Regulatory Alerts2020-03-31
Added · Updated
Use of Agents Directive No. FIS/02/2020
The National Bank of Ethiopia establishes a regulatory framework for banks, microfinance institutions, and payment instrument issuers to engage agents for providing financial services. Financial institutions must obtain prior written approval from the National Bank, submitting detailed applications covering risk management, operational workflows, and agent due diligence criteria within 30 days. The Directive defines permissible activities such as cash-in/cash-out and account opening, while prohibiting agents from operating outside designated areas, charging direct fees, or conducting transactions without connectivity. It also mandates specific contract formations, termination reporting, and exclusivity rules for agents managing multiple financial institutions.