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2014-01-01

Financial Institutions (Money Transfer) Regulations, 2014

Issued by the Commissioner of Financial Institutions under Lesotho's Financial Institutions Act of 2012, these regulations establish a comprehensive licensing and supervisory framework for money transfer businesses. The rules mandate a structured application process, fit-and-proper assessments for directors and major stakeholders, and strict anti-money laundering and terrorism financing compliance procedures. The Commissioner is empowered to conduct inspections, issue directives, revoke licenses for non-compliance, and impose penalties of up to M100,000 plus daily fines for continuing offences.

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LESOTHO Government Gazette EXTRAORDINARY Vol. 59 Monday – 24th February, 2014 No. 12 CONTENTS No. Page LEGAL NOTICE 14 Financial Institutions (Money Transfer) . . . . . . . . . . . . . . . . . . . . . . 107 Regulations, 2014 Published by the Authority of His Majesty the King Price: M28.00

LEGAL NOTICE NO. 14 OF 2014 Financial Institutions (Money Transfer) Regulations, 2014 ARRANGEMENT OF REGULATIONS Regulations PART I – PRELIMINARY

  1. Citation and commencement
  2. Interpretation
  3. Application PART II – LICENSING PROVISIONS
  4. Applications for a license
  5. Preliminary conference
  6. Application documents
  7. Supporting documents
  8. Business plan
  9. Acknowledgement
  10. Granting of licence
  11. The fit and proper requirement PART III – SUPERVISION BY COMMISSIONER
  12. Control
  13. A person who has principal interest is no longer fit and proper
  14. List of licensed institutions
  15. Licensee to disclose status
  16. Commissioner’s power of inspection
  17. Periodic reports
  18. Special audit
  19. Undesirable practices
  20. Preventive and corrective measures
  21. Contents of directive
  22. Combating money laundering and financing of terrorism 107

PART IV – OFFENCES 23. Offences PART V – TRANSITIONAL PROVISION 24. Transitional provisions 25. Repeal 108

LEGAL NOTICE NO. 14 OF 2014 Financial Institutions (Money Transfer) Regulations, 2014 Pursuant to sections 13 and 71(1) of the Financial Institutions Act of 2012 1 , I, DR. RET◊ELISITSOE MATLANYANE Commissioner of Financial Institutions make the following regulations - PART I - PRELIMINARY Citation and commencement

  1. These regulations may be cited as the Financial Institutions (Money Transfer) Regulations, 2014 and shall come into operation on the date of publi￾cation in the Gazette. Interpretation
  2. (1) In these regulations, unless the context otherwise requires - “Act” means the Financial Institutions Act of 2012; “auditor” means a member of the Financial Institute of Accountants cer￾tified to provide, attest, or perform audit functions recognised by the Lesotho Institute of Accountants; “bank” means a company, incorporated in accordance with the provi￾sions of the Companies Act 2011 which is licensed under the Act to con￾duct banking business; “Commissioner” means the Central Bank of Lesotho established by the Central Bank of Lesotho Act, 2000; “control” means having a relationship with a person that makes it pos￾sible to exercise a direct or indirect power to determine its financial and operational policy or to influence in decision making or management pursuant to its Particulars and Articles of Incorporation or to an agree￾ment or any other manner; 109

“director ” means a member of a board of directors; “licensee” means any person licensed by the Commissioner to conduct money transfer business; “ money transfer business” means the business of transferring money from one person to another or the equivalent amount in the local cur￾rency to another person against a fee or commission; “person” includes any individual or company, partnership, syndicate, association or body persons, corporate or unincorporated; “principal interest” means a direct or indirect shareholding of a person which makes it possible to exercise a significant influence over the per￾son, as the Commissioner may determine. (2) All other words used have the same meaning ascribed to them under the Act. Application 3. (1) These regulations apply to a person licensed to engage in the provision of money transfer services in Lesotho, in accordance with the provi￾sions of section 13 of the Act and these regulations. (2) These regulations do not apply to banks. PART II - LICENSING Application for a license 4. (1) A person who wishes to carry out any money transfer business shall apply to the Commissioner for a license to carry out such money transfer business under a Type IV license in accordance with the Act. (2) Notwithstanding subregulation (1), a person intending to oper￾ate a business of money transfer shall not be registered without prior approval by the Commissioner. 110

