Bank of South Sudan Orders All Banks to Join Interbank System by January 2026 or Face $100,000 Fine

The Bank of South Sudan (BOSS)  has issued a directive mandating all licensed commercial banks to connect to the newly launched South Sudan Interbank and Settlement System (SSIPSS) by January 31, 2026. The order, outlined in Circular No. 07 from the Office of the Governor, establishes strict compliance requirements and introduces significant penalties for non-adherence, signaling the central bank’s determination to modernize the country’s financial infrastructure.

The directive follows the successful launch of the SSIPSS on October 10, 2025, which saw 13 commercial banks voluntarily connect to the platform. The system is designed to enhance the efficiency, stability, and security of South Sudan’s national payment network by facilitating real-time transfers and settlements across institutions.

Banks that fail to meet the January 2026 deadline will face a $100,000 penalty, payable in U.S. dollars or the equivalent in South Sudanese Pounds. Continued non-compliance could lead to further regulatory action, including restrictions on interbank operations and public disclosure of offending institutions.

According to the Bank of South Sudan, the mandate is issued under Section 12(1) of the Bank of South Sudan Act, 2011 (amended in 2023), which empowers the central bank to promote a safe, sound, and inclusive financial system. Governor Dr. Addi Ababa Othow emphasized that full integration into the SSIPSS is crucial for achieving a modern and interoperable national payments ecosystem, describing the platform as a cornerstone of the country’s financial modernization efforts.

The SSIPSS features both a Real-Time Gross Settlement (RTGS) component for high-value transactions and an Automated Clearing House (ACH) for bulk, low-value payments such as salaries and utilities. The system operates 24/7, enabling instant fund transfers between individuals, businesses, and government entities, and is expected to significantly improve transparency and trust in financial transactions.

This move comes amid broader government initiatives aimed at strengthening financial oversight and combating capital flight. Authorities believe the new system will provide greater visibility into cash flows across the banking sector, supporting accountability and reducing the risks of illicit financial activities.

The central bank has reiterated its readiness to assist commercial banks during the integration process through the National Payment Systems Department and urged all institutions to prioritize compliance ahead of the deadline. The directive marks a critical milestone in South Sudan’s digital transformation agenda, laying the groundwork for a more efficient, transparent, and connected financial ecosystem.