Freetown, Sierra Leone – The Bank of Sierra Leone (BSL) has announced a set of groundbreaking directives aimed at streamlining the country’s payment systems.
The directives, which will take effect on April 1, 2025, mandate all financial institutions and mobile money operators to process domestic transactions exclusively through the National Switch, popularly known as the “Salone Pement Swich” (SaPS).
The National Switch was first introduced in May 2023 to facilitate seamless card and Point of Sale (POS) transactions.
According to Section 5 of the National Switch Directives 2023, “All financial institutions licensed by the Bank and operating in Sierra Leone shall ensure that they become and remain participants in the National Switch.”
BSL stated that, “The National Switch is a crucial step toward enhancing the efficiency, security, and inclusiveness of Sierra Leone’s payment landscape. By consolidating all domestic transactions under SaPS, we aim to provide a unified and robust payment system for the nation.”
Section 9(4) of the National Switch Directives also emphasizes the need for interoperability, requiring all payment service providers to route Automated Teller Machines (ATMs), POS, internet, mobile, and other payment transactions through SaPS.
In a statement released today, BSL outlined the new rules:
1. Mandatory Use of SaPS for Transactions: All commercial banks and mobile money operators must process instant payments, card, and POS transactions via SaPS.
2. Card Transactions Integration: Commercial banks are required to route all domestic card transactions with other banks through the SaPS card switch.
3. Instant Payment Processing: Both commercial banks and mobile money operators must channel all instant payments with other fintech organizations through the SaPS Instant Payment Service (IPS).
The Bank has underscored that these directives are in line with Section 15(7) of the National Payment Systems Act 2022. “Compliance is non-negotiable,” the statement stressed, warning that failure to adhere to the directives will result in financial and other penalties under Section 37 of the Act.
“This initiative marks a significant milestone in Sierra Leone’s journey toward a fully digitized economy,” the Bank added. “We urge all financial institutions to align their operations with these directives to foster greater financial inclusion and innovation.”
As the April 2025 deadline approaches, the Bank of Sierra Leone is calling on all stakeholders to prepare for the transition to ensure compliance and smooth implementation.