Preliminary conference 5. Before submitting an application for a license, an applicant shall request a preliminary conference with the Commissioner at which the Commissioner shall - (a) provide the applicant with an overview of the relevant provisions of the Act and these regulations; (b) explain the criteria that is used in evaluating an applica￾tion for the provision of money transfer services. Application documents 6. (1) If, in the opinion of the Commissioner, an applicant reasonably shows the capacity and seriousness of intent to provide money transfer services, the Commissioner shall provide the applicant with - (a) an application form as set out in Schedule I; (b) an information sheet as set out in Schedule II; (c) a personal declaration sheet as set out in Schedule III; and (d) a schedule of license fees as set out in Schedule IV. (2) The Commissioner shall, during the preliminary conference, pro￾vide explanations or clarifications regarding completion of the documents re￾ferred to under subregulation (1) and any other supporting documents that the Commissioner may request from the applicant. (3) An applicant shall, on completion of the forms, submit the forms to the Commissioner. (4) Submission of the completed forms or any other requirements referred to under subregulation (1) that have false or misleading information may constitute a ground for refusal to issue a license by the Commissioner in ac￾cordance with section 13 of the Act. 111

Supporting documents 7. (1) Where the Commissioner requests supporting documents or any other requirements from an applicant, the documents or requirements shall not be older than 90 days prior to the filing of an application for provision of money transfer services or as may be determined by the Commissioner. (2) Subregulation (1) shall not apply to financial statements. Business plan 8. (1) An applicant shall submit a business plan to the Commissioner. (2) A business plan for the applicant shall project a minimum of 3 years that gives a description of the business the applicant intends to conduct and the projected development of the business. (3) A business plan shall contain detailed descriptions of - (a) the products or services to be offered by the applicant; (b) a marketing plan; (c) an operational plan including the applicant’s internal reporting arrangements; (d) a financial plan, including a description of how the startup cost will be covered; and (e) a risk analysis, including a description of how the appli￾cant will address the relevant risks. Acknowledgement 9. (1) Within 30 working days of receipt of an application form to￾gether with all supporting documents, the Commissioner shall send the applicant a formal letter of acknowledgement or a letter of deficiency. (2) The letter of acknowledgement shall serve as the official notice that the documents submitted were found to be complete and that the process￾112

ing or evaluation may commence. (3) The letter of deficiency shall outline deficiencies in the applica￾tion, provide a deadline for rectification of the deficiencies and no further action shall be taken by the Commissioner unless the deficiencies are rectified within the time set out in the letter of deficiency. Granting of a license 10. (1) Upon receipt of the application under regulation 6, the Com￾missioner may - (a) grant a license if satisfied that the applicant can conduct its anticipated business in a safe and sound manner; or (b) refuse to grant a license until it is fully satisfied that the applicant can conduct its business in a safe and sound manner. (2) A license issued under these regulations - (a) may be subject to such conditions as the Commissioner may deem necessary to impose; (b) shall remain valid for a period of one year unless it is revoked by the Commissioner or surrendered by the licensee. (3) After receipt of a license, the licensee shall give written notice to the Commissioner, within 30 working days, of any material change relating to any of the information provided to the Commissioner in the application for the license. (4) The Commissioner shall - (a) review any change to the license described in regulation 10(3) and decide whether the licensee still qualified for the license after the changes. (b) revoke the license if it finds that the licensee no longer qualifies for the license as a result of the change. 113

The fit and proper requirement 11. In determining whether a person who has principal interest, or a direc￾tor and manager is fit and proper to hold a particular position, it shall be con￾sidered whether the person satisfies the Guidelines on Fit and Proper Assess￾ments for Directors and Senior Officials in the Financial Sector issued by the Commissioner by notice published in the Gazette. PART III - SUPERVISION BY COMMISSIONER Control 12. (1) A person shall not hold a principal interest of a licensee unless - (a) the person has first notified the Commissioner, in writ￾ing, of his or her intention to do so; (b) the Commissioner has found the person to be fit and proper in accordance with requirements in regulation 11; and (c) the Commissioner has notified the person, in writing, that there is no objection to the person becoming a significant owner, ultimate controller or the principal holder of the license. (2) The Commissioner, when notifying a person under this regula￾tion that there is no objection to the person becoming a significant owner, ulti￾mate controller, principal holder or increasing his or her stake in the licensee, may specify a maximum stake that the person may acquire. When a person who has principal interest is not fit and proper 13. Where a person acquires or continues to have a principal interest, and it appears to the Commissioner that the person is not or no longer fit and proper to have such interest, the Commissioner may direct that shares that are held or con￾trolled by such a person, be subject to any or several of the following restric￾tions - 114

