shall not be liable to the user for the non-execution, defective execution or late execution of a payment transaction under Articles 140, 141 or 142 of this Act if the non-execution, defective execution or late execution of the payment transaction results from abnormal and unforeseeable circumstances that the payment service provider could not avoid or prevent.

(2) The payment service provider shall not be liable to the user if the non-execution, defective execution or late execution of a payment transaction results from the payment service provider’s compliance with obligations arising under other regulations by which the payment service provider is bound.

Article 145 (Liability of intermediaries and other persons)

(1) The payment service provider shall also be liable to the user for the unauthorised payment transaction in accordance with Article 136 of this Act and for the non-execution, defective execution or late execution of a payment transaction in accordance with Articles 140, 141 or 142 of this Act in cases where an intermediary or other person involved in the execution of the payment transaction is responsible for the non-execution or defective execution.

(2) The payment service provider may, from an intermediary or other person responsible for the defective execution of a payment transaction, in accordance with the general rules of the law of obligations, claim the refund of the amounts paid to the user in accordance with Articles 136, 140, 141 or 142 of this Act, including fees when any of the payment service providers fails to use strong customer authentication, and of other losses incurred due to the non-execution or defective execution of a payment transaction.

Article 146 (Other obligations of a payment service provider in the case of a non-executed or

defectively executed payment transaction)

(1) In the case of a non-executed or defectively executed payment transaction, the payment service provider shall, regardless of its liability for the proper execution of a payment transaction, at the request of its user, make immediate efforts to trace the payment transaction and transmit to the user the available information in connection with the non-executed or defectively executed payment transaction to enable the user to claim the refunds in connection with the defectively executed payment transaction. This service shall be provided to the user free of charge.

(2) The payment service provider and the user who is not a consumer may agree that this Article shall not apply in part or in whole.

Article 147

(Liability for further losses due to a defective execution of a payment transaction)

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

Article 148 (Burden of proving authentication and execution of payment transactions)

(1) Where the user denies having authorised an executed payment transaction or claims that the payment transaction was not correctly executed, it is for the 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 other deficiency of the service provided by the payment service provider.

(2) If the payment transaction is initiated through a payment initiation service provider, the burden shall be on the payment initiation service provider to prove that, within its sphere of competence, the payment transaction was authenticated, accurately recorded, and not affected by a technical breakdown or other deficiency linked to the payment service of which it is in charge.

(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, including the payment initiation service provider if involved, shall not in itself 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 by gross negligence to fulfil one or more of his obligations under Article 132 of this Act. The payment service provider shall, including when it is appropriate, together with the payment initiation service provider, provide evidence that the payment service user acted fraudulently, with deception or by gross negligence.

(4) The payment service provider and the user who is not a consumer may agree that this Article shall not apply in part or in whole.

Article 149 (Refunds for unauthorised or defectively executed payment transactions and their

rectification)

(1) The payment service provider who is liable for the execution of an unauthorised or defectively executed payment transaction in accordance with this Act shall, at the user’s request, provide rectification by: 1. refunding the amounts of unauthorised or defectively executed payment transactions in

accordance with Articles 136, 137, 140, 141 or 142 of this Act or 2. 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 defectively executed payment transactions, this no later than 13 months after the debit date.

(3) If the payment service provider failed to provide or make available information to the user on the execution of an unauthorised or defectively executed payment transaction in accordance with Subchapter 5.2 of this Act, the payment service provider that is liable for

the execution of the unauthorised payment transaction or defectively executed payment transaction shall still provide rectification to the user after the expiry of the 13-month time limit if the user notifies the payment service provider without undue delay on becoming aware of any unauthorised or defectively executed payment transactions.

(4) When a payment initiation service provider is involved, the rectification shall, notwithstanding paragraphs five and six of Article 136 and Article 141 of this Act, be provided to the payment service user by an account servicing payment service provider in accordance with paragraphs one, two and three of this Article.

(5) The user who requested the rectification in accordance with paragraph one of this Article may request from the payment service provider a refund for further losses that are a consequence of an unauthorised or defectively executed payment transaction for which the payment service provider is liable in accordance with the general rules of the law of obligations.

(6) The payment service provider and user who is not a consumer may agree on different time limits than defined in this Article.

Article 150 (Refunds for payment transactions initiated by the payee or payer through the payee)

(1) The payer’s payment service provider shall refund to the payer on request the full amount of the authorised and correctly executed payment transaction initiated by the payee or the payer through the payee where the credit value date for the payer’s payment account shall be no later than the date on which the amount was debited if: 1. the payer did not specify the exact amount of the payment transaction when the

authorisation was made and 2. the amount of the payment transaction exceeds the amount the payer could reasonably

have expected taking into account the previous payment pattern, the conditions in the framework contract and the relevant circumstances of the case.

(2) The payer’s payment service provider may request from the payer a proof that the conditions referred to in the preceding paragraph have been met. The payer shall not claim the circumstances referred to in point 2 of the preceding 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 of the receipt of the payer’s request for a refund in accordance with the preceding 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 request. The payment service provider may refuse the payer’s request for a refund only if the conditions referred to in paragraph one of this Article are not fulfilled. If the payment service provider refuses the payer’s request, it shall, together with the notification regarding reasons for the refusal, inform the payer of the procedures available for out-of-court dispute resolution and minor offence procedures and of the authorities responsible for the conduct of such procedures.

(5) The payer and the payer’s payment service provider may agree, in the framework contract, that the payer has no right to a refund for the payment transaction amount referred to in paragraph one of this Article if:

1. the payer has given his consent to the execution of the payment transaction directly to his payment service provider and

2. the payment service provider or the payee provided the information on the future payment transaction in an agreed upon manner to the payer at least four weeks before the due date.

(6) Notwithstanding the preceding paragraph, the payer has, in addition to the right referred to in paragraph one of this Article, an unconditional right to a refund for direct debits referred to in Article 1 of Regulation (EU) No 260/2012 within the time limit specified in paragraph three of this Article. The payment service provider’s right referred to in paragraph four of this Article to refuse the payer’s request for a refund if the conditions referred to in paragraph one of this Article are not fulfilled shall not apply in this case.

(7) The payment service provider and the user who is not a consumer may agree that this Article shall not apply in part or in whole.

5.3.5 Operational and security risks and authentication

Article 151 (Management of operational and security risks)

(1) Payment service providers shall establish a framework with appropriate risk-mitigation measures and control mechanisms to manage the operational and security risks relating to the payment services they provide. As part of that framework, payment service providers shall establish and maintain effective incident-management procedures, including for the detection and classification of major operational and security incidents.

(2) Payment service providers shall provide to the Bank of Slovenia on an annual basis, or at shorter intervals as determined by the Bank of Slovenia, an updated and comprehensive assessment of the operational and security risks relating to the payment services they provide and of the adequacy of the risk-mitigation measures and control mechanisms implemented in response to those risks.

Article 152 (Incident reporting)

(1) Payment service providers with their head office in the Republic of Slovenia shall notify the Bank of Slovenia of any major operational and security risks without undue delay.

(2) Where the incident has or may have an impact on the financial interests of its payment service users, the payment service provider shall, without undue delay, inform its payment service users of the incident and of all available measures that they can take to mitigate the adverse effects of the incident.

(3) Upon receipt of the notification referred to in paragraph one of this Article, the Bank of Slovenia shall report to the European Banking Authority and the European Central Bank relevant details about the incident without undue delay. After having assessed the significance of the incident for other relevant authorities of the Republic of Slovenia, the Bank of Slovenia shall notify such authorities thereof.

(4) The Bank of Slovenia shall cooperate with the European Banking Authority and the European Central Bank in assessing the significance of the incident for other relevant EU and national authorities.

(5) When the European Banking Authority and the European Central Bank notify the Bank of Slovenia of a major operational or security incident, the Bank of Slovenia shall take all the necessary measures to ensure the direct security of the financial system on the basis of such notification as appropriate.

(6) Payment service providers with their head office in the Republic of Slovenia shall submit to the Bank of Slovenia statistics on fraud and deception associated with various means of payment at least once a year. The Bank of Slovenia shall communicate these data in aggregate form to the European Banking Authority and to the European Central Bank.

Article 153 (Authentication)

(1) Payment service providers shall apply strong customer authentication where the payer: 1. accesses its payment account online; 2. initiates an electronic payment transaction; or 3. carries out any action through a remote channel which may imply a risk of payment fraud

or deception or other abuses.

(2) When initiating electronic payment transactions referred to in point 2 of the preceding paragraph, payment service providers shall apply strong customer authentication to electronic payment transactions through a remote channel; this shall include elements which dynamically link the transaction to a specific amount and a specific payee.

(3) In the case referred to in paragraph one of this Article, payment service providers shall have in place appropriate security measures to protect the confidentiality and integrity of payment service users’ personalised security credentials.

(4) Paragraphs two and three of this Article shall also be applied when payments are initiated through a payment initiation service provider and when information is requested through an account information service provider.

(5) An account servicing payment service provider shall enable the payment initiation service provider and the account information service provider to comply with authentication procedures which the account servicing payment service provider has provided to the user in accordance with paragraphs one and three of this Article and when a payment initiation service provider is involved in accordance with paragraphs one, two and three of this Article.

5.3.6 Low-value payment instruments

Article 154 (Application of provisions to low-value payment instruments)

In a framework contract on the issuing of a low-value payment instrument, the payment service provider and the user may agree on the following:

1. if the payment instrument does not enable blocking, the exclusion of the application of the following provisions: paragraph two of Article 132. points 2 and 3 of paragraph one and paragraph three of Article 133, and paragraphs five and six of Article 137 of this Act;

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: Article 136, paragraphs one, two, three, five and six of Article 137, and Article 148 of this Act;

3. if, notwithstanding Article 121 of this Act, the payment service provider is not obliged to notify the user of the refusal of a payment order where the non-execution of the payment order arises from the circumstance of an individual case;

4. if, notwithstanding Article 122 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 127 of this Act, different time limits for the execution of a payment transaction apply.

6. APPLICATION OF THE PROVISIONS OF CHAPTER 5 OF THIS ACT TO OTHER PAYMENT TRANSACTIONS

Article 155 (Other payment transactions)

Other payment transactions shall mean transactions that are executed in any currency if the payment transaction is executed with the transfer of funds between at least one 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, unless they are regulated by paragraph four of Article 85 of this Act.

Article 156 (Application of general provisions and provisions for payment service contracts)

(1) The provisions of Articles 85 and 86 of this Act and the provisions of Subchapter 5.2 of this Act, except points 2 and 3 of paragraph four of Article 90 of this Act, shall apply to a payment service contract which regulates the execution of other payment transactions, except in cases referred to in paragraphs two to four of this Article.

(2) Notwithstanding paragraph three of Article 90 or paragraph one of Article 103 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 transaction to be executed to the payee’s payment service provider in a third country if it does not have this information at its disposal at the time of the conclusion of the framework contract. In this case, the payment service provider shall make its best efforts to provide the information on the expected execution time to the user.

(3) If, in connection with the execution of a payment transaction, the payment service contract specifies that, for the execution of a payment transaction, the payment service provider also levies charges to its user that are 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 level of these charges before the initiation of the transaction. If the payment service provider does not have this information at its disposal

at the time of the initiation of the transaction, it shall make its best efforts to provide the information on the expected level of charges to the user.

(4) Articles 101 and 102 of this Act shall not apply to the framework contract regulating the execution of other payment transactions with the use of payment instruments.

Article 157 (Application of provisions governing the execution of payment transactions)

The payment service provider and the user may agree that individual provisions of Subchapter 5.3 of this Act shall not apply in whole or in part to other payment transactions.

7. ELECTRONIC MONEY ISSUANCE

7.1 Electronic money issuance services

Article 158 (Issuers of electronic money)

(1) In the territory of the Republic of Slovenia, electronic money issuance services may be provided by the following entities (hereinafter: electronic money issuers): 1. banks that have obtained authorisation from the Bank of Slovenia to provide electronic

money issuance services in accordance with the act governing banking, banks of Member States that have obtained authorisation from the competent supervisory authority of the home country to provide electronic money issuance services and have established a branch in the territory of the Republic of Slovenia or directly issue electronic money in the territory of the Republic of Slovenia in accordance with the act governing banking, and third-country banks that have obtained authorisation from the Bank of Slovenia to provide electronic money issuance services and have established a branch in the territory of the Republic of Slovenia in accordance with the act governing banking;

2. electronic money institutions that have obtained authorisation from the Bank of Slovenia to provide electronic money issuance services in accordance with this Act, electronic money institutions of Member States that have obtained authorisation from the competent supervisory authority of the home country to provide electronic money issuance services and have established a branch in the territory of the Republic of Slovenia in accordance with this Act or directly provide electronic money issuance services in the territory of the Republic of Slovenia, and third-country electronic money institutions that have obtained authorisation from the Bank of Slovenia to provide electronic money issuance services and have established a branch in the territory of the Republic of Slovenia in accordance with this Act;

3. electronic money institutions benefiting from a waiver; 4. the Bank of Slovenia when not exercising its exclusive competence under the act

governing the Bank of Slovenia or other acts which lay down the exclusive competence of the Bank of Slovenia;

5. the PPA and other state authorities and self-governing local communities in the Republic of Slovenia when they issue electronic money within their competences under a special act.

Article 159 (Electronic money issuance services)

(1) 'contract for electronic money issuance' shall mean a contract by which the electronic money issuer undertakes to issue electronic money to the holder at par value on the receipt of funds.

(2) Before concluding the contract for electronic money issuance, the electronic money issuer shall provide the electronic money holder with information on the conditions of redemption, including any fees relating thereto, so that the electronic money holder has sufficient time to become acquainted with such conditions.

(3) No interest shall be awarded on electronic money in the period from its issue to its use. The electronic money issuer shall not grant the electronic money holder any other benefits related to the length of time during which the electronic money holder holds the electronic money.

(4) With regard to issues that are not regulated by this Act, the provisions of the act governing obligations relating to the contract of mandate shall apply to relations between the electronic money issuer and the electronic money holder.

Article 160 (The right of the electronic money holder to redemption)

(1) The electronic money holder may at any time request the electronic money issuer to redeem the monetary value of the electronic money held.

(2) The electronic money issuer may charge the electronic money holder a fee and other costs only if so stated in the contract for electronic money issuance and if: 1. redemption is requested before the termination of the contract for electronic money

issuance; 2. the contract for electronic money issuance has been concluded for a fixed period of time

and the electronic money holder terminates it before the termination date; or 3. redemption is requested more than one year after the date of termination of the contract

for electronic money issuance.

(3) Any fee or other cost referred to in the preceding paragraph shall be proportionate and in accordance with the actual costs incurred by the electronic money issuer as a result of the electronic money holder’s request for redemption.

(4) The rights of the electronic money holder referred to in paragraphs one or two of this Article cannot be excluded or limited contractually. The contract for electronic money issuance shall clearly state the conditions of redemption, including any fees.

(5) If redemption is requested before the termination of the contract for electronic money issuance, the electronic money holder may request that the monetary value of the issued electronic money be paid in whole or in part.

(6) If the electronic money holder requests redemption upon the termination of the contract or within one year of the termination of the contract for electronic money issuance: 1. the total monetary value of the electronic money held shall be redeemed or 2. if the electronic money was issued by a hybrid electronic money institution referred to in

paragraph two of Article 162 of this Act and it is unknown in advance what proportion of funds is to be used as electronic money, the monetary value of the electronic money held in the amount requested by the electronic money holder shall be redeemed.

(7) The electronic money issuer and the electronic money holder who is not a consumer may agree upon different conditions of redemption.

7.2 Electronic money institutions

Article 161 (Electronic money institutions)

(1) 'electronic money institution' shall mean a legal person with its head office in the Republic of Slovenia that has been granted an authorisation by the Bank of Slovenia to provide electronic money issuance services as an electronic money institution.

(2) 'electronic money institution of a Member State' shall mean a legal person with its head office in another Member State that has been granted an authorisation by the competent supervisory authority of the home country to provide electronic money issuance services as an electronic money institution.

(3) An electronic money institution shall be organised in one of the legal forms of companies as provided by the act governing companies.

(4) The provisions of the act governing companies shall apply to electronic money institutions unless otherwise provided by this Act.

(5) The provisions of Articles 23 and 25 of this Act shall apply, mutatis mutandis, to an electronic money institution if the electronic money institution provides payment services, as shall the provisions of Articles 32 to 39, Articles 40 to 51, Articles 53 and 54, Articles 73 and 74, Articles 79 to 81, Articles 83 and 84, Articles 240 to 242, Articles 245 to 259, Articles 274 to 277, and Articles 282 and 283 of this Act and the regulatory technical standards adopted by the European Commission in accordance with Article 28(5) and Article 29(7) of Directive (EU) 2015/2366, unless otherwise provided in this Chapter.

(6) Notwithstanding the preceding paragraph, an electronic money institution may not issue electronic money through agents, though it may authorise a natural or legal person to distribute and redeem electronic money on its behalf.

(7) An electronic money institution may provide payment services referred to in Article 5 of this Act through an agent if the conditions laid down by this Act for agents of payment institutions are met.

(8) A third-country electronic money institution which is authorised to issue electronic money in the home country may also issue electronic money in the territory of the Republic of Slovenia, but only through a branch and under the conditions provided by this Act and by applying, mutatis mutandis, the provisions of the act governing banking relating to the provision of banking services by a third-country bank and the authorisation to establish a third-country bank branch.

(9) The Bank of Slovenia shall prescribe the detailed content of the documents and evidence to accompany requests the decision on which falls within the competence of the Bank of Slovenia in accordance with the provisions of this Chapter and the detailed contents of notifications and the manner in which electronic money institutions shall send notifications to the Bank of Slovenia in accordance with the provisions of this Chapter.

Article 162

(Activities of electronic money institutions)

(1) An electronic money institution may start issuing electronic money when it obtains authorisation from the Bank of Slovenia to issue electronic money as an electronic money institution. In addition to issuing electronic money, electronic money institutions shall provide payment services referred to in Article 5 of this Act related to the issuance of electronic money under the conditions laid down by this Act for the provision of such services.

(2) In addition to the provision of services referred to in the preceding paragraph, electronic money institutions (hereinafter: hybrid electronic money institutions) may also perform the following activities: 1. payment services referred to in Article 5 of this Act which are not related to the issuance

of electronic money, including the granting of loans in connection with payment services, if they meet the conditions for the provision of such services on the basis of this Act or other acts;

2. payment system operation services if they meet the conditions for the provision of payment system operation services in accordance with this Act;

3. other economic activities if they meet the conditions for the performance of these activities laid down by another act.

(3) The provisions of this Act relating to electronic money institutions shall also apply to hybrid electronic money institutions unless this Act otherwise provides for hybrid electronic money institutions.

(4) Electronic money institutions may also provide operational and ancillary services related to the issuance of electronic money or the provision of payment services such as foreign exchange services, data storage and processing, and safekeeping activities in connection with payment services if they meet the conditions for the provision of such services in accordance with this Act or other acts.

(5) Electronic money institutions shall exchange the funds received from electronic money holders for electronic money without delay.

(6) Paragraph two of Article 12 and paragraph four of Article 28 of this Act shall apply, mutatis mutandis, to electronic money institutions providing payment services referred to in Article 5 of this Act.

(7) Electronic money institutions shall not grant any loan from the funds received in exchange for electronic money and shall keep them in accordance with Article 166 of this Act.

Article 163 (Initial capital)

(1) A legal person that applies for the Bank of Slovenia’s authorisation to provide electronic money issuance services as an electronic money institution shall be required to hold, at the time of issue of the authorisation, initial capital of no less than EUR 350,000.

(2) The calculation of initial capital referred to in the preceding paragraph shall take into account the items referred to in Article 26(1)(a) to (e) of Regulation (EU) No 575/2013.

Article 164

(The minimum level of own funds)

(1) Throughout its operation, an electronic money institution shall hold own funds which are at all times equal to or in excess of the higher of the following amounts: 1. the amount of initial capital that is required pursuant to the preceding Article or 2. the amount of the own funds requirement that is calculated in accordance with a method

referred to paragraph two or three of this Article.

(2) The own funds requirement for an electronic money institution for the activity of issuing electronic money shall be two percent of the average outstanding electronic money. The average outstanding electronic money shall be the average total amount of financial obligations related to electronic money in issue at the end of each calendar day over the preceding six calendar months, calculated on the first calendar day of each calendar month and applied for that calendar month. If an electronic money institution has not completed a sufficient period of business, the average outstanding electronic money shall be calculated on the basis of the projected average daily outstanding electronic money evidenced by its business plan referred to in point 3 of paragraph one of Article 35 of this Act, taking into account any adjustments to that plan required from the electronic money institution by the Bank of Slovenia.

(3) The own funds requirement for a hybrid electronic money institution providing the services referred to in point 1 of paragraph two of Article 162 of this Act shall be calculated as a sum of own fund requirement referred to in the preceding paragraph and the own fund for payment service providers calculated according to the method determined by the Bank of Slovenia in accordance with Article 55 of this Act.

(4) The own funds requirement for a hybrid electronic money institution which allows electronic money holders to also deposit funds for purposes other than the issuance of electronic money, and where the amount of outstanding electronic money is not determined or known in advance, shall be calculated for the representative portion of funds paid that is expected to be used as electronic money, provided that this portion can be appropriately estimated on the basis of historical data. If an electronic money institution has not completed a sufficient period of business, the representative portion of funds shall be determined on the basis of the projected outstanding electronic money evidenced by the business plan referred to in point 3 of paragraph one of Article 35 of this Act, taking into account any adjustments to that plan required from the electronic money institution by the Bank of Slovenia.

(5) Own funds of an electronic money institution shall be calculated by applying, mutatis mutandis, Articles 63 and 64 of this Act and the implementing regulations issued on the basis of Article 67 of this Act. An electronic money institution which provides payment services that are not related to the issuance of electronic money shall not use the own funds elements intended to meet own fund requirements for the provision of payment services not related to the issuance of electronic money in the calculation of own funds for the provision of electronic money issuance services. Electronic money institutions shall calculate own fund requirements and the level of own funds and report by applying, mutatis mutandis, Article 66 of this Act and the implementing regulations issued on the basis of Article 67 of this Act.

(6) The Bank of Slovenia, taking into account the quality of a company’s risk management system, databases on losses and the internal control system, may require that electronic money institutions make an extraordinary increase or allow a reduction in own fund requirements referred to in this Article, but by no more than 20%, applying, mutatis mutandis, Articles 61 and 62 of this Act.

Article 165 (Special rules on qualifying holders)

Notwithstanding Article 33 of this Act, if a hybrid electronic money institution performs one or more activities referred to in point 3 of paragraph two of Article 162 of this Act, the Bank of Slovenia may, on the proposal of the prospective holder of a qualifying holding, decide that the requirements referred to in Article 33 of this Act shall not apply in part or in whole to the acquisition of a qualifying holding in such a hybrid electronic money institution. In so doing, the Bank of Slovenia shall take into account, in particular, the legal form and the type and extent of economic activities referred to in point 3 of paragraph two of Article 162 of this Act which are performed by the hybrid electronic money institution and the legal form and the type and extent of the activities performed by the prospective qualifying holder.

Article 166 (Safeguarding of electronic money holders’ funds)

(1) An electronic money institution shall safeguard the funds received in exchange for the issued electronic money in the same way as a payment institution in accordance with Articles 68 to 71 of this Act unless otherwise provided by this Article.

(2) An electronic money institution need not safeguard the funds received in the form of payment by the use of a payment instrument until they are credited to its payment account or are otherwise made available to it in accordance with the execution time requirements. In any case, the funds received shall be safeguarded no later than the fifth business day after electronic money is issued.

(3) An electronic money institution which provides payment services referred to in Article 5 of this Act in accordance with point 1 of paragraph two of Article 162 of this Act shall comply with the provisions of Subchapter 2.8 of this Act in the provision of payment services that are not related to the issuance of electronic money.

(4) An electronic money institution shall notify the Bank of Slovenia in advance of any intended change in the manner of safeguarding users’ funds received in exchange for electronic money and submit appropriate evidence of its compliance with the provisions of this Act.

(5) The Bank of Slovenia shall prescribe detailed rules for secure, low-risk assets in which electronic money institutions can invest the funds received in exchange for electronic money.

Article 167 (Electronic money institutions benefiting from a waiver)

(1) At the request of the applicant who filed an application for authorisation to provide electronic money issuance services, the Bank of Slovenia may decide that the applicant shall not be bound by individual requirements regarding the internal control system, own funds or own fund requirements, qualifying holdings, or the safeguarding of electronic money holders’ funds which must be complied with by electronic money institutions (hereinafter: electronic money institutions benefiting from a waiver) in accordance with this Act and may allow the applicant to be included in the register of electronic money institutions under the following conditions: 1. that the applicant has its head office in the Republic of Slovenia;

2. that the applicant’s total business activities generate an average outstanding electronic money that does not exceed EUR 200,000;

3. that the members of the management body and persons that will be directly responsible for electronic money issuance services fulfil the conditions laid down by paragraph one of Article 32 of this Act.

(2) The provisions of this Subchapter relating to the requirements for issuing electronic money as an electronic money institution shall also apply to electronic money institutions benefiting from a waiver, with the exception of the provisions on the requirements which the Bank of Slovenia permitted an electronic money institution to waive under this Article or if this Act expressly provides that certain provisions of this Act do not apply to electronic money institutions.

(3) For the purpose referred to in point 2 of paragraph one of this Article, the representative portion of funds paid that is expected to be used as electronic money, if this representative portion can be reasonably estimated on the basis of historical data, shall be taken into account for a hybrid electronic money institution benefiting from a waiver which allows electronic money holders to deposit funds in connection with the issuance of electronic money and for purposes other than the issuance of electronic money and where the amount of outstanding electronic money is not determined or known in advance. If a hybrid electronic money institution has not completed a sufficient period of business, the representative portion of funds shall be determined on the basis of the projected outstanding electronic money evidenced by the business plan enclosed with the application for the issue of an authorisation by the Bank of Slovenia to issue electronic money as an electronic money institution benefiting from a waiver referred to in paragraph one of this Article, taking into account any adjustments of the plan required from the electronic money institution by the Bank of Slovenia.

(4) An electronic money institution benefiting from a waiver may provide payment services referred to in Article 5 of this Act only if the payment services are related to issued electronic money. Notwithstanding the preceding sentence, an electronic money institution benefiting from a waiver may also provide money remittances referred to in point 6 of paragraph one of Article 5 of this Act when these services are not related to the issuance of electronic money provided that it obtains an authorisation from the Bank of Slovenia under Article 76 of this Act.

(5) An electronic money institution benefiting from a waiver may issue electronic money only in a manner which enables holders to keep electronic money in a payment instrument or a payment account up to a maximum of EUR 150.

(6) An electronic money institutions benefiting from a waiver shall: 1. immediately inform the Bank of Slovenia of any facts and circumstances affecting the

fulfilment of the conditions referred to in paragraph one of this Article and 2. report to the Bank of Slovenia on the average outstanding electronic money as at 31

December each year.

(7) An electronic money institution benefiting from a waiver may provide electronic money issuance services: - in the territory of the Republic of Slovenia directly or by authorising a natural or legal

person to distribute or redeem electronic money on its behalf or - in the territory of a third country.

(8) The Bank of Slovenia shall prescribe the detailed content of notifications and the manner in which electronic money institutions benefiting from a waiver shall send such notifications to the Bank of Slovenia in accordance with the provisions of this Chapter.

8. COMPARABILITY OF FEES RELATED TO PAYMENT ACCOUNTS, SWITCHING OF PAYMENT ACCOUNTS AND ACCESS TO A PAYMENT ACCOUNT WITH BASIC

FEATURES

Article 168 (Subject matter)

The rules on the comparability of fees related to payment accounts, switching of payment accounts and access to payment accounts with basic features shall apply to all payment accounts which allow at least cash deposits into and cash withdrawals from payment accounts and the execution of payment transactions.

8.1 Comparability of fees related to payment accounts

Article 169 (Publication of the list of standardised terminology)

The Bank of Slovenia shall publish a list of standardised terminology on its website.

Article 170 (Fee information document and glossary)

(1) The payment service provider, in good time and before the conclusion of a framework contract, shall provide consumers free of charge with a fee information document for the most representative services linked to the payment account from the list of standardised terminology on paper or another durable medium (hereinafter: fee information document) and with a glossary.

(2) The fee information document shall include all standardised terms from the list of standardised terminology. In the fee information document, the payment service provider shall disclose only fees for services which are included in the list of standardised terminology and provided by the payment service provider in the framework of its activities.

(3) The fee information document shall: 1. be a brief and stand-alone document; 2. be presented and laid out such that it is clear and easy to read, with characters of a

readable size; 3. be no less comprehensible in the event that, having been originally produced in colour, it

is printed or photocopied in black and white; 4. be in Slovenian or another language if so agreed upon by the consumer and the

payment service provider; 5. be accurate, not misleading and expressed in the currency of the payment account or, if

agreed upon by the consumer and the payment service provider, in another currency of the EU;

6. contain the title 'fee information document' at the top of the first page next to a common symbol to distinguish the document from other documentation; and

7. include a statement that it contains fees for the most representative services related to the payment account and that complete pre-contractual and contractual information on all the services is provided in other documents.

(4) The payment service provider shall provide the fee information document separately from the information referred to in Article 90 of this Act.

(5) If the payment service provider offers one or more services as part of a package of services linked to a payment account, the fee information document shall disclose the fee for the entire package, the services included in the package and their quantity, and any additional fee for any service that exceeds the quantity covered by the package fee.

