Finance

BCEAO sets regulatory framework for payment service providers in the WAMU, mandates approval within 6 months

Wednesday, 07 February 2024 19:07
BCEAO sets regulatory framework for payment service providers in the WAMU, mandates approval within 6 months

(Ecofin Agency) - The Central Bank of West African States (BCEAO) issued an instruction on January 31, 2024, outlining the procedures for providing payment services within the 8 West African countries that constitute the West African Monetary Union (WAMU).

This regulatory text officially grants banks, credit financial institutions, microfinance structures, and electronic money institutions the green light to offer payment services within the WAMU. However, they must first obtain approval as payment institutions from the BCEAO.

The approval process is contingent on demonstrating a fully paid-up minimum share capital, varying based on the types of payment services chosen by the applicant. This regulation, which has officially come into effect, was eagerly anticipated by various financial entities seeking to engage in payment service provision within the WAMU region. It aims to regulate the sector while enhancing consumer protection.

Payment service providers operating within the Union now have a 6-month window to comply with the provisions of this instruction and obtain their approval. Let’s note that the activities of payment service providers encompass cash deposits or withdrawals, account management operations, payment execution, fund transfers, issuance of payment instruments, and aggregation of accounts or account information.





 
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ECOFIN AGENCY offers a selection of articles translated from AGENCE ECOFIN. Founded in 2011, Agence Ecofin is a leader in Francophone Pan-African economic news, particularly in West and Central Africa. The agency publishes daily news on nine African economic sectors: Public Management, Finance, ICT, Agribusiness, Energy, Mining, Transport & Logistics, Communication, and Training.

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