(a) suspension of any transfer of, or agreement to transfer, the significant owner’s or ultimate controller’s shares; (b) stoppage of: (i) voting rights on the shares; and (ii) payment to the significant owner or ultimate controller of any sums on the shares or other￾wise. List of licensed institutions 14. The Commissioner shall maintain, regularly update and publish a list of licensed institutions in the Gazette and in the media including newspapers of general circulation. Licensee to disclose status 15. A licensee shall, prominently, display his licenses in such a manner that shows that the institution is supervised by the Commissioner. Commissioner’s power of inspection 16. (1) The Commissioner has the power to conduct on-site inspections at a licensee’s place of business and the licensee shall permit the Commissioner access, with or without prior notice, during business hours, to any of its business premises to conduct on-site inspections for the purpose of ascertaining whether or not the licensee is complying with the Act and these regulations. (2) A licensee shall ensure that its agents, suppliers under outsourc￾ing arrangements and appointed representatives, permit the Commissioner sim￾ilar access to their business premises. (3) In the course of an on-site inspection a licensee shall provide the Commissioner with such information, answers to questions, and access to such documents, books, records, vouchers, cash, securities and other information, as the Commissioner finds necessary to ascertain whether the licensee is in com￾pliance with the Act and these regulations. 115

(4) The Commissioner may enter any premises and examine the books, accounts or records of any person whom the Commissioner believes is conducting money transfer business without license issued by the Commissioner. Periodic reports 17. A licensee shall submit periodic reports to the Commissioner on a peri￾odic basis in such form, and in such manner as set out in schedule V. Special audit 18. (1) The Commissioner may appoint an auditor to conduct a full audit of a licensee’s books of accounts and the cost of such audit shall be borne by the licensee. (2) A person appointed by the Commissioner in accordance with this regulation shall have the same powers to conduct inspections as the Com￾missioner and be subject to the same confidentiality requirements as the staff of the Commissioner. Undesirable practices 19. (1) The Commissioner may declare a particular business practice to be undesirable and, in deciding whether a particular business practice is unde￾sirable the Commissioner shall take the following into consideration, whether the practice concerned, directly or indirectly, has or is likely to have the effect of - (a) harming the relations between the licensee and its cus￾tomers, or the general public; (b) being unreasonably prejudicial to customers; (c) deceiving any customers; or (d) unfairly affecting customers; and (e) if the practice is allowed to continue, one or more objects of the law or these regulations will, or is likely to, be defeated. 116

(2) The Commissioner may not make such a declaration as con￾templated in subregulation (1) unless the Commissioner has published, by no￾tice in the Gazette its intention to make the declaration, giving its reasons, and inviting interested persons to make written representations within 15 working days after the date of publication of that notice in newspapers of general circu￾lation and by such other means calculated to inform the public. (3) The licensee concerned may not, on or after the date of the pub￾lication of the notice referred to in subregulation (2) vary the business practice concerned. (4) The Commissioner shall direct a licensee who, on or after the date of the publication of a notice referred to in subregulation (2), carries on the business practice concerned in contravention of that notice, to rectify or rein￾state to the satisfaction of the Commissioner any loss or damage which was caused by or arose out of the carrying on of the business practice concerned. (5) A licensee who is directed under subregulation (4) to rectify or reinstate anything shall do so within 40 work days after such directive is issued by the Commissioner. Preventive and corrective measures 20. (1) The Commissioner may take preventive and corrective meas￾ures listed in subregulation (2) below, if the Commissioner determines that a licensee - (a) is contemplating, is about to, or has commenced one or several business activities that the Commissioner deems to be unsound or unsafe even though they may not rep￾resent a contravention of the law; (b) is or it appears likely to become unable to pay its obli￾gations as they fall due because it lacks sufficient liquid assets; or (c) has contravened or is about to contravene these regula￾tions or any other law. (2) The Commissioner may take the following preventive and cor￾rective measures against the licensee - 117

