Regulatory Alerts2008-01-01
Bank of Zambia Measures on Unpaid Cheques
The Bank of Zambia issued Circular 01/2008 to revise regulatory measures regarding unpaid cheques under the National Payment Systems Act No. 1 of 2007. The directive mandates commercial banks to enforce strict customer acceptance policies and impose account closures or cheque book surrenders on personal, corporate, and borrowing customers who issue three unpaid cheques annually. Additionally, the circular abolishes previous fixed penalties for dishonored cheques, requires mandatory reporting of suspected fraudulent issuances, and establishes quarterly reporting obligations for banks to ensure compliance.
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