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Penalty for Non-Compliance with the Directives of the National Bank (Directive No. 955/2022)

National Bank Of Ethiopia955/2022

Summary

This directive establishes penalties for payment instrument issuers and payment system operators that fail to comply with National Bank of Ethiopia directives, outlining specific fines for violations related to transaction limits, other non-compliance, and report submissions.

Who's affected

Payment instrument issuers and payment system operators licensed or authorized by the National Bank of Ethiopia.

Action required

Payment instrument issuers and payment system operators must ensure full compliance with all National Bank directives to avoid penalties.

Key points

5
  • Establishes penalties for non-compliance with National Bank Directives.
  • Applies to payment instrument issuers and payment system operators.
  • Details specific financial penalties for different types of violations.
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    • Allows for waiver of penalties under certain conditions.
    • Directive number is 955/2022.

Requirements

4
  • Payment instrument issuers and payment system operators must comply with all relevant provisions of laws and National Bank directives.
  • Violations regarding established transaction and balance limits will incur a penalty of Birr 100,000 or 25% of the excess limit, whichever is higher.
  • Violations of provisions other than transaction limits (excluding report submissions) will incur a penalty of Birr 20,000 per violation and/or per customer.
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    • Non-compliance with report submission deadlines will incur a penalty of Birr 15,000 per report.

Rights and permissions

1
  • The National Bank may partially or totally waive the penalty on sufficient and reasonable grounds.

Restrictions

1
  • Payment instrument issuers and payment system operators are subject to financial penalties for non-compliance with National Bank directives.

Penalties

3
  • Birr 100,000 or 25% of the excess of established transaction or balance limits, whichever is the higher, per violation of established transaction and balance limits.
  • Birr 20,000 per violation and /or per customer for incompliance with provisions other than those stated in sub-article 4.1, except for report submission.
  • Birr 15,000 per report for incompliance with report submission deadlines.

Objectives

2
  • To ensure the safety and efficiency of the National Bank of Ethiopia through effective oversight and supervision.
  • To ensure that payment service providers fully comply with all relevant provisions of laws and the National Bank directives.

Organizations

1
  • National Bank of Ethiopia

Legal references

1
  • National Payment System Proclamation No. 718/2011, Articles 34 and 37(2)
Original sourcehttps://justice.gov.et/en/directives/oversight-of-the-national-payment-system-penalty-for-non-compliance-with-the-directives-of-the-national-bank-directive-no-955-2022/
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