FNB Namibia has announced that it will be the sole bank implementing the Common Monetary Area (CMA) payment changes starting from June 11, 2023 in Namibia.
This means that payments made from Namibian banks to FNB South Africa, Lesotho, and eSwatini, as well as payments from FNB Namibia to banks in the CMA countries, will be processed as foreign exchange (Forex) transactions.
The changes in payment processing according to the bank, will specifically impact cross-border transactions within the CMA countries.
Domestic payments within Namibia will remain unaffected by these changes.
“FNB clients who wish to make cross-border payments to other CMA countries, namely South Africa, Lesotho, and Eswatini, will be required to capture and process these payments through the Foreign Exchange (Forex) tab available in the existing online banking platform or the Forex tab within the FNB App,†said Albert Matongela, the Payments Manager at FNB Namibia.
Matongela also highlighted that Online Banking Enterprise (OBE) clients would need to have appropriate channel limits and permissions set for individuals responsible for capturing and authorizing global payments.
“It is important to note that global payments within the CMA can only be made from a transactional account and not from a credit card. Beneficiaries of cross-border payments will also be required to provide Balance of Payments (BOP) information to their bank prior to the release of funds into their account,†he said.
These changes in payment processing according to the bank, reflect its commitment to ensuring efficient cross-border transactions within the Common Monetary Area, while maintaining compliance with relevant regulatory requirements.
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