(6) The payment service provider shall also make available to consumers a glossary of at least the standardised terms set out in the list of standardised terminology and the related definitions.

(7) The glossary referred to in the preceding paragraph, including any further definitions, shall be drafted in clear and unambiguous language and shall not be misleading.

(8) The payment service provider shall ensure that the fee information document and the glossary are made available to consumers at any time.

(9) The payment service provider shall make both documents referred to in the preceding paragraph available in an easily accessible manner, in electronic form on the payment service provider’s website where available and in the premises of the payment service provider.

(10) In addition to the case referred to in paragraph one of this Article, the payment service provider shall also provide a consumer with both documents referred to in paragraph eight of this Article on paper or another durable medium free of charge upon request by the consumer.

Article 171 (Statement of fees)

(1) Having regard to Articles 94 and 95 of this Act, the payment service provider shall provide the consumer, at least annually and free of charge, with a statement of all fees incurred and where applicable with information regarding the interest rates referred to in point 4 of paragraph four of this Article for services linked to a payment account. In so doing, it shall use the standardised terms from the list of standardised terminology.

(2) The payment service provider and the consumer shall agree on the method of communicating the statement of fees.

(3) The payment service provider shall provide the statement of fees to the consumer on paper on request.

(4) The statement of fees for the relevant period shall include at least the following information: 1. the unit fee charged for each service and the number of times the service was used; 2. where the services are combined in a package, the fee charged for the package as a

whole, the number of times the package fee was charged and any additional fee charged for any service exceeding the quantity covered by the package fee;

3. the total amount of fees incurred during the relevant period for each service, each package of services provided and any services exceeding the quantity covered by the package fee;

4. where appropriate, the rate of interest for a loan linked to a payment account, including loans in the form of payment account overdraft, and the total amount of interest; and

5. the total amount of fees charged for all services provided.

(5) The statement of fees shall: 1. be presented and laid out such that it is clear and easy to read, using characters of a

readable size; 2. be accurate, not misleading and expressed in the currency of the payment account or, if

agreed upon by the consumer and the payment service provider, in another currency; 3. contain the title 'statement of fees' at the top of the first page next to a common symbol

to distinguish the document from other documentation; and 4. be in Slovenian or another language if so agreed by the consumer and the payment

service provider.

(6) The payment service provider shall provide the statement of fees separately from the information referred to in Articles 94 and 95 of this Act.

Article 172 (Information for consumers)

(1) In contracts with consumers and in advertising, the payment service provider shall use the standardised terms from the list of standardised terminology for the services provided by the payment service provider in the framework of its activities. The payment service provider may use brand names in the fee information document and in the statement of fees, provided such brand names are used in addition to the standardised terms set out in the list of standardised terminology as a secondary designation of those services.

(2) Notwithstanding the preceding paragraph, the payment service provider may use brand names to designate its services in contracts with consumers and in advertising, provided that they clearly identify the corresponding standardised terms set out in the list of standardised terminology for the services provided by the payment service provider in the framework of its activities.

Article 173 (Comparison websites)

(1) The Bank of Slovenia shall allow free access to its website comparing fees, including fees for the services included in the list of standardised terminology, charged by payment service providers in the Republic of Slovenia.

(2) The method and form of publication of the fees referred to in the preceding paragraph and the method, form and time limit for communicating information on fees to the Bank of Slovenia shall be determined by the Bank of Slovenia.

Article 174 (Payment accounts packaged with another product or service)

(1) When payment service providers offer a payment account as part of a package together with another product or service which is not linked to a payment account, the payment service provider shall inform the consumer whether it is possible to conclude a separate contract to open a payment account.

(2) If the consumer concludes a separate agreement to open a payment account, the payment service provider shall also provide separate information regarding the costs and fees associated with each of the other products and services offered in the package for which a separate contract may be concluded.

8.2 Switching of payment accounts

Article 175 (Switching of payment accounts within a Member State)

(1) A payment service provider shall provide a switching service between payment accounts held in the same currency to any consumer who opens or holds a payment account with a payment service provide located in the territory of the Republic of Slovenia.

(2) The switching procedure shall be initiated by the receiving payment service provider upon receipt of a written authorisation from a consumer in Slovenian or another language agreed upon between the parties. The written authorisation shall be drafted in a clear and understandable manner. In the case of a joint payment account, the receiving payment service provider shall obtain a written authorisation from each individual holder. The receiving payment service provider shall provide the consumer with a copy of the authorisation.

(3) The consumer’s authorisation shall provide explicit consent to: - the performance by the transferring payment service provider of each of the tasks

referred to in paragraphs five and six of this Article and - the performance by the receiving payment service provider of each of the tasks referred

to in paragraph seven of this Article.

(4) The consumer’s authorisation referred to in the preceding paragraph shall specify the following: - the list of recurring incoming credit transfers, standing orders and direct debit mandates

which the consumer wishes to transfer to a new payment account; - the date from which standing orders for credit transfers and direct debits are to be

executed from the payment account opened or held with the receiving payment service provider. That date shall be at least six business days after the date on which the receiving payment service provider receives the documents transferred from the transferring payment service provider pursuant to paragraph six of this Article;

- if the consumer wishes to close the account held with the transferring payment service provider, also the closing date of that payment account.

(5) Within two business days from the receipt of the consumer’s authorisation at the latest, the receiving payment service provider shall request the transferring payment service provider to carry out the following tasks if provided for in the consumer’s authorisation: 1. transmit to the receiving payment service provider and, if specifically requested by the

consumer, to the consumer, a list of the existing standing orders for credit transfers and available information on direct debit mandates which the consumer wishes to start executing through a payment account held with the receiving payment service provider;

2. transmit to the receiving payment service provider and, if specifically requested by the consumer, to the consumer, all information about recurring incoming credit transfers and direct debits executed on the consumer’s payment account in the previous 13 months;

3. where the transferring payment service provider does not provide a system for automated redirection of the recurring incoming credit transfers and direct debits to the

payment account held by the consumer with the receiving payment service provider, stop accepting direct debits and credit transfers with effect from the date specified in the authorisation;

4. cancel standing orders with effect from the date specified in the authorisation; 5. transfer any remaining positive balance to the payment account held by the consumer

with the receiving payment service provider on the date specified by the consumer; 6. close the payment account held with the transferring payment service provider on the

date specified by the consumer.

(6) Upon receipt of a request from the receiving payment service provider, the transferring payment service provider shall carry out the following tasks if provided for in the consumer’s authorisation: 1. provide the information referred to in points 1 and 2 of the preceding paragraph within

five business days; 2. where the transferring payment service provider does not provide a system for

automated redirection of recurring incoming credit transfers and direct debits to the payment account held by the consumer with the receiving payment service provider, stop accepting credit transfers and direct debits on the payment account with effect from the date specified in the authorisation and notify thereof the payer and/or the payee;

3. cancel standing orders with effect from the date specified in the authorisation; 4. transfer any remaining positive balance to the consumer’s payment account held with

the receiving payment service provider on the date specified in the authorisation; 5. having regard to Article 98 of this Act, close the payment account on the date specified

in the authorisation if the consumer has no outstanding obligations on that payment account and provided that the actions listed in points 1, 2 and 4 of this paragraph have been completed. The payment service provider shall immediately inform the consumer where such outstanding obligations prevent the latter’s payment account from being closed.

(7) Within five business days from receipt of information referred to in paragraph five of this Article, the receiving payment service provider shall, as and if provided for in the authorisation and to the extent that the information provided by the transferring payment service provider or the consumer enables the receiving payment service provider to do so, carry out the following tasks: 1. establish standing orders requested by the consumer and start executing them with

effect from the date specified in the authorisation; 2. provide everything that is necessary to accept direct debits and start executing them with

effect from the date specified in the authorisation; 3. where applicable, inform consumers of their rights under Article 5(3)(d) of Regulation

(EU) No 260/2012; 4. inform payers specified in the authorisation and making recurring incoming credit

transfers into the consumer’s payment account of the details of the consumer’s payment account with the receiving payment service provider and transmit to such payers a copy of the consumer’s authorisation. If the receiving payment service provider does not have all the information it needs to inform the payers, it shall ask the consumer or the transferring payment service provider to provide the missing information;

5. inform payees specified in the authorisation and using direct debits to obtain funds from the consumer’s payment account of the details of the consumer’s payment account with the receiving payment service provider and of the date from which direct debits are to be executed from that account and transmit to such payees a copy of the consumer’s authorisation. If the receiving payment service provider does not have all the information it needs to inform the payees, it shall ask the consumer or the transferring payment service provider to provide the missing information;

(8) If the consumer chooses to personally provide the information referred to in points 4 and 5 of the preceding paragraph to the payers or payees rather than provide explicit consent in accordance with paragraphs two, three and four of this Article to the receiving payment service provider, the receiving payment service provider shall provide the consumer with standard letters providing details of the payment account and the starting date specified in the authorisation within the time limit referred to in the preceding paragraph.

(9) Subject to paragraph two of Article 134 of this Article, the transferring payment service provider shall not block payment instruments before the date specified in the consumer’s authorisation, so that the provision of payment services to the consumer is not interrupted in the course of the provision of the switching service.

Article 176 (Cross-border switching of payment accounts)

(1) Where a consumer indicates to his transferring payment service provider that he wishes to open a payment account with a receiving payment service provider located in another Member State, the transferring payment service provider with which the consumer holds a payment account shall on receipt of such a request: 1. provide the consumer free of charge with a list of all the currently active standing orders

and debtor-driven direct debit mandates, where available, and with available information about recurring incoming credit transfers and creditor-driven direct debits executed on the consumer’s payment account in the previous 13 months. That list shall not entail any obligation on the part of the receiving payment service provider to set up services that it does not provide;

2. transfer any positive balance remaining on the consumer’s payment account to the payment account held by the consumer with the receiving payment service provider, provided that the request includes all data on the receiving payment service provider and the consumer’s payment account;

3. close the payment account held by the consumer.

(2) Subject to paragraph one of Article 98 of this Act, and provided that the consumer has no outstanding obligations on a payment account, the payment service provider with which the consumer holds that payment account shall conclude the steps set out in points 1, 2 and 3 of the preceding paragraph on the date specified by the consumer in his request. This date shall be at least six business days after the payment service provider receives the consumer’s request.

(3) The payment service provider and the consumer may agree that the preceding paragraph shall not apply in part or in whole.

(4) The payment service provider shall immediately inform the consumer where outstanding obligations prevent his payment account from being closed.

Article 177 (Fees connected with the switching of a payment account)

(1) The transferring payment service provider and the receiving payment service provider shall provide the consumer free of charge will his personal data and information on the existing standing orders and direct debits held by either the transferring or the receiving payment service provider.

(2) The transferring payment service provider shall, free of charge, provide the information requested by the receiving payment service provider in accordance with point 1 of paragraph six of Article 175 of this Act. The transferring payment service provider may not charge the consumer or the receiving payment service provider for the aforementioned service.

(3) Fees, if any, charged by the transferring payment service provider to the consumer for the termination of the payment account held with it shall be determined in accordance with Article 98 of this Act.

(4) Fees, if any, charged by the transferring or the receiving payment service provider to the consumer for services referred to in Article 175 of this Act, other than those referred to in paragraphs one, two and three of this Article, shall be reasonable and in line with the actual costs of that payment service provider.

Article 178 (Payment service provider’s liability for the proper switching of a payment account)

(1) A payment service provider involved in the switching of a payment account shall be liable for the proper switching of the payment account and shall immediately refund to the consumer all of the losses, including charges and interest, incurred by the consumer as a result of the payment service provider’s failure to comply with Article 175 of this Act.

(2) Liability of a payment service provider under the preceding paragraph shall be excluded in cases of exceptional and unforeseeable circumstances which are beyond the control of the payment service provider and the consequences of which would have been unavoidable despite all efforts by the payment service provider to the contrary or where an act or omission by the payment service provider results from the payment service provider’s compliance with the obligations arising under other regulations by which the payment service provider is bound. Liability of the payment service provider shall also be excluded where the financial loss results from fraudulent or deceitful acts on the part of the consumer or where the consumer, with intent or through gross negligence, has failed to fulfil his obligations in relation to the switching of a payment account in accordance with this Act.

Article 179 (Information about the switching of payment accounts)

(1) The payment service provider shall make available to the consumer the following information on the switching process: 1. the roles of the transferring and receiving payment service providers for each step of the

switching process as referred to in Article 175 of this Act; 2. the time-frame for completion of individual steps; 3. the fees, if any, charged for the switching process; 4. any information that the consumer is asked to provide; 5. the out-of-court dispute resolution procedures referred to in Article 286 of this Act; 6. the deposit guarantee scheme of which it is a member.

(2) The information referred to in in the preceding paragraph shall be made available free of charge on paper or another durable medium at all premises of the payment service provider accessible to consumers and in electronic form on the website of the payment service provider at all times and shall be provided to consumers on request.

8.3 Access to a payment account with basic features

Article 180 (Prohibition of discrimination)

(1) Consumers who are legally resident in the EU and apply for the opening of or access to a payment account with basic features in the EU may not be discriminated against by a bank by reason of their nationality, place of residence, sex, race, colour, ethnic or social origin, genetic features, language, religion or belief, political or any other opinion, membership of a national minority from another country, property, birth, disability, age, or sexual orientation. The conditions applicable to opening and accessing a payment account with basic features shall be in no way unjustifiably discriminatory.

(2) A payment account with basic features shall be a type of payment account with characteristics as referred to in Article 182 of this Act.

Article 181 (Right of access to a payment account with basic features)

(1) Payment accounts with basic features shall be offered to consumers by all banks operating consumer payment accounts.

(2) A bank shall offer payment accounts with basic features to the extent that it already offers them as part of its activities.

(3) A consumer legally resident in the EU, including a consumer with no fixed address or an asylum seeker, or a consumer who has not been granted a residence permit but whose expulsion is impossible for legal or factual reasons shall have the right to open and use a payment account with basic features with a bank. Such a right shall apply irrespective of the consumer’s place of permanent residence.

(4) A bank shall design the process of opening a payment account with basic features in such a way that the exercise of such a right is not made too difficult or burdensome for the consumer. A bank shall open the payment account with basic features without undue delay and at the latest 10 business days after receiving the complete application from the consumer for a payment account with basic features.

(5) The time limit referred to in the preceding paragraph shall also apply in the event of refusal of the consumer’s application for a payment account with basic features.

(6) A bank shall refuse a consumer’s application for a payment account with basic features where opening such an account would result in an infringement of the provisions of the act governing the prevention of money laundering and the financing of terrorism. In this case, the bank shall take action in accordance with the act governing the prevention of money laundering and the financing of terrorism.

(7) A bank may also refuse a consumer’s application for a payment account with basic features if: 1. the consumer already holds a payment account with a bank in the Republic of Slovenia

which allows him to make use of the services referred to in paragraph one of Article 182 of this Act, save where a consumer declares that he has been notified that that payment account will be closed. The bank may rely on a written declaration signed by the consumer to that end;

2. the consumer breaches or has in the last three years breached his contractual obligations towards the bank;

3. the bank has information that, in respect of the payment account of the consumer, this including a payment account with basic features, a record of non-executed enforcement orders or orders for forced collection has been established due to the lack of funds on that payment account in accordance with the act governing enforcement and security or the act governing the tax procedure.

(8) In the cases referred to in paragraph six and seven of this Article, after taking its decision to refuse the consumer’s application for a payment account with basic features, the bank shall immediately inform the consumer in writing and free of charge of the refusal of the application and of the specific reason for that refusal, unless this is prohibited by other regulations.

(9) Where the bank refuses a consumer’s application for a payment account with basic features, it shall advise the consumer of the procedure for submitting a complaint against the refusal, of the consumer’s right to inform the Bank of Slovenia of the refusal and of the right to out-of-court dispute resolution in accordance with Article 286 of this Act. In so doing, the bank shall also provide the relevant contact details.

(10) A bank shall not make access to a payment account with basic features conditional on the purchase of additional services or of shares in the bank, unless the latter is conditional for all customers who are in a contractual relationship with the bank.

Article 182 (Characteristics of a payment account with basic features)

(1) A payment account with basic features shall include the following services: 1. services enabling all the operations required for the opening, operating and closing of a

payment account; 2. services enabling funds to be placed in a payment account; 3. services enabling cash withdrawals within the EU from a payment account at the counter

or at automated teller machines during or outside the bank’s opening hours; 4. the execution of national and cross-border direct debits; 5. the execution of national and cross-border payment transactions through a payment

card, including online payments; 6. the execution of national and cross-border credit transfers, including standing orders, at

terminals and counters and via the online facilities of the bank, where available as part of the bank’s regular business activities.

(2) A bank shall offer a payment account with basic features at least in euros.

(3) A payment account with basic features shall allow consumers to execute an unlimited number of transactions in relation to the services referred to in paragraph one of this Article.

(4) The bank shall ensure that the consumer is able to execute payment transactions from the consumer’s payment account with basic features in the bank’s office and via online facilities, where available.

(5) Upon the consumer’s request, banks shall provide an overdraft facility in relation to a payment account with basic features and enable the execution of payment transactions through a credit card and, in doing so, provide consumers with information in accordance with this Act and the act governing consumer credit.

(6) Access to, or use of, a payment account with basic features shall not be restricted by, or made conditional on, the use of an overdraft facility referred to in the preceding paragraph.

Article 183 (Fees associated with a payment account with basic features)

(1) In relation to the provision of a payment account with basic features as referred to in the preceding Article and in relation to non-compliance with the commitments laid down in the framework contract for access to a payment account with basic features, a bank may charge the consumer a reasonable fee or may offer this services free of charge.

(2) The Bank of Slovenia shall define the method of calculation of the amount of a reasonable fee referred to in the preceding paragraph, taking into account at least the national income level and average fees charged by banks in the Republic of Slovenia for services relating to payment accounts.

(3) In the document referred to in the preceding paragraph, the Bank of Slovenia may specify the maximum amount of transactions for services referred to in points 4 and 6 of paragraph one of the preceding Article and of payment transactions through a credit card, if any, for which the bank may only charge the reasonable fee referred to in paragraph one of this Article and state that additional fees may be charged if the number of executed transactions for these services in a particular period exceeds the specified maximum number of transactions.

Article 184 (Framework contract for a payment account with basic features and its termination)

(1) Framework contracts providing access to a payment account with basic features shall be subject to the provisions of Section 5.2.2 of this Act unless otherwise provided by this Article.

(2) A bank may unilaterally terminate a framework contract for access to a payment account with basic features only where at least one of the following conditions is met: 1. the consumer has deliberately used the payment account with basic features for illegal

purposes; 2. there has been no transaction on the payment account with basic features for more than

24 consecutive months; 3. the consumer provided incorrect information in order to obtain the payment account with

basic features where the correct information would have resulted in the absence of such a right;

4. the consumer is no longer legally resident in the EU; 5. the consumer has subsequently opened a payment account with another bank which

allows him to make use of the services referred to in paragraph one of Article 182 of this Act;

6. the consumer breaches or has in the last three years breached his contractual obligations towards the bank;

7. under the conditions laid down in another act with regard to the withdrawal from a contract.

(3) Where a bank terminates a framework contract for access to a payment account with basic features under point 2, 4 or 5 of the preceding paragraph, it shall inform

the consumer, in writing and free of charge, of the grounds for the termination at least two months before the termination enters into force unless such disclosure would be prohibited by other regulations.

(4) Where a bank terminates a framework contract for access to a payment account with basic features under point 1, 3 or 6 of paragraph two of this Article, the termination shall take effect immediately.

(5) Where a bank terminates a framework contract for access to a payment account with basic features, it shall advise the consumer of the procedure for submitting a complaint against the termination of the framework contract for access to a payment account with basic features, of the consumer’s right to inform the Bank of Slovenia of the termination of the framework contract for access to a payment account with basic features and of the right to out-of-court dispute resolution in accordance with Article 286 of this Act. In so doing, the bank shall also provide the relevant contact details.

Article 185 (General information on payment accounts with basic features)

(1) A bank shall publish information on the availability of payment accounts with basic features, their general pricing conditions, the procedures to be followed in order to exercise the right to access a payment account with basic features and the methods for obtaining access to out-of-court dispute resolution procedures on its website and in all premises in which it does business with consumers.

(2) A bank shall make available to consumers, free of charge, accessible information about the specific features and the conditions of use of the payment account with basic features on offer and the associated fees and provide free-of-charge assistance in this respect. The information shall make clear that the purchase of additional services is not compulsory in order to access a payment account with basic features.

9. REDEMPTION OF DOMICILED BILLS OF EXCHANGE

Article 186 (Agreement on the redemption of domiciled bills of exchange)

(1) A paper-based bill of exchange which is issued or accepted by a user who is a legal person, private citizen or sole trader in relation to the pursuit of an activity in accordance with the act governing bills of exchange and which is payable from the funds held on the user’s payment account with the payment service provider (hereinafter: a domiciled bill of exchange) shall be also deemed to include: 1. an irrevocable authorisation granted by the user to the holder of the bill of exchange,

who is eligible to request a payment on the basis of the domiciled bill of exchange in accordance with the act governing bills of exchange, to initiate the execution of a payment transaction by debiting the payer’s funds with the payer’s payment service provider in accordance with the domiciled bill of exchange;

2. an irrevocable consent given by the user to his payment service provider to execute the payment transaction initiated by the holder of the bill of exchange in accordance with the preceding point by debiting the user’s funds.

(2) The provisions of this Chapter shall be without prejudice to the rights acquired by the user, the holder of the bill of exchange or other persons pursuant to the act governing bills of exchange.

Article 187 (Execution of a payment transaction on the basis of a domiciled bill of exchange)

(1) The holder of a domiciled bill of exchange shall initiate the execution of a payment transaction on the basis of the domiciled bill of exchange by submitting to the user’s payment service provider the domiciled bill of exchange and information necessary for the execution of the payment transaction by debiting the user’s payment account with that payment service provider and transferring the funds to the holder of the bill of exchange (hereinafter: the payment order for the redemption 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 redemption of a domiciled bill of exchange if: 1. the holder of the domiciled bill of exchange has initiated the payment order for the

redemption of a domiciled bill of exchange that is manifestly contrary to the domiciled bill of exchange (e.g. in terms of the amount, domicile or maturity of the bill of exchange) or

2. the payment order for the redemption of the domiciled bill of exchange has been initiated by a person who is not the payee or by another person authorised by the payee to initiate the execution of a payment transaction for the payment of the domiciled bill of exchange.

10. ATTACHMENT OF THE FUNDS OF THE HOLDER OF A PAYMENT ACCOUNT WITH THE PAYMENT SERVICE PROVIDER

Article 188 (Seizure and the transfer of funds on the basis of an enforcement order)

(1) The payment service provider shall prevent the holder of a payment account from disposing of funds and shall transfer the funds to prescribed accounts on the basis of an order by a court or another authority responsible for claim enforcement and security in accordance with the regulations governing the attachment of and security over debtors’ funds, unless otherwise provided by this Chapter.

(2) The provisions of the act governing the attachment of and security over debtors’ funds held with a payment institution shall not apply to payment accounts used exclusively for the execution of payment transactions in accordance with this Act.

(3) The attachment of and security over the funds of direct and indirect users of the state budget and municipal budgets, the Health Insurance Institute of Slovenia, and the Pension and Disability Insurance Institute of Slovenia may be executed only through sub-accounts of the treasury single account of the state or municipality opened at the PPA in accordance with Chapter 10 of this Act.

(4) If a payment service provider attaches and transfers funds on the basis of an enforcement order referred to in paragraph one of this Article, and the conditions laid down in regulations governing the attachment of and security over debtors’ funds held with a payment institution are not met, the payment service shall be required to refund the transferred funds to the payment account holder immediately, and in any event no later than by the end of the

following business day, after it has noticed that the funds have been transferred or has been informed of the transfer. The payment service provider shall restore the payment account of the holder to the state in which it would have been had the enforcement order not been executed and ensure that the credit value date for the holder’s payment account is no later than the date the amount was debited.

(5) The payment service provider shall refund to the holder any charges charged to the holder and the interest to which the holder of the payment account is entitled in relation to the unauthorised transfer of funds on the basis of the enforcement order referred to in the preceding paragraph.

(6) When a payment service provider seizes and transfers funds pursuant to paragraph one of this Article, it shall, on request, provide the holder of the payment account with all relevant information, in particular information on the issuer of the order, the amount of funds attached and transferred, and the amount of obligations under the enforcement order.

Article 189 (Issue of regulations)

The minister responsible for finance shall prescribe actions by payment service providers in executing enforcement or security orders issued by tax authorities in accordance with their powers.

Article 190 (Costs of the execution of enforcement and security orders)

(1) If the payment service provider charges a holder of a payment account for performing actions on the basis of an enforcement or security order in relation to the funds of the holder of a payment account with this payment service provider, such charges shall be reasonable and in line with the actual costs incurred by the payment service provider in relation to the execution of the enforcement or security order.

(2) For the purpose of supervision of compliance with the requirement of the reasonable amount of costs referred to in the preceding paragraph, payment service providers shall be required to submit to the Bank of Slovenia, upon any change or at least once a year by 31 January at the latest for the previous calendar year, correct and complete data on the level of charges charged for the performance of individual actions on the basis of an enforcement or security order.

(3) Payment service providers shall publish on their website correct and complete data on the level of charges charged for the performance of actions on the basis of an enforcement or security order.

11. REGISTER OF TRANSACTION ACCOUNTS

Article 191 (Register of transaction accounts)

(1) '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: the Agency).

Article 192 (Provision of information for the register of transaction accounts)

(1) Banks operating transaction accounts, the Bank of Slovenia with regard to the accounts of banks and savings banks which it operates in accordance with the law, and the PPA with regard to sub-accounts which it operates in accordance with the law shall continuously provide the Agency with 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 registered name, head office and address of the transaction account holder who is a legal person, or registered name, head office, address, name and surname of the transaction account holder who is a sole trader or private citizen, or the name and address of another transaction account holder;

- tax identification number of the holder if the holder is entered in the tax register in accordance with the act governing the tax register and the home country or country of residence of the holder;

- identifier of the holder and the home country or country of residence of the holder if the holder is not entered in the tax register in accordance with the act governing the tax register;

- registration number of the holder who is a legal person, sole trader or private citizen if the holder is entered in the Slovenian Business Register;

- code of the budget user if such a code is entered with the business entity in the Slovenian Business Register;

2. information on the transaction account: - account number; - name and registration number of the provider operating the transaction account; - indication of the type of account as laid down in the regulation referred to in paragraph

ten of this Article; - information that the funds on the transaction account are not sufficient to execute an

enforcement or security order; - account opening date; - account closing date; - information that the transaction account the holder of which is a natural person is used

for the pursuit of an activity; - number of the account of the holder of the transaction account with the payment

service provider’s legal successor.

(3) Upon the closure of the transaction account, information referred to in the preceding paragraph shall be deleted from the register of transaction accounts and transferred to the archive of the register of transaction accounts with the Agency.

(4) The accuracy and currency of information referred to in point 1 of paragraph two of this Article shall be ensured through the linking of the Slovenian Business Register to the central population register or the tax register, from which information shall be acquired automatically and added to the register of transaction accounts. Acquiring and linking information is carried out by using a tax identification number.

(5) To ensure the accuracy and currency of information in the register of transaction accounts, the Agency as the manager of the register shall acquire: - from the Slovenian Business Register: information on the registered name, head office

and address of the transaction account holder who is a legal person, or the registered name, head office, address, name and surname of the transaction account holder who is a sole trader or private citizen, and the information on the date of its removal from the Slovenian Business Register, and the name and address of another transaction account holder;

- from the central population register: information on the name, surname and address of the transaction account holder who is a natural person;

- from the tax register: information on the name, surname and address of the transaction account holder who is a natural person and is not entered in the central population register;

- from the tax register: information on the registered name, head office and address of the transaction account holder who is a legal person and information on the registered name, head office, address, name and surname of the transaction account holder who is a sole trader or private citizen if the holder is not entered in the Slovenian Business Register.

(6) If transaction account holders who are natural persons use transaction accounts for the pursuit of an activity, they shall provide payment service providers which operate transaction accounts with information referred to in the seventh indent of point 2 of paragraph two of this Article for the purpose of public and free-of-charge access to information in the register of transaction accounts in accordance with paragraph one of Article 194 of this Act before they start using transaction accounts for the pursuit of an activity.

(7) If the transaction account holder fails to act in accordance with the preceding paragraph, the Agency shall, on the basis of information provided by payment service providers, after the minor offence procedure referred to in paragraph four of Article 310 has been concluded by way of a final decision, enable public and free of charge access to information on the transaction account of the holder in accordance with paragraph one of Article 194 of this Act. The Financial Administration of the Republic of Slovenia shall notify the payment service provider servicing the transaction account of the minor offence procedure concluded by way of a final decision. The notification shall include the name and surname and the registration number of the transaction account holder, the date when the decision became final, and the number of the transaction account that is used by the holder for the pursuit of an activity.

(8) The register of transaction accounts shall be established in such a manner that it enables the unique identification of transaction account holders. In the case of a joint transaction account, the information referred to in paragraph two of this Article on all holders of the joint transaction account shall be kept in the register of transaction accounts.

(9) Information referred to in paragraph two of this Article may be stored in the archive of the register of transaction accounts for five years after the closure of the account, with the exception of the information that the transaction account the holder of which is a natural person is used for the pursuit of an activity and the information that the funds on the transaction account are not sufficient to execute an enforcement or security order, which shall be stored for one year.

