Sudan and Kenya have agreed to resume banking relations. Ambassador Kamal Jubara announced that the meeting between the two countries’ leaders covered bilateral relations, economic and commercial issues, and stability in South Sudan. The meeting discussed details of the resumption of banking relations between the two countries and provided directives for direct transactions between Sudanese and Kenyan banks.
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GTBank UK fined for AML failures
The UK subsidiary of Nigeria’s Guaranty Trust Bank (GT Bank) has been fined £7.6m ($9.3m) by the Financial Conduct Authority (FCA) for further failures in its anti-money laundering systems and controls, after previously receiving a fine for similar failures in 2013. Despite the previous fines and warnings, the bank failed to take appropriate action to fix the issues, according to the FCA. GT Bank did not dispute the findings and agreed to settle, which made it eligible for a 30% discount on the fine.
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Banks release guidelines as enforcement of CBN withdrawal policy begins
The Central Bank of Nigeria (CBN) has begun enforcement of a policy that limits the amount of cash that can be withdrawn from banks, and Nigerian banks have released guidelines on how to comply with this policy. The policy is meant to curb money laundering and other illicit financial activities, and limits cash withdrawals to N500,000 ($1,346) per day, and N3 million ($8,377) per month.
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Tanzanian president appoints Emmanuel Tutuba as central bank governor
Emmanuel Tutuba has been appointed governor of the Central Bank of Tanzania by President Samia Suluhu Hassan. Tutuba, formerly permanent secretary at the Ministry of Finance and Planning, takes over from Florens Luoga, who reached the end of his five-year tenure, and inherits an economy facing high inflation and a soft currency due to global economic pressures related to the Russia-Ukraine conflict.
Categories: Regulators -
There is a need to create public banks in SA: Mapaila
The South African Communist Party (SACP) has called for the creation of public banks in the country, arguing that the country’s commercial banks are only benefiting the wealthy, while the Reserve Bank needs to change its monetary policy regime adopted since 1996, which has failed South Africa, according to SACP General Secretary Solly Mapaila.
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CBN reappoints two directors
The Nigerian Senate has confirmed the appointment of Aishah Ahmad and Edward Adamu for second terms as deputy governors of the Central Bank of Nigeria (CBN). Both officials joined the CBN in March 2018 and are set to continue in their roles for the next four years. Prior to joining the CBN, Ahmad was executive director for retail banking at Diamond Bank and has a master’s degree in finance and management from Cranfield School of Management in the UK. Adamu is a civil servant with a career spanning over 35 years.
Categories: Regulators -
BUSINESS
CBN says Nigeria to become cashless by 2025
The Central Bank of Nigeria (CBN) has set a target of achieving a cashless economy by 2025. The bank’s Payments Vision 2025 document aims to create an efficient electronic payment system infrastructure that can facilitate financial services in all sectors of the Nigerian economy, while providing secure, reliable, and user-centric financial solutions that are compliant with international standards. The use of cash is already in decline in Nigeria, as electronic bill payments, mobile phone top-ups, and mobile and instant payments have become more popular.
Categories: Regulators -
BoG steps up dollar support for commercial banks as demand increases
The Bank of Ghana (BoG) is increasing its support for commercial banks to help address the growing demand for the US dollar by large corporations and other businesses. The move follows slower activity by the central bank in supplying US dollars on the forex market. The decision is expected to boost investor confidence and strengthen the gains made by the cedi, which ended 2022 as the second weakest currency on the African continent with a year-to-date loss of 38.86% to the US dollar, according to Bloomberg. The cedi is also the fourth worst currency globally.
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Banks borrowing from CBN drops 15% to N11trn in 2022
Banks borrowing from the Central Bank of Nigeria’s (CBN) Standing Lending Facility (SLF) fell 15% to N11tn ($30.3bn) in 2022, down from N13tn the previous year, due to a slowdown in business activity and a decrease in short-term cash requirements. The CBN lent money to banks and merchant banks through the SLF at an interest rate of 100 basis points above the Monetary Policy Rate. Finance experts said the drop was caused by tight liquidity conditions in the banking sector. However, VP of Highcap Securities, David Adnori, attributed it to economic uncertainty following the 2023 general election.
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Kenyan Regulatory Agencies Begin Work on a Comprehensive Legal Framework for Crypto
Kenya’s Joint Financial Sector Regulators (FSRB), consisting of five regulatory bodies, will work on recommendations for the development of an oversight framework for cryptocurrencies, players and activities in Kenya. The FSRB’s main role is to enhance collaboration between organizations on legal and policy issues, regulation and supervision, and information sharing. The group also wants to coordinate the development of a framework for promoting the adoption of technology and innovations in the financial services sector to help with effective regulation and supervision. The FSRB will submit recommendations to the Kenya Ministry of National Treasury and Economic Planning.
Tags: Kenya -
Nigerian Banks and Fintech Companies Suspend International Transactions on Naira Cards
Several Nigerian banks and fintech companies have suspended international transactions on naira cards. The directive, which is set to come into effect on December 31, will also affect offshore ATMs and point of sale (PoS) transactions across the country. The move is reportedly connected to the Central Bank of Nigeria’s (CBN) policy of reducing dollar spending abroad and saving foreign exchange for the economy. In March, financial institutions in Nigeria cut international spending on naira cards from $100 to $20 per month.