Regulatory Alerts2020-01-01
Banking and Financial Services Amendment Act No. 7 of 2020
The Parliament of Zambia enacted the Banking and Financial Services Amendment Act No. 7 of 2020 to redefine insolvency for financial service providers and mandate strict licensing for all banking, financial business, and financial service activities. The legislation significantly expands the central bank’s regulatory and supervisory authority to combat money laundering and terrorist financing, while granting it comprehensive powers to restructure, sell, or close failing institutions and transfer their assets to bridge banks. It further establishes a formal tribunal appeal process with potential compensation for unlawful bank actions, clarifies the priority order for debt repayment during compulsory winding-up, and updates provisions regarding unclaimed funds and electronic registers.