Determination on the Issuing of Electronic Money in Namibia (PSD-3)

The Determination on the Issuing of Electronic Money in Namibia (PSD-3) is the Bank of Namibia's binding determination governing the issuance of electronic money. Issued on 28 March 2012 and effective from 1 March 2012 under the Payment System Management Act, 2003 (as amended), it remains the operative e-money instrument and continues in force under the Payment System Management Act, 2023, which now provides the Bank's overarching authority. PSD-3 establishes the conditions under which electronic money may be issued in Namibia and permits both banking institutions and authorised non-bank institutions to issue e-money, thereby opening the market to mobile money and other digital wallet providers. It applies to all issuers of electronic money and to the e-money services they provide, which include opening an electronic money account, loading value onto an electronic wallet (cash-in), redeeming value (cash-out), paying bills, and sending, receiving and disbursing domestic money transfers. The Determination addresses a range of key policy issues, most importantly the protection of customer funds: issuers are required to safeguard the funds received in exchange for e-money, typically through trust or equivalent arrangements that fully back the outstanding e-money and ring-fence customer money. It also governs the use of agents (including agent due diligence, oversight and liability), customer due diligence and KYC with proportionate transaction and balance limits, redeemability of e-money at par, governance and operational and security requirements, consumer protection and disclosure, and reporting to the Bank of Namibia. The Bank supervises e-money issuers, may impose conditions and may take enforcement action for non-compliance. Read together with the Guidelines for Electronic Money Issuers and beneath the umbrella Payment System Management Act, PSD-3 is the central licensing and conduct instrument for e-money and mobile money in Namibia and remains in force.

1. 1Permits both banking and authorised non-bank institutions to issue electronic money in Namibia
2. 2Defines covered e-money services: account opening, cash-in, cash-out, bill payments and domestic money transfers
3. 3Requires safeguarding of customer funds backing outstanding e-money (trust/equivalent arrangements) and redeemability at par
4. 4Governs the use and oversight of agents and related due diligence and liability
5. 5Imposes customer due diligence/KYC with proportionate transaction and balance limits, plus governance, security, consumer-protection and reporting obligations
6. 6Continues in force under the Payment System Management Act, 2023, with Bank of Namibia supervision and enforcement