The Payment Systems Act. The Act empowers the CBL to issue regulations and guidelines to achieve its mandate with respect to the efficiency and stability of the financial system. In reliance on the provisions stipulated in the Act, the Central Bank of Liberia (CBL) continues to issue regulations, guidelines and directives to the banks and non-bank financial institutions within its regulatory ambit. With respect to the payments system, the Central Bank of Liberia Act (1999) vests in the Central Bank the power and authority to “play an active role in collaboration with financial institutions in the creation and maintenance of efficient and safe mechanisms for payments, clearing and settlements to meet the needs of the financial markets, commerce, government agencies and the general public.” (Part II, 4-10). Furthermore, the Act stipulates that the Central Bank may “organize a clearinghouse in Monrovia” (Part VII, 38-1). While Article 2 of the Payment System Act (2014) vests in the Central Bank the power and authority to establish and designate systems (Part II, 7-15). The Act appropriately provides for the operational, regulatory and oversight involvement of the CBL in the National Payment System. It recognizes multilateral netting and incorporates explicit provisions on irrevocability and finality. It accords priority to certain funds transfer instructions in the event of a participant’s winding up Liquidation of assets pledged or transferred as collateral.
The CBL continues to develop appropriate rules, regulations and contractual arrangements to complete a sound, safe and standardized legal framework that does not only meet the needs of the Liberian people but is consistent within the regional context.
- The Payment Systems Act (2014)
- The Real Time Gross Settlement Rules (RTGS)
- The Automated Cheque Processing and Automated Clearing House Rules (ACP-ACH)