Guest Contributor | Feb 21, 2024 | 0
Central bank relieves payments association of regulatory duties
The Bank of Namibia announced this week that is will assume full responsibility for handling the licensing and regulation of any and all payment service providers in Namibia.
This move, based on the recent promulgation of the Payment System Management Act, relieves the Payments Association of Namibia (PAN) of any regulatory duties
“The rationale for having a single regulator is to provide regulatory certainty, reduce the administrative load on payment service providers by eliminating the need to interact with two regulators, and bring the domestic national payment system in line with international best practices,” the central bank said in a statement that explained the new dispensation.
Under the new act, the central bank is now responsible for licensing, regulating, and overseeing payment service providers, which include electronic money issuers, payment instrument issuers, payment intermediation service providers, as well as payment facilitators and processors.
Clarifying PAN’s role, the bank said “ The Payments Association of Namibia will continue to exist and maintain its role as an advisory association and a collaborative platform for its members within the national payment system in terms of section 5 of the PSM Act. The Association will further, subject to the Bank of Namibia’s approval, establish criteria for member participation in payment systems and forums, as well as make and administer technical rules concerning payment instructions and payment instruments.
Following the implementation of a number of payment functions sanctioned under the Payment System Management Act, the Deputy Governor, Leonie Dunn said these developments enhance the bank’s overall ability to ensure the efficiency and continuous modernisation of the national payment system.
“The amendments in the new law enable for a more diverse and innovative payment system that encourages new forms of payment methods in Namibia. As such, our payments landscape will continue to operate in an ever-evolving environment that promotes competition and manages risks in the ecosystem,” she said.