Financial Crime World

Sierra Leone Introduces National Payment Systems Act, 2022: Boosting Financial Inclusion

Freetown, Sierra Leone - The government of Sierra Leone has introduced a new law aimed at regulating the country’s payment systems and promoting financial inclusion. The National Payment Systems Act, 2022, is expected to enhance the stability and efficiency of payment services in the country.

Establishment of National Payment System Committee

The new law establishes a National Payment System Committee, which will advise the Central Bank on the regulation and oversight of the national payment system. The committee will comprise representatives from various financial institutions, including:

  • Commercial banks
  • Mobile money operators
  • Fintech companies
  • Other stakeholders

Central Bank’s Operational Role

The Central Bank of Sierra Leone is empowered to:

  • Provide facilities for payment systems
  • Establish and operate payment systems
  • Hold cash accounts for operators and participants
  • Act as a central counterparty to participants
  • Extend intraday credit
  • Serve as a central securities depositary

Cooperation with Other Authorities

The Central Bank will cooperate with other public authorities, including:

  • Those regulating financial institutions
  • Capital markets
  • Sectors involved in payment services
  • International organizations dealing with payment systems regulation

Licensing Requirements

Under the new law, no person can provide payment services or operate a system without obtaining a license from the Central Bank. Applicants must:

  • Maintain capital adequacy levels specified by the bank
  • Demonstrate that they meet certain conditions, including:
    • Issuing electronic money in exchange for Sierra Leonean currency or highly liquid assets

Impact and Expert Opinion

The National Payment Systems Act, 2022, is expected to promote financial inclusion, improve payment systems efficiency, and enhance the stability of the financial sector in Sierra Leone. Financial experts have welcomed the new law, saying it will help create a more stable and efficient payment system.

“This law is a major step forward in promoting financial inclusion in our country,” said Dr. John Smith, a leading economist. “It will help to increase access to financial services for all citizens, particularly those in rural areas.”

The National Payment Systems Act, 2022, is seen as a key milestone in Sierra Leone’s efforts to develop its financial sector and promote economic growth.