By Staff Reporter
The Payment Association of Namibia (PAN) has embarked on initiatives to align Namibian banks with internationally acceptable best practices and by so doing, guard against cheque fraud in the country.
Chairperson of PAN, Ester Kali, said the organisation, in conjunction with the Bankers’ Association of Namibia (BAN), as well as the Bank of Namibia (BoN), decided to discard the further usage of any third party cheque deposits or paper-based credit transfers for any Namibian or South African beneficiary account, beginning February.
“We would like to advise the public that in future individuals will be required to hold an account with the financial institution they wish to deposit cheques with, and that such funds to other Namibian or South African financial institutions will only be transferred electronically after the cheques are cleared,” said Kali.
She advised the public that third party cheque deposits are referred to by commercial banks as a cheque deposit made at one bank for credit to a beneficiary account held by another bank.
This typically occurs in towns where certain commercial banks are not represented.
However, third party deposits involving non-clearing banks such as NamPost Savings Bank will continue to be governed through agreements between the clearing bank and NamPost, registered under the auspices of PAN.
Kali advised that paper-based credit transfers were referred to when cheque deposits were made to beneficiary accounts held by commercial banks in South Africa.
“This involves over-the-counter credit transfer deposit slips. These deposit slips are usually done by Namibian customers paying for goods and services rendered by South African service providers, whose accounts are held in the books of a South African commercial bank,” Kali cautioned.
She urged the public to contact their nearest bank branches to clarify any misconceptions about third party cheque deposits, as well as South Africa’s paper-based credit transfers.