Regulatory Alerts2001-01-01
Bank of Zambia Circular 11/2001: Ban on Deposit Mobilisation Through Raffles, Lotteries, and Competitions
The Bank of Zambia issued Circular 11/2001 to immediately ban commercial banks and financial institutions from using raffles, lotteries, or competitions to attract public deposits. Regulators classify these promotional schemes as unsafe, unsound, and speculative practices that undermine the development of a trust-based banking system. Financial entities must cease all such deposit mobilisation activities effective immediately to align with prudential standards and maintain public confidence.
Tel. 228888/228903-20
BANK OF ZAMBIA
P.O. BOX 30080
Lusaka
10101
February 27, 2001
CB Circular No 11/2001
To: ALL COMMERCIAL BANKS AND FINANCIAL INSTITUTIONS
Dear Sirs/Madam
DEPOSIT MOBILISATION THROUGH RAFFLES, LOTTERIES AND COMPETITIONS SPONSORED BY BANKS AND FINANCIAL INSTITUTIONS
The Bank of Zambia wishes to inform banks and financial institutions that with immediate effect the use of raffles, lotteries or any other form of competition to attract deposits from the public has been banned.
The Bank of Zambia considers such schemes as unsafe and unsound, and speculative practices, which are inconsistent with the development of a sound banking system, based on trust.
Yours faithfully
Dr Abraham Mwenda
DEPUTY GOVERNOR - OPERATIONS
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