Bank of Zambia Circular 02/2021 on Relinquishing and Processing of Unclaimed Customer Funds

# BANK of ZAMBIA
## OFFICE OF THE DEPUTY GOVERNOR - OPERATIONS

BOZ/EXEC/DGO/psd/bp

April 14, 2021

PSB Circular No. : 02/2021

To : All Heads of Electronic Money Issuers

**RELINQUISHING AND PROCESSING OF UNCLAIMED FUNDS FOR CUSTOMERS**

Reference is made to the above subject.

The Bank has developed procedures for relinquishing unclaimed customer funds to the Bank of Zambia in line with Directive 18 of the National Payment Systems Directives in Electronic Money Issuance, 2018. Further, the procedures also cover the handling of claims from customers, on the relinquished funds. These procedures have been developed to standardise the steps to be followed in complying with Directive 18.

All electronic money issuers are required to comply with the procedures. Failure to do so may attract penalties in line with Section 43 of the National Payment Systems Act.

Francis Chipimo (PhD)  
DEPUTY GOVERNOR – OPERATIONS

cc  
Governor  
Deputy Governor – Administration  
Director – Bank Supervision  
Director – Non-Bank Financial Institutions Supervision  
General Counsel and Bank Secretary  
Director – Payment Systems

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

---

# HANDLING OF UNCLAIMED FUNDS FOR ELECTRONIC MONEY ISSUERS

April 2021

---

## 1. Introduction

These procedures are drawn up to give guidance in the handling of unclaimed funds in line with Directive 18 of the National Payment System Directives on Electronic Money Issuance, 2018. The purpose of these procedures is to standardize, across all electronic money issuers, the handling of relinquished funds and claims from customers.

An electronic money issuer shall at a minimum take the following steps in the handling the relinquished funds:

## 2. Relinquishing of Funds to the Bank of Zambia

2.1. An E-money institution holding e-money presumed abandoned in line with the e-money directives shall relinquish the funds to the Bank within thirty days after the e-money is deemed abandoned.

2.2. However, prior to relinquishing the funds to the Bank, an e-money institution shall notify the affected customers of its intention to relinquish the funds.

2.3. The e-money institution shall submit to the Bank together with the relinquished funds a letter containing the following:

2.3.1. Confirmation that the customers had been duly notified that the funds were being relinquished to the Bank of Zambia.

2.3.2. The letter shall contain the following details:

- Total amount of funds relinquished and transferred to the Payment System Business - Unclaimed Funds Account;
- Schedule showing breakdown per customer for funds that have been relinquished; and
- Know Your Customer details such as full names, identification number and contact details for customers whose funds have been relinquished.

2.4. The letter shall be signed by two authorized signatories.

2.5. The relinquished funds shall be deposited into the following bank account held at the Bank of Zambia:

| Field             | Value                          |
|-------------------|--------------------------------|
| Account Name:     | Payment System Business – Unclaimed Funds Account |
| Account Number:   | ZMW1503000020001             |
| Bank:             | Bank of Zambia                 |
| Branch:           | Head Office                    |
| SWIFT Code:       | BAZAZMLU                       |

## 3. Claim by Customer for Unclaimed Funds from the Bank of Zambia

3.1. A person whose e-money has been relinquished to the Bank in accordance with the National Payment Systems Directives on Electronic Money Issuance may claim the funds from the Bank within a period of six years from the date of receipt of the funds by the Bank.

3.2. All such claims shall be made through the E-money Institution that relinquished the funds.

3.3. The E-money institution shall carry out sufficient due diligence and verify the customer submitting the claim.

3.4. The E-money institution shall submit the claim in the form of a letter addressed to Director – Payment Systems.

3.5. The letter shall be signed by two signatories of the E-money institution submitting the claim on behalf of its customer.

3.6. The letter shall contain the following details:

- Full names of customer claiming the funds;
- Certified KYC documentation such as copy of National Registration Card, Passport etc.;
- Contact details of the customer;
- Amount of funds being claimed by the customer; and
- The date the funds were relinquished to the Bank and the total funds that were transferred.

## 4. Evaluation of Claim for Unclaimed Funds

In evaluating the claim, the Bank of Zambia shall consider the following:

4.1. Review the due diligence carried out by the E-money institution;

4.2. Verify the information submitted on the claim against records submitted by the e-money institution at the time of relinquishing the funds to the Bank;

4.3. The Bank may request the e-money institution for additional information on the claim.

4.4. The Bank may contact the customer directly to verify and request for additional information where deemed necessary.

4.5. Where the Bank is satisfied with the claim, the Bank shall transfer the funds to the e-money institution for onward payment/transfer to the customer.

4.6. The e-money institution shall submit to the Bank evidence of the payment to the customer.

4.7. Where the claim is unsuccessful, the Bank shall write to the Payment System Business providing reasons for the unsuccessful outcome.

## 5. Claims after Six Years

No action to recover, and no other action in respect of any funds presumed abandoned and relinquished in accordance with the National Payment System Directives on Electronic Money Issuance may be brought against the paying e-money institution or against the Bank after the sixth year following payment or relinquishing to the Bank.

However, where the Bank considers it desirable, to avoid hardship or injustice, the Bank may make a payment to a claimant in respect of e-money presumed abandoned to that person.