2020-03-24

Added · Updated

Instruction No. 43 on the Promotion of Electronic Money and Relaxation of ATS Operations to Limit the Adverse Effects of the COVID-19 Pandemic on the Financial Sector

The Central Bank of the Congo mandates electronic money issuers to suspend transfer fees for transactions between holders and between electronic money and bank accounts, while allowing issuers to use up to 75% of interest generated on escrow funds from April to December 2020 to offset lost revenue. The instruction sets a maximum instrument value of USD 7,500 and a daily payment ceiling of USD 2,500 for electronic money holders, with no monthly limit. Additionally, the Central Bank eliminates variable fees for Automated Transfer System (ATS) operations below 2,500,000 Congolese Francs. These measures are effective immediately and remain in force until the end of December 2020.

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BANQUE CENTRALE DU CONGO

LE GOUVERNEUR


INSTRUCTION N° 43 AUX ETABLISSEMENTS DE CREDIT ET INSTITUTIONS DE MICRO FINANCE RELATIVE A LA PROMOTION DE LA MONNAIE ELECTRONIQUE ET A L’ASSOUPLISSEMENT DES OPERATIONS DANS LE SYSTEME ATS POUR LIMITER LES EFFETS NEFASTES DE LA PANDEMIE DU COVID-19 SUR LE SECTEUR FINANCIER


The Central Bank of the Congo,

Having regard to the Organic Law No. 18/027 of December 13, 2018, on the organization and functioning of the Central Bank of the Congo, particularly Articles 10, 11, 25, and 71;

Having regard to Law No. 003/2002 of February 2, 2002, on the activity and control of Credit Institutions, particularly Article 36;

Having regard to Law No. 18/019 of July 9, 2018, on payment systems, particularly Articles 6, 53, and 112;

Having regard to Instruction No. 24 of November 11, 2011, on the issuance of electronic money and electronic money institutions, particularly Articles 17 and 18;

Having regard to Instruction No. 33 of February 27, 2019, Modification No. 01, on the functioning of the Automated Transfer System (ATS), particularly Article 16;

Having regard to Instruction No. 42 on the rules applicable to card payments in the Democratic Republic of the Congo, particularly Articles 9 and 12;

Considering that the occurrence of the COVID-19 pandemic calls on the Central Bank of the Congo to take urgent measures to prevent its spread through the handling of banknotes, and, within the framework of its mission, to limit the adverse effects of the pandemic on the Congolese financial system;

Considering that the promotion of electronic payments is an essential solution to reduce the use of banknotes;

Considering that providers of related or critical services, in particular authorized aggregators, play a decisive role by offering their technology to facilitate the realization of bilateral interoperability between financial institutions;

.../...


563, Boulevard Colonel Tshatshi - Kinshasa – Gombe Email: sgouverneur@bcc.cd / svicegouve@bcc.cd / cabgouv@bcc.cd - Website: http://www.bcc.cd


BANQUE CENTRALE DU CONGO

Enacts the following provisions:

CHAPTER I: MEASURES FOR THE PROMOTION OF ELECTRONIC MONEY

Article 1: Bilateral Interoperability

Without prejudice to participation in the national card switch, electronic money institutions may ensure bilateral interoperability, on the one hand, among themselves, and on the other hand, with other credit institutions, Microfinance Institutions, and financial messengers.

Article 2: Opening of APIs and Granting of Authorizations

Banks and electronic money institutions are required to facilitate the initiation of innovative solutions by aggregators and other providers of related or critical services, particularly through support for the opening of APIs and the obtaining of authorizations.

Article 3: Acceptance Portals

Authorized aggregators by the Central Bank set up portals allowing payments by card, electronic money, and online to be accepted.

Article 4: Pricing of Electronic Money Transactions

Electronic money institutions suspend the application of transfer fees on electronic money transactions between holder clients, on the one hand, and between electronic money accounts and bank accounts, on the other hand.

Other fees applied, particularly for merchant payments, cash withdrawals, and agents, are maintained.

Article 5: Management of Interest

The funds of electronic money issuing institutions lodged in escrow accounts with banks generate interest for the duration during which the holder holds the electronic money.

Electronic money issuing institutions may use up to 75% of the interest generated during the period from April to December 2020 to cover the lost revenue incurred due to the removal of the fees referred to in Article 4 and to expand their presence at the national level.

Electronic money institutions submit to the Central Bank, for validation, the plan for the allocation of interest received for the funds received.

.../...

563, Boulevard Colonel Tshatshi - Kinshasa – Gombe
Email: sgouverneur@bcc.cd / svicegouve@bcc.cd / cabgouv@bcc.cd - Website: http://www.bcc.cd

BANQUE CENTRALE DU CONGO

CONTINUED, PAGE 3

Article 6: Availability of the Escrow Account

Banks, as holders of escrow accounts, ensure a minimum service or a dedicated counter to allow the realization of supply and withdrawal operations in said accounts.

Article 7: Limit of the Instrument

The value of electronic money incorporated in an instrument issued by an electronic money issuing institution may not exceed at any time the equivalent in Congolese Francs of USD 7,500 (seven thousand five hundred US dollars), unless explicit authorization from the Central Bank of the Congo.

Article 8: Limit of Transactions

The daily payment ceiling for a holder may not exceed USD 2,500 (two thousand five hundred US dollars) or its equivalent in Congolese francs.

No ceiling is required for monthly payments.

Article 9: Acceptance Portals

Authorized aggregators by the Central Bank set up portals allowing payments by card, electronic money, and online to be accepted.

CHAPTER II: MEASURES FOR OPERATIONS IN THE ATS SYSTEM

Article 10: Pricing

The Central Bank of the Congo, operator of the ATS/CSD system, eliminates the variable fees charged for operations below CDF 2,500,000.

Article 11: Transitional and Final Provisions

The provisions of Articles 4, 5, 7, 8, and 10 apply until the end of December 2020.

This Instruction enters into force on the date of its signature.

Done in Kinshasa, on MARCH 24, 2020

Déogratias MUTOMBO MWANA NYEMBO
Governor

563, Boulevard Colonel Tshatshi - Kinshasa – Gombe
Email: sgouverneur@bcc.cd / svicegouve@bcc.cd / cabgouv@bcc.cd - Website: http://www.bcc.cd

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