Parliament Passes Payment System and Services Act to Modernise Digital Payments Framework
The Parliament on Monday passed the Payment System and Services Bill, 2026, aimed at strengthening financial regulation and modernising the country’s digital payments framework within the Eastern Caribbean Currency Union (ECCU).
The new legislation replaces the Payment Systems Act, Chapter 23:62 of the 2017 Revised Laws of Dominica, which was originally enacted in 2009 as harmonised legislation across ECCU member states. The updated Bill was developed by the Eastern Caribbean Central Bank (ECCB) following a comprehensive review of the 2009 Act.
The ECCB’s review identified key gaps, including the absence of explicit legislation to license and regulate non-bank payment and settlement service providers, and the rapid expansion of financial technology introducing new actors whose activities require oversight to safeguard financial stability and consumer protection.
“The purpose of the proposed Payment System and Services Act, 2026 is to establish a legal framework to enable a payment system that is safe, efficient, resilient, inclusive and competitive through the management of risks, maintenance of financial stability and protection of consumers’ interests,” said Minister for Finance, Hon. Dr. Irving McIntyre.
Under the new law, payment systems will operate within a clearer supervisory structure. The legislation enhances oversight, mandates transparency in fees and terms and conditions and provides formal mechanisms for handling consumer complaints.
The Act also addresses settlement procedures, netting arrangements, insolvency protocols and administrative penalties, while empowering the ECCB to issue rules, directives and guidelines to maintain financial system stability.
“This Bill before the House, is a significant upgrade to the existing Act as it seeks to foster innovation within the Union, promote financial inclusion and reduce reliance on cash within a robust regulatory framework,” Dr. McIntyre stated
