Regulatory Alerts2023-01-01
Bank of Zambia Circular No. 10/2023 on Collateral Requirements for Net Settlement Obligations in Payment Systems
The Bank of Zambia mandates all clearing house participants to pledge adequate collateral, in the form of cash or Treasury bills, to cover net settlement obligations across locally operated payment systems. The Settlement Agent calculates monthly collateral requirements at the higher of a three-month moving average or the previous month’s maximum daily net debit, requiring participants to adjust holdings within seven business days of each review. Non-compliant entities face daily penalties of up to fifty thousand penalty units and potential suspension, with the revised framework taking effect on June 1, 2023.
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