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2014-01-01

Financial Institutions (Foreign Exchange Bureau) Regulations 2014

Issued by the Commissioner of Financial Institutions under the Financial Institutions Act, 2012, these regulations establish a comprehensive licensing and regulatory framework for foreign exchange bureaus in Lesotho. The rules mandate a Type IV license, fit-and-proper assessments for key personnel, specific premises standards, mandatory electronic receipts, and travel currency purchase limits capped at US$10,000. Furthermore, the Commissioner is granted broad supervisory powers to conduct inspections, issue corrective directives, enforce anti-money laundering procedures, and impose penalties up to M250,000 for regulatory breaches.

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LESOTHO Government Gazette Vol. 59 Friday – 15th August, 2014 No. 46 CONTENTS No. Page LEGAL NOTICE 59 Financial Institutions (Foreign Exchange Bureau)......................... 727 Regulations, 2014 OTHER NOTICES (See Supplement of the Gazette) Published by the Authority of His Majesty the King Price: M34.00

LEGAL NOTICE NO. 59 OF 2014 Financial Institutions (Foreign Exchange Bureau) Regulations, 2014 Arrangement of Regulations Regulations PART I – PRELIMINARY

  1. Citation and commencement
  2. Interpretation
  3. Application
  4. Foreign Companies PART II – LICENSING PROVISIONS
  5. Qualifications
  6. Preliminary conference
  7. Application documents
  8. Supporting documents
  9. Acknowledgment
  10. Granting of license
  11. The fit and proper requirement PART III – REGULATORY REQUIREMENTS
  12. Control
  13. A person with principal interest is no longer fit and proper
  14. Premises of a Foreign Exchange Business PART IV – OPERATION OF EXCHANGE BUSINESS
  15. Operations PART V – FOREIGN CURRENCIES FOR TRAVEL PROPOSES
  16. Limits 727

PART VI – SUPERVISION BY COMMISSIONER 17. List of licensed institutions 18. Licensee to disclose status 19. Commissioner’s power of inspection 20. Periodic reports 21. Special audit 22. Undesirable practises 23. Prevention and corrective measures 24. Contents of directive 25. Combating money laundering and financing of terrorism PART VII – OFFENCES 26. Offences PART VIII – TRANSITIONAL PROVISIONS 27. Transitional provisions Schedules 728

LEGAL NOTICE NO. 59 OF 2014 Financial Institutions (Foreign Exchange Bureau) Regulations, 2014 Pursuant to sections 13 read with 71(1) of the Financial Institutions Act, 2012, I, DR. RETŠELISITSOE MATLANYANE Commissioner of Financial Institutions, make the following regulations: PART I – PRELIMINARY Citation and commencement

  1. These Regulations may be cited as the Financial Institutions (Foreign Exchange Bureau) Regulations, 2014 and shall come into operation on the date of its publication in the Gazette. Interpretation
  2. (1) In these Regulations, unless the context otherwise requires: “Act” means the Financial Institutions Act, 2012; “auditor” means a member of the Lesotho Institute of Accountants certified to provide, attest or perform auditing functions recognized by the Lesotho Institute of Accountants; “bank” means a company, incorporated in accordance with the provisions of the Companies Act, 2011 which is licensed under the Act to conduct banking busi￾ness; “Commissioner” means the Central Bank of Lesotho established by the Central Bank of Lesotho Act, 2000; “director” means a member of the board of directors of a licensed institution; “foreign exchange business” means the exchange of one currency for another or the conversion of one currency into another currency against a fee or com￾729

mission; “licensee” means a person licensed by the Commissioner to conduct a foreign exchange bureau; “person” includes any individual or company, partnership, syndicate, association or body of persons, corporate or unincorporated; “principal interest” means direct or indirect shareholding of a person, which rep￾resents 10% or more of its capital or voting rights which makes it possible to exercise a significant influence over such person, as the Commissioner may de￾termine; “spot transaction” means an immediate over the counter sale and purchase of foreign currency. (2) All other words used have the same meaning ascribed to them under the Act. Application 3. These regulations shall apply only to companies incorporated under the Companies Act, 2011 licensed under the Act to engage in the provision of foreign exchange bureau services in Lesotho. Foreign companies 4. Notwithstanding regulation 3, a company which has been licensed as a foreign exchange bureau services provider in another jurisdiction, determined by the Commissioner to have equivalent regulatory and supervisory require￾ments, is eligible to obtain a licence to operate as a foreign exchange bureau in Lesotho. PART II – LICENSING PROVISIONS Qualifications 5. A person shall not carry out any foreign exchange bureau services unless the person is licensed by the Commissioner to carry out such foreign exchange bureau services under a Type IV license issued under the Act. 730

