Starting September 4, 2024, South African Standard Bank customers will be prohibited from making Electronic Fund Transfers (EFTs) to Namibia, eSwatini, and Lesotho due to new regulations. Personal banking customers can still make cross-border payments at Forex branches, while business customers need to complete a Balance of Payments form to initiate transactions.
As of September 4, 2024, the South African Reserve Bank has mandated a halt on Electronic Fund Transfers (EFT) from Standard Bank customers in South Africa to the neighboring countries of Namibia, eSwatini, and Lesotho. This regulatory change affects personal banking customers who, though unable to utilize EFT for these transactions, can still process cross-border payments by visiting Forex branches. For business customers, the process involves submitting a Balance of Payments (BOP) form along with a payment request to Standard Bank to facilitate such transfers.
The South African financial regulatory landscape is designed to maintain control over cross-border transactions, particularly within the Common Monetary Area (CMA). The CMA comprises South Africa, Namibia, eSwatini, and Lesotho, and the recent move by the South African Reserve Bank signifies an adjustment to regulatory frameworks governing these economies. Understanding these changes is essential for both personal and business banking customers operating in these regions, as it impacts their transactional methods and practices.
In summary, the South African Reserve Bank’s decision to halt EFTs to Namibia, eSwatini, and Lesotho is a significant regulatory shift effective September 2024. While personal customers must resort to Forex branches for cross-border payments, business customers will need to navigate a more complex process involving the completion of specific forms. It is prudent for customers to familiarize themselves with these changes to adapt accordingly.
Original Source: techafricanews.com
