Regulatory Alerts2025-09-24
Financial Resources Requirements Rules for Custodians
The Non-Bank Financial Institutions Regulatory Authority of Botswana issues these rules to mandate financial soundness for all licensed custodians by replacing the 2021 Capital Adequacy Requirements Guidelines. Non-bank custodians must maintain a minimum net worth of P10,000,000 or liquid assets covering three months of expenditure, whichever is greater, alongside commensurate professional indemnity and employee fraud insurance. The framework further mandates immediate written notifications for financial breaches, anticipated shortfalls, auditor qualifications, and subsidiary or parent company liability issues to ensure ongoing operational viability.
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