As part of Nedbank’s ongoing commitment to keeping our clients informed about regulatory developments that may impact clients’ financial activities, we wish to update you on the Bank of Namibia’s (BoN) issuance of the ‘Determination on the Conduct of Electronic Funds Transfer Transactions in the National Payment System’ (PSD-9) on 14 October 2022.

This determination primarily focuses on changing the current process of cross-border electronic funds transfers payments.

Here is a short overview of the latest developments in this matter, along with the measures we are implementing to mitigate any potential disruptions to clients’ business and financial operations.

• Single payment transactions to South Africa/CMA Countries: Clients will continue to initiate payments through our digital channels (electronic banking systems). However, a new requirement mandates the inclusion of BoP categories as per below link. https://www.nedbank.com.na/content/dam/africa/namibia/documents/bop-category guidelines.pdf
• Both outward and inward payment transactions will require to declare reason for transaction codes (BoP codes).  For example, beneficiary receiving payments for dividend receipt, reason code for this payment is, BoP code 301 - Dividends. For example: A client settling university tuition fees reason codeto be selected for this payment is, BoP code 285 - Tuition fees.
•  For outward transactions on the banking payment channels, and it is imperative to emphasize the critical importance of selecting the correct BoP category during the payment process.  Incorrect selections may potentially result in delays in execution of the transaction.
• Completion of mandatory fields on the system: Whilst low-value fund transfers can still be initiated and executed via the Bank’s digital channels, you will be required to capture additional information when making cross border payments by completing mandatory fields such as:
  • Payments to Individuals:
    • First name and Surname,
    • Gender
    • Residential Address; City and Country
    • Reason for Payment
    • Country
    • Beneficiary Bank’s SWIFT address as well as
    • The relevant BoP category of the transaction
    • In the case of Travel Allowance, Passport Number
  • Payments to Businesses:
    • Business Entity name
    • Physical Address; City and Country (not postal address)
    • Reason for Payment
    • Country
    • Beneficiary Bank’s SWIFT address as well as
    • The relevant BoP category of the transaction

Debit orders collected from accounts within Namibian borders must originate from an account based in Namibia. Collection of debit order payments outside Namibian borders is no longer allowed.