(10) The Agency shall, in agreement with the Bank of Slovenia, prescribe detailed rules on the establishment and keeping of the register of transaction accounts.

Article 193 (Purpose of the register)

(1) Information on transaction accounts and their holders shall be processed in the register of transaction accounts with the purpose of providing centralised access to information on the transaction accounts of individual holders.

(2) 'information on transaction accounts of natural persons' shall mean personal data that are processed in the register of transaction accounts with the purpose of enabling the persons referred to in paragraph three of Article 194 of this Act, through centralised access to such information, the smooth performance of activities in enforcement or security proceedings and other proceedings due to the enforcement of claims against transaction account holders who are natural persons. Information on transaction accounts of natural persons shall be processed in the register of transaction accounts with the purpose of providing this information to persons in respect of whom a special act lays down the legal basis for and purpose of the processing of personal data.

Article 194 (Access to information contained in 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. This provision shall not apply to personal data of natural persons, with the exception of information on transaction accounts of sole traders and private citizens that are used for the pursuit of an activity. The purpose of publishing information on transaction accounts of sole traders and private citizens that are used for the pursuit of an activity is to ensure the security of legal transactions in connection with the pursuit of an activity.

(2) The Agency shall protect information on natural persons and their transaction accounts as confidential in accordance with the act governing personal data protection, unless information on transaction accounts of sole traders and private citizens has become public in accordance with the preceding paragraph. On the day following the date of removal of a sole trader or private citizen from the Slovenian Business Register, by which they are considered to have ceased their activity, the Agency shall, automatically and on the basis of information from the Slovenian Business Register, disable the publication of and access to the personal data of such sole traders or private citizens.

(3) Personal data on transaction accounts of natural persons may be obtained by: 1. persons who are entitled, on the basis of a final enforceable instrument, to propose

enforcement or security proceedings against the transaction account holder in accordance with the act governing enforcement and security or other act laying down proceedings for the enforcement of claims;

2. courts and other authorities performing actions in enforcement proceedings or other proceedings conducted within their competence; and

3. payment service providers referred to points 1, 7 and 8 of paragraph one of Article 20 of this Act for the purpose of executing enforcement orders, free of charge.

(4) Personal data on transaction accounts of natural persons which are processed in the register of transaction accounts may also be obtained by the holder of the transaction account with regard to data relating to him and other persons in respect of whom another act lays down the legal basis for and purpose of the processing of personal data. Natural persons shall exercise the right of being informed of the processing of their own personal data in the register of transaction accounts in accordance with the act governing personal data protection.

(5) For the purpose of verifying the existence of a transaction account in providing payment services and ensuring the smooth and effective provision of payment services, the Agency shall enable payment service providers to access free of charge information on numbers of transaction accounts of natural persons that is processed in the register of transaction accounts. For a user, payment service providers may verify the authenticity of information on transaction accounts of natural persons held with other payment service providers if, in addition to the number of the transaction account, the following information on the account holder is provided: - tax identification number or identifier and name and surname or - name and surname and residence address of a natural person. If the register contains

two or more persons with the same name, surname and residence address, the payment service provider shall complete the query with the tax identification number or identifier of the individuals concerned. A payment order shall also be deemed to be received by the payment service provider if inconsistency of information on the payee is established upon accessing the register of transaction accounts.

(6) For the purpose of verifying the existence of a transaction account in the consideration of the consumer’s application for opening a payment account with basic features in accordance with paragraph seven of Article 181 of this Act or for terminating the framework contract in accordance with paragraph two of Article 184 of this Act and ensuring the smooth and effective execution of enforcement or security orders, the Agency shall enable banks to access free of charge information on numbers of transaction accounts of natural persons that is processed in the register of transaction accounts. Banks may verify the existence of transaction accounts of natural persons if the following information is provided: - tax identification number or identifier and name and surname or - name and surname and residence address of a natural person. If the register contains

two or more persons with the same name, surname and residence address, the payment service provider shall complete the query with the tax identification number or identifier of the individuals concerned.

(7) The provisions of paragraphs one to four of this Article, with the exception of point 1 of paragraph three of this Article, and the provisions of Articles 195 and 196 of this Act shall apply, mutatis mutandis, to access to information contained in the register of transaction accounts.

Article 195 (Application to obtain information from the register of transaction accounts)

(1) The Agency shall provide personal data on the transaction account of a natural person referred to in paragraph three or four of the preceding Article to the applicant on the basis of an application to obtain data from the register of transaction accounts.

(2) An application to obtain information from the register of transaction accounts shall include: 1. name and surname or registered name and address of the applicant and the applicant’s

signature; 2. name, surname and tax identification number or identifier of the natural person who is

the holder of the transaction account; and 3. the legal basis for and the purpose of the processing of personal data.

(3) A court shall acquire information on the transaction account of a natural person by way of direct electronic access to information contained in the register of transaction accounts on the basis of a query which may contain only the name, surname and residence

address of the natural person who is the holder of the transaction account. If the register contains two or more persons with the same name, surname and address, the court shall complete the query with the tax number or identifier of the individuals concerned.

(4) An application to obtain information from the register of transaction accounts shall be submitted in writing or electronically. The Agency shall adopt a document laying down the conditions for and the manner of submitting applications electronically.

(5) The Agency shall provide courts, the tax authority and other authorities responsible for enforcement with direct electronic access to information in the register of transaction accounts. The Agency and other state authorities, holders of public authority or other persons who are entitled to obtain information from the register under a special act may agree on direct electronic access to information in the register of transaction accounts.

(6) The Agency may agree with individual applicants who are entitled to obtain information from the register of transaction account under the preceding Article on the electronic transmission of the requested information or may provide the aforementioned applicants with direct access to such information.

(7) The Agency shall charge the applicant for the transmission of information from the register of transaction accounts in accordance with the tariff, unless this Act or a special act provides that a particular applicant is entitled to obtain such information free of charge. The tariff shall be determined in agreement with the minister responsible for finance.

Article 196 (Decision-making on applications to obtain information from the register of

transaction accounts)

(1) The act governing general administrative procedure shall apply to procedures for decision-making on applications to obtain information from the register of transaction accounts, unless otherwise provided by this Act.

If the Agency grants an application, it shall send to the applicant the certificate of information from the register of transaction accounts in accordance with the regulation referred to in Article 192 of this Act.

12 PAYMENT SYSTEMS

12.1 Subject matter and definitions

Article 197 (Subject matter)

(1) This Chapter shall regulate payment systems and conditions for their operation.

(2) The term 'payment system' used in this Act shall refer only to payment systems that are subject to Slovenian law.

(3) For the purposes of this Chapter, 'business day' shall mean a period of time covering clearing and settlement, or clearing or settlement, and other activities carried out in the business cycle of a payment system as defined in the payment system rules. A business

day as defined in the payment system rules shall not necessarily be defined by reference to a calendar day.

(4) This Act and implementing regulations issued on the basis thereof shall not apply to systemically important payment systems.

(5) 'systemically important payment system' shall mean a payment system in respect of which the Governing Council of the European Central Bank, in accordance with Article 1(2) of Regulation of the European Central Bank (EU) No 795/2014 of 3 July 2014 on oversight requirements for systemically important payment systems (OJ L 217, 23.7.2014, p. 16), has adopted a decision that the aforementioned regulation shall apply.

Article 198 (Payment system)

(1) 'payment system' shall mean an arrangement between three or more participants of the payment system referred to in Article 204 of this Act, not counting the operator of the payment system, if that operator operates exclusively this payment system within a payment system, and possible indirect participants, on standardised arrangements and common rules for clearing and settlement, or clearing or settlement, of transfer orders between the participants of the payment system.

(2) 'clearing' shall mean the process of transferring, verifying, classifying and confirming transfer orders and calculating any payment obligation or claim of a particular participant in the payment system on the basis of its participation in that payment system; in this process, the payment obligations or claims of the participants shall not cease.

(3) 'settlement in a payment system' shall mean an act of partial or complete termination of payment obligations and claims between the payment system participants by way of the transfer of funds or netting on the basis of transfer orders.

(4) 'netting', as referred to in the preceding paragraph, shall mean a process of partial or complete termination of payment obligations and claims of the payment system participants on the basis of transfer orders by: 1. calculating one net obligation or one net claim of a payment system participant towards

other payment system participants as a whole or 2. or offsetting mutual payment obligations or claims between two individual payment

system participants.

(5) One net obligation or one net claim of a particular payment system participant referred to in the preceding paragraph shall mean the difference between the sum of all payment obligations and the sum of all claims of an individual payment system participant on the basis of transfer orders issued or received by that participant in the payment system in a particular period.

Article 199 (Interoperable payment systems)

(1) 'interoperable payment systems' shall mean payment systems which, on the basis of an agreement between payment system operators, enable transfer orders transmitted by interoperable payment system participants to a particular interoperable payment system to be executed in another interoperable payment system.

(2) Agreements between interoperable payment systems shall not constitute an independent payment system.

(3) For the purposes of Articles 207, 208 and 209 of this Act, an operator of interoperable payment systems that is not a participant in any interoperable payment system shall be considered a participant in all interoperable payment systems.

Article 200 (Important payment system)

'important payment system' shall mean a payment system that, due to the extent or type of payment transactions settled in that payment system or other circumstances, importantly affects the smooth execution of payment transactions in the country or users’ trust in the safety and efficiency of the execution of such transactions.

Article 201 (Granting 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 by which the Bank of Slovenia establishes that the circumstances referred to in the preceding Article exist and decides that the payment system is to be considered as an important payment system (hereinafter: decision determining important payment system status).

(2) If, in the process of decision-making on the issue of the authorisation to operate a payment system, the Bank of Slovenia establishes that the payment system meets the criteria for the granting of the status of an important payment system in accordance with the preceding Article and the regulation issued under Article 239 of this Act, it shall, where necessary, request the applicant to align the payment system rules with paragraph three of Article 204 of this Act and the requirements of paragraph two of Article 215, Article 218, paragraph two of Article 219, and Articles 220 and 223 of this Act within the time limit set by the Bank of Slovenia, which shall not be shorter than three months or longer than six months. Together with the decision on the issue of the authorisation to operate a payment system, the Bank of Slovenia shall also issue the decision determining important payment system status. In this case, a payment system shall obtain the status of an important payment system on the date of issue of the authorisation to operate a payment system by the Bank of Slovenia. If the applicant fails to align the payment system rules with paragraph three of Article 204 of this Act or with the requirements of paragraph two of Article 215, Article 218, paragraph two of Article 219, and Articles 220 and 223 of this Act within the time limit set by the Bank of Slovenia, the latter shall refuse the application for the issue of the authorisation to operate a payment system.

(3) If the Bank of Slovenia issues a decision determining important payment system status to an operator that already has the authorisation to operate the payment system in question and the participants in that payment system do not meet the conditions referred to in paragraph three of Article 204, paragraph two of Article 215, Article 218, paragraph two of Article 219, and Articles 220 and 223 of this Act, the operator shall be obliged to lodge, within the time limit set by the Bank of Slovenia, which shall not shorter than three months or longer than six months of the service of the decision determining important payment system status, an application with the Bank of Slovenia for authorisation by the Bank of Slovenia to amend the payment system rules. In this case, the payment system shall obtain the status of an important payment system on the date of issue of the authorisation to amend the payment system rules by the Bank of Slovenia in accordance with paragraph

three of Article 204 of this Act or the requirements of paragraph two of Article 215, Article 218, paragraph two of Article 219, and Articles 220 and 223 of this Act. If the payment system operator fails to align the payment system rules within the time limit set by the Bank of Slovenia, the authorisation by the Bank of Slovenia to operate a payment system shall terminate.

(4) If, after issuing the decision determining important payment system status, the Bank of Slovenia establishes that reasons referred to in the preceding Articles no longer exist, it shall issue the payment system operator with a decision establishing the termination of the status of an important payment system. Within three months of the service of the decision on the termination of the status of an important payment system, the payment system operator shall be required to lodge an application with the Bank of Slovenia for the issue of the authorisation by the Bank of Slovenia to amend the payment system rules in order to align them with the provisions of paragraph three of Article 204 and Article 206 of this Act.

(5) The Bank of Slovenia shall notify the European Securities and Markets Authority of important payment systems and operators of important payment systems.

Article 202 (Payment systems of the Bank of Slovenia)

(1) Notwithstanding other provisions of this Chapter, the Bank of Slovenia may operate a payment system by adopting the rules for the operation of the payment system.

(2) In the payment system rules referred to in the preceding paragraph, the Bank of Slovenia shall define: 1. the conditions for participation in the payment system; 2. the method of settlement of obligations between payment system participants; and 3. whether the payment system is considered to be an important payment system within

the meaning of this Act.

Article 203 (Transfer order and settlement accounts)

(1) 'transfer order' shall mean an instruction which, in accordance with the rules of the payment system, results in the creation or termination of a payment obligation between participants in a payment system, including an instruction to initiate the transfer of funds between payment system participants.

(2) 'settlement accounts' shall mean accounts used to settle claims and obligations between participants in a payment system by way of the transfer of funds on the basis of transfer orders.

12.2 Participation in a payment system

12.2.1 General provisions

Article 204 (Participation in a payment system)

(1) The following may be participants in a payment system: 1. banks with their head office in the Republic of Slovenia or another Member State; 2. institutions referred to in points 2 to 23 of Article 2(5) of Directive 2013/36/EU of the

European Parliament and of the Council of 26 June 2013 on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms, amending Directive 2002/87/EC and repealing Directives 2006/48/EC and 2006/49/EC (OJ L 176, 27.6.2013, p. 338), as last amended by Directive (EU) 2015/2366, to which the aforementioned Directive does not apply;

3. electronic money institutions with their head office in the Republic of Slovenia or another Member State and electronic money institutions with their head office in a third country which may provide electronic money issuance services in the third country and the business of which is subject to rules that are at least as strict as those laid down in this Act;

4. investment companies as defined in the act governing the market in financial instruments with their head office in the Republic of Slovenia or another Member State;

5. banks and investment companies with their head office in a third country which may provide banking or investment services and perform investment transactions in the third country and the business of which is subject to rules that are at least as strict as those laid down in the act governing banking or the act governing the market in financial instruments;

6. the PPA and other state authorities and self-governing local communities in the Republic of Slovenia in accordance with the regulations governing the exercise of their tasks and powers;

7. operators of other payment systems or settlement systems for the settlement of transactions in financial instruments within the meaning of the act governing the market in financial instruments; and

8. payment service providers under this Act that do not fall into any of the categories above.

(2) In addition to persons referred to in the preceding paragraph, the operator of a payment system is also a participant in that payment system.

(3) Notwithstanding paragraph one of this Article, payment service providers referred to in points 3 to 8 of paragraph one of this Article may not be participants or indirect participants in accordance with paragraph one of Article 205 of this Act in an important payment system, unless they are the operator of a payment system pursuant to the preceding paragraph. Entities referred to in points 1 and 2 and points 4 to 7 of paragraph one of this Article shall be considered to be participants in an important payment system under this Act if they are responsible for the fulfilment of financial obligations arising from transfer orders in that system.

(4) Notwithstanding paragraph one of this Article, institutions referred to in Article 2(1) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (OJ L 173, 12.6.2014, p. 349), to which the aforementioned Directive does not apply, may not become participants in a payment system.

Article 205 (Indirect participation in a payment system)

(1) 'indirect participation in a payment system' shall mean an agreement between an individual participant in a payment system referred to in paragraph one of the preceding Article and an indirect participant under which the indirect participant may send and receive

transfer orders in the payment system in accordance with the rules of the payment system so that the indirect participant is known to the operator of that payment system.

(2) For the purposes of Articles 207 and 208 of this Act, an indirect participant which is a person referred to in points 1 to 7 of paragraph one of the preceding Article shall be considered to be a participant in a payment system. This shall not limit the responsibility of the direct participant through which the indirect participant sends and receives transfer orders in the payment system.

Article 206 (Conditions for participation in a payment system)

(1) The payment system rules shall lay down objective, non-discriminatory and proportionate conditions for the participation of payment service providers which are legal persons in the payment system. The payment system rules may restrict the participation of payment service providers which are legal persons in the payment system only to the extent necessary to safeguard against financial, operational, business and other risks and to protect the financial and operational stability of the payment system.

(2) Inadmissible conditions for the participation of payment service providers in a payment system shall be, in particular: 1. any restrictive rules regarding participation in other payment systems; 2. any rules that discriminate between payment service providers in respect of their rights,

obligations and entitlements in the participation in the payment system; 3. any restrictions on the basis of the institutional status.

(3) Paragraphs one and three of this Article shall not apply to: 1. important payment systems or 2. payment systems in which all payment system participants form a group within the

meaning of point 35 of Article 4 of this Act.

(4) When, for the purposes of point 1 of the preceding paragraph, a participant in an important payment system enables a payment service provider which is not a participant in the payment system to pass transfer orders through the payment system, it shall be obliged to also offer this option, in accordance with paragraphs one and two of this Article, to other payment service providers on request in an objective, proportionate and non-discriminatory manner.

(5) If a payment service provider submits an application for sending transfer orders to a participant in an important payment system which enables other payment service provider to pass transfer orders through the payment system and the participant in the important payment system refuses the application, the participant in the important payment system shall be obliged to inform the payment service provider which submitted the application of the reasons for the refusal.

12.2.2 Insolvency proceedings

Article 207 (Insolvency proceedings against a payment system participant)

(1) The commencement of insolvency proceedings or other proceedings or a measure imposed by the competent authority of the Republic of Slovenia, other Member State or third country against a participant in a payment system which excludes or limits the

execution of orders of that payment system participant shall not affect the rights and obligations of participants in the payment system or interoperable payment system with regard to participation in the payment system assumed before the commencement of such proceedings or of such a measure.

(2) In the event of the commencement of proceedings or a measure referred to in the preceding paragraph, the rights and obligations of participants in a payment system with regard to participation in that payment system shall be subject to the law governing that payment system.

(3) For the purposes of this Act, the commencement of proceedings or a measure referred to in paragraph one of this Article shall be the moment when the competent authority decides on the commencement of such procedure or of such a measure. If the regulations governing proceedings or a measure referred to in paragraph one of this Article lay down that legal consequences of such proceedings or measure are tied to another official act in the course of the proceedings, the commencement of the proceedings or measure shall be considered to be the moment when such an act is performed.

(4) The competent authority of the Republic of Slovenia that decided on the commencement of proceedings or a measure referred to in paragraph one of this Article shall notify the Bank of Slovenia immediately of the commencement of such proceedings or measure. In its decision, the authority that decides on the commencement proceedings or a measure shall specify the date, hour and minute of the adoption of its decision.

(5) On the basis of the notification referred to in the preceding paragraph, the Bank of Slovenia shall notify the operator of the relevant payment system and, in the case of proceedings or a measure against a participant in an important payment system, the competent authorities of Member States, the European Systemic Risk Board and the European Securities and Markets Authority, of the commencement of proceedings or a measure referred to in paragraph one of this Article against a participant in that payment system.

Article 208 (Effects of insolvency proceedings and other proceedings or measures on the validity

of transfer orders)

(1) A transfer order sent to a payment system by a participant of that payment system or interoperable payment system or netting shall be valid if the transfer order enters the payment system before the commencement of proceedings or a measure referred to in paragraph one of the preceding Article against that payment system participant.

(2) If the rules of a payment system lay down settlement by way of the netting process referred to in paragraph four of Article 198 of this Act, individual payment obligations or claims of a participant resulting from the issued and received transfer orders shall cease upon one net obligation or claim of each individual participant towards other participants as a whole being calculated. One net obligation or claim shall replace the individual payment obligations or claims of a participant that result from the received and issued transfer orders that were included in the netting.

(3) A transfer order and netting shall also be valid in cases where the transfer order enters a payment system after the commencement of proceedings or a measure referred to in paragraph one of the preceding Article against a participant in that payment system or interoperable payment system if the transfer order is executed in the payment system on the same business day on which such proceedings or measure were commenced

and if the operator of the payment system or interoperable payment system proves that it was not or could not have been aware of the commencement of such proceedings or measure at the time the transfer order became irrevocable.

(4) The provisions of other regulations that, in relation to the commencement of proceedings or a measure referred to in paragraph one of the preceding Article, stipulate the right to terminate the contract or rescind the executed transactions, or stipulate the invalidity or prohibition of offsetting, shall not apply if the payment obligations and claims of a participant in a payment system have ceased on the basis of netting in accordance with the rules of the payment system.

Article 209 (Effects of insolvency proceedings and other proceedings or measures on the validity

of security interests)

(1) The commencement of proceedings or a measure referred to in paragraph one of Article 207 of this Act against a participant in a payment system or interoperable payment system shall not affect the validity and enforcement of security interests in the collateral provided by that participant with regard to the payment system or interoperable payment system if the security interest in the collateral arose: 1. before the commencement of such proceedings or measure and the participant provided

the collateral before the commencement of the proceedings or measure or 2. on the same business day on which such proceedings or measure were commenced

and the participant against which such proceedings or measure were commenced provided the collateral on the same business day, if the operator of the payment system or interoperable payment system proves that it was not or could not have been aware of the commencement of such proceedings or measure at the time the security interest in the collateral arose.

(2) The preceding paragraph shall also apply if a particular person provides the collateral for its obligations towards the Bank of Slovenia, the national central bank of a Member State or the European Central Bank.

(3) For the purpose of this Article, a security interest in the collateral shall mean a pledge or the right arising out of fiduciary transfer provided by a participant in a payment system with regard to participation in the payment system or by another person with regard to transactions with the Bank of Slovenia, the national central bank of a Member State or the European Central Bank.

12.3 Operation of a payment system

12.3.1 Definition

Article 210 (Payment system operator)

(1) 'payment system operator' shall mean a person responsible for the operation of a payment system and that ensures the operation of the payment system in accordance with this Act and implementing regulations issued on the basis thereof. A payment system operator shall be responsible for the comprehensive management of all risks in the payment system.

(2) A payment system may be operated by: 1. the Bank of Slovenia; 2. a bank that has obtained authorisation from the Bank of Slovenia to operate payment

systems under the act governing banking; 3. a bank of a Member State or a bank with its head office in a third country that has

obtained authorisation from the Bank of Slovenia to operate payment systems in accordance with this Act;

4. another legal person with its head office in the Republic of Slovenia that has obtained authorisation from the Bank of Slovenia to operate payment systems as a clearing house under this Act; or

5. another legal person with its head office in another Member State or a third country that has obtained authorisation from the Bank of Slovenia to operate a payment system as a clearing house of the Member State or third country under this Act.

(3) For entities that have authorisation from the Bank of Slovenia to operate payment systems, the Bank of Slovenia may open special accounts which payment system operators open for the account of participants in that payment system as actual beneficiaries and which are intended exclusively to carry out settlement or secure claims or fulfil obligations in respect of transfer orders in accordance with the rules of the relevant payment system. Funds on such an account shall be considered separately from other funds of the payment system operator and shall not be part of the operator’s bankruptcy estate and, in the event of enforcement or security proceedings against that payment system operator, shall be exempt from enforcement.

12.3.2 Authorisation to operate a payment system

Article 211 (Authorisation to operate a payment system)

(1) Persons referred to in points 2 to 5 of paragraph two of the preceding Article shall, for each individual payment system, obtain authorisation from the Bank of Slovenia to operate that payment system.

(2) The applicant shall accompany the application for the issue of the authorisation to operate a payment system with the rules of the payment system and other evidence demonstrating that the applicant meets the conditions for the issue of the authorisation by the Bank of Slovenia to operate a payment system laid down in this Act and regulations issued on the basis thereof.

(3) A person referred to in points 2 to 5 of paragraph two of the preceding Article may begin to operate a payment system after it has obtained the authorisation from the Bank of Slovenia to operate that payment system.

(4) If the Bank of Slovenia establishes that the applicant does not meet the conditions referred to in paragraph two of this Article, it shall refuse the application for the issue of the authorisation to operate a payment system.

12.3.3 Payment system rules and authorisation for amendments thereto

Article 212 (Payment system rules)

(1) A payment system operator shall adopt payment system rules defining standardised arrangements and common rules for clearing and settlement, or clearing or settlement, of transfer orders in that payment system.

(2) Payment system rules shall define, in particular: 1. the conditions for participation in the payment system, the manner and conditions for the

inclusion of a participant in the payment system, and the exclusion of a participant from the payment system;

2. the method of transmitting transfer orders, the method of verifying the regularity of transfer orders and time limits for notification of refusal of transfer orders;

3. the moment of irrevocability of a transfer order; 4. the moment of entry of a transfer order into the payment system; 5. the procedure for the calculation of payment obligations on the basis of the clearing and

settlement, or clearing or settlement, of mutual payment obligations of payment system participants arising from transfer orders;

6. the rules for the management of risks in the payment system; 7. the law applicable to that payment system.

(3) Payment system rules may stipulate that the moment of irrevocability of a transfer order shall be no later than the moment of entry of the transfer order into the payment system.

(4) The law of the Member State in which at least one of the participants in a payment system has its head office may apply to that payment system.

(5) Payment system rules regarding the moment of irrevocability of transfer orders and the moment of entry of transfer orders into the payment system shall not affect the rules of interoperable payment systems regarding the entry and irrevocability of transfer orders, unless expressly provided otherwise by the rules of all interoperable payment systems.

(6) With regard to the definition of the moment of entry and irrevocability of transfer orders, the rules of an interoperable payment system shall be aligned, to the greatest extent possible, with the rules of other interoperable payment systems.

Article 213 (Amendments to payment system rules)

(1) An amendment to payment system rules regarding the content referred to in paragraph two of the preceding Article shall enter into force when the payment system operator has obtained authorisation from the Bank of Slovenia to amend the payment system rules.

(2) The inclusion or exit or exclusion of a payment system participant shall not be considered as an amendment to payment system rules.

(3) Article 211 of this Act shall apply, mutatis mutandis, to the application for the issue of the authorisation by the Bank of Slovenia to amend payment system rules under paragraph one of this Article and to decision-making on such applications.

12.3.4 Requirements for payment system operators

Article 214 (Legal soundness)

A payment system operator shall ensure the soundness, clarity, transparency and enforceability of the legal basis of the payment system in all segments of the legal order and for all important aspects of the activity of that payment system.

Article 215 (Governance)

(1) A payment system operator shall ensure the clear and transparent governance of the payment system, thereby ensuring the safety and efficiency of the payment system. Documented and effective governance arrangements of the payment system that provide clear and direct lines of responsibility and accountability shall be made available to the owners of the operator, competent authorities and participants, and a more general version thereof shall be made available to the public.

(2) The operator of an important payment system shall ensure that the design, rules and overall strategy of the important payment system and the important decisions of the operator appropriately reflect the legitimate interests of the relevant stakeholders of the important payment system. Important decisions shall be clearly disclosed to the relevant stakeholders and, in the case of a broader impact on the market, to the public.

Article 216 (Framework for the comprehensive management of risks)

A payment system operator shall establish and maintain a sound risk-management framework to comprehensively manage all risks that arise in the payment system.

Article 217 (Finality of settlement)

(1) A payment system operator shall establish rules and procedures to enable final settlement to take place no later than the end of the intended settlement date.

(2) 'intended settlement date', as referred to in the preceding paragraph, shall mean the date that is entered into the payment system as the settlement date by the sender of a transfer order.

Article 218 (Cash settlements)

The operator of an important payment system shall ensure that final settlement takes place using settlement assets with little or no credit or liquidity risk.

Article 219 (Rules and procedures in the event of a participant’s failure to meet its obligations)

(1) A payment system operator shall provide effective and clear rules and procedures defining the key aspects in the event of a participant’s failure to meet its obligations and addressing the replenishment of resources following such a failure to meet obligations.

(1) The operator of an important payment system shall publicly disclose the key aspects of the rules and procedures referred to in the preceding paragraph.

Article 220 (General business risk)

(1) 'general business risk' shall mean any potential impairment of the financial position of the operator of an important payment system as a going concern as a consequence of a decline in its revenues or an increase in its expenses, such that expenses exceed revenues and result in a loss that must be charged against capital.

(2) The operator of an important payment system shall ensure the identification, monitoring and management of general business risks and hold liquid net assets to cover any business losses such that it can continue operations and services if it incurs loss as described in the preceding sentence.

(3) The operator of an important payment system shall establish and maintain a viable recovery or orderly liquidation plan.

(4) The operator of an important payment system shall hold sufficient liquid net assets funded by equity to implement the plan referred to in the preceding paragraph with a value equal to at least six months of current operating expenses arising from the governance of an important payment system.

Article 221 (Operational risk)

(1) 'operational risk' shall mean the risk that deficiencies in information systems or internal processes, human error, management failures, or disruptions caused by external events or outsourced services will result in the reduction, deterioration or breakdown of services provided by a payment system.

(2) A payment system operator shall establish a robust framework with appropriate systems, policies, procedures and controls to identify, monitor and manage operational risk.

Article 222 (Efficiency and effectiveness)

A payment system operator shall have a process to define the criteria for the efficiency and effectiveness of the payment system and procedures to meet the defined criteria.

Article 223 (Procedures and standards for the exchange of data and information)

The operator of an important payment system shall use relevant internationally accepted procedures and standards for the exchange of data and information or shall allow their use.

Article 224 (Disclosure of rules, key procedures and material information)

(1) A payment system operator shall adopt clear and comprehensive rules and procedures that are fully accessible to participants. The payment system operator shall also disclose other sufficient information to participants such that they can understand precisely what risks they are exposed to by participating in the payment system.

(2) The payment system operator shall publicly disclose the material rules, key procedures and fees of the payment system.