Preliminary conference 6. (1) An application for a licence to carry out foreign exchange serv￾ices shall be directed to the Commissioner after a preliminary conference with the Commissioner at the request of the applicant. (2) At the preliminary conference, the Commissioner shall: (a) provide the applicant with an overview of the relevant provisions of the Act and the Regulations governing the provision of the foreign exchange bureau services; and (b) explain the criterion that is used in evaluating an appli￾cation for a licence for the provision of foreign exchange bureau services. Application documents 7. (1) If, in the opinion of the Commissioner, an applicant reasonably establishes capacity and seriousness of intent to provide foreign exchange bureau services, the Commissioner shall provide the applicant with: (a) an application form as set out in Schedule I; (b) an information sheet as set out in Schedule II; (c) a personal declaration sheet as set out in Schedule III; and (d) a schedule of licence fees as set out in Schedule IV. (2) The Commissioner shall, during the preliminary conference, as￾sist the applicant in the interpretation and completion of any required documents. (3) The applicant shall, on completion of the Forms, submit the forms to the Commissioner. (4) Submission of the completed forms or any other requirements referred to under subregulation (1) that have false or misleading information shall constitute refusal to issue a licence by the Commissioner in accordance 731

with section 13 of the Act. Supporting documents 8. (1) Where the Commissioner requests supporting documents or any other requirements from an applicant, the documents or requirements shall not be older than 90 days prior to the filing of an application for provision of foreign exchange services or as may be determined by the Commissioner. (2) Subregulation (1) shall not apply to financial statements. Acknowledgement 9. (1) Within 30 working days of the receipt of an application form to￾gether with all supporting documents the Commissioner shall send the applicant a formal letter of acknowledgement or a letter of deficiency. (2) The letter of acknowledgement shall serve as the official notice that the documents submitted were found to be complete and that the processing or evaluation may commence. (3) The letter of deficiency shall outline deficiencies in the applica￾tion, provide a deadline for rectification of the deficiencies and no further action shall be taken by the Commissioner unless the deficiencies are rectified within the time prescribed. Granting of licence 10. (1) Upon receipt of the application under regulation 7, the Commis￾sioner may: (a) grant a license if satisfied that the applicant can conduct its anticipated business in a safe and sound manner; or (b) refuse to grant a license until it is fully satisfied that the applicant can conduct its business in a safe and sound manner. (2) A licence issued under these regulations - 732

(a) may be subject to such conditions as the Commissioner may deem necessary to impose; (b) shall remain valid for a period of one year unless it is re￾voked by the Commissioner or surrendered by the li￾censee. (3) After having received the license, the licensee shall give written notice to the Commissioner within 30 working days of any material change re￾lating to any of the information provided to the Commissioner in the application for the license. (4) The Commissioner - (a) shall review any change to the license described in reg￾ulation 10(3) and decide whether the licensee still qual￾ifies for the license after the changes; (b) may revoke the license if it finds that the licensee does not qualify any longer for the license as a result of the change. The fit and proper requirement 11. In determining whether a significant owner, an ultimate controller, a di￾rector or a manager is fit and proper to hold a particular position, it shall be con￾sidered whether the person satisfies the Fit and Proper Assessments Guidelines for Directors and Senior Officials in the Financial Sector issued by the Com￾missioner. PART III – REGULATORY REQUIREMENTS Control 12. (1) A person shall not hold a principal interest of a licensee unless: (a) the person has first notified the Commissioner in writ￾ing of his or her intention to do so; (b) the Commissioner has found the person to be fit and 733

