Regulatory Alerts2023-01-01
Two-Factor Authentication for Card-Not-Present Transactions
The Bank of Zambia mandates all commercial banks to implement two-factor authentication for Card-Not-Present transactions, addressing high fraud rates in the national payment system. Banks without existing capabilities must deploy this directive by June 30, 2023. Failure to meet the deadline will result in statutory penalties under Section 43 of the National Payment System Act, 2007.
[Logo: Bank of Zambia]
Bank of Zambia OFFICE OF THE DEPUTY GOVERNOR - OPERATIONS
BOZ/EXEC/DGO/psd/bp
March 6, 2023
CB Circular No. : 04/2023
To : All Heads of Commercial Banks
TWO-FACTOR AUTHENTICATION FOR CARD NOT PRESENT TRANSACTIONS
The above subject matter refers.
The Bank of Zambia, in its continued efforts to preserve the integrity, reliability, and safety of the national payment systems, wishes to direct all commercial banks to implement the two-factor authentication on all Card-Not-Present transactions which continue to record high levels of fraud.
Commercial banks that do not have this facility are, therefore, required to implement this directive by June 30, 2023. Failure to comply with this, will attract penalties in line with Section 43 of the National Payment System Act, 2007.
Kindly proceed accordingly.
[Signature]
Francis Chipimo (PhD) DEPUTY GOVERNOR – OPERATIONS
cc Governor Deputy Governor – Administration Director – Bank Supervision Director – Non-Bank Financial Institutions Supervision Director – Banking and Currency Director – Payment Systems Chief Executive Office – ZECHL
Bank Square, Cairo Road, P.O. Box 30080, Lusaka, Zambia Tel:+260-211-399303, 399300, E-mail: dgo@boz.zm. Web: http://www.boz.zm