12.4 Notification and reporting

Article 225 (Notification and reporting)

(1) A payment system operator shall notify the Bank of Slovenia immediately of the facts and circumstances that affect the fulfilment of the conditions referred to in paragraph two of Article 211 of this Act.

(2) A payment system operator shall regularly notify the Bank of Slovenia of the inclusion of participants in the payment system or the exit or exclusion of participants from the payment system, including the inclusion or exit or exclusion of any indirect participants.

(3) A person referred to in paragraphs one and two of Article 204 of this Act that has its head office in the Republic of Slovenia shall notify the Bank of Slovenia of its participation or indirect participation in payment systems to which the law of other Member State or a third country applies.

(4) A person referred to in paragraph one of Article 204 of this Act that has its head office in the Republic of Slovenia shall, on request, notify a customer or other person who demonstrates a legitimate interest of payment systems in which it participates and of the main rules of operation of those systems.

(5) A payment system operator shall report information on the operation of the payment system to the Bank of Slovenia.

12.5 Clearing houses

Article 226 (Legal status)

A clearing house shall be organised in one of the legal forms of companies with share capital as laid down by the act governing companies. The provisions of the act governing companies shall apply to a clearing house unless otherwise provided by this Act.

Article 227 (Initial capital)

(1) A legal person that applies for authorisation by the Bank of Slovenia to operate a payment system as a clearing house shall have initial capital of at least EUR 125,000 at the time of issue of the authorisation to operate a payment system.

(2) Paragraph three of Article 31 of this Act shall apply, mutatis mutandis, to the calculation of the initial capital of a clearing house.

Article 228 (Management and persons responsible for the management of activities)

The provisions of Article 32 of this Act shall apply, mutatis mutandis, to members of the management body and persons who are directly responsible for the management of activities relating to the operation of a payment system at a clearing house.

Article 229 (Holders of qualifying holdings in a clearing house)

(1) 'holders of qualifying holdings in a clearing house' shall mean persons who directly or indirectly hold a business interest, shares or other rights which represent: 1. a holding of at least 10% of the voting rights or the capital of a clearing house or 2. a holding of less than 10% of the voting rights or the capital of a clearing house which

makes it possible to exercise a significant influence over the management of the clearing house.

(2) For the purpose of ensuring the sound and prudent management of a clearing house, holders of qualifying holdings may only be persons that are considered appropriate by the Bank of Slovenia.

(3) The Bank of Slovenia shall assess the appropriateness of holders of qualifying holdings in terms of their performance and influence on the sound and prudent management of a clearing house. In so doing, the Bank of Slovenia shall take into account, in particular, the legal form of and activities performed by the holder, his financial position, and other characteristics important for assessing his influence on the sound and prudent management of a clearing house.

Article 230 (Application for the issue of the authorisation to operate a payment system as a

clearing house)

The application for the issue of the authorisation by the Bank of Slovenia to operate a payment system as a clearing house shall be accompanied by the following: 1. memorandum of association; 2. name and description of the payment system that the clearing house intends to operate; 3. business plan for the provision of payment system operation services for the first three

financial years showing that the applicant meets the technical, organisational, personnel and other conditions for the sound and prudent provision of payment system operation services (paragraph one of article 235 of this Act);

4. evidence that the applicant holds initial capital as referred to in Article 227 of this Act; 5. description of the governance system and internal control system referred to in

paragraphs two to four of Article 235 of this Act; 6. description of possible participation in other payment systems; 7. indication of persons who are holders of qualifying holdings, size of the qualifying

holdings and evidence on the appropriateness of the holders of qualifying holdings assessed in accordance with paragraph three of the preceding Article;

8. indication of persons who are members of management bodies and persons who will be directly responsible for the management of payment system operation activities and

evidence that these persons meet the required conditions referred to in paragraph one of Article 32 of this Act;

9. indication of certified auditors or audit firms and information on whether they have already been appointed.

10. other documentation prescribed by the Bank of Slovenia which shows that the clearing house meets the conditions for the operation of a payment system as a clearing house.

Article 231 (Decision-making on the authorisation to operate a payment system as a clearing

house)

(1) The Bank of Slovenia shall issue the authorisation to operate a payment system as a clearing house if the applicant meets the conditions laid down in paragraph two of Article 211 and Articles 227, 228 and 235 of this Act and regulations issued on the basis thereof.

(2) If the Bank of Slovenia establishes that the applicant does not meet the conditions referred to in the preceding paragraph, it shall refuse the application for the issue of the authorisation to operate a payment system.

Article 232 (Change in circumstances after the issue of the authorisation and archiving of

documents)

(1) A clearing house shall immediately notify the Bank of Slovenia of the facts and circumstances affecting the fulfilment of the conditions referred to in paragraph one of the preceding Article. With this notification it shall enclose appropriately modified documents as referred to in Article 230 of this Act.

(2) A clearing house shall keep the documents on the fulfilment of the conditions for granting and maintaining the authorisation granted by the Bank of Slovenia to operate a payment system as a clearing house for at least five years from the termination of the relationship or status to which said documents refer, unless special regulations lay down a longer storage period for particular documents or data.

Article 233 (Termination of the authorisation to operate a payment system as a clearing house)

(1) The authorisation to operate a payment system as a clearing house granted by the Bank of Slovenia shall be terminated if the clearing house concerned does not commence operating the payment system within one year of the issue of the authorisation or if it ceases to operate the payment system for more than six months. The authorisation shall be terminated on the date of expiry of the time limit referred to in the first sentence.

(2) If bankruptcy proceedings or compulsory liquidation proceedings have been initiated against a clearing house in accordance with the act governing financial operations, insolvency proceedings and compulsory winding-up, the authorisation to operate a payment system as a clearing house granted by the Bank of Slovenia shall be terminated on the date of the initiation of such proceedings. The court shall also serve the decision on the initiation of bankruptcy proceedings or compulsory liquidation proceedings against a clearing house on the Bank of Slovenia.

(3) The authorisation to operate a payment system as a clearing house granted by the Bank of Slovenia shall be terminated if the competent authorities of the clearing house adopt a decision on the liquidation of the clearing house. The authorisation shall be terminated on the date of removal of the clearing house from the court register.

(4) The authorisation to operate a payment system as a clearing house granted by the Bank of Slovenia shall be terminated if the competent authorities of the clearing house adopt a decision on the change of activity of the payment system operator deciding that the payment system operator shall cease to operate the payment system. Such an authorisation shall be terminated on the date of entry of the decision on the change of activity in the court register.

(5) A clearing house shall immediately notify the Bank of Slovenia of the occurrence of the circumstances referred to in paragraph one of this Article and of the adoption of decisions referred to in paragraphs three and four of this Article.

(6) If the circumstances referred to in paragraphs one to four of this Article arise, the Bank of Slovenia shall issue a decision declaring that the authorisation to operate a payment system as a clearing house has been terminated.

(7) As of the date of termination of the authorisation granted by the Bank of Slovenia to operate a payment system as a clearing house in accordance with paragraphs one to four of this Article, the clearing house shall not be allowed to enter into new transactions in connection with the operation of the payment system with respect to which the authorisation was terminated.

Article 234 (The minimum level of own funds)

(1) Throughout its operation, a clearing house shall hold own funds which are at all times equal to or in excess of the higher of the following amounts: 1. the amount of initial capital that is required pursuant to Article 227 of this Act or 2. the amount of own funds that is equal to at least the current operating expenses of the

clearing house over the previous six months.

(2) If, in addition to operating a payment system, a clearing house provides other services, the own funds requirement under the preceding paragraph shall be calculated only for the part of its operation that is related to the operation of payment systems.

(3) The provisions of Articles 63 to 66 of this Act and of implementing regulations issued on the basis of Article 67 of this Act shall apply, mutatis mutandis, to the calculation of own funds and the own fund requirement of a clearing house.

Article 235 (Sound and prudent operation, governance system, and internal control system)

(1) Throughout the period of validity of the authorisation to operate payment systems, a clearing house shall fulfil organisational, personnel, technical and other conditions for the sound and prudent operation of a payment system.

(2) A clearing house shall establish and maintain a reliable and comprehensive governance system and internal control system which ensure the sound and prudent operation of the clearing house. The governance system and the internal control system shall be proportionate to the nature, scale and complexity of the operation of the payment system.

(3) The governance system referred in the preceding paragraph shall include: 1. a clear organisational structure with well-defined, transparent and consistent lines of

responsibility of the clearing house and 2. effective procedures to identify, assess, manage, monitor and report the risks to which

the clearing house is or might be exposed.

(4) The internal control system referred to in paragraph two of this Article shall also include appropriate administrative and accounting procedures.

Article 236 (Books of account and annual reports)

(1) The provisions of the act governing companies and the act governing auditing shall apply to books of account and annual reports of clearing houses and the auditing of annual reports of clearing houses, unless otherwise provided by this Act.

(2) Annual reports of a clearing house shall be examined by an auditor in the manner and under conditions laid down in the act governing auditing.

(3) A clearing house shall be required to submit unaudited financial statements for the preceding financial year to the Bank of Slovenia no later than two months after the end of the financial year. If, in addition to operating a payment system under this Act, a clearing house carries out other activities or provides other services, it shall submit to the Bank of Slovenia, in addition to financial statements, separate accounting information from the balance sheet and the profit and loss account in respect of the operation of the payment system.

(4) A clearing house, within eight days of receipt of an auditor’s report, but no later than six months after the end of the financial year, shall submit to the Bank of Slovenia: 1. an annual report and 2. an auditor’s report on the auditing of the annual report with the contents as laid down in

the act governing companies, including an auditor’s opinion on separate accounting information regarding the operation of the payment system as a clearing house.

(5) Article 74 of this Act shall apply, mutatis mutandis, to the obligations of a certified auditor of a clearing house in relation to the Bank of Slovenia.

12.6 Clearing house of a Member State or third country

Article 237 (Application of provisions to a clearing house of a Member State or third country)

(1) A clearing house of a Member State may operate a payment system through a branch in the Republic of Slovenia or directly if it obtains authorisation from the Bank of Slovenia to provide payment system operation services as a clearing house of a Member State.

(2) A clearing house of a third country may operate a payment system through a branch in the Republic of Slovenia if it obtains authorisation from the Bank of Slovenia to operate the payment system as a clearing house of a third country.

(3) The provisions of Subchapter 12.5 of this Act shall apply, mutatis mutandis, to the conditions for operating a payment system as a clearing house of a Member State or

third country and to the authorisation by the Bank of Slovenia to operate a payment system as a clearing house of a Member State or third country.

12.7 Operating payment systems as a bank of a Member State or third country

Article 238 (Application of provisions to a bank of a Member State or third country)

(1) A bank of a Member State may operate a payment system through a branch in the Republic of Slovenia or directly if it obtains authorisation from the Bank of Slovenia to operate the payment system as a bank of a Member State.

(2) A bank of a third country may operate a payment system through a branch in the Republic of Slovenia if it obtains authorisation from the Bank of Slovenia to operate the payment system as a bank of a third country.

(3) The provisions of the act governing banking relating to the conditions that a bank is required to meet in order to be granted authorisation by the Bank of Slovenia to operate payment systems shall apply, mutatis mutandis, in respect of the conditions for operating a payment system as a bank of a Member State or third country and authorisation by the Bank of Slovenia to operate a payment system as a bank of a Member State or third country.

12.8 Issue of implementing regulations

Article 239 (Issue of implementing regulations)

The Bank of Slovenia shall prescribe detailed rules regarding: 1. the criteria for the definition of an important payment system in accordance with Article

200 of this Act; 2. requirements for payment system operators in accordance with the provisions of Section

12.3.4 of this Act; 3. the contents, form and manner of and time limits for reporting on the operation of

payment systems in accordance with paragraph five of Article 225 of this Act; and 4. the contents of the application for the issue of the authorisation by the Bank of Slovenia

to operate a payment system as a clearing house in accordance with Article 230 of this Act.

13. PROTECTION OF CONFIDENTIAL INFORMATION

Article 240 (Confidential information)

(1) Confidential information under this Act shall be all information, facts and circumstances regarding a specific user, including personal data held by a payment service provider or payment system participant.

(2) A payment service provider or payment system participant shall protect confidential information referred to in the preceding Article regardless of the manner in which

it obtained such information and shall not disclose such information to third parties, enable third parties to make use of it or use it for its own purposes.

(3) Members of bodies of a payment service provider or payment system participant, shareholders or company members, employees, or other persons to whom the confidential information referred to in paragraph one of this Article is in any way accessible in the course of their work at the payment service provider or payment system participant or in the course of the provision of services for the payment system provider or payment system participant may not disclose such information to third parties, enable third parties to make use of it or use it for their own purposes, except in the following cases: 1. where the user expressly consents in writing to the disclosure of certain confidential

information; 2. where such information is needed by the supervisory authority for the purposes of

exercising supervision within its competence; 3. where such information is requested by the Commission for the Prevention of Corruption

in accordance with the act governing integrity and prevention of corruption or by a court, the State Prosecutor’s Office or the police in accordance with the act governing criminal procedure;

4. in cases where information is submitted to parent undertakings in relation to supervision on a consolidated basis in accordance with the act governing financial conglomerates or another regulation that applies to consolidated supervision; or

5. in other cases where the law expressly stipulates the obligation of a payment service provider or payment system participant with regard to the forwarding of confidential information on a specific user.

(4) The obligation to protect confidential information shall not apply if a payment service provider, payment system participant or person referred to in the preceding paragraph forwards such information to a prosecutor’s office or the police with the purpose of informing them of reasons to suspect that a criminal offence has been committed.

(5) In addition to the cases referred to in paragraphs three and four of this Article, a payment service provider may disclose confidential information if this is required to carry out negotiations for the conclusion or implementation of an agreement that the payment service provider concludes as part of its regular activity of providing payment services and if the recipient ensures the appropriate protection of confidentiality of information. For the needs referred to in the first sentence, a payment service provider may only disclose confidential information on a customer that is essential for the conclusion or implementation of an agreement.

(6) Every time confidential information is forwarded, a payment service provider or payment service participant shall ensure that it is possible to subsequently establish which confidential information was forwarded, to whom, when and on what basis for a period of ten years after the forwarding of such information.

Article 241 (Use of confidential information)

The Bank of Slovenia or other authorities and persons may use the information they have obtained under the preceding Article solely for the purpose for which that information was obtained and may forward such information to other persons solely under the conditions laid down in this Act or another act.

Article 242

(Processing of confidential information)

(1) Payment service providers and payment system participants may collect, process and exchange the following confidential information, including personal data on users, with the purpose of preventing, investigating or detecting fraud or deception in connection with payment services: - information on payment service users and third parties that are involved in fraud or

deception or an attempt to commit fraud or deception or might incur damage as a result of such an act or an attempt at such an act: name or surname or name, permanent and temporary residence or head office, registration number, tax identification number, information on payment accounts, card details of the persons involved and the balance and transactions on the accounts involved, the method of authentication of the payer used, and identification, authentication and communication data (telephone number, email, IP address, audit trails, correspondence with the customer, and other data of this kind that are necessary for the effective consideration of the case) and

- date and description of the events related to fraud or deception or an attempt at fraud or deception and the amount of the payment transaction concerned.

(2) Payment service providers may also collect, process and exchange confidential information, including personal data on users, for the purpose of providing payment services in accordance with Articles 118 and 119 of this Act, but only to the extent that still allows the provision of payment initiation services and account information services, and for the purpose of implementing paragraph four of Article 143 of this Act.

(3) Payment service providers may also forward confidential information, including personal data, to the payer for the purpose of implementing paragraph five of Article 143 of this Act to enable the payer to recover funds from the unauthorised payee.

(4) Payment service providers and payment system participants shall inform users of the processing of personal data referred to in paragraphs one and two of this Article and shall process such data in accordance with the act governing personal data protection and other regulations governing personal data protection.

(5) Payment service providers and payment system participants that process personal data referred to in paragraph one of this Article shall forward, on written request, such data to a court, State Prosecutor’s Office, the police or other authority that needs such data in a procedure that it conducts in accordance with its powers in the area of preventing, detecting, proving and prosecuting criminal offences or minor offences relating to payment fraud or deception.

14. SUPERVISION BY THE BANK OF SLOVENIA

14.1 General provisions

Article 243 (Bank of Slovenia’s responsibilities for supervision)

(1) The Bank of Slovenia shall be responsible for the supervision of payment institutions, payment institutions benefiting from a waiver and account information service providers with regard to payment services and ancillary services provided in the territory of the Republic of Slovenia, another Member State or a third country.

(2) The Bank of Slovenia shall be responsible for the supervision of payment systems and payment system operators with regard to the operation and operation of payment systems.

(3) To the extent stipulated in Subchapter 14.5 of this Act, the Bank of Slovenia shall be responsible for the supervision of persons that provide payment services in contravention of Article 20 of this Act, persons that issue electronic money in contravention of Article 158 of this Act and persons that operate payment systems in contravention of Article 210 of this Act.

(4) The Bank of Slovenia shall be responsible for the supervision of the implementation of Regulation (EC) No 924/2009.

(5) The Bank of Slovenia shall be responsible for the supervision of the implementation of Regulation (EU) No 260/2012.

(6) The Bank of Slovenia shall be responsible for the supervision of the implementation of Regulation (EU) 2015/751.

(7) The Bank of Slovenia shall be responsible for the supervision of the implementation of Regulation (EU) 2015/847, with the exception of the supervision of the implementation of Article 14 of Regulation (EU) 2015/847, which is within the competence of the Office for Money Laundering Prevention of the Republic of Slovenia.

(8) The Bank of Slovenia shall be responsible for the supervision of the implementation of guidelines, recommendations and other legal acts issued by the European Banking Authority in accordance with Article 16 of Regulation (EU) No 1093/2010.

(9) The Bank of Slovenia shall be responsible for the supervision of electronic money institutions and electronic money institutions benefiting from a waiver with regard to the issuance of electronic money and payment and ancillary services provided in the territory of the Republic of Slovenia, another Member State or a third country.

(10) The Bank of Slovenia shall be responsible for the supervision of payment service providers with regard to the comparability of fees related to payment accounts, payment account switching and access to payment accounts with basic features in the territory of the Republic of Slovenia, another Member State or a third country.

(11) The Bank of Slovenia shall decide on the application of the guidelines or recommendations of the European Banking Authority relating to payment institutions, electronic money institutions, payment systems and payment system operators and may refuse in whole or in part to apply specific guidelines or recommendations, provided that reasonable grounds for such a decision exist. A decision regarding the application of guidelines or recommendations referred to in the preceding sentence shall be published in the Official Gazette of the Republic of Slovenia [Uradni list Republike Slovenije].

Article 244 (Disclosure of information on measures imposed)

(1) To prevent and discourage conduct that constitutes a violation of the provisions of Chapters 1, 2, 3, 4, 5, 8, 13, 14 and 16 of this Act, the Bank of Slovenia shall publish information regarding supervisory measures and sanctions imposed for violations of the provisions of Chapters 1, 2, 3, 4, 5, 8, 13, 14 and 16 of this Act. Such information shall be

published in accordance with the rules for the disclosure of information on measures imposed laid down in the act governing banking.

(2) To prevent and discourage conduct that constitutes a violation of the provisions of Article 14 of Regulation (EU) 2015/847, the Office for Money Laundering Prevention of the Republic of Slovenia shall publish information regarding supervisory measures and sanctions imposed for violations of the provision of Article 14 of Regulation (EU) 2015/847. Such information shall be published in accordance with the rules for the disclosure of information on measures imposed that are laid down in the act governing the prevention of money laundering and the financing of terrorism.

14.2 Supervision of payment institutions

Article 245 (Scope and purpose of the supervision of payment institutions)

(1) The Bank of Slovenia shall exercise supervision of a payment institution with the purpose of verifying whether the payment institution, throughout its operation, fulfils the requirements laid down in this Act and regulations issued on the basis thereof.

(2) In exercising supervision of a payment institution, the Bank of Slovenia shall verify, in particular, the following: 1. conditions for sound and prudent operation; 2. the governance system and the internal control system; 3. the appropriateness and implementation of measures to safeguard users’ funds; 4. the appropriateness of holders of qualifying holdings; and 5. the fulfilment of the conditions laid down in this Act for members of the management

body and persons directly responsible for the management of a payment institution’s payment services activities.

(3) The Bank of Slovenia shall exercise supervision of a payment institution, taking account of the size and systemic importance of the payment institution and the characteristics, volume and complexity of transactions performed by that payment institution. Supervision shall be proportionate and adjusted to the risks to which a payment institution is exposed.

Article 246 (Method of exercising supervision)

(1) The Bank of Slovenia shall exercise supervision of payment institutions by: 1. issuing authorisations; 2. monitoring, collecting and verifying information provided by payment institutions and

other persons which are obliged to report to and notify the Bank of Slovenia of individual facts and circumstances in accordance with the provisions of this Act or of other regulations;

3. carrying out on-site inspections at payment institutions; and 4. imposing supervisory measures by way of an order or decision.

(2) The Bank of Slovenia may impose the following supervisory measures on a payment institution under the conditions laid down in this Act: 1. an order to remedy breaches; 2. special measures; or

3. withdrawal of the authorisation granted by the Bank of Slovenia to provide payment services as a payment institution.

(3) For the purposes of supervision of a payment institution, the Bank of Slovenia may request that agents of the payment institution and entities to which the payment institution outsources its activities submit appropriate reports and information and may carry out an on-site inspection at these agents and entities.

(4) If another authority is responsible for the supervision of an agent of a payment institution or entity to which a payment institution outsources its activities, the Bank of Slovenia shall carry out an on-site inspection at that agent or entity in cooperation with that supervisory authority in accordance with the provisions of Subchapter 14.7 of this Act. The provisions of this Act relating to the supervision of payment institutions shall apply, mutatis mutandis, to the supervision of agents of a payment institution and entities to which a payment institution outsources its activities.

Article 247 (Annual fee for supervision)

(1) For the purpose of supervision of payment institutions in accordance with points 1 and 2 of paragraph one of the preceding Article, payment institutions shall pay to the Bank of Slovenia an annual fee for supervision as set out in the tariff of the Bank of Slovenia, this depending on the volume of payment transactions.

(2) The Bank of Slovenia shall set the fee referred to in the preceding paragraph at such a level that the total fee that all payment institutions are obliged to pay in a particular year does not exceed the actual costs of the supervision for that year net of the revenue from charges charged in connection with the Bank of Slovenia’s procedures for granting authorisations and exercising supervision under this Act.

(3) A payment institution shall pay the annual fee for supervision in two instalments. The Bank of Slovenia shall issue the invoice for the payment of the first instalment by 30 September of the current year on the basis of planned costs of supervision for that year and the invoice for the second instalment by 31 March of the following year, taking into account the actual costs of supervision in the past year.

(4) If a payment institution fails to pay the fee for supervision referred to in paragraph one of this Article within one month of receipt of the invoice, the Bank of Slovenia shall issue a decision imposing the payment on the payment institution.

(5) The decision referred to the preceding paragraph shall be an instrument permitting enforcement.

(6) The Bank of Slovenia shall lay down more detailed rules for setting the fee referred to in paragraph one of this Article by way of an implementing regulation.

14.2.1 Reporting at the request of the Bank of Slovenia

Article 248 (Obligation of reporting)

(1) A payment institution shall be obliged to provide the Bank of Slovenia on request with all the documentation, reports and information relating to its operation which the

Bank of Slovenia needs to perform supervisory tasks and exercise supervisory powers in accordance with this Act. A payment institution shall provide reports and information in the form and in the manner determined by the Bank of Slovenia.

(2) The Bank of Slovenia may also request that members of the management body of a payment institution, persons directly responsible for the management of the payment institution’s payment services activities and employees of the payment institution submit reports and information relating to the operation of the payment institution.

(3) The Bank of Slovenia may invite the persons referred to in the preceding paragraph to draw up a written report on the matters referred to in paragraphs one and two of this Article within a time limit that may not be shorter than three days from the date of receipt of the invitation or to make an oral statement on these matters.

14.2.2 On-site inspection

Article 249 (Authorised persons of the Bank of Slovenia)

(1) Persons employed by the Bank of Slovenia shall carry out individual tasks in connection with the supervision by the Bank of Slovenia on the basis of an employment contract and in accordance with the internal regulations of the Bank of Slovenia.

(2) The Governor of the Bank of Slovenia may authorise a certified auditor or another professionally qualified person who is not employed by the Bank of Slovenia, provided that this person is made subject to the requirements to protect confidential information, to carry out individual tasks in connection with the supervision by the Bank of Slovenia.

Article 250 (On-site inspection)

(1) An on-site inspection of a payment institution shall be carried out by a professional or other authorised person of the Bank of Slovenia who is authorised by the Governor of the Bank of Slovenia to carry out an on-site inspection of the payment institution (hereinafter: "inspector of the Bank of Slovenia").

(2) A payment institution shall allow an inspector of the Bank of Slovenia, in accordance with the request referred to in Article 251 of this Act, to carry out an on-site inspection at the payment institution’s head office or on other premises in which the payment institution or another person authorised by the payment institution carries out activities and business with regard to which the Bank of Slovenia is conducting supervision.

(3) An on-site inspection shall include, in particular, the examination of the books of account, administrative and/or business records, and other business documents of the payment institution in accordance with the request referred to in Article 251 of this Act.

(4) An on-site inspection referred to in paragraph one of this Article shall be carried out by the Bank of Slovenia on weekdays between 8 am and 6 pm. Where the extent or nature of an inspection so requires, the Bank of Slovenia may also carry out an on-site inspection after 6 pm or on days other than weekdays.

(5) The Bank of Slovenia shall carry out an on-site inspection in such a manner that it does not disturb the payment institution’s operation more than is necessary to achieve the purpose of the supervision.

(6) The provisions of the act governing general administrative procedure relating to the record shall not apply to an on-site inspection.

Article 251 (Request for an on-site inspection)

(1) A request for an on-site inspection shall be served on a payment institution at least eight days before the commencement of the on-site inspection.

(2) Notwithstanding the preceding paragraph, the Bank of Slovenia may submit a request for an on-site inspection to a payment institution as late as on the day of the commencement of the on-site inspection if the purpose of the inspection concerned cannot otherwise be achieved.

(3) A request for an on-site inspection shall include: 1. an indication of the books of account, administrative and/or business records, and other

business documents that are to be inspected and 2. an indication of the documents that the payment institution is required to submit in the

form of computer printouts or copies and the time limit for their submission.

(4) The request for an on-site inspection shall also include a legal instruction on the possible legal consequences if the payment institution fails to act in accordance with the request for an on-site inspection or to allow the Bank of Slovenia to carry out the on-site inspection in the manner specified in this Act.

(5) The Bank of Slovenia may supplement its request for an on-site inspection during the conduct of the inspection. Paragraphs one to four of this Article shall apply, mutatis mutandis, to the supplementation of the request.

Article 252 (Carrying out an on-site inspection)

(1) A payment institution shall allow an inspector of the Bank of Slovenia to examine its books of account, business documents and administrative and/or business records, and other documents to the extent necessary for conducting an individual inspection in accordance with the request.

(2) The payment institution shall deliver to the inspector computer printouts or copies of books of account, business documents, and administrative and/or business records.

(3) The members of the management body and persons directly responsible for the management of the payment institution’s payment services activities and persons employed at the payment institution shall provide the inspector of the Bank of Slovenia with reports and information on all matters that are relevant for carrying out the on-site inspection in accordance with the request.

(4) The payment institution shall provide inspectors of the Bank of Slovenia with appropriate premises where they can carry out the on-site inspection undisturbed and without the presence of other persons.

(5) The payment institution shall ensure that, during the conduct of an on-site inspection by inspectors of the Bank of Slovenia, authorised persons of the payment institution who are able, at the request of the authorised persons of the Bank of Slovenia, to provide appropriate explanations regarding the payment institution’s books of account, business documents, business events, and administrative and/or business records that are being inspected are present on the premises where the on-site inspection is being carried out.

Article 253 (Conditions for inspecting computerised books of account and records)

(1) A payment institution that processes data by computer or keeps its books of account and other records in a computerised form shall provide an inspector of the Bank of Slovenia with appropriate devices for inspecting such books of account and records and for testing the adequacy of computer-processed data.

(2) The payment institution shall submit to an inspector of the Bank of Slovenia documents showing a complete specification of the operations of its accounting system. The documents shall clearly show the subsystems and files of the accounting system. The documents shall provide an insight into the following: 1. the IT solution; 2. procedures within the IT solution; 3. controls used to ensure accurate and reliable data processing; and 4. controls used to prevent unauthorised addition to or alteration or deletion of retained

computer records.

(3) Any changes to the IT solution referred to in paragraph one of this Article shall be documented in the chronological order of their occurrence, together with the dates of such changes. The documents shall also show all changes to the file format.

14.2.3 Remedying of breaches

Article 254 (Order to remedy breaches)

(1) If the Bank of Slovenia establishes in the course of supervision that a payment institution is in breach, or is likely to be in breach in the next 12 months, of regulations referred to in paragraph one of Article 245 of this Act or if a payment institution does not act in accordance with paragraph one of Article 248 of this Act, the Bank of Slovenia shall notify the payment institution in writing of its findings and shall invite it to make a statement with regard to the breaches found within 15 days of being served the notification. If the payment institution fails to reply to the Bank of Slovenia’s notification of the breaches found or fails to attach to its reply sufficient evidence that it operates in accordance with the requirements of this Act, the Bank of Slovenia shall order it to cease the activities concerned, remedy the breaches and submit, within a specified time limit, to the Bank of Slovenia a report as referred to in paragraph one of Article 255 of this Act.

