The Arab Monetary Fund (AMF), Buna and Visa have signed an MoU to collaborate over regional payments between the Arab world and the rest of the world, according to a recent statement.
The MoU makes way for a mutual interoperability between Visa and Buna, an AMF-owned regional cross-border payment platform. It also looks to add additional rails of money transfer between the two systems and offer diversified payout options as well.
Buna’s payment system allows financial institutions and central banks in the Arab region to send and receive payments in both local and select international currencies. Launched in February last year, the platform went fully live in December 2020. Banks that meet compliance standards and procedures in the country are eligible for the service.
Buna and Visa will provide channels for cross-border payment
Both Buna and Visa’s network of participants and member banks will be able to access channels for cross-border payments in Arab and international currencies.
“With this initiative, Buna continues to develop and grow its diversified pool of innovative solutions, providing its participant banks additional safe and credible channels to broaden their cross-payment capacities, implement innovative business models and better serve their clientele.
Both Visa and Buna will capitalise on this partnership to deliver joint cross-border payment products and services that are risk controlled and with broad coverage and extended availability to better serve the diverse needs of the financial and payment community in the Arab region and beyond,”
Dr. Abdulrahman A. Al Hamidy, Director General Chairperson of the AMF Board, said.
Buna is currently in the process of growing its network, and was looking to onboard 120 banks as of December last year, in addition to an expansion of eligible Arab and international currencies. The multi-currency platform also has plans to launch an instant payments solution, trade finance solutions, securities settlement, and ATM/ POS processing services.