Regulatory Alerts2014-01-01
Circular 13/2014 - EuroPay, MasterCard and VISA Standard Compliance
The Bank of Zambia mandates all commercial banks and non-bank card issuers to implement EMV chip card standards for credit and debit transactions to combat rising card fraud. Institutions must achieve full acquirer and issuer compliance by 31 December 2015, with an initial status report due by 30 June 2014 and subsequent quarterly progress updates for non-compliant entities. The regulator emphasizes that the required infrastructure investments are justified by the enhanced security, processing capabilities, and increased market confidence provided by EMV technology.
# BANK OF ZAMBIA
OFFICE OF THE DEPUTY GOVERNOR - ADMINISTRATION
16 May, 2014
**CB Circular No** : 13/2014
**To** : All Chief Executives of Commercial Banks and Card Based Payment Systems/Payment Systems Businesses
## EUROPAY, MASTERCARD AND VISA (EMV) IMPLEMENTATION
The Bank of Zambia has noted with concern the increase in the number of card related frauds. In line with its objectives of promoting a safe and sound financial system and encouraging the use of electronic payment methods, the Bank of Zambia wishes to direct all banks and non-bank card issuers to implement EMV standards for their card based payments (i.e. credit and debit cards). Banks and all non-bank card issuers shall be required to be EMV compliant both at acquirer and issuer levels by 31st December, 2015.
The Bank of Zambia is cognizant of the fact that the migration from magnetic stripe to EMV requires investment in changing the payment infrastructure and associated processes. However, the Bank wishes to highlight that the benefits presented by EMV adoption justify the investment. Key benefits accrued through EMV adoption include better security against card related frauds, in-built processing capability and enhanced storage capacity when compared to the traditional magnetic stripe cards. We further wish to underscore the increase in confidence in the market that comes with a safer and more efficient payment systems environment.
The Bank of Zambia is aware that commercial banks through the Bankers Association of Zambia have been working towards the implementation of EMV standards. In this regard, the Bank wishes to encourage banks that may be lagging behind to intensify efforts towards EMV compliance by the stipulated deadline.
To this effect, the Bank of Zambia is requesting that all banks submit their EMV compliance status by 30th June, 2014. Further, banks that are EMV non-compliant will be required to submit quarterly progress reports. The reports should be submitted by the 7th working day, following end of quarter.
Dr Tukiya Kankasa-Mabula
DEPUTY GOVERNOR – ADMINISTRATION
Cc
Governor
Deputy Governor – Operations
Senior Director – Supervisory Policy
Bank Square, Cairo Road, P.O. Box 30080, Lusaka, Zambia. Tel: +260-211-229930 Fax: +260-211-222808 E-mail: tkmabula@boz.zm. Web: http://www.boz.zm
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