(2) If the Bank of Slovenia finds breaches of a payment institution’s obligation to keep books of account or administrative and other records that a payment institution is required to keep or finds other major breaches regarding the payment institution’s operations, it may issue an order requiring the payment institution to remedy the breaches

and to submit a certified auditor’s report providing a positive opinion and stating that the breaches identified have been remedied.

(3) Notwithstanding paragraph one of this Article, the Bank of Slovenia may issue an order to a payment institution requiring it to remedy breaches without prior written notification if, in the course of supervision, the Bank of Slovenia finds breaches of regulations governing the prevention of money laundering and the financing of terrorism or assesses that breaches of regulations referred to in paragraph one of Article 245 of this Act or the consequences of the payment institution’s failure to act in accordance with paragraph one of Article 248 of this Act are of such a nature that the breaches need to be remedied immediately in order to ensure financial stability in the country or to protect payment service users.

Article 255 (Report on remedying breaches)

(1) A payment institution shall remedy the breaches found within the time limit set by an order and submit to the Bank of Slovenia a report on the activities undertaken (hereinafter: report on the remedying of breaches).

(2) The report on the remedying of breaches shall be accompanied by documents and other evidence showing that the breaches have been remedied.

Article 256 (Declaratory decision on the remedying of breaches)

(1) If the report on the remedying of breaches referred to in paragraph one of the preceding Article and the attached evidence show that a payment institution has remedied the breaches identified in the order, the Bank of Slovenia shall issue, within three months of receipt of the payment institution’s comprehensive report on the remedying of breaches, a decision stating that the breaches have been remedied (hereinafter: declaratory decision on the remedying of breaches).

(2) Prior to issuing a declaratory decision on the remedying of breaches, the Bank of Slovenia may require that the payment institution supplements its report or may carry out an on-site inspection at the payment institution to the extent necessary to determine whether the payment institution has remedied the identified breaches.

(3) If the Bank of Slovenia finds in the course of supervision that a payment institution breached regulations referred to in paragraph one of Article 245 of this Act or that it failed to act in accordance with paragraph one of Article 248 of this Act and the payment institution remedied the breaches prior to the issue of an order as referred to in paragraph one of Article 254 of this Act, the Bank of Slovenia may, taking into account the conditions referred to in paragraph four of this Article, issue a declaratory decision establishing that the payment institution breached regulations referred to in paragraph one of Article 245 of this Act or that it failed to act in accordance with paragraph one of Article 248 of this Act and that it remedied such breaches.

(4) The Bank of Slovenia shall issue a declaratory decision referred to in the preceding paragraph if, considering the nature of the breaches and their importance for the sound and prudent management of the payment institution, the issuing of such a decision and the publication of information under Article 244 of this Act significantly contribute to improving payment institutions’ management practices and to preventing conduct that

constitutes a breach of regulations referred to in paragraph one of Article 245 of this Act or conduct that is not in accordance with paragraph one of Article 248 of this Act.

(5) Prior to issuing a declaratory decision as referred to in paragraph three of this Article, the Bank of Slovenia shall notify the payment institution in writing of its findings about the breaches of regulations referred to in paragraph one of Article 245 of this Act or about the payment institution’s failure to act in accordance with paragraph one of Article 248 of this Act and of its intention to issue a declaratory decision on the remedying of breaches and shall invite the payment institution to provide a statement on the facts and circumstances that are important for deciding on the issue of a declaratory decision on the remedying of breaches.

14.2.4 Special measures

Article 257 (Special measures)

(1) To ensure compliance of a payment institution’s operations with this Act and regulations issued on the basis thereof, the Bank of Slovenia may impose the following special measures: 1. it may order a payment institution’s body or persons responsible in accordance with the

law or the regulations of the payment institution for the appointment of members of the management body or of persons directly responsible for the management of the payment institution’s payment services activities to replace a member of the management body or a person who is directly responsible for the management of the payment institution’s payment services activities if such a member or person no longer fulfils the conditions referred to in Article 32 of this Act or, if newly appointed, does not fulfil these conditions;

2. it may order that the business interest, shares or other rights of a qualifying holder in the payment institution be reduced below the qualifying holding threshold if the qualifying holder no longer fulfils the conditions referred to in Article 33 of this Act or, if he has acquired the qualifying holding anew, does not fulfil these conditions;

3. it may increase the payment institution’s own funds requirement calculated according to the method that the payment institution is required to apply in accordance with the decision of the Bank of Slovenia referred to in paragraph two or five of Article 55 of this Act; or

4. it may order that a hybrid payment institution establish a separate legal person for the purpose of providing payment services.

(2) The Bank of Slovenia may, by way of an order referred to in point 3 of the preceding paragraph, increase the own funds requirement by up to a maximum of 20%. In decision-making, the Bank of Slovenia shall take into account of the quality of the risk management system, loss databases and internal control system of the payment institution. By way of an order referred to in point 3 of the preceding paragraph, the Bank of Slovenia shall also define measures to be taken by the payment institution in order for the extraordinary increase in the own funds requirement to cease to apply to it.

(3) The Bank of Slovenia shall issue an order referred to in point 4 of paragraph one of this Article if it assesses that, due to the hybrid payment institution’s activities other than payment services, the financial soundness of the hybrid payment institution is, or is likely to be, impaired or that it is likely that the exercise of supervision over the hybrid payment institution in accordance with the provisions of this Act will be hindered and if it assesses that these circumstances will no longer exist once a separate legal person is established.

(4) The provisions of Section 14.2.3 of this Act on an order to remedy breaches shall apply, mutatis mutandis, to the imposition of special measures under this Article. In applying, mutatis mutandis, the provisions of Section 14.2.3 of this Act, the words "implementing special measures" shall be used instead of the words "remedying breaches".

14.2.5 Withdrawal of authorisation

Article 258 (Withdrawal of authorisation)

(1) The authorisation to provide payment services as a payment institution may be withdrawn if breaches referred to in paragraph two of this Article have occurred at the payment institution and no circumstances exist to suggest that these grounds are likely to be eliminated within an appropriate time limit.

(2) The authorisation to provide payment services as a payment institution may be withdrawn in the following cases: 1. the payment institution obtained its authorisation by providing false information; 2. the payment institution no longer meets the conditions referred to in Article 36 of this Act

or fails to inform the Bank of Slovenia of major changes in respect of the fulfilment of said conditions;

3. the payment institution fails to comply with the issued order and fails to remedy breaches or fails to implement measures required by the Bank of Slovenia and the identified breaches cannot be remedied by means of other supervisory measures;

4. the payment institution would constitute a threat to the stability of or the trust in the payment system by continuing its payment services business; or

5. there are circumstances that impede the effective supervision of the payment institution and the breach cannot be remedied by means of other supervisory measures.

(3) For the purpose referred to in point 5 of the preceding paragraph, it shall be deemed that the effective implementation of supervision is impeded, in particular, if the payment institution has business or ownership links with other undertakings or individuals that make it impossible to comprehensively assess risks that arise for the payment institution.

(4) If the payment institution fails to comply with technical, personnel, organisational or other conditions for the provision of individual types of payment services, instead of withdrawing the payment institution’s authorisation, the Bank of Slovenia may, by way of a decision, prohibit the payment institution from providing such payment services. The provisions of the act governing banking relating to the procedure for the withdrawal of the authorisation to provide banking services shall apply, mutatis mutandis, to the procedure for prohibiting the provision of individual types of payment services.

(5) The Bank of Slovenia shall publish the information on the withdrawal of the authorisation to provide payment services as a payment institution on its website and in the registers referred to in Articles 79 and 84 of this Act.

(6) The Bank of Slovenia shall officially notify the European Banking Authority of the reasons for the withdrawal of the authorisation.

Article 259 (Conditional withdrawal of authorisation)

(1) In cases where it assesses, taking into consideration the gravity of the breach, that the payment institution will remedy the breach within the specified time limit, the Bank of Slovenia may, by way of a decision on the withdrawal of authorisation, decide that the authorisation will not be withdrawn if, in a trial period which may not be less than six months or more than two years from the date of issue of the decision, the payment institution does not commit another breach that might represent grounds for withdrawing the authorisation.

(2) When the Bank of Slovenia issues a decision on the conditional withdrawal of the authorisation in accordance with the preceding paragraph, it may, in addition to cases referred to in the preceding paragraph, decide to withdraw the authorisation if the payment institution fails, within the specified time limit, to remedy the breaches due to which the decision on the conditional withdrawal of the authorisation was issued to it. The time limit for compliance with these obligations shall be set by the Bank of Slovenia within the limits of the trial period.

(3) The Bank of Slovenia shall cancel the conditional withdrawal of authorisation referred to in paragraph one of this Article and withdraw the authorisation if, during the trial period, the payment institution commits a new breach on the grounds of which the authorisation may be withdrawn or if it fails to meet the additional conditions referred to in the preceding paragraph.

14.3 Supervision of a payment institution benefiting from a waiver and an electronic money institution benefiting from a waiver

Article 260 (Supervision of payment institutions benefiting from a waiver)

(1) The provisions of this Act relating to the supervision of payment institutions shall apply, mutatis mutandis, to the supervision of payment institutions benefiting from a waiver, unless otherwise provided in this Article.

(2) If the Bank of Slovenia establishes that a payment institution benefiting from a waiver no longer meets the conditions referred to in points 2 or 3 of paragraph two of Article 76 of this Act, it shall impose a special measure on the payment institution benefiting from a waiver requiring it to ensure compliance with these conditions within 30 days or to submit, within the same time limit, an application for the issue of the authorisation by the Bank of Slovenia to provide payment services as a payment institution in accordance with this Act.

(3) The Bank of Slovenia shall withdraw the authorisation granted to a payment institution benefiting from a waiver to provide money remittance services as a payment institution benefiting from a waiver if the payment institution benefiting from a waiver fails to comply with the order to implement a special measure referred to in the preceding paragraph.

Article 261 (Supervision of electronic money institutions benefiting from a waiver)

(1) The provisions of this Act relating to the supervision of electronic money institutions shall apply, mutatis mutandis, to the supervision of electronic money institutions benefiting from a waiver, unless otherwise provided in this Article.

(2) If the Bank of Slovenia establishes that an electronic money institution benefiting from a waiver no longer meets the conditions referred to in paragraph one of

Article 167 of this Act, it shall impose a special measure on the electronic money institution benefiting from a waiver requiring it to ensure compliance with these conditions within 30 days or to apply, within the same time limit and in accordance with Article 161 of this Act, for the authorisation by the Bank of Slovenia to issue electronic money as an electronic money institution in accordance with this Act.

(3) The Bank of Slovenia shall withdraw the authorisation granted to an electronic money institution benefiting from a waiver to issue electronic money as an electronic money institution benefiting from a waiver if the electronic money institution benefiting from a waiver fails to comply with the order to implement a special measure referred to in the preceding paragraph.

14.4 Supervision of the operation of payment systems and payment system operators

Article 262 (Scope and purpose of the supervision of payment system operators)

(1) The Bank of Slovenia shall exercise supervision of payment system operators to verify whether a payment system operator fulfils the requirements laid down in Chapter 12 of this Act and regulations issued on the basis thereof.

(2) The provisions of Subchapter 14.2 of this Act shall apply, mutatis mutandis, to the supervision of payment system operators. In applying, mutatis mutandis, the provisions referred to in the first sentence, the words "payment system operator" shall be used instead of the words "payment institution".

Article 263 (Annual fee for the supervision of payment system operators)

(1) For the purpose of supervision of payment system operators in accordance with the preceding Article, payment system operators shall pay to the Bank of Slovenia an annual fee for supervision as set out in the tariff of the Bank of Slovenia and depending on the volume of payment transactions.

(2) The Bank of Slovenia shall set the fee referred to in the preceding paragraph at such a level that the total fee that all payment system operators are obliged to pay in a particular year does not exceed the actual costs of the supervision of payment system operators for that year net of the revenue from charges charged in connection with the Bank of Slovenia’s procedures for granting authorisations and exercising supervision under this Act.

(3) A payment system operator shall pay the annual fee for supervision in two instalments. The Bank of Slovenia shall issue an invoice for the payment of the first instalment by 30 September of the current year on the basis of planned costs of supervision for that year and an invoice for the second instalment by 31 March of the following year for the past year, taking into account the actual costs of supervision in the past year.

(4) If a payment system operator fails to pay the fee for supervision referred to in paragraph one of this Article within one month of receipt of the invoice, the Bank of Slovenia shall issue a decision imposing the payment on the payment system operator.

(5) The decision referred to the preceding paragraph shall be an instrument permitting enforcement.

(6) The Bank of Slovenia shall lay down more detailed rules for setting the fee referred to in paragraph one of this Article by way of an implementing regulation.

14.5 Supervision of other persons

Article 264 (Order requiring a person to cease providing payment services)

(1) If a person provides payment services in contravention of Article 20 of this Act, the Bank of Slovenia shall issue an order requiring the person to stop carrying out such activities (hereinafter: order requiring a person to cease providing payment services).

(2) Prior to issuing an order requiring a person to cease providing payment services, the Bank of Slovenia may inspect the books of account and other documentation of the person concerned and gather other evidence on whether that person provides payment services. The provisions of Articles 248 to 253 of this Act shall apply, mutatis mutandis, to the collection of information and an on-site inspection of a legal person.

(3) In an order requiring a person to cease providing payment services, the Bank of Slovenia shall require that the person concerned submit, within a time limit of not less than 8 or more than 15 days, a report in which it shall specify the measures taken with regard to the cessation of provision of payment services and in which it may provide its views on the justifiability of the reasons for the issue of the order. The person’s report shall be accompanied by evidence showing that the person has taken measures with regard to the cessation of provision of payment services.

(4) If, in performing its activity, a person that has not obtained an authorisation to provide payment services presents itself as a payment institution, the Bank of Slovenia shall issue an order requiring the person to cease this activity (hereinafter: order requiring a person to cease performing its activity as a payment institution).

(5) Paragraphs two and three of this Article shall apply, mutatis mutandis, to an order requiring a person to cease performing its activity as a payment institution.

(6) If, with regard to a person that has not obtained authorisation to provide payment services, the Bank of Slovenia establishes that the circumstances referred to in paragraph one or four of this Article exist and that this person remedied the breaches prior to the issue of an order referred to in paragraph one or four of this Article, the Bank of Slovenia may, under the conditions referred to in paragraph eight of this Article, issue a declaratory decision establishing that the person breached the provisions of this Act but that it has remedied the identified breach.

(7) The Bank of Slovenia shall issue a declaratory decision referred to in the preceding paragraph if, considering the nature of the breaches referred to in paragraph one or four of this Article and their importance for the provision of legal certainty and the protection of users, the issue of such a decision and the publication of information under Article 244 of this Act significantly contribute to improving practices of managing payment institutions.

(8) Prior to issuing a declaratory decision referred to in paragraph six of this Article, the Bank of Slovenia shall notify the offender in writing of its findings about the breaches referred to in paragraph one or four of this Article and of its intention to issue a declaratory decision on the remedying of breaches and shall invite the offender to provide a

statement on the facts and circumstances that are important for deciding on the issue of a declaratory decision on the remedying of breaches.

Article 265 (Order requiring a person to cease providing electronic money issuance services)

(1) If a person provides electronic money issuance services in contravention of Article 158 of this Act, the Bank of Slovenia shall issue an order requiring the person to cease providing electronic money issuance services (hereinafter: order requiring a person to cease providing electronic money issuance services).

(2) Prior to issuing an order requiring a person to cease providing electronic money issuance services, the Bank of Slovenia may inspect the books of account and other documentation of the person concerned and gather other evidence on whether that person provides electronic money issuance services. The provisions of Articles 248 to 253 of this Act shall apply, mutatis mutandis, to the collection of information and an on-site inspection of a legal person.

(3) In an order requiring a person to cease providing electronic money issuance services, the Bank of Slovenia shall require that the person concerned submit, within a time limit of not less than 8 or more than 15 days, a report in which it shall specify the measures taken with regard to the cessation of provision of electronic money issuance services and in which it may provide its views on the justifiability of the reasons for the issue of the order. The person’s report shall be accompanied by evidence showing that the person has taken measures with regard to the cessation of provision of electronic money issuance services.

(4) If, in performing its activity, a person that has not obtained an authorisation to provide electronic money issuance services presents itself as an electronic money institution, the Bank of Slovenia shall issue an order requiring the person to cease this activity (hereinafter: order requiring a person to cease performing its activity as an electronic money institution).

(5) Paragraphs two and three of this Article shall apply, mutatis mutandis, to an order requiring a person to cease performing its activity as an electronic money institution.

(6) If, with regard to a person that did not obtain authorisation to provide electronic money issuance services, the Bank of Slovenia establishes that the circumstances referred to in paragraph one or four of this Article exist and that this person remedied the breaches prior to the issue of an order referred to in paragraph one or four of this Article, the Bank of Slovenia may, under the conditions referred to in paragraph eight of this Article, issue a declaratory decision establishing that the person breached the provisions of this Act but that it has remedied the identified breach.

(7) The Bank of Slovenia shall issue a declaratory decision referred to in the preceding paragraph if, considering the nature of the breaches referred to in paragraph one or four of this Article and their importance for the provision of legal certainty and the protection of users, the issue of such a decision and the publication of information under Article 244 of this Act significantly contribute to improving practices of managing electronic money institutions.

(8) Prior to issuing a declaratory decision referred to in paragraph six of this Article, the Bank of Slovenia shall notify the offender in writing of its findings about the breaches referred to in paragraph one of this Article and of its intention to issue a declaratory decision on the remedying of breaches and shall invite the offender to provide a statement

on the facts and circumstances that are important for deciding on the issue of a declaratory decision on the remedying of breaches.

Article 266 (Order requiring a person to cease settling mutual payment obligations and operating

payment systems)

(1) If a person operates a payment system without the authorisation of the Bank of Slovenia to operate payment systems under this Act, the Bank of Slovenia shall issue an order requiring the person to cease this activity (hereinafter: order requiring a person to cease operating a payment system).

(2) If persons referred to in paragraph one of Article 204 of this Act settle mutual payment obligations within the meaning of Article 198 of this Act without the authorisation of the Bank of Slovenia to operate a payment system, the Bank of Slovenia shall issue an order requiring these persons to cease settling mutual payment obligations within the meaning of Article 198 of this Act (hereinafter: order requiring persons to cease settling mutual payment obligations).

(3) Paragraphs two to eight of Article 264 of this Act shall apply, mutatis mutandis, to an order referred to in paragraph one or two of this Article.

Article 267 (Decision establishing grounds for compulsory liquidation)

(1) The Bank of Slovenia shall issue a decision establishing grounds for the compulsory liquidation of a legal person (hereinafter: decision establishing grounds for compulsory liquidation) if that legal person fails to act in accordance with: 1. an order requiring it to cease providing payment services referred to in Article 264 of this

Act or an order requiring it to cease providing electronic money issuance services referred to in Article 265 of this Act or

2. an order requiring it to cease operating a payment system or an order requiring it to cease settling mutual payment obligations referred to in the preceding Article.

(2) The Bank of Slovenia may also issue a decision referred to in the preceding paragraph if a legal person fails to allow the authorised person of the Bank of Slovenia to carry out an on-site inspection or if it in any other way impedes the exercise of supervision referred to in paragraph two of the preceding Article.

(3) A decision establishing grounds for liquidation shall be reasoned.

(4) The Bank of Slovenia shall, on the basis of the final decision establishing grounds for compulsory liquidation, propose that the competent court initiate compulsory liquidation proceedings against the legal person concerned in accordance with the act governing the compulsory liquidation of companies.

(5) The court shall issue a decision initiating compulsory liquidation proceedings against the legal person on the basis of the proposal by the Bank of Slovenia referred to in the preceding paragraph, this without again verifying the conditions for the initiation of such proceedings, within three working days from the submission of the proposal.

(6) No appeal shall be allowed against a decision initiating compulsory liquidation proceedings referred to in the preceding paragraph.

(7) The Bank of Slovenia shall be exempt from the payment of fees during the compulsory liquidation proceedings initiated by the court on its proposal referred to in paragraph three of this Article.

14.6 Collection and exchange of information

Article 268 (Collection and processing of information)

(1) The Bank of Slovenia shall have the authority and responsibility to collect and process information about all facts and circumstances, including personal data, obtained in connection with the exercise of its tasks and responsibilities laid down in this Act.

(2) State authorities and holders of public authority shall be obliged to provide the Bank of Slovenia on request with any information the Bank of Slovenia needs to perform its tasks and exercise its powers in conducting supervision under this Act.

(3) The information referred to in paragraph one of this Article shall be, in particular, information on the following: 1. conditions for issuing authorisations to provide payment services, provide electronic

money issuance services and operate payment systems and other authorisations issued by the Bank of Slovenia pursuant to this Act;

2. members of the management body of a payment institution, electronic money institution or payment system participant and persons responsible for the management of payment services activities or electronic money issuance activities or payment system operation activities and for the assessment of conditions for discharging the duties of the management body or the duties of a responsible person;

3. the operation of a payment institution, electronic money institution or payment system participant in other Member States and the operation of a payment institution, electronic money institution or payment system participant of a Member State in the Republic of Slovenia;

4. the operation of a payment institution, electronic money institution or payment system participant in third countries and the operation of a payment institution, electronic money institution or payment system participant of a third country in the Republic of Slovenia;

5. the financial position and operation of a payment institution, electronic money institution, payment system participant, holders of qualifying holdings, parent undertakings and subsidiaries, and other legal persons the supervision of which is within the competence of the Bank of Slovenia;

6. circumstances in connection with the assessment of conditions for the issuing of an authorisation to the holder of a qualifying holding; and

7. circumstances in connection with the activity of other persons where there are grounds for suspicion that payment services, electronic money issuance services and payment system operation services are provided in contravention of this Act.

Article 269 (Protection of confidential information)

(1) Confidential information under this Act shall mean any information that the Bank of Slovenia obtains from supervised entities or other persons in the course of exercising supervision and other tasks or information generated by the Bank of Slovenia for the purpose of supervision, including internal assessments and reports produced by the Bank of Slovenia regarding the operations of an individual supervised entity.

(2) Employees of the Bank of Slovenia, auditors and other experts who act or have acted under the authority of the Bank of Slovenia shall safeguard as confidential all information obtained during the performance of tasks for the Bank of Slovenia in connection with the latter’s supervisory tasks and powers and shall not disclose such information to any other person or state authority unless otherwise provided by this Act.

(3) Unless otherwise provided by the law, the Bank of Slovenia shall not disclose confidential information regarding a particular supervised entity to any other person or state authority, except in the form of a summary from which individual entities to which such confidential information relates cannot be recognised.

(4) The prohibition referred to in paragraphs two and three of this Article shall not apply: 1. to confidential information required for criminal or pre-trial proceedings; 2. in the event of the bankruptcy or compulsory liquidation of a payment institution,

payment institution benefiting from a waiver, account information service provider, electronic money institution, electronic money institution benefiting from a waiver or payment system participant with respect to confidential information required to enforce creditors’ claims against the payment institution and to perform other actions in bankruptcy or compulsory liquidation proceedings or civil proceedings associated with these proceedings, except with regard to information that also relates to other persons involved in attempts to financially reorganise the payment institution;

3. to information regarding authorisations to provide payment services, authorisations to provide electronic money issuance services, authorisations to operate payment systems and authorisations to acquire a qualifying holding; or

4. in other cases when the law expressly provides that the Bank of Slovenia or a person referred to in paragraph two of this Article may disclose confidential information to the public or certain recipients.

(5) The obligation to safeguard confidential information referred to in paragraphs one to three of this Article shall also apply to the information obtained by the Bank of Slovenia or persons referred to in paragraph two of this Article in the exchange of information with other supervisory authorities.

(6) The Bank of Slovenia shall process personal data obtained in the exercise of tasks and powers laid down in this Act in accordance with the act governing personal data protection and Regulation (EC) No 45/2001 of the European Parliament and of the Council of 18 December 2000 on the protection of individuals with regard to the processing of personal data by the Community institutions and bodies and on the free movement of such data (OJ L 8, 12.1.2001, p. 1), as amended by Corrigendum to Regulation (EC) No 45/2001 of the European Parliament and of the Council of 18 December 2000 on the protection of individuals with regard to the processing of personal data by the Community institutions and bodies and on the free movement of such data (OJ L 164, 26.6.2007, p. 36).

Article 270 (Use and dissemination of confidential information)

(1) The Bank of Slovenia may use confidential information referred to in Article 269 of this Act solely for the following purposes: 1. to verify conditions for authorisations issued on the basis of this Act; 2. to impose supervisory measures and to make decisions regarding other measures for

which the Bank of Slovenia is authorised in accordance with this Act or another act; 3. to impose penalties for minor offences and to file complaints due to a suspected criminal

offence; or

4. in judicial protection proceedings against decisions issued by the Bank of Slovenia and in other judicial proceedings relating to the performance of its tasks and the exercising of its powers on the basis of this Act or EU regulations.

(2) The Bank of Slovenia may disclose confidential information on a particular payment institution, payment institution benefiting from a waiver, account information service provider, electronic money institution, electronic money institution benefiting from a waiver or payment system participant to other persons solely under the conditions provided by the law.

(3) Notwithstanding the provisions of this Article, the provisions of the act governing access to public information shall apply to requests that the Bank of Slovenia receives on the basis of the aforementioned act.

Article 271 (Disclosure of confidential information)

(1) The Bank of Slovenia may disclose confidential information to the following persons: 1. entities to which the Bank of Slovenia may disclose information obtained in exercising

supervision over banks in accordance with the act governing banking and under the conditions laid down in the act governing banking;

2. authorities of the Republic of Slovenia or another Member State that are responsible for the issuing of authorisations to payment institutions, payment institutions benefiting from a waiver, account information service providers, electronic money institutions and electronic money institutions benefiting from a waiver and for the supervision of payment institutions, payment institutions benefiting from a waiver, electronic money institutions and electronic money institutions benefiting from a waiver;

3. authorities of the Republic of Slovenia or another Member State that are responsible for the prevention of money laundering and the financing of terrorism;

4. authorities of the Republic of Slovenia or another Member State that are responsible for the oversight of personal data protection;

5. authorities of the Republic of Slovenia or another Member State that are responsible for the supervision of the operation of payment systems and payment system operators.

(2) To the persons referred to in preceding paragraph, the Bank of Slovenia may only disclose the confidential information that the relevant authority or person requires to perform their tasks or exercise their powers in accordance with the applicable regulations governing their work and powers. If confidential information includes confidential data regarding a specific client, such data shall only be disseminated to the entities referred to in the preceding paragraph if, having regard to paragraph two of Article 240 of this Act, those entities can also request such confidential data directly from the payment institution, payment institution benefiting from a waiver, account information service provider, electronic money institution, electronic money institution benefiting from a waiver or payment system participant concerned.

(3) Persons that obtain confidential information on the basis of this Article may only use such information to exercise their supervisory powers or to perform the tasks referred to in paragraph one of this Article and may not disclose such information to another person or state authority, except in the cases referred to in paragraph four of Article 269 of this Act.

Article 272 (Disclosure of confidential information to the National Assembly)

(1) The Bank of Slovenia may disclose confidential information to the National Assembly where the latter, in accordance with statutory powers, exercises control over the Bank of Slovenia in relation to its tasks and powers in exercising its controlling function, but only to the extent that the transmission of confidential information is strictly necessary for exercising the powers of control over the operation of the Bank of Slovenia.

(2) The National Assembly shall treat all such information as confidential and shall not disclose it to another person or state authority, except in the cases referred to in paragraph four of Article 269 of this Act.

(3) The confidential information obtained by the Bank of Slovenia from a supervisory authority of another Member State or during the on-site inspection of a branch, agent or payment institution entity to which activities are outsourced, electronic money institution, or participant of the payment system of a Member State under this Act may be disclosed to the National Assembly only with the consent of the supervisory authority of that Member State.

Article 273 (Disclosure of confidential information to persons from a third country)

(1) The Bank of Slovenia may disclose confidential information to persons from a third country who have the status of a person referred to in paragraph one of Article 271 of this Act if the following conditions are met: 1. the Republic of Slovenia and the third country have concluded an agreement of

cooperation between the aforementioned authorities of the Republic of Slovenia and of the third country in which they agreed on the mutual exchange of confidential information;

2. in the third country, rules apply to its aforementioned persons concerning the obligation to protect confidential information as laid down in Articles 269 and 270 of this Act; and

3. the information which is disclosed to a person from the third country is only intended for the purpose of carrying out the tasks of a competent authority or of persons referred to in paragraph two of Article 271 of this Act.

(2) The confidential information obtained by the Bank of Slovenia from a supervisory authority of another Member State or during the on-site inspection of a branch, agent or payment institution entity to which activities are outsourced, electronic money institution, or participant of the payment system of a Member State under this Act may be disclosed to the persons referred to in the preceding paragraph only with the consent of the competent authority of that Member State.

14.7 Cooperation between supervisory authorities

Article 274 (Cooperation between the supervisory authorities of the Republic of Slovenia)

(1) The Bank of Slovenia and the authorities of the Republic of Slovenia responsible for the supervision of payment service providers shall, at the request of an individual supervisory authority, transmit to this authority all requested information regarding a payment service provider that this authority may need in the authorisation procedure, in exercising control or when deciding on an individual basis on any other issues within its competence.

(2) Supervisory authorities referred to in the preceding paragraph shall, on their own initiative, inform each other of any irregularities or other circumstances identified while carrying out supervision or other duties and responsibilities when such findings are also relevant to the work of other supervisory authorities.

