Regulatory Alerts2025-01-01
Fast Payments Directive 1 of 2025 A1 Amending Compliance Timelines for the Eswatini Payment Switch
The Central Bank of Eswatini issued Fast Payments Directive 1 of 2025 to extend the compliance deadline for payment service providers and participants from 31 January 2025 to 28 February 2025. This adjustment accounts for the actual system go-live occurring in December 2024 rather than November, allowing adequate stabilization for network and operational requirements. Non-compliance triggers financial penalties determined by the Central Bank based on the failure's severity, duration, statutory provisions, and mitigating circumstances.
Fast Payments Directive 1 of 2025 – amending Directive no: 2 of 2024, with regard to compliance timelines with network, operational & participation requirements of the Eswatini Payment Switch
Whereas: i. Fast Payments Directive no: 2 of 2024 makes it mandatory for all participants and/or payment service providers to have fully complied with the network, operational, general and procedural & participation requirements prescribed in the EPS Fast Payments Procedural Manual on or before the 31st January 2025. ii. The stabilization period and compliance date of 31st January 2025 were linked to the Go-live date of 15th November 2024. iii. The Go-live date and first transactions was on the 11th December 2024, instead of the projected 15th November 2024. . Now therefore
- Paragraph 1 (ii) of Fast Payments Directive 2 of 2024 is amended and replaced with the following; ″All Participants and Payment Service Providers are expected to have fully complied with the network, operational and general participation requirements, as well as the procedural requirements outlined in the application form for joining or participating in the Eswatini Payment Switch, which are prescribed in the EPS Fast Payments Procedural Manual on or before the 28th February 2025”. Non-Compliance
- Non-compliance with the provisions of this Directive, in full or in part will result in the imposition of a financial penalty in respect of the compliance failure.
- In imposing a penalty, the Central Bank will take into consideration the following;
i. the nature, seriousness and impact of non-compliance on the interests of those who use, or are likely to use the services provided by the Eswatini Payment Switch, ii. duration of the non-compliance, iii. penal provisions prescribed in the National Payments Systems Act 2023, iv. the process of notifying the non-complaint party and timeline provided for rectifying the non-compliance, and v. any mitigating factors that may influence the severity of the penalty 4. This Directive becomes effective from the 31st January 2025.
The Governor Central Bank of Eswatini