proper in accordance with the requirements in regulation 11; and (c) the Commissioner has notified the person in writing that there is no objection to the person holding a principal in￾terest or increasing his or her stake in the licensee. (2) The Commissioner, when notifying a person under this regula￾tion that there is no objection to the holding principal interest or increasing his or her stake in the licensee, may specify a maximum stake that the person may acquire. When a person who has principal interest is not fit and proper 13. Where a person acquires or continues to have a principal interest and it appears to the Commissioner that the person is not or is no longer fit and proper to hold a principal interest, the Commissioner may direct that the shares that are held or controlled by that person shall, until further notice, be subject to any or several of the following restrictions: (a) suspension of any transfer of, or agreement to transfer the shares; (b) stoppage of: (i) voting rights on the shares; and (ii) payment of any sum on the shares or otherwise. Premises of a foreign exchange business 14. (1) Upon approval of an application, a foreign exchange bureau shall be required to ensure the business premises are easily accessible and have the following; (a) computerized operations with the ability to generate electronic receipts that will be made available to cus￾tomers and store information in the database with a time stamp; 734

(b) a minimum of 2 counters; (c) unexpired fire extinguishers and physical security; (d) a cash safe and a note counting machine; and (e) telephone and fax facilities. PART IV – OPERATIONS OF FOREIGN EXCHANGE BUSINESS Operations 15. A foreign exchange bureau shall: (a) quote its foreign exchange buying and selling rates which shall be displayed in a prominent place in the premises of a foreign exchange bureau business; (b) display, at all times in a noticeable place in its premises, a notice informing customers that they are entitled to be issued with a re￾ceipt for any purchase or sale of foreign currency made by them; (c) issue an electronic receipt with a time stamp for every purchase or sale of foreign currency in the form prescribed by the Com￾missioner from time to time; (d) keep copies of valid identification and supporting documents for every sale of foreign currency; (e) have the necessary mechanism for detecting counterfeit note; and (f) trade in foreign currency with the rates determined by the market forces. 735

PART V – FOREIGN CURRENCIES FOR TRAVEL PURPOSES Limits 16. (1) A foreign exchange bureau shall - (a) not sell foreign currency or traveller’s cheques in excess of an amount that is equivalent to U$10 000.00 (b) obtain and retain a copy of a confirmed travel ticket and identity document for every sale of foreign currency for travel allowance purposes where the amount sold is in excess of an amount that is equivalent to U$ 2 000.00. (2) Purchase of foreign currency by non-resident shall be evidenced by the relevant sale receipt in respect of the foreign currency sold. PART VI – SUPERVISION BY COMMISSIONER List of licensed institutions 17. The Commissioner shall maintain, regularly update and publish a list of licensed institutions in the Gazette and use such other means calculated to inform the public, including newspapers in general circulation. Licensee to disclose status 18. A licensee shall prominently disclose his or her licensed status, so that the public is able to differentiate them from any institution that is not licensed. Commissioner’s power of inspection 19. (1) The Commissioner may conduct on-site inspections at a li￾censee’s place of business. (2) A licensee shall - (a) permit the Commissioner access, with or without prior notice, during business hours to any of its business prem￾ises to conduct on-site inspections for the purpose of 736

ascertaining whether or not the licensee is complying with the law and these regulations; (b) ensure that its agents, suppliers under outsourcing arrangements and appointed representatives, permit the Commissioner similar access to their business premises. (2) In the course of an on-site inspection, a licensee shall provide the Commissioner with such information, answers to questions, and access to documents, books, records, vouchers, cash, securities and other information, as the Commissioner finds necessary to ascertain whether or not the licensee is in compliance with the law and this regulation. (3) The Commissioner may enter any premises and examine the books, accounts or records of any person whom the Commissioner believes is conducting a foreign exchange bureau without a licence. Periodic reports 20. A licensee shall submit periodic reports to the Commissioner on a peri￾odic basis in such form, and in such manner as set out in Schedule V. Special audit 21. (1) The Commissioner may appoint an external auditor to conduct a full audit of a licensee’s books and the cost of using an external auditor shall borne by the licensee. (2) A person appointed by the Commissioner in accordance with this subregulation (1) shall have the same powers to conduct inspections as the Commissioner and be subject to the same confidentiality requirements as the staff of the Commissioner. Undesirable practices 22. (1) The Commissioner may declare a particular business practice to be undesirable. (2) In deciding whether or not a particular business practice is un￾desirable the Commissioner shall take the following elements into consideration, 737

