Banking Act 2009 (c. 1)

Part 5U.K.F1... Payment Systems [F2and service providers]

Textual Amendments

F1Word in Pt. 5 heading omitted (27.6.2017) by virtue of Digital Economy Act 2017 (c. 30), s. 118(2), Sch. 9 para. 2

F2Words in Pt. 5 heading inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(a), Sch. 6 para. 2

EnforcementU.K.

199ClosureU.K.

(1)This section applies if the Bank of England thinks that a compliance failure—

(a)threatens the stability of, or confidence in, the UK financial system, or

(b)has serious consequences for business or other interests throughout the United Kingdom.

(2)The Bank may give the operator of the F3... payment system concerned [F4, the DSA service provider concerned] [F5, or the service provider concerned,] an order to stop operating the system [F6, providing services,] [F7or (as the case may be) providing services to a recognised payment system] [F8or recognised DSA service provider] (a “closure order”)—

(a)for a specified period,

(b)until further notice, or

(c)permanently.

(3)A closure order may apply to—

(a)all activities of the payment system [F9, or DSA service provider] [F10or all services provided to a recognised payment system [F11, or a recognised DSA service provider] by the service provider], or

(b)specified activities [F12or specified services].

[F13(3A)Before giving a closure order to a service provider, the Bank must have regard to the public interest in the continued operation of each recognised payment system [F14, or of each recognised DSA service provider,] in relation to which the service provider is specified under section 206A(2)(b) [F15or 206A(2A)(b) (as the case may be).]]

(4)An operator [F16, DSA service provider,] [F17or service provider] who fails to comply with a closure order commits an offence.

(5)A person guilty of an offence is liable—

(a)on summary conviction, to a fine not exceeding the statutory maximum, or

(b)on conviction on indictment, to a fine.

Textual Amendments

F3Word in s. 199(2) omitted (27.6.2017) by virtue of Digital Economy Act 2017 (c. 30), s. 118(2), Sch. 9 para. 21

F4Words in s. 199(2) inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(a), Sch. 6 para. 27(2)(a)

F5Words in s. 199(2) inserted (30.11.2017) by The Banking Act 2009 (Service Providers to Payment Systems) Order 2017 (S.I. 2017/1167), arts. 1(2), 2(19)(a)(i)

F6Words in s. 199(2) inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(a), Sch. 6 para. 27(2)(b)

F7Words in s. 199(2) inserted (30.11.2017) by The Banking Act 2009 (Service Providers to Payment Systems) Order 2017 (S.I. 2017/1167), arts. 1(2), 2(19)(a)(ii)

F8Words in s. 199(2) inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(a), Sch. 6 para. 27(2)(c)

F9Words in s. 199(3)(a) inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(a), Sch. 6 para. 27(3)(a)