Cross-border transaction supervision becomes stricter – Lesotho Times

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Effective September 142024cross-border transactions will require more detailed information, including the source of the transaction, the sender’s occupation, the sender and recipient’s place of residence, and the purpose of the transaction.

The announcement was made by the Bankers Association of Lesotho (BAL) at a press conference held at the Lancers Inn yesterday.

thisyesCompliant with the recently terminated Common Monetary Area (CMA) Cross-border Electronic Funds Transfer (EFT) Small value payments and collectionssystemFrom South Africa to neighboring Lesotho, Swaziland and Namibia.

EarliersystemCross-border paymentsyesPayments processed through South Africa’s domestic retail payment system violate international standards for anti-money laundering and combating the financing of terrorism (AML/CFT).

The Lesotho Bankers Association (BAL) is composed of FNB Lesotho, Lesotho Post Bank, Nedbank Lesotho and Standard Lesotho Bank, and is regulated by the Central Bank of Lesotho.

In his speech, Mothetsi Sekoati, the central bank’s director of payments and settlements, said: explainThe move follows previously disclosed changes to the treatment of cross-border transactions within the CMA region.

He explained that transactions between the four CMA countries were previously treated as internal transactions, which worked well but ultimately created challenges due to the lack of detailed information on senders and receivers.

“Transaction fees are low when transferring money between branches, but South Africa faces challenges because they lack detailed information about the sender and recipient,” Sekoti said.

He stressed the importance of knowing all the details of the sender and receiver, as well as the purpose of the transaction. To address these issues, new regulations will be implemented to ensure that all necessary information is provided for cross-border transactions.

Representative Samuel Koatla thisAll fourBalanced Alphamemberfamous Transactions between these countries have long been unregulated and difficult to track. The new measures are intended to correct that.

“Currently, policies and investments outside Lesotho allow beneficiaries to debit directly from the account holder’s account. From September 14, this practice will be prohibited. Instead, insurance brokers and businesses outside Lesotho will be required to open local accounts for debits to enhance security and prevent theft and money laundering. The same applies to Lesotho companies with clients in other CMA countries,” said Mr Koatla.

Standard Bank Lesotho chief executive Anton Nicolason said the changes were aimed at removing confusion in the market.yesHe assured that all financial institutionsyesWorking diligently to ensure a smooth transition for Basotho.

“Each bank will communicate with its customers to ensure clarity and understanding. Nicolason urged all Basotho to raise any concerns and contact the BAL, the Central Bank of Lesotho (CBL) or the individual banks,” he said.