Payment System Management Act, 2023 (Act No. 14 of 2023)

The Payment System Management Act, 2023 (Act No. 14 of 2023) is the principal statute governing the National Payment System in Namibia and the legal basis for the Bank of Namibia's role as sole regulator of all payment systems. Published in Government Gazette 8156 on 28 July 2023, it repealed and replaced the Payment System Management Act, 2003 (Act No. 18 of 2003) and the Payment System Management Amendment Act, 2010, with the repeal taking effect on 8 August 2023. The Act's purpose is to ensure the safe, secure, efficient and cost-effective operation of the National Payment System and to consolidate and strengthen the Bank of Namibia's regulatory and oversight powers. It applies to payment system operators and participants, system and service providers, issuers of electronic money, and other persons providing or participating in payment services in Namibia. Core obligations include the requirement to obtain authorisation, designation or recognition from the Bank of Namibia before operating a payment system or providing payment or electronic-money services, compliance with the conditions, standards, determinations and directives issued by the Bank, the safeguarding of customer funds, and adherence to oversight, governance, risk-management and reporting requirements. The Act provides for the legal certainty of settlement, including settlement finality and the enforceability of netting in designated systems, in order to contain systemic risk, and confers on the Bank of Namibia broad supervisory, inspection, direction and enforcement powers, including the issuing of binding determinations, the imposition of conditions and penalties, and the suspension or withdrawal of authorisations. As the umbrella legislation, the Act empowers the Bank to maintain and update subsidiary instruments, including the Determination on the Issuing of Electronic Money (PSD-3) and the Guidelines for Electronic Money Issuers, which continue to govern e-money and mobile money pending any replacement. The Act is in force and is the central reference instrument for fintech and digital-payment regulation in Namibia.

1. 1Establishes the Bank of Namibia as sole regulator of the National Payment System and the legal basis for its oversight
2. 2Repeals and replaces the Payment System Management Act 18 of 2003 (repeal effective 8 August 2023)
3. 3Requires authorisation, designation or recognition before operating a payment system or providing payment/e-money services
4. 4Empowers the Bank to issue binding determinations, directives, conditions and standards and to require safeguarding of customer funds
5. 5Provides for settlement finality and enforceability of netting in designated systems
6. 6Confers supervision, inspection, direction and enforcement powers, including penalties and withdrawal of authorisation