Page 82 - ITU-T Focus Group Digital Financial Services – Interoperability

ITU-T Focus Group Digital Financial Services
Interoperability

Annex 1: Oversight of payment systems in the SADC

In Southern Africa, the Committee of Central Bank Governors (CCBG) has undertaken to facilitate cross-border
payments. To this end, the SADC Payments System Project Team (the project team), as the CCBG group
responsible for payment systems, has initiated a process to develop a framework for an integrated regional
payment environment. The CCBG has appointed the SADC Payment System Oversight Committee (SADC PSOC),
an oversight committee that is vested with the necessary powers to ensure the proper functioning of the
various payment schemes adopted in the regional SADC Payment Systems. The SADC PSOC sets out policies
regarding access criteria for participation in the payment schemes, handles dispute matters referred to it, and
ensures that any Financial Market Infrastructures (FMIs) that are appointed by the market to provide clearing
and settlement services adhere to international standards and best practices.

Payment Systems in the Southern African Development Community 24

Payment system oversight in SADC is established under the principles for international cooperative oversight
contained in the CPSS (now: CPMI) report "Central Bank Oversight of Payment and Settlement Systems", and
25
adopts the CPSS-IOSCO Principles for financial market infrastructures (PFMI) as minimum standards against
which the PSIs are assessed by the participating central banks.

Individual participating central banks consult with each other, and, when necessary, before implementing
policies or taking any action that could materially affect the PSIs. This consultation is done in order to avoid
inconsistencies in the oversight relationship.

The South African Reserve Bank (SARB) is the Lead Overseer and accepts primary responsibility for the oversight
of the PSIs. It coordinates the cooperation between the participating central banks, and facilitates the work of
the SADC PSOC. The SARB provides for the Chairperson and Secretariat of the PSOC. Each participating central
bank designates a Country Leader to serve as the principal member of the Committee and to ensure ongoing
senior-level engagement and accountability on oversight matters.

The SADC PSOC periodically assesses the design and operation of the PSIs against the PFMI. It may accomplish
this either by reviewing and commenting upon analyses and assessments prepared by the PSI operators, or
by preparing independent analyses and assessments. PSI operators are required to submit a self-assessment
against the PFMI at least every two years or when there is a material change (e.g., the addition of new
initiatives, major new services, and changes to the PSI operations and risk management procedures.)

24 SIRESS stands for SADC Integrated Regional Electronic Settlement System.
25 See "Central bank oversight of payment and settlement systems", Committee on Payment and Settlement Systems, May 2005.

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