Regulatory Alerts2020-03-31
Added · Updated
Use of Agents Directive No. FIS/02/2020
The National Bank of Ethiopia establishes the regulatory framework for banks, microfinance institutions, and payment instrument issuers to engage agents for providing agency business services. Financial institutions must obtain prior written approval from the National Bank, submitting detailed applications covering risk management, operational workflows, and compliance policies, with decisions rendered 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 or without system connectivity. It mandates strict agent due diligence, written agency contracts, and quarterly reporting of contract terminations to ensure safety and soundness.
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