(a) issue a directive that requires such action to be taken by the licensee as the Commissioner considers necessary to prevent or correct violations of the Act or these regula￾tions; (b) require the licensee to prepare a plan in order to bring the institution into compliance with the Act and these regulations; (c) conduct an audit of the affairs of the licensee, at the ex￾pense of the licensee, by an auditor appointed by the Commissioner; (d) at expense of the licensee, appoint a person to advise the licensee on the 90 working days from the date of that person’s appointment; (e) put the licensee under special administration at the ex￾pense of the licensee by appointing a person to assume control of the institution’s affairs who shall be under di￾rect control of the Commissioner and, with the neces￾sary restrictions, have all the powers of a shareholder meeting and the board of directors of the licensee at a general meeting. Contents of directive 21. (1) A directive issued by the Commissioner in accordance with reg￾ulation 20(2)(a) may contain all or any of the following prohibitions or require￾ments - (a) prohibit the licensee from soliciting business from a per￾son of a particular class or description or from persons other than persons of such class or description; (b) require the licensee to take, or to refrain from taking, certain steps or to adopt a particular course of action, or to restrict the scope of its business in a particular way; (c) prohibit the licensee from entering into a particular trans￾118

action or class of transaction or entering into them othe￾rwise than in circumstances specified; (d) prohibit the licensee from disposing of or moving an asset belonging to it during a specified period, or from removing an asset from Lesotho during that period if the asset is in Lesotho; (e) require the licensee to maintain in Lesotho, assets of such value as appear to the Commissioner to be desir￾able ensuring that it will be able to meet its liabilities for its business; (f) require the licensee to transfer control of assets of a spec￾ified class or description to a person approved by the Commissioner; (g) prohibit the licensee, subject to third-party rights, to pay or transfer any amount to any person, or create any obligation on behalf of any other person; (h) prohibit the licensee to undertake any financial obliga￾tion on behalf of any other person; (i) prohibit the licensee to borrow any amount, to pay div￾idends or to discharge any other liability to a person or group of persons identified by the Commissioner; (j) require the licensee to replace any director, the chief executive officer, manger, officer or employee of the licensee; (k) require the licensee to discharge any director, chief ex￾ecutive officer, manager, officer or employee of the licensee. (2) The Commissioner may withdraw or vary a directive if it ap￾pears to the Commissioner that it is no longer necessary for the directive to take effect or needs to continue in force in a different form, as the case may be. 119

Combating money laundering and financing of terrorism 22. (1) A licensee shall establish procedures to prevent money laun￾dering and financing of terrorism that are scaled to the risk the licensee is ex￾posed to, and that are in compliance with the legislation governing money laundering and financing of terrorism, including - (a) performing the necessary know-your-customer due dili￾gence on the customers and clients; (b) taking enhanced measures with respect to higher risk customers and clients; (c) monitoring complex, unusually large transactions, or un￾usual patterns of transactions, that have no apparent or visible economic or lawful purpose; (d) reporting suspicious transactions to the Financial Intel￾ligence Unit, for further investigation and possible re￾ferral for prosecution; (e) developing internal programs including training pro￾grams, procedures, controls and audit functions to com￾bat money laundering; and (f) ensuring that its foreign branches and subsidiaries ob￾serve appropriate anti-money laundering and combating of financing of terrorism requirements. (2) The Commissioner may share information and cooperate in all ways necessary with other supervisors both domestic and foreign for combating money laundering and the financing of terrorism purposes. PART IV - OFFENCES Offences 23. The Commissioner may, by written notice, impose upon a licensee or any person subject to these regulations who contravenes - 120

(a) any provision of these regulations; or (b) any specification or requirement made or any order in writing, direction, instruction, or notice given, or any limit, terms condition or restriction imposed, or any other thing done, in the exercise of any power conferred under, pursuant to, or by virtue of, any provision of the Act or these regulations, a penalty not exceeding M100,000.00 and in case of a continuing offence, an ad￾ditional daily penalty not exceeding M100,000.00. PART V - TRANSITIONAL PROVISION Transitional provisions 24. A person who, at the date of commencement of these regulations, is con￾ducting money transfer services shall continue to do so until the expiration of the license and thereafter apply for renewal under these regulations. Repeal 25. Financial Institutions (Money Transfer) Regulations, 2014 2 is repealed. DR. RET◊ELISITSOE MATLANYANE COMMISSIONER OF FINANCIAL INSTITUTIONS NOTE