Article 275 (Cooperation with the supervisory authorities of Member States)

(1) The Bank of Slovenia shall cooperate with the supervisory authorities of other Member States and, where appropriate, with the European Central Bank, national central banks of Member States, the European Banking Authority and other authorities of Member States responsible for the implementation of regulations applicable to payment service providers.

(2) The Bank of Slovenia shall transmit to the supervisory authority of a Member State, at the latter’s request, all relevant information that is necessary for the supervisory authority to perform its supervisory tasks. The Bank of Slovenia shall, on its own initiative, transmit to the supervisory authority of a Member State any information that is essential for the performance of the supervisory tasks of this supervisory authority, including whether the payment institution complies with the conditions laid down in paragraphs one and/or two of Article 24 of this Act.

(3) Information referred to in the preceding paragraph shall be regarded as essential if it could materially influence the assessment of the financial soundness of a supervised financial undertaking of another Member State.

Article 276 (Cooperation in supervising a branch or agent of a payment institution in the host country or a payment institution directly providing payment services in the host

country)

(1) While carrying out the supervision of branches, agents or payment institutions in a host country, the Bank of Slovenia shall cooperate with the competent supervisory authority of the host country.

(2) The Bank of Slovenia shall inform in advance the competent supervisory authority of the host country where it intends to carry out an on-site inspection of a branch or agent 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 the latter’s request, all necessary information on the facts and circumstances found in the process of carrying out the supervision of a branch, agent or direct provision of payment services by a payment institution in the host country, especially on any established or alleged breaches. The Bank of Slovenia shall, on its own initiative, transmit to the supervisory authority of a Member State any essential information, including whether the payment institution complies with the conditions laid down in paragraphs one and/or two of Article 24 of this Act.

(4) The Bank of Slovenia may ask the competent supervisory authority of the host country to carry out the on-site inspection of a branch or agent of the payment institution in that host country if this either speeds up or simplifies the supervisory procedure or it is beneficial in terms of the efficiency, simplicity, speed and lower costs of the procedure.

Under the same conditions, the authorised persons of the Bank of Slovenia may take part in an on-site inspection carried out by the competent supervisory authority of the host country.

(5) If the Bank of Slovenia is notified by the competent authority of the host country that a payment institution having its head office in the Republic of Slovenia and its agents or branches in the territory of that host country does not comply with the provisions of national law transposing the provisions of Titles II, III and IV of Directive (EU) 2015/2366, it shall evaluate the received information and, without undue delay, take all appropriate measures to ensure that the payment institution concerned puts an end to its irregular situation. The Bank of Slovenia shall communicate such measures without delay to the competent authority of the host country and to the competent authorities of any other Member State concerned.

Article 277 (Cooperation in supervising a branch or agent of a payment institution of a Member State in the Republic of Slovenia or a payment institution directly providing payment

services in the Republic of Slovenia)

(1) The Bank of Slovenia shall cooperate with the competent supervisory authority of a Member State while carrying out the supervision of branches or agents of a payment institution of that Member State in the territory of the Republic of Slovenia.

(2) The Bank of Slovenia shall transmit to the competent supervisory authority of the Member State, at the latter’s request, all necessary information on the facts and circumstances established with regard to the operation of a branch or agent or to a direct provision of payment services by a payment institution of the Member State in the Republic of Slovenia, especially on any established or alleged breaches. The Bank of Slovenia shall, on its own initiative, transmit to the competent supervisory authority of the Member State any essential information, including whether the payment institution complies with the conditions laid down in paragraphs one and/or two of Article 24 of this Act.

(3) The supervisory authority of the Member State or persons authorised by it for that purpose may, in the territory of the Republic of Slovenia, carry out on-site inspection of the branch or agent of the payment institution of this Member State. The supervisory authority of the Member State shall inform in advance the Bank of Slovenia on the intended on-site inspection.

(4) In the case referred to in the preceding paragraph, the supervisory authority of the Member State or persons authorised by it for that purpose shall have the same responsibilities in carrying out the on-site inspection as the Bank of Slovenia while carrying out the supervision of a payment institution.

(5) The Bank of Slovenia shall, at the request of the competent supervisory authority of the Member State, carry out the on-site inspection of the branch or agent 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, if it so requests, participate in the on-site inspection referred to in the first sentence of this paragraph.

(6) Without prejudice to the responsibility of the competent authorities of the home country, where the Bank of Slovenia ascertains that a payment institution with its head office in another Member State and its agents or branches in the territory of the Republic of Slovenia does not comply with the provisions of Chapters 5, 13 or 16 of this Act, it shall inform the competent authority of the home country thereof without delay.

(7) In emergency situations, where immediate action is necessary to address a serious threat to the collective interests of payment service users in the Republic of Slovenia, the Bank of Slovenia may take precautionary measures in parallel to the cross-border cooperation between competent authorities and pending the required measures by the competent authorities of the home country.

(8) Any precautionary measures under the preceding paragraph shall be appropriate and proportionate to their purpose to protect against a serious threat to the collective interests of payment service users in the Republic of Slovenia. They shall not result in any advantage for payment service users of a payment institution in the Republic of Slovenia over payment service users of the payment institution in the other Member States.

(9) Precautionary measures referred to in paragraph seven of this Article shall be temporary and shall be terminated when the serious threats identified are addressed, including with the assistance of or in cooperation with the competent authorities of the home country or with the European Banking Authority as provided for in Article 278 of this Act.

(10) Where compatible with the emergency situation, the Bank of Slovenia shall inform the competent authorities of the home country and those of any other Member State concerned, the European Commission, and the European Banking Authority, in advance and in any case without undue delay, of the precautionary measures taken under paragraph seven of this Article and of their justification.

Article 278 (Resolution of disputes between competent authorities of different Member States)

(1) Where the Bank of Slovenia considers that, in a particular matter, cross-border cooperation with the competent authorities of another Member State does not comply with the conditions set out in Articles 48 to 50, 270 to 273 or 275 to 277 of this Act, it may refer the matter to the European Banking Authority and request its assistance in accordance with Article 19 of Regulation (EU) No 1093/2010.

(2) Where the Bank of Slovenia acts in accordance with the preceding paragraph or the competent authority of another Member State refers the situation to the European Banking Authority because they believe that cross-border cooperation with the Bank of Slovenia does not comply with the conditions set out in Articles 48 to 50, 270 to 273 or 275 to 277 of this Act, the Bank of Slovenia shall defer its decisions pending resolution under Article 19 of Regulation (EU) No 1093/2010.

Article 279 (Responsibilities of authorities in relation to the prevention of money laundering and

the financing of terrorism)

Provisions of this Act shall not interfere with the obligations and powers of supervisory authorities arising from the act regulating the prevention of money laundering and the financing of terrorism.

15. DECISION-MAKING PROCEDURE OF THE BANK OF SLOVENIA IN INDIVIDUAL CASES

Article 280 (Application of provisions governing the procedure)

The Bank of Slovenia shall decide on individual cases within its competence under this Act according to the procedures laid down for the Bank of Slovenia when deciding on an individual basis under the act governing banking, unless expressly provided otherwise for individual types of procedure in this Chapter.

15.1 Decision-making procedure for the granting of authorisation

Article 281 (Time limit for a decision and for the issue of the decision on the correction of

deficiencies)

(1) The Bank of Slovenia shall decide on an application for authorisation which falls within its competence under this Act within three months of receipt of an application for authorisation.

(2) Notwithstanding the preceding paragraph, the Bank of Slovenia shall decide on an application for authorisation to operate a payment system or authorisation for the amendment of payment system rules within six months of receipt of the application for authorisation.

(3) If the application for authorisation issued by the Bank of Slovenia under this Act fails to meet the procedural prerequisites for deciding on in accordance with the act governing banking, the Bank of Slovenia shall issue a decision to correct the deficiencies within one month of receipt of the application. In this case the time limit referred to in paragraph one or two of this Article shall start to run from the moment when the deficiencies have been remedied.

15.2 Decision-making procedure for entering a branch or agent into the register of payment institutions and for its removal therefrom

Article 282 (Application of provisions governing the decision-making procedure for the granting

of authorisation)

(1) Provisions of this Act governing the decision-making procedure of the Bank of Slovenia for the granting of authorisation shall apply, mutatis mutandis, to decision-making by the Bank of Slovenia on an application to enter a branch or agent in the register of payment institutions under Articles 81 and 82 of this Act, unless otherwise provided in Subchapter 15.2 of this Act.

(2) Provisions of this Act governing the procedure for withdrawal of the Bank of Slovenia’s authorisation to provide payment services as a payment institution shall apply, mutatis mutandis, to decision-making by the Bank of Slovenia on the removal of a branch under point 2 of paragraph two or under paragraph three of Article 83 of this Act or on the removal of an agent under point 2 of paragraph five of Article 83 of this Act.

(3) In applying, mutatis mutandis, the provisions of this Act referred to in paragraphs one and two of this Article, the words "entry of a branch or agent in the register of payment institutions" shall be used in place of "granting of authorisation" and the words "removal of a branch or agent from the payment institutions register" in place of "withdrawal of authorisation".

Article 283 (Decision-making procedure relating to applications to enter a branch or agent of a

payment institution into the register of payment institutions or to remove it therefrom)

(1) The Bank of Slovenia shall decide on an application to enter an agent of a payment institution in the Republic of Slovenia in the register of payment institutions within two months of receipt of the application. If the application for entry fails to meet the procedural prerequisites for deciding on, the Bank of Slovenia shall issue a decision to correct the deficiencies within eight days of receipt of the application.

(2) The Bank of Slovenia shall decide on an application to enter a branch or agent of a payment institution in the host country in the register of payment institutions within three months of receipt of the application. If the application for entry fails to meet the procedural prerequisites for deciding on, the Bank of Slovenia shall issue a decision to correct the deficiencies within eight days of receipt of the application.

(3) The Bank of Slovenia shall decide on the application to enter a branch in a third country in the register of payment institutions within three months of receipt of the application. If the application for entry fails to meet the procedural prerequisites for deciding on, the Bank of Slovenia shall issue a decision to correct the deficiencies within eight days of receipt of the application.

(4) If the Bank of Slovenia grants the application to enter a branch or agent in the register, it shall not issue a decision, but shall simply enter the branch or agent in the register of payment institutions and notify the payment institution and agent thereof.

(5) The Bank of Slovenia shall initiate the procedure for the removal of a branch or agent from the register of payment institutions if the information at its disposal gives rise to reasonable grounds for suspicion that there is a certain reason for the removal of the branch or agent from the register of payment institutions as referred to in Article 83 of this Act.

16. OUT-OF-COURT RESOLUTION OF DISPUTES

Article 284 (Complaint procedure with the Bank of Slovenia)

(1) Payment service users and other interested parties, including consumer associations, shall be able to submit complaints to the Bank of Slovenia with regard to payment service providers’ alleged breaches of this Act.

(2) In its reply, the Bank of Slovenia shall inform the complainant that an out-of-court resolution procedure as referred to in Article 286 of this Act is in place and that instituting such proceedings is without prejudice to the complainant’s right to bring proceedings against a payment service provider before a competent court with the purpose of resolving a dispute over the provision of payment services.

Article 285 (Dispute resolution procedure at a payment service provider)

(1) Payment service providers shall put in place and apply adequate and effective complaint resolution procedures for the settlement of complaints of payment service users concerning the rights and obligations arising under Chapters 5, 13 and 16 of this Act.

(2) The procedures referred to in the preceding paragraph shall be made available in every Member State where the payment service provider offers payment services. Those procedures shall be available in the official language or in one of the official languages of the relevant Member State or in another language if agreed upon between the payment service provider and the payment service user.

(3) The payment service provider shall make every possible effort to reply, on paper or, if agreed between the payment service provider and the payment service user, on another durable medium, to the payment service user’s complaint. Such a reply shall address all points raised within an adequate timeframe and at the latest within 15 business days of receipt of the complaint.

(4) In exceptional situations, if the answer cannot be given within 15 business days for reasons beyond the control of the payment service provider, it shall be required to send a holding reply, clearly indicating the reasons for the delay in responding to the complaint and specifying the deadline by which the payment service user will receive the final reply. In any event, the deadline for receiving the final reply shall not exceed 35 business days.

(5) The payment service provider shall inform the payment service user about at least one out-of-court dispute resolution entity which is competent to deal with disputes concerning the rights and obligations arising under Chapters 5, 13 and 16 of this Act. This information shall be given in a clear and comprehensible way and easily accessible on the website of the payment service provider, where one exists, at a branch office and stated in the general terms and conditions of the contract between the payment service provider and the payment service user. It shall specify how further information on the out-of-court dispute resolution entity concerned and on the conditions for using it can be accessed.

Article 286 (Out-of-court resolution of disputes)

(1) The payment service provider shall make available the procedure of out-of-court resolution of consumer disputes in connection with payment service provision, comparability of fees related to payment accounts, payment account switching and access to payment accounts with basic features under this Act, and alleged breaches of the payment service provider’s obligations under Regulation (EC) No 924/2009 and Regulation (EU) No 260/2012 before an independent entity which meets the conditions of and provides the procedure in accordance with the provisions of the act governing out-of-court resolution of consumer disputes. The same also applies to out-of-court resolution of payee disputes arising from alleged breaches of the payment service provider’s obligations under Regulation (EU) 2015/751.

(2) It is compulsory for the payment service provider to cooperate in the proceedings initiated by a consumer before an independent out-of-court dispute resolution entity.

(3) The out-of-court dispute resolution entity shall cooperate with the authorities responsible in other Member States for the out-of-court resolution of disputes concerning the rights and obligations arising under Chapters 5, 13 and 16 of this Act where the dispute resolution also falls within the competence of such an authority of another Member State.

(4) The payment service provider shall not levy any special charges on the consumer for the out-of-court resolution proceedings relating to payment service provision.

(5) Paragraphs one to four of this Article shall not apply to the Public Payments Administration of the Republic of Slovenia or to other state authorities and municipalities where they provide payment services within their exclusive competence under a separate act.

(6) Paragraphs one to four of this Article shall also apply, mutatis mutandis, to electronic money issuers in connection with their obligations relating to the issuing and redemption of electronic money.

17. REPORTING

Article 287 (Reporting obligations on payment service providers)

(1) Payment service providers servicing transaction accounts of holders which are registered in the Slovenian Business Register under the act governing the Slovenian Business Register shall, for tax, statistical and other statutory purposes, collect information on due and unsettled obligations of these holders and on transactions and balances on their transactional accounts.

(2) Payment service providers shall provide the information referred to in the preceding paragraph to the Financial Administration of the Republic of Slovenia and the Agency.

(3) With prior approval of the minister responsible for finance, the Agency shall prescribe the content, method and time limits for the collection and provision of the information referred to in paragraph one of this Article. Upon the receipt of approval, the Agency shall forward the regulation referred to in this paragraph for publication in the Official Gazette of the Republic of Slovenia [Uradni list RS].

18. PENALTY PROVISIONS

Article 288 (Breaches by payment service providers in connection with payment service

provision)

(1) A payment service provider shall be fined from EUR 12,500 to EUR 125,000 for the following minor offences committed in providing payment services in the Republic of Slovenia: 1. levying of charges on a user contrary to Article 86 of this Act, 2. failure to provide the user with general information as referred to in Article 90 of this Act

before entering into a payment services framework contract or failure to provide it in compliance with Article 91 of this Act,

3. failure to provide the user with the general information and the terms of the framework contract under Article 92 of this Act,

4. failure to provide the user with information on individual payment transactions under Articles 93, 94 or 95 of this Act,

5. in the case of termination of the framework contract, levying of charges on a user contrary to paragraphs two and three of Article 98 of this Act or paragraph two of Article 99 of this Act,

6. in relation to the framework contract for low-value payment instruments, failure to provide the user with information on the main characteristics of a payment service under paragraph one of Article 101 of this Act,

7. failure to provide the user with information on individual payment transactions in connection with low-value payment instruments under Article 102 of this Act,

8. before entering into a single payment service contract, failure to provide the user with the general information under Article 103 of this Act,

9. failure to provide the payer with information on an individual payment transaction after the receipt of a payment order under the single payment service contract in accordance with Article 106 of this Act or failure to provide the payee with the information on an individual payment transaction after the execution of a payment transaction under the single payment service contract in accordance with Article 107 of this Act,

10. failure to inform the user, before the initiation of a payment transaction, of a special charge levied on the use of a given payment instrument (paragraph two of Article 110 of this Act),

11. before entering into a remote payment transaction contract, failure to provide a user who is a consumer with prior information under Article 113 of this Act,

12. before entering into a single payment service contract, failure to provide a user who is a consumer with prior information under Article 114 of this Act,

13. failure to execute a payment transaction after the receipt of a payment order (Article 120 of this Act),

14. failure to inform the user on the refusal of a payment order (paragraphs one and two of Article 121 of this Act),

15. failure to enable the user to revoke a payment order under Articles 122 and 123 of this Act,

16. levying of charges for the execution of a payment transaction on the user contrary to paragraph one or two of Article 125 of this Act,

17. failure to transfer the full amount of the payment transaction in accordance with paragraph three of Article 125 of this Act or, upon agreement as referred to in paragraph four of Article 125 of this Act, failure to inform the user on the full amount of the payment transaction and any charges that have been deducted,

18. preventing or hindering payees from requesting from the payer a charge or offering him a reduced charge for the use of a given payment instrument (Article 126 of this Act),

19. failure to execute a payment transaction within the required time limit (Article 127 of this Act),

20. failure to transmit the payment order initiated by the payee or by the payer through the payee to the payer’s payment service provider within the agreed time limits such that the payment transaction can be executed on the agreed due date (Article 128 of this Act),

21. failure to ensure that the funds on the payment account are at the user’s disposal or failure to provide the appropriate credit value date or debit value date for the payment account (Articles 129, 130 and 131 of this Act),

22. where non-objective, discriminatory or disproportionate measures for the issue and use of a payment instrument are laid down contrary to paragraph one of Article 132 of this Act,

23. failure to meet security requirements relating to the use of payment instruments (paragraphs one and two or Article 133 of this Act),

24. failure to provide appropriate means that enable the user, at his request, to prove that he made a notification of a lost, stolen or misappropriated payment instrument or failure to provide them within the required period (paragraph three of Article 133 of this Act),

25. failure to refund the amount of the unauthorised or defectively executed payment transactions and the relevant charges or interest or failure to ensure the rectification of the credit value date or to value date the amount on the payment account under Articles 136, 137, 140 or 142 of this Act,

26. failure to refund the amount of the unauthorised payment transaction which it is liable for or to notify the Bank of Slovenia, the police or the State Prosecutor’s Office in accordance with paragraph two of Article 136 of this Act,

27. in cases where the user provides an incorrect unique identifier, failure to act in accordance with paragraph four or five of Article 143 of this Act,

28. in the case of a non-executed or defectively executed payment transaction, failure to act, upon the user’s request, in accordance with paragraph one of Article 146 of this Act,

29. failure to ensure rectification of an unauthorised or defectively executed payment transaction for the user under Article 149 of this Act,

30. failure to refund the user the amount of the authorised and correctly executed payment transaction or to provide the credit value date in accordance with Article 150 of this Act,

31. failure to ensure the right to a refund under paragraph six of Article 150 of this Act, 32. failure to set up a procedure or rules for dispute resolution at the payment service

provider under Article 285 of this Act or non-compliance of such a procedure or rules with the requirements referred to in Article 285 of this Act,

33. failure to set up a procedure or rules for the out-of-court resolution of disputes under Article 286 of this Act or non-compliance of such a procedure or rules with the requirements referred to in Article 286 of this Act.

(2) A responsible person of the payment service provider shall be fined from EUR 1,250 to EUR 4,000 for a minor offence referred to in the preceding paragraph.

Article 289 (Breaches by payment service providers in connection with the comparability of fees

related to payment accounts)

(1) A payment service provider shall be fined from EUR 12,500 to EUR 125,000 for the following minor offences committed in providing payment services in the Republic of Slovenia: 1. failure to provide the consumer with the fee information document referred to in

paragraph one of Article 170 of this Act before entering into a framework contract, 2. failure to provide the consumer with the fee information document in the manner and

format laid down in paragraphs two, three and four of Article 170 of this Act, 3. failure to confirm in the fee information document that the disclosure of fees complies

with paragraph five of Article 170 of this Act, 4. failure to make the glossary available to the consumer in accordance with paragraphs

one, six, seven and eight of Article 170 of this Act, 5. failure to make available to the consumer the fee information document or glossary in

the manner and format laid down in paragraph nine of Article 170 of this Act, 6. failure to provide the consumer with the statement of fees in accordance with Article 171

of this Act, 7. in contracting with consumers and advertising to consumers, failure to use the

standardised terms set out in the list of the most representative services in accordance with Article 171 of this Act,

8. failure to inform the consumer whether it is possible to make a separate contract for the opening of a payment account or to provide separate information regarding the fees in accordance with Article 171 of this Act.

(2) A responsible person of the payment service provider shall be fined from EUR 1,250 to EUR 4,000 for a minor offence referred to in the preceding paragraph.

Article 290

(Breaches by payment service providers in connection with payment account switching)

(1) A payment service provider shall be fined from EUR 12,500 to EUR 125,000 for the following minor offences committed in providing payment services in the Republic of Slovenia: 1. failure to enable a consumer to switch a payment account under paragraph one of Article

175 of this Act, 2. in its capacity as a receiving payment service provider, failure to start, at the request of

the consumer, the switching procedure in accordance with paragraph two of Article 175 of this Act,

3. in its capacity as a receiving payment service provider, failure to carry out or to carry out in due time the tasks laid down in paragraph five of Article 175 of this Act,

4. in its capacity as a transferring payment service provider, failure to carry out or to carry out in due time the tasks laid down in paragraph six of Article 175 of this Act,

5. in its capacity as a receiving payment service provider, failure to carry out or to carry out in due time the tasks laid down in paragraph seven of Article 175 of this Act,

6. in its capacity as a receiving payment service provider, failure to inform the consumer in accordance with paragraph eight of Article 175 of this Act,

7. in its capacity as a transferring payment service provider, blocking of a payment account before the date specified in the consumer’s authorisation, contrary to paragraph nine of Article 175 of this Act,

8. where a consumer indicates to his payment service provider that he wishes to open a payment account with a payment service provider located in another Member State, failure to provide the consumer with all information or assistance under Article 176 of this Act,

9. in its capacity as a transferring or a receiving payment service provider, failure to provide the consumer with his personal data and information under paragraph one of Article 177 of this Act,

10. in its capacity as a transferring payment service provider, failure to transfer free of charge to the consumer or the receiving payment service provider the information required by the receiving payment service provider under point 1 of paragraph six of Article 175 of this Act (paragraph two of Article 177 of this Act),

11. in its capacity as a transferring payment service provider, charging the consumer for closing the payment account contrary to paragraph three of Article 177 of this Act,

12. in its capacity as a transferring or a receiving payment service provider, charging a fee to the consumer contrary to paragraph four of Article 177 of this Act,

13. failure to refund a financial loss to the consumer without delay in accordance with Article 178 of this Act,

14. failure to make available to the consumer the information under Article 179 of this Act.

(2) A responsible person of the payment service provider shall be fined from EUR 1,250 to EUR 4,000 for a minor offence referred to in the preceding paragraph.

Article 291 (Breaches by banks in connection with access to a payment account with basic

features )

(1) A bank shall be fined from EUR 12,500 to EUR 125,000 for the following minor offences committed in providing payment services in the Republic of Slovenia: 1. failure to respect the non-discrimination principle laid down in Article 180 of this Act, 2. failure to offer to a consumer a payment account with basic features in accordance with

Article 181 of this Act,

3. failure to process a consumer’s application for the opening of a payment account with basic features in due time as laid down in paragraph four of Article 181 of this Act,

4. failure to refuse a consumer’s application for the opening of a payment account with basic features under paragraph six of Article 181 of this Act,

5. refusal of a consumer’s application for the opening of a payment account with basic features contrary to paragraph seven of Article 181 of this Act,

6. in the case of a refusal of a consumer’s application for the opening of a payment account with basic features, failure to inform the consumer of the refusal of the application in accordance with paragraph eight of Article 181 of this Act,

7. failure to inform the consumer in accordance with paragraph nine of Article 181 of this Act,

8. making the opening of a payment account with basic features conditional on the purchase of additional services or of shares in the bank contrary to paragraph ten of Article 181 of this Act,

9. failure to provide with a payment account with basic features any service laid down in paragraph one of Article 182 of this Act,

10. failure to offer a payment account with basic features at least in euros as provided in paragraph two of Article 182 of this Act,

11. with regard to a payment account with basic features, failure to enable a consumer to execute an unlimited number of operations under paragraph three of Article 182 of this Act,

12. failure to enable the consumer to execute payment transactions from his payment account with basic features under paragraph four of Article 182 of this Act,

13. failure to act in accordance with paragraph five of Article 182 of this Act, 14. restriction of access to, or use of, a payment account with basic features by the use of

an overdraft facility or making it conditional upon it (paragraph six of Article 182 of this Act),

15. in relation to a payment account with basic features, charging a fee contrary to Article 183 of this Act,

16. unilateral termination of a framework contract providing access to a payment account with basic features contrary to paragraph two of Article 184 of this Act,

17. when the contract for a payment account with basic features is terminated, failure to inform the consumer in accordance with paragraph three of Article 184 of this Act,

18. in the case of termination of a framework contract providing access to a payment account with basic features, failure to advise the consumer in accordance with paragraph five of Article 184 of this Act,

19. failure to make available to consumers, free of charge, accessible information about the specific features of the payment account with basic features in accordance with paragraph two of Article 185 of this Act.

(2) A responsible person of the bank shall be fined from EUR 1,250 to EUR 4,000 for a minor offence referred to in the preceding paragraph.

Article 292 (Other breaches by payment service providers)

(1) A payment service provider shall be fined from EUR 12,500 to EUR 125,000 for the following minor offences committed in providing payment services in the Republic of Slovenia: 1. failure to comply with the rules relating to the opening of fiduciary accounts laid down in

Article 14 of this Act, 2. failure to establish a framework with appropriate risk mitigation measures and control

mechanisms to manage operational and security risks in accordance with paragraph one of Article 151 of this Act,

3. failure to provide to the Bank of Slovenia on an annual basis, or at shorter intervals as determined by the Bank of Slovenia, an updated and comprehensive assessment of the operational and security risks under paragraph two of Article 151 of this Act,

4. in the case of a major operational and security incident, failure to report it to the Bank of Slovenia in accordance with paragraph one of Article 152 of this Act,

5. in the case where a major operational and security incident may have an impact on the financial interests of users, failure to inform the users in accordance with paragraph two of Article 152 of this Act,

6. failure to provide, at least on an annual basis, statistical data on fraud to the Bank of Slovenia under paragraph six of Article 152 of this Act,

7. failure to apply strong authentication where it is required under Article 153 of this Act, 8. in the case of initiation of electronic payment transactions as referred to in point 2 of

paragraph one of Article 153 of this Act, failure to apply strong customer authentication that includes elements which dynamically link the transaction to a specific amount and a specific payee under paragraph two of Article 153 of this Act,

9. in cases where strong authentication is required, failure to have in place adequate security measures to protect the confidentiality and integrity of payment service users’ personalised security credentials under paragraph three of Article 153 of this Act,

10. failure to communicate to the Bank of Slovenia the information on the fees referred to in paragraph one of Article 173 of this Act in the manner and format and within the time limits provided for in the regulation made under paragraph two of Article 173 of this Act,

11. making it possible for a payment account holder to have funds at his disposal contrary to paragraph one of Article 188 of this Act,

12. failure to refund the funds, charged fees and interest under paragraphs four and five of Article 188 of this Act,

13. levying charges for the seizure and transfer of funds or other activities required by the enforcement or security order contrary to the requirement referred to in Article 190 of this Act,

14. failure to supply information or to supply accurate and complete information about the level of charges under paragraph two of Article 190 of this Act,

15. failure to make information public or to make public the accurate and complete information about the level of charges under paragraph three of Article 190 of this Act,

16. failure to provide information needed for establishing and keeping a transaction account register under paragraph one of Article 192 of this Act,

17. a breach of the obligation to protect confidential information referred to in Article 240 of this Act,

18. processing of confidential information contrary to Article 242 of this Act, 19. failure to report as laid down in Article 287 of this Act.

(2) A responsible person of the payment service provider shall be fined from EUR 1,250 to EUR 4,000 for a minor offence referred to in the preceding paragraph.

Article 293 (Breaches by payment initiation service providers)

(1) A payment initiation service provider shall be fined from EUR 12,500 to EUR 125,000 for the following minor offences committed in providing payment services in the Republic of Slovenia: 1. failure to provide a payer or a payee with information in accordance with Article 104 of

this Act, 2. failure to provide to the payer’s account servicing provider the information under Article

105 of this Act, 3. acting contrary to the obligations under Article 118 of this Act.

(2) The payment initiation service provider shall be fined from EUR 12,500 to EUR 125,000 if it is liable for the non-execution or defective or late execution of the payment transaction under Article 141 of this Act and fails to compensate the account servicing payment service provider at its request in accordance with paragraph three of Article 141 of this Act.

(3) A responsible person of the payment initiation service provider shall be fined from EUR 1,250 to EUR 4,000 for a minor offence referred to in paragraph one or two of this Article.

Article 294 (Breaches by account information service providers)

(1) An account information service provider shall be fined from EUR 12,500 to EUR 125,000 for the minor offence of acting contrary to the obligations under paragraph two of Article 119 of this Act when providing payment services in the Republic of Slovenia.

