Regulatory Alerts2012-01-01
CB Circular 10/2012 Display of Notices of Consequences of Bouncing Cheques
The Bank of Zambia mandates all commercial banks to display prominent notices in their branches warning customers about the legal and financial consequences of willfully issuing cheques on insufficiently funded accounts. These notices must be based on the provided template and implemented by 30 June 2012, highlighting that such acts constitute a criminal offence punishable by up to two years imprisonment or a fine of K18 million. Additionally, the circular specifies monetary penalties of K504,000 for corporate and K306,000 for individual customers, with cheque facilities withdrawn after three offences within twelve months.
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