1. SADC Payment System Integration Project
Presentation to AMEDA
25-27 April 2012

2. SADC Payment System Project - Domestic
Project Vision
Each SADC country has :
An efficient and effective payment system
Internationally acceptable
Interlinked within the region
Supporting the SADC aims of :
Free trade

3. Payment, Clearing and Settlement Systems
Different approaches to Modernisation
Pure strategic approach
Model-based approach
Operational approach
Achievements

4. SADC Modernisation so far
IMPLEMENTATION
LAUNCH
SENSITISATION
INFO & STOCKTAKING
VISION & STRATEGY
CONCEPTUAL DESIGN
BUS. PROC SPECS
TECHNICAL SPECS
DEVELOP/
PROCURE
ANGOLA
BOTSWANA
DRC
LESOTHO
MADAGASCAR
MALAWI
MAURITIUS
MOZAMBIQUE
NAMIBIA
SEYCHELLES
SOUTH AFRICA
SWAZILAND
TANZANIA
ZAMBIA
ZIMBABWE

5. SADC Payment System Project - Regional
Project Vision
Each SADC country has :
An efficient and effective payment system
Internationally acceptable
Interlinked within the region
Supporting the SADC aims of :
Free trade

6. SADC Payment System RISDP – for 2018 (being revised) A single currency
(Regional Indicative Strategic Development Plan)
A single currency
A SADC Central Bank
This will entail a change in thinking from sovereign to regional

7. SADC Payment System
Building a model – possible role for CMA based on the Rand as a settlement currency
Can be used for various purposes including:
Testing the system concepts of regional clearing and settlement
Creating confidence in a regional settlement environment
Identifying legal issues
Breaking down barriers and misconceptions

8. SADC Payment System Building a model – possible role for CMA
Possibly 3 phases:
Model 1
Settle local transactions in-country
Settle cross-border transactions in a central CMA system
Banks will have individual accounts
Model 2
Settle all transactions in a central CMA system
Model 3
Banks may settle through their head office to centralise their Treasury functions pool liquidity

9. Model 1 FNB ABSA Bank W/hoek ACH NACH CMA Clear NFNB South Africa
Namibia
CMA Settlement
FNB
ABSA
NFNB
Bank W/hoek
ACH
NACH
CMA Clear

10. Model 2 Bank W/hoek FNB ABSA CMA Clear NFNB South Africa Namibia
CMA Settlement
FNB
ABSA
NFNB
Bank W/hoek
CMA Clear

11. Model 3 Bank W/hoek FNB ABSA CMA Clear NFNB South Africa Namibia
CMA Settlement
FNB
ABSA
Bank W/hoek
NFNB
CMA Clear

12. SADC Payment System Building a model – possible role for CMA
Going forward:
Model 1 can be achieved at relatively low cost
Minimal expenditure on equipment and systems
Initial CMA Settlement feature hosted by SARB using a ring-fenced infrastructure
If approved – work to start early 2012

13. SAMOS Participant Bank to SAMOS Participant Bank Payments
SWIFT FIN ZDS
Copy
Service
MT/103MT202
MT103./MT202
SAMOS
Participant
Bank
SAMOS
Participant
Bank
MT096
MT097
SAMOS
RTL
CPL and CBPL
Loans
Reserve Management
Settlement
Management Instruction
RESS Account. Dr
SAMOS Bank A Cr
SAMOS Bank B

14. CMA Domestic Bank to CMA Domestic Bank Payments
SWIFT FIN
Copy
Service
MT/103MT202
MT103./MT202
Domestic
Participant
Bank
Domestic
Participant
Bank
MT096
MT097
Domestic RTGS
RTL
CPL and CBPL
Loans
Reserve Management
Settlement
Management Instruction
RESS Account. Dr
Domestic Bank A Cr
Domestic Bank B

15. Proposal to Fund SIRESS Accounts
SWIFT FIN ZDS
Copy
Service
MT202
SAMOS
Participant
Bank 1
CMA
Participant
Bank
MT202 4
MT910 2
MT096
MT097 6
SAMOS
SIRESS 3 5
3.1
SAMOS Bank
3.2
SIRESS Account
5.1
SAMOS Account
5.2
CMA Bank 15
QB March 2011

16. SAMOS Participant Bank to CMA Participant Bank Cross Border Payments Bypass SAMOS system (Normal settlement between CMA Banks)
SWIFT FIN RESS
Copy
Service
MT103./MT202
MT103./MT202 1 6 2
SAMOS
Participant
Banks
CMA
Participant
Banks 5 3
MT096
MT097 4
SIRESS
CPL and CBPL
Settlement
Management Instruction
Admin Instructions
SAMOS
RTL
CPL and CBPL
Loans
Reserve Management
Settlement
Management Instruction
RESS Account. Dr
SAMOS Bank Cr
CMA Bank

17. Utilising funds in the Settlement account
Receive payments from counterparts
FX deal
Interbank loans

18. Proposal for Phase 1 of the integrated system
Keep the system as simple as possible
No collateralised loans provided for in the system
Key considerations
Promote interbank loans
Central banks to assist clearing banks in their jurisdictions to access liquidity as far as possible

19. SADC BA Stakeholders

20. SADCBA Organizational structure

21. End – Thank You