sadc payments initiatives and regional...

SADC Payments initiatives

and regional oversight

Tim Masela

South African Reserve Bank

Turin, Italy

20 September 2016

Southern African Development Community (SADC)

Madagascar

Contents

EFT Credit Stream Implementation

SADC Mobile Money Guidelines

Mobile to Mobile Initiative

SADC Payment System Model Law

Regional Oversight Arrangements

QB March 2011

EFT Credit Stream Implementation

QB March 2011

EFT Credit Transfers Project

Status

– SADC Bankers Assocoation and has completed the business

models

– Initial Proof of concept to start in the 4th Quarter 2016 in the

Common Monetary Area Countries

– Workgroups

• Operational & Technical

• Regulatory

• Commercial

– Appointed Regional Clearing House Operator will provide interim

solution

– On going engagement with stakeholders and other role-players

– Individual member countries working closely with clearing banks

in their jurisdictions

SADC Mobile Money Guidelines

QB March 2011

Ecosystem

QB March 2011

Project Methodology and Stakeholder Input

QB March 2011

SADC Regulatory Findings

QB March 2011

Selected Regulatory Guidelines

Mobile to Mobile Initiative

QB March 2011

Payment System Integration – Cross-border Projects

M2M - Objective

– Infrastructure for processing cross-border transactions

that are not catered for by the mainstream financial

services products by increasing access points and using

mobile to mobile technology

– Reduce low value cross border transaction costs

(decrease costs of sending cross border remittances)

– Increase competition in the market

Mobile-2-Mobile

Role players

– SADC Payment system sub-committee (Central Banks)

– SADC Banking Association

– BankservAfrica, appointed as Regional Clearing and

Settlement operator for low value credit transfers

– Commercial Banks

– Mobile-cellular operators

– Support Payment Processing Service providers to Mobile

operators

– Bill and Melinda Gates Foundation (funder of workshops)

Outcome

– Provision of efficient and cost effective cross border

remittance services and address the Financial Inclusion

Mobile-2-Mobile model – SIRESS and RCSO Infrastructure

Payments cleared and settled on the SADC regional clearing and

settlement infrastructure

Mobile-2-Mobile model –RCSO Infrastructure and correspondent banks

Payments cleared on the SADC regional clearing infrastructure and

settled via correspondent banks

Timelines

Activity Tentative Dates

Prepare Statements of work and test packs September to mid October 2016

Joint session to finalise POC testing and dates Mid November 2016

Testing Mid January 2017 end April 2017

Finalise testing and report back to all participants

regulators and other stakeholders

End of April 2017

Prepare ready participants for production testing Mid May 2017

Timelines …

Activity Tentative Dates

Start production testing End May 2017

Report back to stakeholders on progress testing 30 July 2017

Participants to get regulatory approval for Go Live Mid August 2017

Go Live To be advised by the regulators

QB March 2011

SADC Payment Model Law

QB March 2011

Outline

Chapter I – Preliminary Provisions

Chapter II - Mandate, Powers and Functions of the

Bank

Chapter III - Access and Regulation of Payment System

Participants

Chapter IV - Supervision of Clearing and Settlement

Systems

Chapter V - Payment Services

Chapter VI - Insolvency Provisions

Chapter VII - Electronic Communications and

Information Management

Chapter VIII - General Provisions

QB March 2011

Regional Oversight

QB March 2011

Regulatory Regime

No SADC law

Current SIRESS Legal Framework

– Contractual arrangements

SADC Payment System Oversight Committee (SADC PSOC)

– MoU for Co-operative oversight arrangements

– Recognition of SADC PSMB

Harmonisation of legal and regulatory framework

– Countries and SADC-wide assessment (Done)

– SADC Payment System Model Law

Governance Framework

SIRESS Legal Framework – Contractual arrangements

SARB

(SIRESS System

Operator)

SADC Central Banks

SIRESS

Participants

Appointment of the

SARB as SIRESS

System Operator

Stakeholders

Agreement

SIRESS

Participant

Settlement

Agreement.

SIRESS Service

Agreement.

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SADC Payment System Oversight Committee (PSOC)

– Participating Central Banks

– Member countries can discharge their domestic oversight

policy objectives within the regional clearing and

settlement system

Legal and governance framework

– Contractual arrangements

– SARB appointed as the Operator of the system by the

participant Central Banks

SADC Payment Scheme Management Body

No change to domestic regulatory provisions

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Payment System Project – SIRESS –Governance Framework

Source: SADC Bankers Association

SADC PSOC

SADC PSMB

Payment Scheme Rule

Books

• Access Criteria

• Disputes

• Finality

SIRESS

DVP

RCSO

SLA’s & other

operating

agreements

Payment Scheme

• Ensure CPSS IOSCO

compliance

• Oversee SIRESS, RCSO

IMMS Card

11/15/2016 32

QB March 2011

QB March 2011

QB March 2011

Questions??

QB March 2011