  1. Act No. 21 of 2012
  2. L. N. No. 8 of 2014 SCHEDULE 1 121

APPLICATION FOR A LICENCE TO CONDUCT ANCILIARY FINANCIAL SERVICE BUSINESS (Regulation 6(1) (1) (a)) The Governor Central Bank of Lesotho P.O. Box 1184 MASERU 100

  1. I, the undersigned, acting as principal or duly authorised agent on behalf of or as chairman or chief executive officer of ...................................................................................................................... Principal Business activities ...................................................................................................................... ...................................................................................................................... ...................................................................................................................... ......................................................................................................................
  2. The following documents are being submitted to comply with the initial requirements for evaluation. Where a document is not applicable this so stated - (1) Information Sheet (Schedule II) ...................................................................................................................... ...................................................................................................................... ...................................................................................................................... ...................................................................................................................... (2) Personal Declaration Sheet (Schedule III) Name Position ..................................................... ..................................................... ..................................................... ..................................................... ..................................................... ..................................................... ..................................................... ..................................................... (3) Proposed Capital Structure 122

...................................................................................................................... ...................................................................................................................... ...................................................................................................................... (4) Economic justification and outline of short, medium, and long term business plans with details on - (a) financial, commercial, and other business establishments within the proposed area of operation or targeted mar￾kets; (b) deposits or other fund gathering sources as well as lend￾ing and investment potentials; and (c) financial services to be offered by the applicant. (5) Financial projections (balance sheets, income statements, and cash flow statements) for at least a three-year period, including details of estimated organisation expenses. Assumption used and other bases for projections are indicated. (6) Schematic presentation, with regard to the group of companies of which applicant is a member, reflecting all interests held in and by each member company including the nature of business of each of these entities. (7) List of existing shareholdings of the applicant and its control￾ling shareholders, directors, officers and officials in other li￾censed financial institutions. (8) Certified true copies of the audited financial statements or annual reports for the past two years prepared in accordance with gen￾erally accepted accounting principles. (9) Authenticated copies of the memorandum and articles of asso￾ciation or, in case of foreign institution, such similar documents regulating its affairs. (10) If the applicant is a foreign financial institution, a statement from the supervisory authorities of the home country declaring that: 123

(a) it has given its prior approval for the establishment of a subsidiary, branch or any other office in Lesotho; (b) it shall exercise comprehensive supervision over the par￾ent institution on a consolidated basis; and (c) the applicant’s chairman, directors, principal officers and management as a whole are fit and proper persons. (11) Latest tax compliance certificate or certified true copy of cor￾poration tax returns. (12) Individual credit references for the applicant and each of its prin￾cipal shareholder, director, officer and official from at least two banks or financial institutions with whom such persons have had financial dealings within the past two years. (13) Certified true copy of the board resolution of the Head Office or Parent Company authorising the establishment of a branch or subsidiary. (14) Any query, clarification or additional requirements regarding the acquisition of a specified number of shares in applicant institu￾tion (if major shareholder is a corporation or company). (15) Any query, clarification or additional requirement regarding this application may be directed to the following officers authorised to liaise with the Central Bank. Name: ……………………… Telephone No.: ........................... Name: ……………………… Telephone No.: ........................... Certification and Undertaking I, the undersigned, ……………………… hereby certify that all infor￾mation contained in and accompanying this application is complete and accurate to the best of my knowledge and belief. I also undertake to forthwith notify the Central Bank of Lesotho, of any mate￾124

rial change in the particulars of this application. Sworn at Maseru, Lesotho This ......................................................... day of ...................................................... ............................................................. ..................................................... Signature of Deponent (Position) Deponent understands contents of this affidavit Before me, ............................................................... A COMMISSIONER OF OATHS N.B. 1. All sections in this form must be filled and therefore no section shall be left blank. 2. Where information is not provided, please place “NOT APPLI￾CABLE” or “NONE”, as the case may be. 3. If any space provided in the form is adequate, the required in￾formation or data needed may be supplied, as on annex. 4. Reference shall be made in the relevant section of the form by placing the words “REFER TO ANNEX……….”. Schedule I FOR CENTRAL BANK OF LESOTHO USE Receive by: ................................................................ Date: .................................... Application Documents checked for completeness by: ........................................... Letter of Deficiency or Acknowledgement sent on: ................................................ Action Taken: 125

