Regulatory Alerts1994-01-01
Circular 2/1994: Effect of the Cessation of Exchange Controls
Issued by the Bank of Zambia on 9 March 1994, this circular implements the immediate removal of exchange control restrictions following the lapse of the Exchange Control Act on 28 January 1994. It instructs commercial banks to process previously restricted cross-border transactions—including dividend remittances, expatriate allowances, director's fees, emigration funds, insurance premiums, and foreign investments—without prior central bank approval. Banks must verify supporting documentation such as board resolutions, audited financial statements, tax receipts, and employment contracts to ensure compliance with withholding tax obligations and contractual terms.
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