Namibia’s new e-money rules (PSD-3) are here. The Bank of Namibia (BoN) has issued a new determination on issuing electronic money in Namibia (PSD-3), effective 27 March 2025. This regulation aims to enhance the safety, efficiency, and financial inclusion of e-money services in the country.
Who is affected?
PSD-3 affects all entities involved in issuing e-money in Namibia, including:
- Existing e-money issuers
- Banks
- Non-bank financial institutions
- Payment service providers
Key changes and requirements
- Licensing and authorisation: all e-money issuers must be licensed or authorised by the BoN. Different categories of issuers (banks, non-banks, micro e-money issuers) are subject to different requirements.
- E-money features: e-money must be denominated in Namibia dollar, redeemable at par value, and processed in real-time.
- Permitted services: a wide range of services is allowed, including domestic and cross-border transfers, bill payments, and more. Non-micro e-money issuers can also offer access to savings, investment, credit, and insurance products, subject to BoN approval.
- Safeguarding user funds: e-money issuers must maintain a trust account to hold user funds, which must be protected and used solely for e-money operations.
- User protection: the regulation emphasises user protection and transparency, requiring clear fee disclosure, dispute resolution mechanisms, and public education campaigns.
- Reporting: e-money issuers must submit regular reports to the BoN on various aspects, including dormant accounts and trust account balances.
How should businesses respond?
- Familiarise yourself with PSD-3 and assess your current operations for compliance.
- Obtain the necessary licences or authorisations from the BoN.
- Implement required changes to your systems, processes, and documentation.
- Prioritise user protection and transparency.
- Stay informed about any updates or further guidance from the BoN.
How ITLawCo can help
ITLawCo’s team of legal and regulatory experts can help your business navigate the complexities of PSD-3. We offer:
- Guidance on licensing and authorisation: We can help you understand the licensing requirements and application process, ensuring you meet all the necessary criteria.
- Compliance assessments: We can review your existing e-money operations and identify any areas that need to be adjusted to comply with PSD-3.
- Policy and procedure development: We can assist in developing or updating your policies and procedures to align with the new regulatory requirements.
- Training and workshops: We offer training and workshops to help your team understand PSD-3 and its implications for your business.
- Ongoing monitoring and support: We can provide ongoing monitoring and support to ensure you remain compliant with PSD-3 as it evolves.
Contact us today to learn more about how we can help your business successfully navigate the changing e-money landscape in Namibia.