Ethiopia: National Bank rule on licensing and authorisation of payment instrument issuers (Directive No. ONPS/09/2023) entered into force with grace period

On 6 October 2023, the Licensing and Authorisation of Payment Instrument Issuers Directive No. ONPS/09/2023 came into force with a grace period. Entities licensed by the National Bank of Ethiopia (NBE) to issue payment instruments before this date must comply with its provisions within six months. The directive repealed and replaced Directive Nos. ONPS/01/2020, ONPS/03/2021, and ONPS/06/2022. The directive establishes a procedure for entities seeking authorisation to issue payment instruments, including electronic money. Applicants must apply for a licence from the NBE and provide documentation such as business plans, capital investment details, and compliance records. It outlines Know Your Customer (KYC) and Anti-Money Laundering (AML) due diligence requirements, defines the roles of agents and merchants, and sets conditions for cash-in and cash-out transactions on behalf of users. It also stipulates capital requirements, including a minimum paid-up capital, and imposes specific financial obligations, such as an investment protection fee, on foreign nationals.