whether the practice concerned, directly or indirectly, has or is likely to have the effect of: (a) harming the relations between the licensee and its cus￾tomers, or the general public; (b) being unreasonably prejudicial to any customers; (c) deceiving any customers; or (d) unfairly affecting any customers; and (e) if the practice is allowed to continue, one or more objects of the law or these regulations will, or is likely to be de￾feated. (3) The Commissioner may not make such a declaration as contem￾plated in subregulation (1) above unless the Commissioner has published its in￾tention to make the declaration, giving its reasons, and invited interested persons to make written representations within 15 workdays after the date of publication of that notice in newspapers of general circulation and by such other means cal￾culated to inform the public. (4) The licensee concerned may not, on or after the date of the pub￾lication of a notice referred to in subregulation (1) carry on the business practice concerned. (5) The Commissioner may direct a licensee who, on or after the date of the publication of a notice referred to in subregulation (1) carries on the business practice concerned in contravention of that notice, to rectify or reinstate to the satisfaction of the Commissioner any loss or damage which was caused by or arose out of the carrying on of the business practice concerned. (6) A licensee who is directed under subregulation (5) to rectify or reinstate anything shall do so within 40 workdays after such directive is issued. 738

Preventive and corrective measures 23. (1) The Commissioner has the power to take preventive and correc￾tive measures listed in subregulation (2) if the Commissioner determines that a licensee: (a) is contemplating, is about to or has commenced one or several business activities that the Commissioner deems to be unsound or unsafe even though they may not rep￾resent a contravention of the law; (b) is or it appears likely to become unable to pay its obli￾gations as they fall due because it lacks sufficient liquid assets; or (c) has contravened or is about to contravene these regula￾tions or the law. (2) The Commissioner may take the following preventive and cor￾rective measures against the licensee: (a) issue a directive that requires such action to be taken by the licensee as the Commissioner considers necessary to prevent or correct violations of the Act or these regula￾tions; (b) require the licensee to prepare a plan in order to bring the institution into compliance with the law and this reg￾ulation; (c) conduct an audit of the affairs of the licensee, at the ex￾pense of the institution, by an auditor appointed by the Commissioner; (d) at the expense of the licensee, appoint a person to advise the licensee on the proper conduct of its affairs and to report to the Commissioner thereon within 90 days of the date of that person’s appointment; 739

(e) put the licensee under special administration at the ex￾pense of the licensee by appointing a special adminis￾trator to assume control of the licensee’s affairs who shall be under direct control of the Commissioner and, with the necessary restrictions, have all the powers of the general shareholder meeting and the board of direc￾tors of the licensee. Contents of directive 24. (1) A directive issued by the Commissioner in accordance with reg￾ulation 23 (2) (a) may contain all or any of the following prohibitions or require￾ments: (a) prohibit the licensee from soliciting business from a per￾son of a particular class or description or from persons other than persons of such class or description; (b) require the licensee to take, or to refrain from taking, certain steps or to adopt a particular course of action, or to restrict the scope of its business in a particular way; (c) prohibit the licensee from entering into a particular trans action or class of transaction or entering into them oth￾erwise than in circumstances specified; (d) prohibit the licensee from disposing of or moving an asset belonging to it during a specified period, or from removing an asset from Lesotho during that period if the asset is in Lesotho; (e) require the licensee to maintain in Lesotho, assets of such value as appear to the Commissioner to be desirable with a view to ensuring that it will be able to meet its li￾abilities for its business; (f) require the licensee to transfer control of assets of a spec￾ified class or description to a person approved by the Commissioner; 740

(g) prohibit the licensee, subject to third-party rights, to pay or transfer any amount to any person, or create any ob￾ligation to do so; (h) prohibit the licensee to undertake any financial obliga￾tion on behalf of any other person; (i) forbidding the licensee to borrow any amount, to pay dividends and/or to discharge any other liability to a per￾son or group of persons identified by the Commissioner; (j) require the licensee to replace any director, the chief ex￾ecutive officer, manager, officer or employee of the li￾censee; (k) require the licensee to discharge any director, chief ex￾ecutive officer, manager, officer or employee of the li￾censee. (2) The Commissioner may withdraw or vary its directive if it ap￾pears to the Commissioner that it is no longer necessary for the directive to take effect or needs to continue in force in a different form as the case may be. Combating money laundering and financing of terrorism 25. (1) A licensee shall establish procedures to prevent criminal money laundering and financing of terrorism that are scaled to the risk the licensee is exposed to and that is in compliance with the relevant legislation, including: (a) performing the necessary know-your-customer due dili￾gence on the customers and clients; (b) taking enhanced measures with respect to higher risk customers and clients; (c) monitoring complex, unusually large transactions, or un￾usual patterns of transactions, that have no apparent or visible economic or lawful purpose; 741

