CORRECTION: Bankers Association of Namibia halts electronic transfer payments

The Bankers Association of Namibia (BAN) has announced that it will no longer facilitate electronic funds transfer (EFT) payments between Namibia and some South African banks, effective 23 September 2019.

Andre le Roux, Manager: Public Relations and Reputation Risk at Bank Windhoek, a founding member of BAN, told Nampa on Sunday the Common Monetary Area Payment System 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 that 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.

These banks include Citibank, Capitec Bank Limited, JP Morgan Chase Bank, SA Reserve Bank, Grobank Limited, Sasfin Bank, South African Post Office, Mercantile Bank Limited and Tyme Bank Limited.

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.

He noted that there are other options for bank clients outside of EFT payments and urged clients to approach their respective branches for information regarding other payment options.

Namibian bank clients who will be most affected by this new development are those who receive money from or make payments to banks listed on the Bankers Association of Namibia website.

Source: Namibia Press Agency