An email late Friday, but dated 23 June, sent out to customers from Managing Director Simon Hammond, CABS has announced termination of processing of telegraphic transfers (TT), both incoming and outgoing, for individuals in USD, GBP and EUR effective 01 July 2016.
This follows a similar move by NMB Bank Limited nearly two months ago when the bank also advised individual customers to seek other alternatives for incoming telegraphic transfers. Any payments made after that would just bounce back to the sender.
The CABS email states that
“We will only be processing telegraphic transfers for individuals in ZAR (South African Rand) or in BWP (Botswana Pula). In light of this limitation, individual customers are advised to use the option of making payments to other SADC countries other than South Africa and Botswana, in ZAR, through the SADC Regional Electronic Settlement System (SIRESS)”.
“Engagements are underway to set up alternative payment channels for individual transactions in USD, GBP and EUR and details will be communicated in due course”
However, this latest development does not affect corporate accounts. Surprisingly, incoming USD, GDP and EUR transfers that would supposedly improve the situation are also being turned down.
Internet work affected
From a digital point of view, if this continues to spread to all the banks across the system it just complicates the situation for individuals receiving payments via local banks in USD, GBP and EUR for whatever services they may be rendering online.
Individuals with web properties that have been earning money from monetization methods such Google Adsense, for example, which has been wiring to Zimbabwe via TT for sometime now will have to scout for new alternatives.
Among the options available to affected individuals is shutting down current Google Adsense USD denominated accounts and reapplying for new accounts denominated in ZAR or BW, an astonishingly complicated process in itself.