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

On 7 April 2024, the Licensing and Authorisation of Payment Instrument Issuers Directive No. ONPS/09/2023 entered into force. 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.