(2) A responsible person of the account information service provider shall be fined from EUR 1,250 to EUR 4,000 for a minor offence referred to in the preceding paragraph.

Article 295 (Breaches by payment service providers issuing card-based payment instruments)

(1) A payment service provider issuing card-based payment instruments shall be fined from EUR 12,500 to EUR 125,000 for a minor offence committed in providing payment services in the Republic of Slovenia and consisting in the request for a confirmation of whether an amount necessary for the execution of a card-based payment transaction is available on the payment account of the payer despite the conditions laid down in paragraph two of Article 117 of this Act not being met.

(2) A responsible person of the payment service provider issuing card-based payment instruments shall be fined from EUR 1,250 to EUR 4,000 for a minor offence referred to in the preceding paragraph.

Article 296 (Breaches by account servicing payment service providers)

(1) An account servicing payment service provider shall be fined from EUR 12,500 to EUR 125,000 for the following minor offences committed in providing payment services in the Republic of Slovenia: 1. at the request of a payment service provider issuing card-based payment instruments,

failure to confirm whether an amount necessary for the execution of a card-based payment transaction is available on the payment account of the payer in accordance with paragraph one of Article 117 of this Act,

2. at the request of a payment service provider issuing card-based payment instruments to confirm the availability of the amount on the payment account of the payer, failure to reply by way of a "yes" or "no" answer in accordance with paragraph three of Article 117 of this Act,

3. following confirmation to the payment service provider issuing card-based payment instruments, blocking of the funds on the payer’s payment account contrary to paragraph four of Article 117 of this Act,

4. failure to communicate to the payer, at the latter’s request, the identification of the payment service provider issuing card-based payment instruments, or its own answer, in accordance with paragraph five of Article 117 of this Act,

5. in the case of a payer acquiring payment services referred to in point 7 of paragraph one of Article 5 of this Act, failure to act in accordance with paragraph four of Article 118 of this Act, except where the circumstances referred to in paragraph one of Article 135 of this Act exist,

6. making provision of payment initiation services dependent on the existence of a contractual relationship with the payment initiation service provider contrary to paragraph five of Article 118 of this Act,

7. in the case of a user making use of payment services referred to in point 8 of paragraph one of Article 5 of this Act, failure to act in accordance with paragraph three of Article 119 of this Act, except where the circumstances referred to in paragraph one of Article 135 of this Act exist,

8. making provision of account information services dependent on the existence of a contractual relationship with the payment initiation service provider contrary to paragraph four of Article 119 of this Act,

9. in the case of a payer acquiring payment services referred to in point 7 of paragraph one of Article 5 of this Act or in the case of a user making use of payment services referred to in point 8 of paragraph one of Article 5 of this Act, failure to inform the payer that access to the payment account is denied and about the reasons therefore, as provided in paragraph two of Article 135 of this Act,

10. in the case of a payer acquiring payment services referred to in point 7 of paragraph one of Article 5 of this Act or in the case of a user making use of payment services referred to in point 8 of paragraph one of Article 5 of this Act, failure to allow access to the payment account once the reasons for denying access no longer exist, as provided in paragraph three of Article 135 of this Act, except where the circumstances referred to in paragraph four of Article 135 of this Act exist,

11. in the case of a payer acquiring payment services referred to in point 7 of paragraph one of Article 5 of this Act or in the case of a user making use of payment services referred to in point 8 of paragraph one of Article 5 of this Act, failure to report the incident relating to the account information service provider or the payment initiation service provider to the authority responsible for supervision, as provided in paragraph five of Article 135 of this Act,

12. where a payment transaction is initiated by or through the payee in the context of a card-based payment transaction and the exact amount is not known at the moment when the payer gives consent to execute the payment transaction, blocking of the payer’s payment account contrary to paragraph one of Article 139 of this Act,

13. failure to release the funds blocked on the payer’s payment account under paragraph two of Article 139 of this Act,

14. in the case of a payment initiation service transaction, failure to refund the payer the amount of the non-executed or defectively executed payment transaction or, in the event that the payment transaction was debited from the payer’s payment account, failure to restore the payment account to the state in which it would have been had the defective execution not taken place in accordance with paragraph one of Article 141 of this Act,

15. failure to allow the payment initiation service provider and account information service provider to rely on the authentication procedures that it provided to the user in accordance with paragraph five of Article 153 of this Act.

(2) A responsible person of the account servicing payment service provider shall be fined from EUR 1,250 to EUR 4,000 for a minor offence referred to in the preceding paragraph.

Article 297

(Breaches by banks)

(1) A payment service provider referred to in point 1 of paragraph one of Article 20 of this Act shall be fined from EUR 12,500 to EUR 125,000 for the following minor offences committed in providing payment services in the Republic of Slovenia: 1. failure to ensure access to its payment account services in accordance with paragraph

one of Article 25 of this Act, 2. failure to communicate to the Bank of Slovenia the duly justified reasons for the denial of

access to its payment account services under paragraph two of Article 25 of this Act.

(2) A responsible person of the payment service provider referred to in point 1 of paragraph one of Article 20 of this Act shall be fined from EUR 1,250 to EUR 4,000 for a minor offence under the preceding paragraph.

Article 298 (Breaches in connection with other payment transactions)

(1) A payment service provider shall be fined from EUR 12,500 to EUR 125,000 for committing a minor offence referred to in points 1 to 12 of paragraph one of Article 288 of this Act in providing other payment services under Article 155 of this Act, except where the provider acted in accordance with Article 156 of this Act.

(2) A responsible person of the payment service provider shall be fined from EUR 1,250 to EUR 4,000 for a minor offence referred to in the preceding paragraph.

Article 299 (Breaches in providing payment services in another Member State)

(1) A payment service provider with its head office in the Republic of Slovenia shall not be responsible for committing a minor offence referred to in paragraph one of Article 288 of this Act when providing payment services through a branch or agent in another Member State.

(2) A payment service provider with its head office in the Republic of Slovenia shall be fined for committing a minor offence under paragraph one of Article 288 of this Act when directly providing payment services in another Member State.

(3) A payment service provider shall be fined for committing a minor offence under the preceding paragraph provided that a penalty for such a minor offence is also applicable under the laws of the Member State in which the minor offence was committed.

(4) A payment service provider with its head office in the Republic of Slovenia shall not be fined for a minor offence under paragraph two of this Article if: 1. the competent authority in the country in which the payment service provider provides

payment services directly has already imposed a penalty on the payment service provider for the minor offence concerned and the penalty has been enforced or it has been decided under an international agreement that it be enforced in the Republic of Slovenia,

2. in the country in which the payment service provider provides payment services directly, it obtained an acquittal by way of a final court decision or a remission of penalty or where the enforcement of the penalty was barred by limitation,

3. under the laws of the country in which the payment service provider provides payment services directly, a perpetrator is to be prosecuted upon the request of the injured party and such a request was not filed.

(5) A responsible person of the payment service provider shall be fined for a minor offence committed by the payment service provider with its head office in the Republic of Slovenia in directly providing payment services in another Member State if the responsible person’s minor offence meets the conditions laid down in paragraph three or four of this Article.

Article 300 (Breaches in issuing electronic money in another Member Sate)

(1) An electronic money issuer with its head office in the Republic of Slovenia shall not be responsible for committing a minor offence referred to in paragraph one of Article 304 of this Act when issuing electronic money through a branch in another Member State.

(2) An electronic money issuer with its head office in the Republic of Slovenia shall be fined for committing a minor offence under paragraph one of Article 304 of this Act when directly issuing electronic money in another Member State.

(3) An electronic money issuer shall be fined for committing a minor offence under the preceding paragraph provided that a penalty for such a minor offence is also applicable under the laws of the Member State in which the minor offence was committed.

(4) An electronic money issuer with its head office in the Republic of Slovenia shall not be fined for a minor offence under paragraph two of this Article if: 1. the competent authority in the country in which the electronic money issuer issues

electronic money directly has already imposed a penalty on the electronic money issuer for the minor offence and the penalty has been or it has been decided under an international agreement that it be enforced in the Republic of Slovenia,

2. in the country in which the electronic money issuer issues electronic money directly, it obtained an acquittal by way of a final court decision or a remission of penalty or where the enforcement of the penalty was barred by limitation,

3. under the laws of the country in which the electronic money issuer issues electronic money directly, a perpetrator is to be prosecuted upon the request of the injured party and such a request was not filed.

(5) A responsible person of the electronic money issuer shall be fined for a minor offence committed by the electronic money issuer with its head office in the Republic of Slovenia when directly issuing electronic money in another Member State if the responsible person’s breach meets the conditions laid down in paragraph three or four of this Article.

Article 301 (Breaches in directly providing payment services in the Republic of Slovenia)

(1) If a payment service provider with its head office in another Member State commits a minor offence referred to in Article 288 of this Act in directly providing payment services in the Republic of Slovenia, the Bank of Slovenia shall inform the supervisory authority of the home country about the established breaches under the procedure provided for in Subchapter 14.7 of this Act.

(2) Notwithstanding paragraph one of Article 288 of this Act, the payment service provider with its head office in another Member State and committing a minor offence referred to in Article 288 of this Act in directly providing payment services in the Republic of Slovenia shall not be fined for a minor offence under this Act if the competent supervisory authority of the home country initiates an adequate procedure against that provider for this breach.

Article 302 (Breaches in providing payment services or in issuing electronic money in the

Republic of Slovenia through an agent or branch)

(1) A payment institution or electronic money institution having agents or branches in the territory of the Republic of Slovenia shall be fined from EUR 12,500 to EUR 125,000 for the minor offence of failing to report to the Bank of Slovenia, at the latter’s request, on the activities carried out in the territory of the Republic of Slovenia under Article 51 of this Act.

(2) A payment institution having agents in the territory of the Republic of Slovenia on the basis of exercising the right of establishment shall be fined from EUR 12,500 to EUR 125,000 for the minor offence of failing to appoint a central contact point under Article 52 of this Act.

(3) A responsible person of the payment institution or electronic money institution shall be fined from EUR 1,250 to EUR 4,000 for the minor offence under paragraph one of this Article.

(4) A responsible person of the payment institution shall be fined from EUR 1,250 to EUR 4,000 for the minor offence under paragraph two of this Article.

Article 303 (Breaches in directly issuing electronic money in the Republic of Slovenia)

(1) If an electronic money issuer with its head office in another Member State commits a minor offence referred to in Article 304 of this Act when directly issuing electronic money in the Republic of Slovenia, the Bank of Slovenia shall inform the supervisory authority of the home country about the established breaches under the procedure provided for in Subchapter 14.7 of this Act.

(2) Notwithstanding paragraph one of Article 304 of this Act, the electronic money issuer with its head office in another Member State and committing a minor offence referred to in Article 304 of this Act when directly issuing electronic money in the Republic of Slovenia shall not be fined for a minor offence under this Act if the competent supervisory authority of the home country initiates an adequate procedure against that issuer for this breach.

Article 304 (Breaches by electronic money issuers)

(1) An electronic money issuer shall be fined from EUR 20,000 to EUR 150,000 for a minor offence of: 1. before entering into a contract for electronic money issuance, failing to transmit

information to an electronic money holder about the conditions of redemption or the fees (paragraph two of Article 159 of this Act),

2. granting interest on electronic money in the period from its issue to its use or offering an electronic money holder any other benefit related to the length of time during which a holder holds the electronic money (paragraph three of Article 159 of this Act),

3. failing to pay out the electronic money to the holder at his request in accordance with Article 160 of this Act.

(2) A responsible person of the electronic money issuer shall be fined from EUR 1,500 to EUR 5,000 for a minor offence referred to in the preceding paragraph.

Article 305 (Breaches by electronic money institutions and electronic money institutions

benefiting from a waiver)

(1) An electronic money institution shall be fined from EUR 20,000 to EUR 150,000 for a minor offence of: 1. issuing of electronic money without obtaining an authorisation from the Bank of Slovenia

for providing this service (paragraph one of Article 162 or paragraph one of Article 167 of this Act),

2. failing to inform the Bank of Slovenia about the facts and circumstances referred to in paragraph one of Article 40 in conjunction with paragraph five of Article 161 of this Act,

3. failing to keep the documentation in accordance with paragraph two of Article 40 in conjunction with paragraph five of Article 161 of this Act,

4. being involved in the merger or demerger of undertakings in which the electronic money institution continues to provide electronic money issuance services or payment services and failing to obtain the authorisation of the Bank of Slovenia prior to such a merger or demerger in accordance with Article 41 in conjunction with paragraph five of Article 161 of this Act,

5. failing to inform the Bank of Slovenia about the facts and circumstances in accordance with paragraph five of Article 42 in conjunction with paragraph five of Article 161 of this Act,

6. after the termination of the authorisation to issue electronic money, entering into new transactions contrary to the prohibition referred to in paragraph seven of Article 42 in conjunction with paragraph five of Article 161 of this Act,

7. starting to issue electronic money in a host country or a third country through a branch or agent contrary to paragraph one of Article 44 in conjunction with paragraph five of Article 161 of this Act,

8. starting to issue electronic money in a host country directly without notifying the Bank of Slovenia accordingly (paragraph two of Article 47 in conjunction with paragraph five of Article 161 of this Act) or contrary to paragraph two of Article 49 of this Act,

9. outsourcing of operational functions of electronic money issuing or payment service provision to other entities in the host country without informing the Bank of Slovenia in accordance with paragraph three of Article 47 of this Act in conjunction with paragraph five of Article 161 of this Act,

10. failing to inform the Bank of Slovenia in accordance with paragraph four of Article 43 in conjunction with paragraph five of Article 161 of this Act or in accordance with paragraph one or five of Article 45 in conjunction with paragraph five of Article 161 of this Act or in accordance with paragraph three or four of Article 49 in conjunction with paragraph five of Article 161 of this Act,

11. failing to establish or maintain a reliable and comprehensive governance system or internal control system (paragraph one of Article 54 in conjunction with paragraph five of Article 161 of this Act),

12. failing to report to the Bank of Slovenia in accordance with paragraph two of Article 66 in conjunction with paragraph five of Article 164 of this Act,

13. failing to safeguard users’ funds in accordance with Article 166 of this Act,

14. keeping books of account, preparing accounting documents, evaluating accounting items or drawing up accounting reports contrary to paragraph one of Article 73 in conjunction with paragraph five of Article 161 of this Act,

15. failing to submit unaudited financial statements to the Bank of Slovenia in due time or submitting them without separate accounting information (paragraph two of Article 73 in conjunction with paragraph five of Article 161 of this Act),

16. failing to submit an annual report or the auditor’s report on the auditing of the annual report to the Bank of Slovenia in due time or submitting it without the auditor’s opinion on separate accounting information (paragraph three of Article 73 in conjunction with paragraph five of Article 161 of this Act).

(2) A responsible person of the electronic money institution shall be fined from EUR 1,500 to EUR 5,000 for a minor offence referred to in the preceding paragraph.

(3) An electronic money institution benefiting from a waiver shall be fined from EUR 20,000 to EUR 150,000 for the minor offence of failing to inform the Bank of Slovenia about the facts and circumstances affecting the fulfilment of the conditions to issue electronic money in its capacity as an electronic money institution benefiting from a waiver (Article 167 of this Act).

Article 306 (Other breaches by payment institutions and payment institutions benefiting from a

waiver)

(1) A payment institution or a payment institutions benefiting from a waiver shall be fined from EUR 12,500 to EUR 125,000 for a minor offence of: 1. offering credit to users in connection with payment services contrary to paragraph one of

Article 29 of this Act, 2. providing payment services without obtaining an authorisation from the Bank of Slovenia

for providing these services (Article 34 of this Act), 3. failing to inform the Bank of Slovenia about the facts and circumstances referred to in

paragraph one of Article 40 of this Act, 4. failing to keep the documentation in accordance with paragraph two of Article 40 of this

Act, 5. being involved in the merger or demerger of undertakings in which the payment

institution continues to provide payment services and failing to obtain the authorisation of the Bank of Slovenia prior to such a merger or demerger in accordance with Article 41 of this Act,

6. failing to inform the Bank of Slovenia about the facts and circumstances in accordance with paragraph five of Article 42 of this Act,

7. after the termination of the authorisation to provide payment services, entering into new transactions contrary to the prohibition referred to in paragraph seven of Article 42 of this Act,

8. starting to provide payment services in a host country or a third country through a branch or agent contrary to paragraph one of Article 44 of this Act,

9. starting to provide payment services in a host country directly without notifying the Bank of Slovenia accordingly (paragraph two of Article 47 of this Act) or contrary to paragraph two of Article 49 of this Act,

10. outsourcing of operational functions of payment service provision to other entities in the host country without informing the Bank of Slovenia accordingly (paragraph three of Article 47 of this Act),

11. failing to inform the Bank of Slovenia in accordance with paragraph four of Article 43, paragraph one or five of Article 45, or paragraph three or four of Article 49 of this Act,

12. failing to establish or maintain a reliable and comprehensive governance system or internal control system (paragraph one of Article 54 of this Act),

13. failing to report to the Bank of Slovenia in accordance with paragraph two of Article 66 of this Act and/or in accordance with the requirements and rules established by the Bank of Slovenia under Article 67 of this Act,

14. failing to safeguard users’ funds in accordance with Article 68 and/or Article 69 of this Act,

15. failing to safeguard users’ funds in the portion assumed to be used by users without the authorisation of the Bank of Slovenia (Article 70 of this Act),

16. failing to inform the Bank of Slovenia on changes relating to the measures for the safeguarding of users’ funds (Article 72 of this Act),

17. keeping books of account, preparing accounting documents, evaluating accounting items or drawing up accounting reports contrary to paragraph one of Article 73 of this Act,

18. failing to submit unaudited financial statements to the Bank of Slovenia in due time or submitting them without separate accounting information (paragraph two of Article 73 of this Act),

19. failing to submit an annual report and the auditor’s report on the auditing of the annual report to the Bank of Slovenia in due time or submitting it without the auditor’s opinion on separate accounting information (paragraph three of Article 73 of this Act).

(2) A responsible person of the payment institution or of the payment institution benefiting from a waiver shall be fined from EUR 1,250 to EUR 4,000 for a minor offence under the preceding paragraph.

(3) A payment institution benefiting from a waiver shall be fined from EUR 12,500 to EUR 125,000 for the minor offence of failing to inform the Bank of Slovenia about the facts and circumstances affecting the fulfilment of the conditions to provide the payment services of money remittance as a payment institution benefiting from a waiver (paragraph six of Article 76 of this Act).

Article 307 (Breaches by payment institutions or electronic money institutions)

(1) A payment institution or an electronic money institution shall be fined from EUR 12,500 to EUR 125,000 for a minor offence of: 1. failing to submit to the Bank of Slovenia its reports or information about issues that are

relevant to the Bank of Slovenia’s carrying out supervision and executing its other competences and tasks (paragraph two of Article 248 of this Act and paragraph two of Article 248 in conjunction with paragraph five of Article 161 of this Act),

2. failing to act in accordance with the invitation by the Bank of Slovenia (paragraph three of Article 248 of this Act and paragraph three of Article 248 in conjunction with paragraph five of Article 161 of this Act),

3. failing to submit to the authorised person of the Bank of Slovenia its reports or information about issues that are relevant to carrying out an on-site inspection (paragraph three of Article 252 of this Act and paragraph three of Article 252 in conjunction with paragraph five of Article 161 of this Act).

(2) A member of the management body or a person who is directly responsible for the management of the payment service activities of the payment institution or who is directly responsible for the management of the electronic money issuing activities of the electronic money institution shall be fined from EUR 800 to EUR 10,000 for a minor offence of: 1. failing to submit to the Bank of Slovenia its reports or information about issues that are

relevant to the Bank of Slovenia’s carrying out supervision and executing its other

competences and tasks (paragraph two of Article 248 of this Act and paragraph two of Article 248 in conjunction with paragraph five of Article 161 of this Act),

2. failing to act in accordance with the invitation by the Bank of Slovenia (paragraph three of Article 248 of this Act and paragraph three of Article 248 in conjunction with paragraph five of Article 161 of this Act),

3. failing to submit to the authorised person of the Bank of Slovenia its reports or information about issues that are relevant to carrying out an on-site inspection (paragraph three of Article 252 of this Act and paragraph three of Article 252 in conjunction with paragraph five of Article 161 of this Act).

(3) An employee of the payment institution who is neither a member of the management body nor a person who is directly responsible for the management of the payment service activities of the payment institution or an employee of the electronic money institution who is not directly responsible for the management of electronic money issuing activities shall be fined from EUR 200 to EUR 2,000 for a minor offence referred to in the preceding paragraph.

Article 308 (Breaches by an audit firm and a certified auditor)

(1) An audit firm shall be fined for a minor offence from EUR 25,000 to EUR 250,000 if its certified auditor fails to immediately inform the Bank of Slovenia about the facts and circumstances under paragraph one and/or paragraph two of Article 74 of this Act or in paragraph one and/or paragraph two of Article 74 in conjunction with paragraph five of Article 161 of this Act or if he fails to transmit the information in accordance with paragraph three of Article 74 of this Act or with paragraph three of Article 74 in conjunction with paragraph five of Article 161 of this Act.

(2) The certified auditor shall be fined from EUR 2,500 to EUR 10,000 for a minor offence referred to in the preceding paragraph.

Article 309 (Breaches in connection with the operation of payment systems)

(1) A payment system operator shall be fined from EUR 12,500 and 125,000 for a minor offence of: 1. failing to align the payment system rules as set out in paragraph four of Article 201 of

this Act, 2. changing the payment system rules contrary to paragraph one of Article 213 of this Act, 3. failing to inform the Bank of Slovenia about the facts and circumstances referred to in

paragraph one of Article 225 of this Act, 4. failing to report to the Bank of Slovenia in accordance with the requirements and rules

issued by the Bank of Slovenia under paragraph five of Article 225 of this Act, 5. processing confidential information contrary to Article 242 of this Act.

(2) A clearing house shall be fined from EUR 12,500 to EUR 125,000 for a minor offence of: 1. failing to inform the Bank of Slovenia about the facts and circumstances referred to in

paragraph one of Article 232 of this Act, 2. failing to keep the documentation in accordance with paragraph two of Article 232 of this

Act, 3. failing to inform the Bank of Slovenia about the circumstances in accordance with

paragraph five of Article 233 of this Act,

4. after the termination of the authorisation to provide payment services, entering into new transactions contrary to the prohibition referred to in paragraph seven of Article 233 of this Act,

5. failing to provide minimum own funds in accordance with paragraph one of Article 234 of this Act,

6. failing to ensure sound and prudent management or provide an operation or internal control system in accordance with Article 235 of this Act,

7. keeping books of account contrary to the requirement referred to in paragraph one of Article 236 of this Act,

8. failing to submit unaudited financial statements to the Bank of Slovenia in due time or submitting them without separate accounting information (paragraph three of Article 236 of this Act),

9. failing to submit an annual report and the auditor’s report on the auditing of the annual report to the Bank of Slovenia in due time or submitting it without the auditor’s opinion on separate accounting information (paragraph four of Article 236 of this Act).

(3) A responsible person of the payment system operator who committed a minor offence under paragraph one of this Article or a responsible person of the clearing house who committed a minor offence under the preceding paragraph shall be fined from EUR 1,250 to EUR 4,000.

(4) A member of the clearing house management body or a person who is directly responsible for the management of its payment system operation activities shall be fined from EUR 800 to EUR 10,000 for a minor offence of: 1. failing to submit to the Bank of Slovenia its reports or information about issues that are

relevant to the Bank of Slovenia’s carrying out supervision or executing its other competences and tasks (paragraph two of Article 248 of this Act),

2. failing to act in accordance with the invitation by the Bank of Slovenia (paragraph three of Article 248 of this Act),

3. failing to submit to the authorised person of the Bank of Slovenia, at the latter’s request, reports on or information about issues that are relevant to carrying out an on-site inspection (paragraph three of Article 252 of this Act).

(5) An employee of the clearing house who is neither a member of the management body nor a person who is directly responsible for the management of the clearing house activities shall be fined from EUR 200 to EUR 2,000 for a minor offence referred to in the preceding paragraph.

(6) An audit firm shall be fined from EUR 25,000 to EUR 250,000 for a minor offence referred to in the preceding Article in connection with the provision of information to the Bank of Slovenia. If the minor offence under the preceding Article is committed by the certified auditor in connection with the audit of the clearing house, he shall be fined from EUR 2,500 to EUR 10,000.

Article 310 (Breaches by other persons)

(1) A legal person or a sole trader shall be fined from EUR 12,500 to EUR 125,000 for a minor offence of: 1. providing payment services contrary to Article 20 of this Act, 2. failing to send a notification to the Bank of Slovenia in accordance with paragraph one of

Article 23 of this Act when carrying out one or both activities referred to in the first and second indents of point 11 of paragraph one of Article 3 of this Act,

3. failing to send a notification to the Bank of Slovenia or provide it with an annual audit opinion in accordance with paragraph three of Article 23 of this Act when carrying out the activities referred to in point 12 of paragraph one of Article 3 of this Act,

4. charging the payer, in its capacity as a payee, a compensation for the use of a certain payment instrument exceeding the direct costs borne by the payee for the use of the particular payment instrument, contrary to paragraph two of Article 126 of this Act,

5. requesting charges, in its capacity as a payee, for the use of payment instruments for which interchange fees are regulated under Chapter II of Regulation (EU) 2015/751 and for those payment services to which Regulation (EU) No 260/2012 applies, contrary to paragraph three of Article 126 of this Act,

6. providing electronic money issuance services contrary to Article 158 of this Act, 7. acquiring business interests, shares or other rights contrary to Article 33 of this Act, 8. operating payment systems contrary to Article 210 of this Act, 9. failing to enable an authorised person of the Bank of Slovenia to carry out an on-site

inspection in compliance with Articles 245, 252 and 253, paragraph two of Article 264, and paragraph two of Article 265 of this Act.

(2) A legal person or a sole trader shall be fined from EUR 800 to EUR 10,000 for a minor offence of: 1. failing to inform the payer prior to the initiation of the payment transaction about the

exchange rate and fees for the currency exchange that, in its capacity as a payee, it will charge the payer (Article 109 of this Act),

2. failing to inform the user prior to the initiation of the payment transaction that the user is required to pay a special charge for the use of a particular payment instrument (paragraphs one and two of Article 110 of this Act).

(3) A person referred to in paragraph one or two of Article 204 of this Act with its head office in the Republic of Slovenia shall be fined from EUR 800 to EUR 10,000 for a minor offence of: 1. failing to inform the Bank of Slovenia of its participation in payment systems under

paragraph three of Article 225 of this Act, 2. failing to inform its customer or other person about the payment systems in which it

participates (paragraph four of Article 225 of this Act).

(4) A sole trader or a self-employed person shall be fined from EUR 500 to EUR 5,000 for the minor offence of acting contrary to paragraph six of Article 192 of this Act.

(5) A responsible person of the legal person or a responsible person of the state authority or self-governing local community who committed a minor offence under paragraphs one to three of this Article or a responsible person of a sole trader who committed a minor offence under the preceding paragraph of this Article shall be fined from EUR 200 to EUR 2,000.

(6) An individual shall be fined from EUR 400 to EUR 4,000 for a minor offence referred to in paragraph one or two of this Article.

Article 311 (Sanctions for breaches of Regulation (EC) No 924/2009)

(1) A payment service provider shall be fined from EUR 12,500 to EUR 125,000 for the following minor offences committed in providing payment services in the Republic of Slovenia: 1. failure to levy charges under Article 3 or paragraph three of Article 4 of Regulation (EC)

No 924/2009,

2. failure to communicate to the user the information under paragraph one of Article 4 of Regulation (EC) No 924/2009,

3. failure to levy the interchange fee under Article 6 or Article 7 of Regulation (EC) No 924/2009,

4. failure to be reachable in accordance with Article 8 of Regulation (EC) No 924/2009.

(2) A sole trader or a self-employed person shall be fined from EUR 2,000 to EUR 20,000 for a minor offence referred to in the preceding paragraph.

(3) A responsible person of the legal person, a responsible person of the sole trader or a responsible person of the self-employed person who is a payment service provider shall be fined from EUR 400 to EUR 4,000 for a minor offence referred to in paragraph one of this Article.

Article 312 (Sanctions for major breaches of Regulation (EU) No 2015/847)

(1) A legal person shall be fined from EUR 12,000 to EUR 120,000 for a minor offence if: 1. in its capacity as a payment service provider of the payee or as an intermediary payment

service provider, it establishes that the payment service provider of the payer repeatedly fails to provide the required information on the payer or the payee and does not report that failure to the Office of the Republic of Slovenia for Money Laundering Prevention or to the Bank of Slovenia (subparagraph two of paragraph two of Article 8 and subparagraph two of paragraph two of Article 12 of Regulation (EU) No 2015/847),

2. in its capacity as a payment service provider, it fails to send to the Office of the Republic of Slovenia for Money Laundering Prevention, within three working days of receiving the latter’s request, the information accompanying transfers of funds and the corresponding records (Article 14 of Regulation (EU) No 2015/847).

(2) A sole trader or a self-employed person independently providing payment services in compliance with applicable regulations shall be fined from EUR 4,000 to EUR 40,000 for a minor offence referred to in the preceding paragraph.

(3) A responsible person of the legal person, a responsible person of the sole trader or a responsible person of the self-employed person shall be fined from EUR 800 to EUR 4,000 for a minor offence referred to in paragraph one of this Article.

