CMA cross-border payment changes set for April
Clients and their beneficiaries can expect longer turnaround times when the local banking sector on 15 April 2024 starts rolling out changes on how payments are made and received between Namibia and the rest of the countries in the Common Monetary Area (CMA), Eswatini, Lesotho and South Africa.All cross-border electronic fund transfer (EFT) payments processed and received by clients within the CMA, including credit payments and debit collections, will no longer be permitted through the domestic payment methods and channels.
In simpler terms, Namibian account holders will no longer be able to make EFT payments to account holders in other CMA countries. They will also not be allowed to receive EFT payments from other CMA countries unless they are initiated on a global banking channel, the website Daily Investor explains.
This decision is part of CMA regulatory adjustments to enhance the efficiency and security of cross-border financial transactions, the website states.
Regulatory requirements
FNB Namibia payments manager Albert Matongela stressed that the payment changes are necessary because of the need to comply with regulatory requirements, while also to being in line with modernisation expectations at national and regional levels.
“Clients and their beneficiaries can expect longer payment turnaround times as the beneficiary will also be required to provide Balance of Payments (BOP) information to their bank before the release of the funds into their account and will be required to provide additional disclosures concerning the reason for the payment and the payment beneficiary to enable the fulfilment of BOP regulatory reporting requirements,” Matongela said.
“Despite relatively longer turnaround times, payments will be made and received in a way that meet regulatory expectation. Additionally, clients and beneficiaries will be able to self-service, via their preferred channel, to release incoming payments,” he added.