Region

Jurisdiction

Regulator

2015-01-01

Bank of Zambia Directives on Foreign Currency Cash Transactions

The Bank of Zambia has revised the daily over-the-counter foreign currency cash transaction limits applicable to commercial banks, effective immediately. The updated caps set daily deposit and purchase limits at US$100,000 for companies and US$20,000 for individuals, while establishing a uniform US$1,000 daily limit for non-account holders and a US$5,000 limit for account holder withdrawals. Commercial banks must enforce Know Your Customer and anti-money laundering protocols, report cumulative limits across client accounts, and submit weekly transaction returns to the Bank Supervision Department.

Zambia

Bank of Zambia

Bank Of Zambia OFFICE OF THE DEPUTY GOVERNOR - OPERATIONS

BOZ/EXE/DGO/banksup/bp

October 9, 2015

CB Circular No: 18/2015

To: All Heads of Commercial Banks

DIRECTIVES ON FOREIGN CURRENCY CASH TRANSACTIONS

We make reference to CB Circular No. 11/98 issued on December 2, 1998 and the subsequent CB Circular No. 6/2000 issued on August 28, 2000.

Kindly be advised that with immediate effect, the over the counter (OTC) foreign currency cash transactions limits are hereby reviewed. In this regard, all commercial banks shall ensure that OTC foreign currency cash transactions do not exceed the following limits per day:

1. DAILY CASH DEPOSITS BY, OR CASH PURCHASES FROM ACCOUNT HOLDERS


Registered Companies & Organisations	US$100,000 (United States Dollars One Hundred Thousand only) or its equivalent in other currencies
Individuals	US$20,000 (United States Dollars Twenty Thousand only) or its equivalent in other currencies

2. DAILY CASH PURCHASES FROM NON-ACCOUNT HOLDERS


Registered Companies & Organisations	US$1,000 (United States Dollars One Thousand only) or its equivalent in other currencies
Individuals	US$1,000 (United States Dollars One Thousand only) or its equivalent in other currencies

.....2/-

Bank Square, Cairo Road P.O. Box 30080, Lusaka, Zambia Tel: 260-211-226844, 228888 Fax:260-211-237070 E-mail:dgo@boz.zm.Web: http://www.boz.zm

CB Circular No: 18/2015 - 2 - October 9, 2015

3. DAILY CASH WITHDRAWALS BY, OR CASH SALES TO ACCOUNT HOLDERS


Registered Companies & Organisations	US$5,000 (United States Dollars Five Thousand only) or its equivalent in other currencies
Individuals	US$5,000 (United States Dollars Five Thousand only) or its equivalent in other currencies

4. DAILY CASH SALES TO NON-ACCOUNT HOLDERS


Registered Companies & Organisations	US$1,000 (United States Dollars One Thousand only) or its equivalent in other currencies
Individuals	US$1,000 (United States Dollars One Thousand only) or its equivalent in other currencies

In engaging in these transactions, commercial banks must ensure that they comply with the law and directives with regard to “Know Your Customer” requirements and reporting requirements as prescribed by the Financial Intelligence Centre Act of 2010 and the Bank of Zambia Anti-Money Laundering Directives.

Further, commercial banks will be required to submit to the Bank of Zambia, Bank Supervision Department, a weekly return as per attached template on all foreign currency cash deposits and/or cash purchases from account holders every Monday for the preceding week.

The Bank of Zambia also wishes to urge commercial banks to advise all their clients that these limits are cumulative across all multiple accounts that may be held within one bank and/or with different banks.

(Signature)

Bwalya K. E. Ng’andu (Dr) DEPUTY GOVERNOR – OPERATIONS

Cc Governor Deputy Governor – Administration Senior Director – Supervisory Policy

Bank Square, Cairo Road P.O. Box 30080, Lusaka, Zambia Tel: +260-211-226844/228888/9 Fax: +260-211-237070 Email: bngandu@boz.zm, http://www.boz.zm

SCHEDULE 20A

Institution: __________________________________ Designation: Chief Financial Officer Sign:________________ Date: ______________ Financial Year: ______________________________ Start Date: __________________________________ End Date: ___________________________________ Designation: Managing Director Sign:________________ Date: ______________

BANK OF ZAMBIA

DAILY CASH DEPOSITS BY, OR CASH PURCHASES FROM, ACCOUNT HOLDERS (All foreign currency amounts must be reported in actual amounts, indicate D for Deposit or P for Purchase)

WEEK DAY: __________________________________ Year: ______________ Week: ______________

CUSTOMER NAME	(1) USD	(2) GBP	(3) ZAR	(4) EURO	(5) Other(ZMW)

CURRENCY TYPE
EXCHANGE RATE
TOTAL	-	-	-	-	-