...................................................................................................................... ...................................................................................................................... ...................................................................................................................... ................................................ ..................................................... Evaluating Officer Director Supervision Department SCHEDULE II INFORMATION SHEET (Regulation 6 (1) (b))

  1. Name: ......................................................................................................... ......................................................................................................... .........................................................................................................
  2. Principal Business Activities: .................................................................. .................................................................. ..................................................................
  3. Head/Main Office: .................................................................. .................................................................. .................................................................. (a) Address: .................................................................. .................................................................. (b) Telephone No.: .................................................................. (c) Telefax No.: ..................................................................
  4. Branches: Address Date Approved or Date Opened ............................................... ................................................................ ............................................... ................................................................ ............................................... ................................................................ Subsidiaries & Affilates: Amount of % of Shares 126

Name & Type of business Shares Held Held to Total .......................................... ............................... ....................................... .......................................... ............................... ....................................... .......................................... ............................... ....................................... .......................................... ............................... ....................................... 6. Management: ...................................................................................................................... (1) Board of Directors: Name Designation Present Term No. of Years as From - To Board Member ........................... ............................ ................................ .......................... ........................... ............................ ................................ .......................... ........................... ............................ ................................ .......................... ........................... ............................ ................................ .......................... (1) Board Committee(s): Name & Purpose of Committee(s) Name of Member ........................................................... ................................................................ ........................................................... ................................................................ ........................................................... ................................................................ (2) Officers: Name position No. of Years As Officer ....................................... ............................. ....................................... ....................................... ............................. ....................................... ....................................... ............................. ....................................... ....................................... ............................. ....................................... 7. Ownership Profile: 127

Country of Paid-up Name Citizenship Capital Amount % Residence

  1. .............................. ................................. ....................... ................ .........
  2. .............................. ................................. ....................... ................ .........
  3. .............................. ................................. ....................... ................ .........
  4. .............................. ................................. ....................... ................ .........
  5. .............................. ................................. ....................... ................ .........
  6. .............................. ................................. ....................... ................ .........
  7. .............................. ................................. ....................... ................ ........
  8. .............................. ................................. ....................... ................ ........
  9. .............................. ................................. ....................... ................ ......... Other Shareholders owing less than 5% (number ...................) ................ ........ ............. TOTAL 1.. 0.. 0.. %.......
  10. Organisation Profile: (1) Organisation Chart - Annex A chart indicating major departments or divisions which names and position titles of officers heading each department or division. (2) Functions - Annex A list of functions or responsibilities for each depart￾ment or division listed in organisation chart indicating number of per￾sonnel or staff for each. (3) Qualifications of its principal shareholders and directors. (4) Annex Personal Declaration sheet of each principal shareholder, direc￾tor and officer. (5) Powers and purposes - Annex the latest copies of memorandum and ar￾ticles of association of not previously submitted to the Central Bank.
  11. Shareholdings in Other Financial Institutions: Name of Financial Institution Shares Owned Number % of 128

Amount Capital ............................................... .............................. .................... .............. ............................................... .............................. .................... .............. ............................................... .............................. .................... .............. ............................................... .............................. .................... .............. ............................................... .............................. .................... .............. ............................................... .............................. .................... .............. ............................................... .............................. .................... .............. 10. Certification and Undertaking I, ................................................................................................, certify that all information contained in and accompanying this form is complete and accurate to the best of my knowledge and belief. I also undertake to forthwith notify the Central Bank of Lesotho within a period of fifteen days of any material change to this Information Sheet. ................................................................................................................................... Sworn at Maseru, Lesotho This ................................................... day of ..................................... ..................... ...................................................................................................................... Signature of Deponent (Position) Deponent understands contents of this affidavit Before me, .................................................................. A COMMISSIONER OF OATHS N.B. 1. All sections in this form must be filled and therefore no section shall be left blank. 2. Where information is not provided, please place “NOT APPLICABLE” or “NONE”, as the case may be. 3. If any space provided in the form is adequate, the required 129

information or data needed may be supplied, as on annex. 4. Reference shall be made in the relevant section of the form by placing the words “REFER TO ANNEX ………………................” SCHEDULE III PERSONAL DECLARATION SHEET (Regulation 6 (1) (c))

