Africa fintech giant and leading Next Gen financial services platform, Mukuru, has stepped up to support customers amidst the South African Reserve Bank’s (SARB) new EFTs regulatory changes aimed at curbing laundering in Common Monetary Area (CMA) countries.
This follows a significant shift in the CMA financial market after the SARB announced that effective from September 30, low-value electronic funds transfers (EFTs), debit and credit payments between CMA countries — namely South Africa, Lesotho, Eswatini, and Namibia — will be classified as cross-border transactions.
According to SARB, the regulatory change will enhance compliance with international standards. It’s a major shift from when these low-value payments were processed as domestic transactions, allowing a cost-effective and efficient payment service across the CMA.
“The new regulations will impose greater due diligence requirements on these transactions, necessitating a shift to the Southern African Development Community real-time gross settlement (SADC-RTGS) system, primarily designed for high-value payments.
“Additionally, from the same date, financial institutions will be required to initiate debit orders from accounts domiciled in the respective CMA countries, providing customers with enhanced protection against potential fraudulent practices,” said the July 2024 SARB statement.
While the shift in EFT transaction policy significantly strengthens anti-money laundering efforts and counter-terrorism financing frameworks in the CMA region, they have also impacted the banking experience for many customers, potentially leading to longer processing times and increased transaction costs.
In light of these regulatory changes, Mukuru has stepped up to support efforts with an effective solution for customers in South Africa, Lesotho, and Eswatini.
With its robust physical and digital payments infrastructure, Maleseli Mohapinyane, Mukuru’s Lesotho country manager, stated that as one of the largest money transfer providers in Africa, the Fintech giant is well-positioned to continue providing uninterrupted electronic funds transfer services.
Mohapinyane emphasised Mukuru’s commitment to having customer-centric solutions that remain resilient against regulatory shifts.
“Our offerings, particularly the Mukuru Card, allow customers to access fast, safe, affordable cross-border EFT services without disruption. As competing financial service providers may struggle to adapt to the new regulations, Mukuru, which serves over 16 million customers in Africa, Asia, and Europe, assures its customers that they will continue to receive the same high-quality service they have come to expect at no added cost,” said Mohapinyane.
She underlined that the fintech founded in 2004 is a customer-centric business with the requisite experience and cutting-edge technology to offer seamless EFT solutions in the CMA region.
“It is important for us to be aware of the needs of our customers and grow our financial suite of products to meet these needs. With this service, we want our customers to access much-needed funds as soon as possible, without unnecessary delays, and provide the convenience of receiving money directly into a bank account, removing the hassle of getting to a location to collect cash,” Mohapinyane added.
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