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The CE0
Ethswitch S. Co.
Addis AI)aba

Dear Sir,

In your letter reference Ets/ceo-009/18, you have requested us for a directio on the approval process before releasing
new products/services for public use. Accordingly, a complete application lett wi.th supporting documents and the
necessary details shall be submitted to the National Bank and based on the assessment result; the National Bank may give
its approval. The Bank may also request for a walk through presentation on the planned product/service.

Thus, please make sure that the new product falls under the company's bylaws; it must get approval of the Board of
Directors (minutes shall be attached) which adequately assess and discdss the product and the company's readiness to
manage and control involved risks. Furthermore, the following documents shall accompany the application.

1. A document(s), which shows, at least, the following: the benefit/rationale of the product; description of the
product/service and its value proposition to different groups (like: Ethswitch, banks, customers, etc), its impeft on
the overau financial!j2ayrfefitlystEffi|;The operational plan to start the new product/service; the readiness related
to resources (like, manpower, training)-;--the financiaTTeasibility of the product/service including but not..lifiiited to
informati6n on associated costs and revenue.
2. A document(s) that shows detailed technical standard/system design; lT related risks and mitigation mechanisms;
deta`iled JT and networ]££ecurity_infrastructure arrangeme.n_t; network diagEaifiThowing e2s±e[qa_| lir`_kages and control
checkpoints; details of tests carried and corresponding results; contingency plan to ensure business continuity;
partnering institutions company profile; and details of contracts with partnering institutions regarding the necessary
support service arrangements.
3. The risk management framework associated to the new product, which is app[g)±gd by the Board of Directors.
Description of key inherent risks related to the product/service and the system/process to manage the n.sks.
Operational guidelines for the new product/service, process flow diagrams and charts.
Detaiiad-a€'c6d.nting treatment, clearing and sett`ernent procedure, processes and modali.ties.
Policy and procedure manuals to the product/service.,
System rules or any intended amendment related to the new product.
`,----

:::m¥:n#d8i-tsi#C-::reJhichtheproducvserviceisavai|edtofinanciaHnstitutionsandtheircustomers.
Main stakeholders (involved parties) for the new product, their role and readiness;
*` 11. Dispute resolution arrangement.

Based on the amount and of the information provided ; the Natiomat.Bank may forward 'additiaaakquest'tons.. t

Sincerely,

;ii`,LJ`,`
ill ',a.
'`.?
Eyob'Gebreyesus
Director, Payment
.P
Systems Directorate
/:a Ltt\;;-J`; ,
3'+\*,,b\``,r
\-

CC:
z,:``,i:}tiJ, . .',

t+ Vice Governor, Financial Institutions supervision

t+ Payment system oversight and Development i, iu.`
.1

National Bank of Ethiopia

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