(d) reporting suspicious transactions to the relevant bodies, for further investigation and possible referral for prose￾cution (e) developing internal programs, including training pro￾grams, procedures, controls and audit functions to com￾bat money laundering; and (f) ensuring that its foreign branches and subsidiaries ob￾serve appropriate anti-money laundering and combating of financing of terrorism requirements. (2) The Commissioner has the power to share information and co￾operate in all ways necessary with other supervisors both domestic and foreign for combating money laundering and the financing of terrorism purposes. PART VII – OFFENCES Offences 26. The Commissioner may impose by written notice, direction, instruction, or notice given, or any limit, term, condition, or restriction, to any licensee or any person subject to these regulations who contravenes any provision of these regulations a penalty not exceeding M250,000.00 and in the case of a continuing offence, an additional daily penalty not exceeding M25,000.00 PART VIII – TRANSITIONAL PROVISION Transitional provisions 27. Persons that are conducting Foreign Exchange Bureau business on the date on which these regulations become effective must apply for a license issued under these Regulations within 6 months of its effective date. DR. RETŠELISITSOE MATLANYANE COMMISSIONER OF FINANCIAL INSTITUTIONS 742

SCHEDULE 1 APPLICATION FOR A LICENCE TO CONDUCT FOREIGN EXCHANGE SERVICE BUSINESS (Regulation 7(1)) The Governor Central Bank of Lesotho P. O. Box 1184 MASERU 100

  1. I, the undersigned, acting as principal or duly authorised agent on behalf of or as chairman or chief executive officer of ………………………………………………………………………… Principal Business activities ................................................................................................................. .................................................................................................................. ................................................................................................................. .................................................................................................................
  2. The following documents are being submitted to comply with the initial requirements for evaluation. Where a document is not applicable this so stated - (1) Information Sheet (Schedule II) ..................................................................................................... ..................................................................................................... ..................................................................................................... ..................................................................................................... (2) Personal Declaration Sheet (Schedule III) Name Position ...................................................... ....................................... ...................................................... ...................................... ...................................................... ....................................... ...................................................... ....................................... 743

(3) Proposed Capital Structure ...................................................................................................... ..................................................................................................... (4) Economic justification and outline of short, medium, and long term business plans with details on - (a) financial, commercial, and other business establishments within the proposed area of operation or targeted mar￾kets; (b) deposits or other fund gathering sources as well as lending and investment potentials; and (c) financial services to be offered by the applicant. (5) Financial projections (balance sheets, income statements, and cash flow statements) for at least a three-year period, including details of estimated organisation expenses. Assumption used and other bases for projections are indicated. (6) Schematic presentation, with regard to the group of companies of which applicant is a member, reflecting all interests held in and by each member company including the nature of business of each of these entities. (7) List of existing shareholdings of the applicant and its controlling shareholders, directors, officers and officials in other licensed financial institutions. (8) Certified true copies of the audited financial statements or annual reports for the past two years prepared in accordance with gen￾erally accepted accounting principles. (9) Authenticated copies of the memorandum and articles of asso￾ciation or, in case of foreign institution, such similar documents regulating its affairs. (10) If the applicant is a foreign financial institution, a statement 744

from the supervisory authorities of the home country declaring that: (a) it has given its prior approval for the establishment of a subsidiary, branch or any other office in Lesotho; (b) it shall exercise comprehensive supervision over the par￾ent institution on a consolidated basis; and (c) the applicant’s chairman, directors, principal officers and management as a whole are fit and proper persons. (11) Latest tax compliance certificate or certified true copy of corpo￾ration tax returns. (12) Individual credit references for the applicant and each of its prin￾cipal shareholder, director, officer and official from at least two banks or financial institutions with whom such persons have had financial dealings within the past two years. (13) Certified true copy of the board resolution of the Head Office or Parent Company authorising the establishment of a branch or subsidiary. (14) Any query, clarification or additional requirements regarding the acquisition of a specified number of shares in applicant in￾stitution (if major shareholder is a corporation or company). (15) Any query, clarification or additional requirement regarding this application may be directed to the following officers authorised to liaise with the Central Bank. Name:………………………………. Telephone No.: …………......... Name:………………………………. Telephone No.: …………......... Certification and Undertaking I, the undersigned,……………………… hereby certify that all information con￾tained in and accompanying this application is complete and accurate to the best 745

