Regulatory Alerts2003-01-01
Bank of Zambia Measures on Unpaid Cheques
The Bank of Zambia mandates revised regulatory measures for commercial banks to reduce unpaid cheques, requiring enhanced customer due diligence and standardized account acceptance policies. Banks must withdraw cheque books from customers who issue three or more insufficient-fund cheques annually, enforce a minimum K300,000 penalty per bounced cheque, and permanently eliminate the "Effects Not Cleared" clearing practice. Financial institutions are further required to clearly notify customers of these penalties, maintain detailed internal records, submit monthly regulatory returns, and face a K3,000,000 fine for non-compliance.
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