Article 313 (Sanctions for other breaches of Regulation (EU) No 2015/847)

(1) A legal person shall be fined from EUR 6,000 to EUR 60,000 for a minor offence if: 1. in its capacity as a payment service provider of the payer, it repeatedly fails to ensure

that transfers of funds are accompanied by the required information on the payer and the payee or, before transferring funds, it fails to verify the accuracy of the information on the payer in the prescribed manner (paragraphs one, two and four of Article 4 of Regulation (EU) No 2015/847),

2. in its capacity as a payment service provider of the payer, it fails to make available within the prescribed time limit the required information on the payer or the payee to the payment service provider of the payee or the intermediary payment service provider (paragraph two of Article 5 of Regulation (EU) No 2015/847),

3. in its capacity as a payment service provider of the payer, it fails to comply with the provisions on transfers of funds to outside the EU (Article 6 of Regulation (EU) No 2015/847),

4. in its capacity as a payment service provider of the payee, when, in receiving transfers of funds, the information on the payer or the payee is missing or incomplete or has not been filled in using characters or inputs admissible in accordance with the conventions of the messaging or payment and settlement system, it repeatedly fails to implement effective procedures based on the risk assessment (paragraphs one and two of Article 8 of Regulation (EU) No 2015/847),

5. in its capacity as a payment service provider of the payee, it fails to take appropriate steps in relation to the payment service provider of the payer that repeatedly fails to provide the required information on the payer or the payee (subparagraph one of paragraph two of Article 8 of Regulation (EU) No 2015/847),

6. in its capacity as an intermediary payment service provider, it fails to ensure that all the information received on the payer and the payee that accompanies a transfer of funds is retained with the transfer (Article 10 of Regulation (EU) No 2015/847),

7. in its capacity as an intermediary payment service provider, it fails to establish effective procedures for determining whether the required payer and payee information is missing (paragraph one of Article 12 of Regulation (EU) No 2015/847),

8. in its capacity as an intermediary payment service provider, when, in transferring funds, the information on the payer or the payee is missing or incomplete or has not been filled in using characters or inputs admissible in accordance with the conventions of the messaging or payment and settlement system, it repeatedly fails to implement effective procedures based on the risk assessment (paragraph two of Article 12 of Regulation (EU) No 2015/847),

9. in its capacity as an intermediary payment service provider, it fails to take appropriate steps in relation to another payment service provider that repeatedly fails to provide the required information on the payer or the payee (subparagraph one of paragraph two of Article 12 of Regulation (EU) No 2015/847),

10. in its capacity as a payment service provider of the payer or a payment service provider of the payee or an intermediary payment service provider, it fails either to keep records or to keep them accurately or for a period of ten years (paragraph one of Article 16 of Regulation (EU) No 2015/847).

(2) A sole trader or a self-employed person independently providing payment services in compliance with applicable regulations shall be fined from EUR 2,000 to EUR 20,000 for a minor offence referred to in the preceding paragraph.

(3) A responsible person of the legal person, a responsible person of the sole trader or a responsible person of the self-employed person shall be fined from EUR 400 to EUR 2,000 for a minor offence referred to in paragraph one of this Article.

Article 314 (Special sanctions for breaches of Regulation (EU) No 2015/847)

(1) If the minor offence referred to in Articles 312 and 313 of this Act is of a particularly serious nature due to the amount of the damage caused or of the proceeds of unlawful conduct, due to the offender’s criminal intent or self-serving interest, due to the repetition or systematic nature of the minor offence, the legal person referred to in paragraph one of Article 312 of this Act and the legal person referred to in paragraph one of the preceding Article shall be fined up to: 1. EUR 1,000,000 or 2. twice the amount of the proceeds gained from the minor offence, where determinable,

when this amount exceeds the amount referred to in the preceding point.

(2) If the minor offence referred to in Articles 312 and 313 of this Act is of a particularly serious nature due to the amount of the damage caused or of the proceeds of unlawful conduct, due to the offender’s criminal intent or self-serving interest, due to the repetition or systematic nature of the minor offence, the sole trader or self-employed person referred to in paragraph two of Article 312 of this Act and in paragraph two of the preceding Article shall be fined up to: 1. EUR 500,000 or 2. twice the amount of the proceeds gained from the breach, where determinable, when

this amount exceeds the amount referred to in the preceding point.

(3) A responsible person of the legal person referred to in paragraph one of this Article or a responsible person of the sole trader or a responsible person of the self-employed person referred to in the preceding paragraph shall be fined up to EUR 250,000.

(4) A legal person referred to in paragraph one of this Article which is a credit or financial institution shall be fined up to: 1. EUR 5,000,000 or 2. ten percent of its total annual turnover in the preceding financial year when this amount

exceeds the amount referred to in the preceding point.

(5) Where the legal person referred to in the preceding paragraph which controls one or more subsidiaries or is itself a subsidiary, the total annual turnover in the preceding financial year shall be the figure from the annual consolidated report under the act governing companies.

(6) A sole trader or a self-employed person referred to in paragraph two of this Article which is a credit or financial institution shall be fined up to: 1. EUR 2,500,000 or 2. ten percent of the total annual turnover in the preceding financial year when this amount

exceeds the amount referred to in the preceding point.

(7) A responsible person of the legal person referred to in paragraph four of this Article or a responsible person of the sole trader or a responsible person of the self-employed person referred to in the preceding paragraph shall be fined up to EUR 500,000.

(8) In addition to a fine, a withdrawal of the authorisation for the pursuit of activity may be imposed under the provisions of Articles 258 and 259 of this Act on a legal person referred to in paragraphs one and four of this Article or on a sole trader or a self-employed person referred to in paragraphs two and six of this Article when such an authorisation is required to perform the activity of the legal person, sole trader or self-employed person.

(9) A proposal to start the procedure for issuing the order for the withdrawal of the authorisation to perform the activity referred to in the preceding paragraph may also be made by the Office of the Republic of Slovenia for Money Laundering Prevention.

(10) In addition to the imposition of a fine, a responsible person referred to in paragraphs three and seven of this Article shall be temporarily disqualified from acting as director for a period of at least three months up to a maximum of one year under the provisions of the act governing labour relations.

(11) The order for the temporary disqualification from acting as director referred to in the preceding paragraph shall be issued by the authority that authorised the responsible person’s assuming such a position by applying its own procedure, or on the proposal of the Office of the Republic of Slovenia for Money Laundering Prevention, under the provisions of the act governing labour relations.

Article 315 (Application of minor offence provisions)

Until such time as the provisions of the act governing minor offences relating to amounts and ranges of fines are amended, the amounts and ranges of fines laid down in the preceding Article shall apply notwithstanding the provisions of the act governing minor offences.

Article 316 (Sanctions for major breaches of Regulation (EU) No 260/2012)

(1) A legal person shall be fined from EUR 12,500 to EUR 125,000 for a minor offence if, in its capacity as a: 1. payee’s payment service provider which is reachable for a national credit transfer under

a payment scheme, it fails to comply with the obligations of paragraph one of Article 3 of Regulation (EU) No 260/2012,

2. payer’s payment service provider which is reachable for a national direct debit under a payment scheme, it fails to comply with the obligations of paragraph two in conjunction with paragraph three of Article 3 of Regulation (EU) No 260/2012,

3. payment service provider, it uses payment schemes which fail to comply with the conditions of paragraph one of Article 4 of Regulation (EU) No 260/2012.

(2) A sole trader or a self-employed person shall be fined from EUR 2,000 to EUR 20,000 for a minor offence referred to in the preceding paragraph.

(3) A responsible person of the legal person, of the sole trader or of the self-employed person who is a payment service provider shall be fined from EUR 400 to EUR 4,000 for a minor offence referred to in paragraph one of this Article.

Article 317 (Sanctions for minor breaches of Regulation (EU) No 260/2012)

(1) A legal person shall be fined from EUR 2,000 to EUR 20,000 for a minor offence if, in its capacity as a: 1. payment service provider, it carries out credit transfer transactions contrary to the

requirements of Article 5 of Regulation (EU) No 260/2012, 2. payment service provider, it carries out direct debit transactions contrary to the

requirements of Article 5 of Regulation (EU) No 260/2012, 3. payment service provider, it requires a payment service user to indicate the BIC of the

payer or of the payee after the dates laid down in paragraph seven of Article 5 of Regulation (EU) No 260/2012,

4. payment service provider, it charges multilateral interchange fees or other agreed remuneration with an equivalent object or effect for direct debit transactions (paragraph one of Article 8 of Regulation (EU) No 260/2012),

5. payment service provider for R-transactions, it applies a multilateral interchange fee despite the conditions of paragraph two of Article 8 of Regulation (EU) No 260/2012) not being complied with.

(2) A sole trader or a self-employed person shall be fined from EUR 400 to EUR 4,000 for a minor offence referred to in the preceding paragraph.

(3) A responsible person of the legal person, of the sole trader or of the self-employed person who is a payment service provider shall be fined from EUR 200 to EUR 2,000 for a minor offence referred to in paragraph one of this Article.

Article 318 (Sanctions for other breaches of Regulation (EU) No 260/2012)

(1) An operator of or, in the absence of a formal operator, a participant in a retail payment system which is a legal person shall be fined from EUR 12,500 to EUR 125,000 for the minor offence of not complying with the requirements of paragraph two of Article 4 of Regulation (EU) No 260/2012).

(2) A sole trader or a self-employed person shall be fined from EUR 2,000 to EUR 20,000 for the minor offence referred to in the preceding paragraph.

(3) A responsible person of the legal person, of the sole trader or of the self-employed person who is an operator of or a participant in a retail payment system shall be fined from EUR 400 to EUR 4,000 for the minor offence referred to in paragraph one of this Article.

Article 319 (Sanctions for breaches of Regulation (EU) No 260/2012 committed by a payer or a

payee)

(1) A payer which is a legal person and wishes to make a credit transfer to a payee holding a payment account located within the EU shall be fined from EUR 1,250 to EUR 12,500 for the minor offence of acting contrary to paragraph one of Article 9 of Regulation (EU) No 260/2012).

(2) A payer who is a sole trader or a self-employed person shall be fined from EUR 400 to EUR 4,000 for the minor offence referred to in the preceding paragraph.

(3) A responsible person of the legal person, of the sole proprietor, of the self-employed person, or of the state authority or self-governing local community shall be fined from EUR 200 to 2,000 for the minor offence referred to in paragraph one of this Article.

(4) A payee which is a legal person and accepts a credit transfer or uses a direct debit to collect funds from a payer holding a payment account located within the EU shall be fined from EUR 1,250 to EUR 12,500 for the minor offence of acting contrary to paragraph two of Article 9 of Regulation (EU) No 260/2012).

(5) A payee who is a sole trader or a self-employed person shall be fined from EUR 400 to EUR 4,000 for the minor offence referred to in the preceding paragraph.

(6) A responsible person of the legal person, of the sole proprietor, of the self-employed person, or of the state authority or self-governing local community shall be fined from EUR 200 to 2,000 for the minor offence referred to in paragraph four of this Article.

Article 320 (Sanctions for major breaches of Regulation (EU) 2015/751)

(1) A legal person shall be fined from EUR 12,500 to EUR 125,000 for a minor offence if, in its capacity as a:

1. payment service provider, it offers or requires for any debit card transaction a per-transaction interchange fee exceeding the amount laid down in paragraph one of Article 3 of Regulation (EU) 2015/751,

2. payment service provider, it offers or requires for any credit card transaction a per-transaction interchange fee exceeding the amount laid down in Article 4 of Regulation (EU) 2015/751,

3. payment card scheme operator, in its licensing agreements or in its rules governing the payment card scheme for issuing payment cards or acquiring card-based payment transactions, it sets out the territorial restrictions and requirements or obligations that are prohibited under Article 6 of Regulation (EU) 2015/751,

4. payment card scheme operator and a processing entity, it fails to comply with the requirements of paragraph one of Article 7 of Regulation (EU) 2015/751.

(2) A sole trader or a self-employed person shall be fined from EUR 2,000 to EUR 20,000 for a minor offence referred to in the preceding paragraph.

(3) A responsible person of the legal person, of the sole trader or of the self-employed person shall be fined from EUR 400 to EUR 4,000 for a minor offence referred to in paragraph one of this Article.

Article 321 (Sanctions for minor breaches of Regulation (EU) 2015/751)

(1) A legal person shall be fined from EUR 2,000 to EUR 20,000 for a minor offence if, in its capacity as a/an: 1. payment card scheme operator, it allows territorial discrimination in processing rules

contrary to paragraph four of Article 7 of Regulation (EU) 2015/751, 2. processing entity within the EU, it fails to comply with the requirements of paragraph five

of Article 7 of Regulation (EU) 2015/751, 3. payment card scheme operator, it acts contrary to paragraph one of Article 8 of

Regulation (EU) 2015/751, 4. payment service provider, it fails to comply with the requirements of paragraph two of

Article 8 of Regulation (EU) 2015/751, 5. payment card scheme operator, it acts contrary to paragraph four of Article 8 of

Regulation (EU) 2015/751, 6. payment card scheme operator, issuer or acquirer, it applies routing principles or

equivalent measures contrary to paragraph five of Article 8 of Regulation (EU) 2015/751, 7. payment card scheme operator, issuer, acquirer or processing entity or other technical

service provider, it acts contrary to paragraph six of Article 8 of Regulation (EU) 2015/751,

8. payee, it acts contrary to paragraph six of Article 8 of Regulation (EU) 2015/751, 9. acquirer, it offers to and charges its payee merchant service charges contrary to the

requirements of paragraph one of Article 9 of Regulation (EU) 2015/751, 10. acquirer, it fails to include in its agreements with payees information specified in

paragraph two of Article 9 of Regulation (EU) 2015/751, 11. payment card scheme operator or payment service provider, it applies rules contrary to

paragraph one of Article 10 of Regulation (EU) 2015/751 in conjunction with paragraph two of Article 10 of Regulation (EU) 2015/751,

12. payee that decides not to accept all cards or other payment instruments of a payment card scheme, it fails to inform consumers of this under paragraph four of Article 10 of Regulation (EU) 2015/751,

13. issuer, it fails to comply with the requirements of paragraph five of Article 10 of Regulation (EU) 2015/751,

14. payment card scheme operator or acquirer, it acts contrary to paragraph one of Article 11 of Regulation (EU) 2015/751,

15. payment card scheme operator or acquirer, it acts contrary to paragraph two of Article 11 of Regulation (EU) 2015/751,

16. payment service provider of the payee, after the execution of an individual card-based payment transaction, it fails to provide the payee with the information under paragraph one of Article 12 of Regulation (EU) 2015/751,

17. acquirer, in contracts with payees, it fails to comply with the requirements of paragraph two of Article 12 of Regulation (EU) 2015/751.

(2) A sole trader or a self-employed person shall be fined from EUR 400 to EUR 4,000 for a minor offence referred to in the preceding paragraph.

(3) A responsible person of the legal person, of the sole proprietor, of the self-employed person, or of the state authority or self-governing local community shall be fined from EUR 200 to 2,000 for a minor offence referred to in paragraph one of this Article.

Article 322 (Offence authority)

(1) The minor offence authority which, in accordance with the act governing minor offences, shall decide on the minor offences committed under this Act and impose sanctions for the minor offences under this Act shall be the Bank of Slovenia.

(2) Notwithstanding the preceding paragraph, the minor offence authority which, in accordance with the act governing minor offences, shall decide on the minor offences referred to in paragraph four of Article 310 of this Act and impose sanctions for those minor offences shall be the Financial Administration of the Republic of Slovenia.

(3) Notwithstanding paragraph one of this Article, the minor offence authority which, in accordance with the act governing minor offences, shall decide on the minor offences referred to in point 2 of paragraph one of Article 312 of this Act and paragraphs two and three in conjunction with point 2 of paragraph one of Article 312 of this Act and impose sanctions for those minor offences shall be the Office of the Republic of Slovenia for Money Laundering Prevention.

Article 323 (Amounts of fines under the accelerated minor offence procedure)

The amounts of fines imposed under the accelerated minor offence procedure for minor offences committed under this Act may be higher than the minimum prescribed fines set out in this Act.

19. TRANSITIONAL AND FINAL PROVISIONS

Article 324 (Compliance with the requirement relating to the new authorisation to provide

payment services as a payment institution)

(1) Those payment institutions which were granted the authorisation to provide payment services as a payment institution by 13 January 2018 and which have taken up activities under the Payment Services and Systems Act (Official Gazette of the Republic of

Slovenia [Uradni list RS], Nos 58/09, 34/10, 9/11, 32/12, 81/15 and 47/16; hereinafter: ZPlaSS) shall be allowed to continue those activities in accordance with the ZPlaSS requirements for six months after the entry into force of this Act without being required to seek authorisation under Article 35 of this Act or to comply with the provisions laid down in Chapter 2 of this Act or the provisions referred to in the provisions of Chapter 2 of this Act.

(2) The payment institutions referred to in the preceding paragraph that intend to continue providing payment services after the expiry of six months from the entry into force of this Act shall, by 1 May 2018, file an application to provide payment services as a payment institution in accordance with Article 35 of this Act.

(3) If the payment institution referred to in paragraph one of this Article which, by 1 May 2018, filed an application to provide payment services as a payment institution in accordance with Article 35 of this Act is not granted the authorisation to provide payment services under this Act within six months of the entry into force thereof, the Bank of Slovenia shall initiate the procedure of withdrawal of the authorisation to provide payment services granted to the payment institution in accordance with the ZPlaSS requirements and shall prohibit it from providing payment services.

(4) In the case of payment institutions referred to in paragraph one of this Article which fail to file an application for authorisation to provide payment services as a payment institution in accordance with Article 35 of this Act by 1 May 2018, the authorisation to provide payment services as a payment institution granted in accordance with the ZPlaSS requirements shall terminate after a period of six months from the entry into force of this Act.

Article 325 (Compliance with the requirement relating to new authorisation to provide payment

services as a payment institution benefiting from a waiver)

(1) Those payment institutions benefiting from a waiver which were granted the authorisation to provide payment services as a payment institution benefiting from a waiver by 13 January 2018 and which have taken up activities under the ZPlaSS shall be allowed to continue those activities in accordance with the ZPlaSS requirements by 13 January 2019 without being required to seek authorisation under Article 76 of this Act or to comply with the provisions laid down in Chapter 3 of this Act or the provisions referred to in the provisions of Chapter 3 of this Act.

(2) The payment institutions benefiting from a waiver referred to in the preceding paragraph that intend to continue providing payment services after 13 January 2019 shall, by 1 October 2018, file an application to provide payment services as a payment institution benefiting from a waiver in accordance with Article 76 of this Act.

(3) If the payment institution benefiting from a waiver referred to in paragraph one of this Article which, by 1 October 2018, filed an application to provide payment services as a payment institution benefiting from a waiver in accordance with Article 76 of this Act is not granted the authorisation to provide payment services under this Act by 13 January 2019, the Bank of Slovenia shall initiate the procedure of withdrawal of the authorisation to provide payment services granted to the payment institution benefiting from a waiver in accordance with the ZPlaSS requirements and shall prohibit it from providing further payment services.

(4) In the case of payment institutions benefiting from a waiver referred to in paragraph one of this Article which fail to file an application for authorisation to provide payment services as a payment institution benefiting from a waiver in accordance with Article 76 of this Act by 1 October 2018, the authorisation to provide payment services as a

payment institution benefiting from a waiver granted in accordance with the ZPlaSS requirements shall terminate on 13 January 2019.

Article 326 (Validity of authorisations to provide payment services referred to in point 7 of

paragraph one of Article 5 of the ZPlaSS)

Notwithstanding Article 324 of this Act, those payment institutions which were granted the authorisation to provide payment services laid down in point 7 of paragraph one of Article 5 of the ZPlaSS shall be granted the authorisation to provide payment services, regarded as such under point 3 of paragraph one of Article 5 of this Act, by the Bank of Slovenia if, by 13 January 2020, the latter comes into possession of evidence demonstrating that the requirements laid down in point 3 of paragraph one of Article 31 of this Act and in Articles 55 to 62 of this Act are met.

Article 327 (Validity of authorisations to perform the activity of issuing electronic money)

(1) Electronic money institutions and electronic money institutions benefiting from a waiver which, by 13 January 2018, were granted the authorisation to provide electronic money issuance services as an electronic money institution or as an electronic money institution benefiting from a waiver and have taken up activities under the ZPlaSS shall be allowed to continue those activities in the Republic of Slovenia or another Member State for six months after the entry into force of this Act without being required to seek authorisation under Article 161 of this Act or to comply with the requirements laid down in Subchapter 7.2 of this Act or the requirements referred to in the provisions of Subchapter 7.2 of this Act.

(2) Electronic money institutions and electronic money institutions benefiting from a waiver referred to in the preceding paragraph that intend to continue the activities under this Act after the expiry of six months from the entry into force thereof shall, by 1 May 2018, file an application to provide electronic money issuance services as an electronic money institution or as an electronic money institution benefiting from a waiver in accordance with this Act.

(3) If the electronic money institution or electronic money institution benefiting from a waiver referred to in paragraph one of this Article which, by 1 May 2018, filed an application to provide electronic money issuance services under this Act is not granted the authorisation to provide electronic money issuance services under this Act within six months of the entry into force thereof, the Bank of Slovenia shall initiate the procedure of withdrawal of the authorisation to provide electronic money issuance services granted to the electronic money institution or electronic money institution benefiting from a waiver in accordance with the ZPlaSS requirements and shall prohibit it from providing further electronic money issuance services.

(4) In the case of electronic money institutions or electronic money institutions benefiting from a waiver referred to in paragraph one of this Article which fail to file an application for authorisation to provide electronic money issuance services under this Act by 1 May 2018, the authorisation to provide electronic money issuance services as an electronic money institution or as an electronic money institution benefiting from a waiver granted in accordance with the ZPlaSS requirements shall terminate after the expiry of six months from the entry into force of this Act.

Article 328 (Validity of authorisations to establish payment systems and provide payment system

operation services and validity of determining the status of an important payment system)

(1) Authorisations to establish a payment system and authorisations to provide payment system operation services that were issued in accordance with the ZPlaSS and are in force at the time of the enforcement of this Act shall, as of the date of entry into force of this Act, be deemed to be authorisations to operate a payment system issued under this Act.

(2) A payment system that obtained the status of an important payment system by means of a decision determining important payment system status in accordance with the ZPlaSS shall, as of the date of entry into force of this Act, be deemed to have the status of an important payment system under this Act.

Article 329 (Validity of contractual relationships)

Contractual relationships relating to the provision of payment services that were entered into before the enforcement of this Act shall remain effective even after the entry into force of this Act.

Article 330 (Compliance of the information on transaction accounts of sole traders and natural

persons)

Sole traders and natural persons who, on the date of entry into force of this Act, for the performance of their activities use transaction accounts the information on which, as contained in the register of transaction accounts, is not public and accessible free of charge shall provide the information referred to in the seventh indent of point 2 of paragraph two of article 192 of this Act to payment service providers no later than 30 June 2018.

Article 331 (Compliance of the opening of fiduciary accounts)

Fiduciary accounts that fail to comply with the conditions laid down in Article 14 of this Act and are open with banks on the date of enforcement of this Act may still be used until 13 January 2020.

Article 332 (Prohibition of abusing non-compliance with regulatory technical standards set out in Article 98 of Directive (EU) 2015/2366 to block or obstruct the use of payment initiation

and account information services)

Until individual payment service providers servicing accounts in accordance with Article 21 of this Act comply with the regulatory technical standards adopted by the European Commission under paragraph four of Article 98 of Directive (EU) 2015/2366 (hereinafter: technical standards), they must not abuse their non-compliance with the technical standards to block or obstruct the use of payment initiation services under Article 118 of this Act or account information services under Article 119 of this Act for the accounts that they are servicing.

Article 333 (Procedures in progress)

(1) Those procedures that were initiated on the basis of ZPlaSS prior to the entry into force of this Act and in which the Bank of Slovenia has not yet made a decision by the entry into force of this Act shall be completed in accordance with this Act.

(2) In the procedures referred to in the preceding paragraph, the applicant may supplement his application, if this was complete according to the procedural provisions of the ZPlaSS, by 1 May 2018 in accordance with the requirements of this Act and of regulations adopted on the basis thereof. As of the date of receipt of the applicant’s supplement, which should not be later than the time limit set out in the previous sentence, the periods set for a decision of the Bank of Slovenia in the procedures referred to in the preceding paragraph shall restart.

Article 334 (Issuing of regulations)

(1) The Bank of Slovenia shall issue implementing regulations on the basis of this Act within two months of the entry into force thereof.

(2) Notwithstanding the preceding paragraph, the Bank of Slovenia shall issue a regulation referred to in paragraph two of Article 173 of this Act within three months of the entry into force of regulatory technical standards adopted by the European Commission under paragraph four of Article 3 of Directive 2014/92/EU.

(3) The minister responsible for finance shall publish the date of entry into force of regulatory technical standards adopted by the European Commission under paragraph four of Article 3 of Directive 2014/92/EU in the Official Gazette of the Republic of Slovenia.

(4) The minister responsible for finance shall issue the implementing regulation referred to in Article 189 of this Act by 30 June 2018.

(5) The Agency shall issue the implementing regulations referred to in the tenth paragraph of Article 192, fourth paragraph of Article 195 and third paragraph of Article 287 of this Act by 30 June 2018.

Article 335 (Repealed regulations)

(1) As of the date of entry into force of this Act, the Payment Services and Systems Act (Official Gazette of the Republic of Slovenia [Uradni list RS], Nos 58/09, 34/10, 9/11, 32/12, 81/15 and 47/16) shall cease to be in force.

(2) Notwithstanding the preceding paragraph, the provisions of Articles 143 to 148 of the ZPlaSS shall apply to the register of transaction accounts referred to in Article 191 of this Act until 30 June 2018.

(3) As of the date of entry into force of this Act, the following implementing regulations shall cease to be in force, although, insofar as they are not inconsistent with this Act, they shall still apply until the implementing regulations are issued under this Act: 1. Legal Act on the establishment and management of the register of transaction accounts

(Official Gazette of the Republic of Slovenia [Uradni list RS], Nos 49/10, 27/11 and 59/16),

2. Instructions on contents, methods and time limits of collecting data on overdue outstanding liabilities of business entities and on transactions and balances on their bank accounts (Official Gazette of the Republic of Slovenia [Uradni list RS], Nos 102/09, 49/10 and 107/12),

3. Instructions on filing requests in electronic form to obtain personal data from the register of transaction accounts (Official Gazette of the Republic of Slovenia [Uradni list RS], No. 49/10),

4. Rules on actions by payment service providers in executing enforcement or security orders issued by tax authorities (Official Gazette of the Republic of Slovenia [Uradni list RS], No. 43/10),

5. Decision on payment institutions’ own funds (Official Gazette of the Republic of Slovenia [Uradni list RS], Nos 73/09 and 30/11),

6. Decision on payment systems (Official Gazette of the Republic of Slovenia [Uradni list RS], Nos 73/09 and 5/11),

7. Decision on the amounts of annual compensation for supervision and fees for deciding on applications for authorisations issued by the Bank of Slovenia under the Payment Services and Systems Act (Official Gazette of the Republic of Slovenia [Uradni list RS], Nos 78/09, 32/11 and 85/16),

8. Decision on the contents of an application for authorisation to provide payment services as a payment institution, a hybrid payment institution or a payment institution benefiting from a waiver (Official Gazette of the Republic of Slovenia [Uradni list RS], No. 73/09),

9. Decision on the contents of an application for authorisation to provide electronic money issuance services as an electronic money institution or electronic money institution benefiting from a waiver or authorisation to acquire a qualifying holding in an electronic money institution (Official Gazette of the Republic of Slovenia [Uradni list RS], No. 30/11),

10. Decision on the contents of an application for authorisation to provide payment system operation services as a clearing house (Official Gazette of the Republic of Slovenia [Uradni list RS], No. 73/09),

11. Decision on the characteristics of a payment account with basic features and on the method of calculation of the amount of a reasonable fee for providing a payment account with basic features (Official Gazette of the Republic of Slovenia [Uradni list RS], No. 52/16), and

12. Tariff of charges for communicating information on the transaction accounts of natural persons from the register of transaction accounts (Official Gazette of the Republic of Slovenia [Uradni list RS], No. 49/10).

Article 336 (Date of application of individual provisions)

(1) The provisions of Articles 117, 118, 119 and 153 of this Act governing the application of security measures shall apply 18 months after the entry into force of the regulatory technical standards adopted by the European Commission under paragraph four of Article 98 of Directive (EU) 2015/2366.

(2) Subchapter 8.1 of this Act, with the exception of paragraph two of Article 173 of this Act, shall apply nine months after the entry into force of the regulatory technical standards adopted by the European Commission under paragraph four of Article 3 of Directive 2014/92/EU.

(3) The minister responsible for finance shall publish in the Official Gazette of the Republic of Slovenia [Uradni list RS] a notice indicating the date of application of the provisions referred to in paragraphs one and two of this Article.

(4) Chapter 11, paragraph four of Article 310 and paragraph two of Article 322 of this Act shall apply as of 1 July 2018.

(5) The first sentence of paragraph one of Article 96 of this Act shall apply two months after the entry into force of this Act.

Article 337 (Entry into force)

This Act shall enter into force on the fifteenth day following its publication in the Official Gazette of the Republic of Slovenia [Uradni list RS], with the exception of Article 334 thereof, which shall enter into force on the day following its publication in the Official Gazette of the Republic of Slovenia [Uradni list RS].

No. 450-01/17-17/13 Ljubljana, 25 January 2018 EPA 2297-VII

National Assembly of the Republic of Slovenia

Primož Hainz, m.p. Vice-President