Bank
Bank

Namibian banking clients will no longer be able to perform Electronic Fund Transfer (EFT) transactions to non-participating banks in Common Monetary Area (CMA) as from Sept. 23, according to the Bankers Association of Namibia (BAN) Wednesday.

The CMA is a monetary union which includes South Africa, Namibia, Lesotho, and Eswatini.

Business24

The BAN in a statement issued Wednesday said the move is a result of a directive by the CMA Cross-border Payment Oversight Committee (CMA CPOC).

“The CMA CPOC issued a directive in 2018 that changed the payment information requirements for CMA transactions to meet international standards relating to anti-money laundering practices,” BAN added.

The CMA CPOC’s International FATF16 rules and regulations require the cross-border messages to be enriched with additional information to comply as of Sept. 23, BAN said, adding that over the years Namibia established its own independent EFT processing system, but was still allowed to continue to process other CMA EFT transactions via Bankserv.

“Unfortunately, some predominantly South African banks indicated that it will not be viable for them to make the required system changes and therefore they will no longer be able to receive such EFT transactions,” BAN added. Enditem

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