BCEAO Measures to Promote Electronic Payments Amid COVID-19

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BCEAO
CENTRAL BANK OF WEST AFRICAN STATES

The Governor

ADVISORY OPINION NO. 004-03-2020 ON MEASURES TO PROMOTE ELECTRONIC PAYMENTS IN THE CONTEXT OF COMBATING THE SPREAD OF COVID-19

In the context of implementing measures taken on March 21, 2020, to combat the spread of COVID-19, the Central Bank of West African States (BCEAO) held consultations with the community of electronic money issuers in the West African Economic and Monetary Union (Banks and Electronic Money Institutions). These exchanges led to the adoption of the following measures, aimed at limiting physical contact between individuals by reducing the use of cash in favor of electronic payments:

1. nationwide free transfers of electronic money between individuals for amounts less than or equal to 5,000 CFA francs, including transfers from bank accounts to electronic wallets and vice versa;
2. free payment of water and electricity bills via mobile phones for amounts less than or equal to 50,000 CFA francs;
3. the elimination by electronic money issuers of merchant fees on electronic money-based commercial payments;
4. a 50% reduction by banks of merchant fees on card-based commercial payments within the network of the Interbank Monetic Group of the West African Economic and Monetary Union (GIM-UEMOA);
5. the increase of the electronic wallet recharge limit from two (2) to three (3) million CFA francs and the monthly cumulative recharge limit from ten (10) to twelve (12) million CFA francs. This measure applies only to regularly identified customers, in accordance with the provisions of Instruction No. 008-05-2015 governing the conditions and procedures for electronic money institutions in UMOA member states. Distributors and acceptors are not subject to the limit requirements;
6. a 50% reduction in fees applied to customer transfers processed via the UEMOA Automated Interbank Clearing System (SICA-UEMOA). The BCEAO commits to suspending, consequently, the billing corresponding to the processing of these transactions;

Abdoulaye FADIGA Avenue
P.O. Box 3108 – Dakar – Senegal
Tel. (221) 33 839 05 00 / Fax. (221) 33 823 93 35 courrier.bceao@bceao.int - www.bceao.int

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7. the easing of conditions for opening electronic money accounts. To this end, electronic money issuers are authorized to activate electronic wallets based on mobile phone data, subject to obtaining the customer's agreement by any means and carrying out remote identification procedures within regulatory limits. However, institutions must, within three months after the validity period of this scheme, complete the identification of affected customers in accordance with existing anti-money laundering and counter-terrorist financing regulations, notably by requiring the customer's physical presence for contract signing, under penalty of termination;
8. a 50% reduction in bank card withdrawal fees within the GIM-UEMOA regional network.

Furthermore, banks are invited to take measures to ensure the availability and quality of services at automated teller machines (ATMs). To this end, they must ensure sufficient cash supply in ATMs and prohibit any practices that deactivate Bank Identification Number (BIN) codes of bank cards, to facilitate permanent public access to interbank monetic resources.

These measures constitute minimum community requirements and may be supplemented by more favorable individual initiatives taken by stakeholders. They take effect as of April 3, 2020, for a duration of thirty (30) days, renewable depending on the evolution of the health situation.

This Advisory Opinion is notified to all banks as well as the electronic money institutions of the Union and is published wherever necessary.

Given in Dakar, on April 1, 2020

[Signature]

Tiémoko Meyliet KONE