Bankers Association of Namibia halts electronic transfer payments

The Bankers Association of Namibia recently announced that they will no longer facilitate Electronic Funds Transfer (EFT) payments between Namibia and some South African banks effective 23 September 2019.

In a statement issued to Nampa, Andre Le Roux, the public relations officer at Bank Windhoek, a founding member of the Bankers association of Namibia said, the Common Monetary Area Payment Oversight Committee (CMA CPOC) last year issued a directive that changed the information requirements for CMA transactions in order to meet international standards relating to anti-money laundering practices.

Le Roux explained that in the past, CMA countries, which include Namibia, Lesotho, Eswatini and South Africa shared common processes to process EFT transactions.

He further explained that recently adopted international rules and regulations require that cross border transactions need to comply with the newly established criteria.

Le Roux told Nampa, some South African banks indicated that it is not viable for them to make the required changes and as a result they will no longer be able to receive EFT's from Namibia.

According to Le Roux clients of banks which are members of the Bankers Association of Namibia can still make online banking transactions using the Society for Worldwide Interbank Financial Telecommunication (SWIFT) payment system.

SWIFT is a complaint, secure and reliable way to make international payments. It may take longer to receive funds from across borders into your Namibian bank account so consider the impact that a delay in receiving money can have on your financial obligations, Le Roux cautioned.

Le Roux noted that there are other options for bank clients outside of EFT payments therefore bank clients can approach their respective branches for information regarding other payment options open to them.

Namibian bank clients who will be most affected by this new development are those who receive money from or make payments to Citibank, Capitec Bank Limited, J.P. Morgen Chase Bank, SA Reserve Bank, Grobank Limited, Sasfin Bank, South African Post Office, Mercentile Bank Limited and Tyme Bank Limited.

The full list of banking institutions affected can be viewed online at the different banks webpages.

Source: Namibia Press Agency