Common Monetary Area prepares for cross-border payment adjustments in April
By Michel Haoses.
In compliance with regulatory directives, FNB Namibia has unveiled alterations to the process of making and receiving payments across borders within the Common Monetary Area (CMA), encompassing Namibia, Eswatini, Lesotho, and South Africa. Effective from 15 April, these changes will impact how clients engage in cross-border transactions.
According to FNB Namibia Payments Manager, Albert Matongela, all cross-border payments to individuals or businesses within the CMA must now be initiated as Global Payments via the FNB App or FNB Online Banking. Notably, traditional cross-border Electronic Fund Transfer (EFT) payments will no longer be permissible.
Matongela elaborated that clients initiating cross-border payments from FNB Namibia to other CMA countries must process payments through the Foreign Exchange (Forex) tab within the existing online banking platform or FNB App.
Following the implementation of these adjustments, clients attempting to process cross-border EFT payments will encounter error messages, indicating the inability to proceed with their transaction. In such cases, clients are advised to update their beneficiary lists to include Global Payment beneficiaries and provide all required information accordingly.
Moreover, Online Banking Enterprise (OBE) clients will need to establish channel limits and permissions for individuals involved in capturing and authorizing global payments.
It’s important to note that global payments can only be made from transactional accounts, excluding credit cards. Additionally, functionalities such as Pay2Cell and scheduled payments will be disabled for global transactions.
Clients and their beneficiaries should anticipate longer payment turnaround times, as recipients will be required to furnish Balance of Payments (BOP) information to their respective banks before fund release. Furthermore, additional disclosures regarding the purpose of payment will be necessary.
In conclusion, Matongela emphasized that these changes are crucial for regulatory compliance and aligning with modernization standards and regional expectations.
