Regulatory Alerts2010-06-07
Guidelines on Transactions with Related Persons
The Bank of Botswana requires licensed banks and supervised financial institutions to conduct all transactions with related persons on an arm’s-length basis, supported by board-approved policies and strict exposure limits. Directors and senior management must disclose their interests in writing, abstain from voting on related transactions, and maintain updated records to ensure independent monitoring. The Guidelines cap unsecured exposures at one year’s emoluments for employees, limit individual related-person exposure to 10 percent of core capital, and restrict total group exposure to 25 percent of unimpaired capital, with mandatory quarterly reporting.
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