Regulatory Alerts2009-02-23
Added · Updated
Application of Set-Off and Cash Management Schemes
Banking institutions in Namibia must apply specific conditions when reporting net balances via set-off arrangements or cash management schemes in statutory returns. Set-off is permitted only if a legally enforceable right exists, balances involve the same person, share identical maturities and currencies, and the institution can monitor exposures and roll-over risk. Cash management schemes are restricted to subsidiaries included in the holding company's consolidated audited financial statements, requiring legal authorization, accurate accounting records, and validation by the institution's legal department. The revised requirements became effective on 31 March 2009, replacing Circular BIA 5/98.
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