The Central Bank of Yemen: The decisions of the Sana'a branch are invalid
English - Thursday 02 April 2020 الساعة 05:29 pm
Aden, Newsyemen, private
The Central Bank of Yemen announced, in a warning statement on Wednesday, that the decision of the Central Bank branch in Sana'a to allow specific financial institutions to provide electronic payment services via mobile phone is invalid, stressing that the central bank from its headquarters in Aden is the only entity authorized to issue cash and grant licenses to provide mobile payment services, according to law.
The Central Bank of Yemen warned local banks against dealing with any decisions or instructions issued by the branch of the Central Bank in Sana'a as they are illegal and will entail strict legal issues and current and future consequences that cannot be tolerated.
The Central Bank stated, in a statement, that the Sanaa branch is not legally authorized to grant licenses, nor is there a special law regulating the activities of these financial institutions nor a legal framework that allows only banks to provide these services.
The Central Bank stated, in a statement, that the Sanaa branch is not legally authorized to grant licenses, nor is there a special law regulating the activities of these financial institutions nor a legal framework that allows only banks to provide these services.
The bank indicated that allowing the establishment of financial institutions outside the framework of the law that work to issue electronic money without borders and no cover is considered a void and legal act and will lead to undermining confidence among the public dealing with cash and creating inflationary pressures on the country's economy.
The Central Bank called on banks to provide electronic services as financial institutions permitted to do so in accordance with the laws and regulations in force, and to obtain the necessary licenses to provide these services from the central bank’s headquarters in the temporary capital of Aden, after meeting the technical and financial requirements specified in the laws and legislation in force.
