Regulatory Alerts2008-05-12
Guidance Note 6/2008: Cell-Phone Banking
The South African Reserve Bank issued Guidance Note 6/2008 to regulate cell-phone banking products and establish strict anti-money laundering controls for non face-to-face account openings. Financial institutions must restrict these accounts to South African citizens and residents, verify identities through third-party database cross-referencing, and enforce a daily transaction limit of R1,000 unless face-to-face confirmation is completed. Banks are required to implement controls preventing multiple accounts per identity number, apply enhanced transaction monitoring, and notify the regulator at least six weeks prior to launching any such services.
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