10 July 2024
Regulators from the Common Monetary Area (CMA) recently decided to discontinue processing Electronic Funds Transfer (EFT) payments and collections within the CMA, to ensure the safety, security, efficiency, and cost-effectiveness of these transactions.
What changes are taking place?
In the past, EFT transactions between countries in the CMA were treated as domestic transactions. From 30 September 2024, however, EFT payments and collections between Eswatini, Lesotho and South Africa must be processed as global transactions. Glacier will therefore no longer be able to make payments to, or receive payments from bank account holders in Lesotho and Eswatini.
Impact on new business
From 22 July 2024, a South African bank account will be required for all new business from Lesotho or Eswatini. No new business will be issued for these areas without a South African bank account.
Existing debit orders and income payments
Existing clients with Lesotho or Eswatini bank accounts will be required to open South African bank accounts to accommodate debit orders and income payments. The new South African bank account details must be provided to Glacier prior to the deadline of 30 September 2024 to avoid payments in arrears or banking costs being incurred by clients.
Communication to affected clients and intermediaries
We will communicate to intermediaries of affected clients around mid-July, and thereafter to the affected clients.
Please contact our Communication Centre if you have any queries or require further information.