  1. Name and Capacity of person making this declaration: (1) Name: .......................................................................................... (2) Position or Capacity: ......................................................................
  2. Date and place of birth: ...................................................................................................................... ......................................................................................................................
  3. (1) Citizen of: .......................... (2) Resident of: ........................... (Country) (Country) Since ....................................... Since ...................................... (Year) (Year)
  4. Addresses: (1) Present Business Address (Lesotho, since ) (Outside Lesotho since ) ............................................................. ..................................................... ............................................................. ..................................................... ............................................................. ..................................................... (2) Present Residential Address: 130

(Lesotho, since ) (Outside Lesotho, since ) ............................................................. ..................................................... ............................................................. ..................................................... ............................................................. ..................................................... (3) Last two addresses in Lesotho, if any, during the past 10 years: (Since ) (Since ) ............................................................. ..................................................... ............................................................. ..................................................... ............................................................. ..................................................... 5. Professional Qualifications: Particulars Year Obtained (1) Highest Academic Degree ............................................................... ........................................ ............................................................... ........................................ ............................................................... ........................................ (2) Special Awards or Honours ............................................................... ........................................ ............................................................... ........................................ ............................................................... ........................................ ............................................................... ........................................ (3) Training Courses or Seminars ............................................................... ........................................ ............................................................... ........................................ ............................................................... ........................................ ............................................................... ........................................ ............................................................... ........................................ ............................................................... ........................................ (4) Membership in Professional Organisations 131

............................................................... ........................................ ............................................................... ........................................ ............................................................... ........................................ ............................................................... ........................................ ............................................................... ........................................ ............................................................... ........................................ 6. Occupation or Employment (Present or most recent and for the last 10 years): Inclusive Date (M & Yr) Name & Business of Employer Positions Held From Year ....................................................... ........................... .................... .............. ....................................................... ........................... .................... .............. ....................................................... ........................... .................... .............. ....................................................... ........................... .................... .............. ....................................................... ........................... .................... .............. 7. Other Business Affiliations (Direct and Indirect): Nature of Affiliation i.e. Director, Officer, Share- Inclusive Date Holder with % holdings (M & Yr) Name of Business specified etc. From To ................................. ............................................. ................... .............. ................................. ............................................. ................... .............. ................................. ............................................. ................... .............. ................................. ............................................. ................... .............. 8. Family Group Business Affiliation (State Name of Business and Nature of Affiliation i.e. Director, Officer, Share￾holder with % holdings specified) Name 132

(1) Spouse ........................................................... .................................................... ........................................................... .................................................... (2) Children: ........................................................... .................................................... ........................................................... .................................................... ........................................................... .................................................... ........................................................... .................................................... (3) Parents: ........................................................... .................................................... ........................................................... .................................................... ........................................................... .................................................... (4) Brothers or Sisters: ........................................................... .................................................... ........................................................... .................................................... ........................................................... .................................................... 9. Record of court cases or any investigation by governmental, professional or any regulatory body (including pending cases or on-going investiga￾tions): Name of Court or Investigative Body Full Particulars Status ............................................................ .............................. ........................... ............................................................ .............................. ........................... ............................................................ .............................. ........................... ............................................................ .............................. ........................... ............................................................ .............................. ........................... ............................................................ .............................. ........................... 10. Documentary Requirements - (1) Certified statement of assets and liabilities; (2) Latest tax compliance certificate or certified true copy of income tax returns; 133

(3) Two letters of character reference certified and duly notarised from individuals other than relatives who have personally known the undersigned for at least ten years; (4) Two letters, duly certified and notarised, from financial institutions with whom the undersigned has had dealings for the last two years on the performance of past and present accounts such as, unauthorised overdraft on de￾posit accounts, past-due or delinquent accounts; and (5) Police Clearance. 11. Certification and Understanding I, ...................................................... certify that all the above information con￾tained and accompanying this form is complete and accurate to the best of my knowledge and belief and that I do not possess any of the disqualifications pro￾vided under section 43 (1) of the Financial Institutions Act. I also undertake to notify the Central Bank of Lesotho within period of fifteen days, of any material change to this Personal Declaration Sheet. Sworn to at Maseru, Lesotho This .......................................................... day of ..................................................... .......................................................... ..................................................... Signature of Deponent (Position) Deponent understands contents of this affidavit Before me, ................................................................. A COMMISSIONER OF OATHS N.B. 1. All sections in this form must be filled and therefore no section 134

