Regulatory Alerts2023-01-01
Bank of Zambia Circular 22/2023 on Banking Sector TPIN Compliance
The Bank of Zambia directs all commercial banks to collect Taxpayer Identification Numbers from account holders involved in cross-border transactions by August 31, 2023. Banks must ensure these identifiers are attached to all electronic balance of payments reports, or risk processing delays for non-compliant transactions. The directive also encourages financial institutions to promote the simplified TaxOnPhone application process to accelerate client compliance.
[Logo: Bank of Zambia]
Bank of Zambia OFFICE OF THE DEPUTY GOVERNOR - OPERATIONS
BOZ/EXEC/DGO/ecd/bp
August 15, 2023
CB Circular No. : 22/2023
To : All Heads of Commercial Banks
BANKING SECTOR COMPLIANCE WITH THE TAXPAYER IDENTIFICATION NUMBER REQUIREMENT
In December 2019, the Bank of Zambia launched the Electronic Balance of Payments (e-BoP) portal through which commercial banks are required to submit all cross-border (incoming and outgoing) transactions. All transactions reported on the platform must be accompanied by a Taxpayer Identification Number (TPIN) for the resident party.
Further to CB Circular No. 05/2020, it has been observed that some commercial banks have not been compliant with the TPIN directive, particularly with old bank account holders. In this regard, commercial banks are, with immediate effect, directed to contact holders (including counterparty bank accounts) involved in cross-border transactions to provide TPINs by August 31, 2023. Transactions should not be processed if this information is not provided. Further, you are encouraged to continue sensitizing your clients and potential customers on the need to comply with the law and on the simplified TaxOnPhone TPIN application process.
[Signature]
Francis Chipimo (PhD) DEPUTY GOVERNOR – OPERATIONS
cc Governor
Bank Square, Cairo Road, P.O. Box 30080, Lusaka, Zambia Tel:+260-211-399303, 399300, E-mail: dgo@boz.zm. Web: http://www.boz.zm