Days numbered for cross-border cheques

WINDHOEK DENVER ISAACS Businesses and individuals conducting trade beyond the country's borders are advised that as of next month, no commercial bank in the country will continue to accept cheque payments for any cross-border transactions. In its latest monthly newsletter, professional services company PricewaterhouseCoopers (PwC) gives July 22 as the date for when this new regulation kicks in, as per agreement by Southern African Development Community countries in the Common Monetary Area (CMA). The stipulation applies to all cross-border cheques, Rand draft notes and Rand Travellers' cheques between Namibia, South Africa, Lesotho and Swaziland. From July 22 onwards, all commercial banks are expected to return such cheques as unpaid. The move is part of a regional drive to eliminate paper-based instruments such as cheques and drafts, and reduce the chance of fraud associated with these. Alternative payment methods that will continue to be valid, include normal Electronic Funds Transfer (EFT) or internet banking, transfers, forex transfers and credit card payments. When the central banks of the countries involved announced the new terms, it said the outmoded instruments are to be replaced by a faster, cheaper and more secure automated model, known as the Southern African Development Community Integrated Regional Electronic Settlement System (SIRESS). Lesotho's central bank has already announced that the new system comes into effect on July 22, and will initially only be rolled out to those countries in the region who are part of the CMA. Following its successful implementation, it would then be rolled out to the rest of the region.