shall be left blank. 2. Where information is not provided, please place “NOT APPLICABLE” or “NONE”, as the case may be. 3. If any space provided in the form is adequate, the required in￾formation or data needed may be supplied, as on annex. 4. Reference shall be made in the relevant section of the form by placing the words “REFER TO ANNEX……………”. SCHEDULE IV LICENCE FEES FOR APPLICATION TO CONDUCT MONEY TRANSFER BUSINESS (Regulation 6 (1) (d)) Business Investigation Registration Licence Licence Branch Type Fee Renewal Opening Fee Fee Money M 500.00 M 500.00 M 1000.00 M 1000.00 M 1000.00 Transfer Business SCHEDULE V 135

PERIODIC RETURNS (Regulation 17) This return is to be completed monthly and quarterly as at the following dates: 31 March, 30 June, 30 September and 31 December. The return must be signed by the Chairman and the Chief Executive Officer and returned to the Director of Supervision, Central Bank of Lesotho within 21 days of the date to which it relates. Name of Institution: ................................................................................................. Period ending: .......................................................................................................... MONTHLY REMMITANCE INFLOWS Other Currencies (Specify) Purpose GBP USD Euro Country of Source Total MONTHLY REMMITANCE OUTFLOWS Other Currencies (Specify) Purpose GBP USD Euro Country of Destination Total Disclosure Return 136

This return is to be completed monthly and quarterly as at the following dates: 31 March, 30 June, 30 September, and 31 December. The return must be signed by the Chairman and the Chief Executive Officer and returned to the Governor , Central Bank of Lesotho within 21 days of the date to which it relates.

  1. Disclose any unusually large transaction, or unusual patterns of transac￾tions, that have no apparent or visible economic or lawful purpose; ………………………………………………………………………………… ………………………………………………………………………………… …………………………………………………………………………………
  2. Disclose any suspicious transaction that occurred in your business which you need to inform the commissioner of ………………………………………………………………………………… ………………………………………………………………………………… ………………………………………………………………………………… Statement of Financial Performance This return is to be completed monthly and quarterly as at the following dates: 31 March, 30 June, 30 September, and 31 December. The return must be signed by the Chairman and the Chief Executive Officer and returned to the Governor, Central Bank of Lesotho within 21 days of the date to which it relates. Name of Institution: ................................................................................................. For the year to date ending / quarter ending / month ending: .................................. Income Exchange Gains Commission Fees Income Interest from investments Any other income Total Income Expenses Audit fees Board fees (Sitting allowances etc.) Stationery and Printing 137

Interest expenses Salaries Other expenses Total expenses Profit/Loss before Tax Tax Net profit/loss Transfer to reserves Unappropriated surplus Statement of Financial Position This return is to be completed monthly and quarterly as at the following dates: 31 March, 30 June, 30 September, and 31 December. The return must be signed by the Chairman and the Chief Executive Officer and returned to the Governor, Central Bank of Lesotho within 21 days of the date to which it relates. Name of Institution: ............................................................................................... For the month/quarter/ year ended: .......................................................................... Assets MMM Current Assets Cash in hand Maluti US $ Euro Pound Other Currencies (Specify) Bank deposits maturity < 1 year Unearned Interest Accounts Receivable Other deposits maturity < 1 year Loans repayable < 1 year (Less) Provision for doubtful debts Net Loans Other current Assets Total Current Assets 138

Non-Current Assets Investments maturity > 1 year Loans repayable > 1 year Provision for doubtful debts Net Loans Office furniture and fittings Less provision for depreciation Net Office furniture and fittings Land and Buildings Less provision for depreciation Net Land and Buildings Other Non-Current Assets Total Non- Current Assets Total Assets Equity and Liabilities ( Shareholders’ funds) MMM Fully paid up share capital Statutory reserves Other reserves Unappropriated surplus Surplus for the year to date Sub-Total Current Liabilities Amounts payable to creditors due < 12 months Sub-Total Non-Current Liabilities Amounts payable to creditors due >12 months Total Equity and Liabilities Declaration: 139

140 As an authorized representative of ........................................................... , I de￾clare that all information contained in this form is accurate to the best of my knowledge and belief. There has been no compromise of truthfulness or any code of professional conduct. ........................................................ ...................................... Signature Date Printed by the Government Printer, P.O. Box 268, Maseru 100 Lesotho

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