of my knowledge and belief. I also undertake to forthwith notify the Central Bank of Lesotho, of any material change in the particulars of this application. Sworn at Maseru, Lesotho This ................................................... day of ....................................................... ................................................................ .................................................. Signature of Deponent (Position) Deponent understands contents of this affidavit Before me, ................................................................. A COMMISSIONER OF OATHS N.B. 1. All sections in this form must be filled and therefore no section shall be left blank. 2. Where information is not provided, please place “NOT APPLICABLE” or “NONE”, as the case may be. 3. If any space provided in the form is adequate, the required in￾formation or data needed may be supplied, as on annex. 4. Reference shall be made in the relevant section of the form by placing the words “REFER TO ANNEX……….”. 746

Schedule I FOR CENTRAL BANK OF LESOTHO USE Received by: ......................................................... Date: .................................. Application Documents checked for completeness by: ...................................... Letter of Deficiency or Acknowledgement sent on: ...................................... Action Taken: ............................................................................................................................... .............................................................................................................................. .............................................................................................................................. ............................................. ...................................... Evaluating Officer Director Supervision Department 747

SCHEDULE II INFORMATION SHEET (Regulation 7(1))

  1. Name: ........................................................................................ ........................................................................................ .........................................................................................

  2. Principal Business Activities: ................................................................ ................................................................ ................................................................

  3. Head/Main Office: ................................................................ ................................................................ ................................................................ (a) Address: ................................................................ ................................................................ (b) Telephone No.: ................................................................ (c) Telefax No.: ................................................................

  4. Branches: Address Date Approved or Date Opened ................................................. ................................................... ................................................. .................................................... ................................................. ................................................... ................................................. ................................................... Subsidiaries & Affilates: Name & Type of business Amount of % of Shares Shares Held Held to Total ................................................... ........................... ........................... ................................................... ........................... .......................... ................................................... ........................... .......................... ................................................... ........................... .......................... ................................................... ........................... .......................... 748

  5. Management: (1) Board of Directors: Name Designation Present Term No. of Years as From – To Board Member ..................... ....................... .......................... ........................... ..................... ....................... .......................... ........................... ..................... ....................... .......................... ........................... ..................... ....................... ......................... .......................... (1) Board Committee(s): Name & Purpose of Committees(s) Name of Member ........................................................ ...................................... ........................................................ ....................................... ........................................................ ...................................... ........................................................ ....................................... (2) Officers: Name Position No. of Years As Officer ........................................ .............................. .......................... ........................................ .............................. .......................... ........................................ .............................. .......................... ........................................ ............................... ..........................

  6. Ownership Profile: Country of Paid-up Capital Name Citizenship Residence Amount %

  7. ..................... ...................... ............................ .................. .......

  8. ..................... ...................... ............................ .................. .......

  9. ..................... ...................... ............................ .................. .......

  10. ..................... ...................... ............................ .................. .......

  11. ..................... ...................... ............................ .................. .......

  12. ..................... ...................... ............................ .................. ....... 749

  13. ..................... ...................... ............................ .................. .......

  14. ..................... ...................... ............................ .................. .......

  15. ..................... ...................... ............................ .................. ....... Other Shareholders owing less than 5% (number.................) ................. .......... TOTAL 100%

  16. Organisation Profile: (1) Organisation Chart – Annex A chart indicating major depart￾ments or divisions which names and position titles of officers heading each de￾partment or division. (2) Functions – Annex A list of functions or responsibilities for each department or division listed in organisation chart indicating number of person￾nel or staff for each. (3) Qualifications of its principal shareholders and directors. (4) Annex Personal Declaration sheet of each principal shareholder, director and officer. (5) Powers and purposes – Annex the latest copies of memorandum and articles of association of not previously submitted to the Central Bank.

  17. Shareholdings in Other Financial Institutions: Name of Financial Institution Shares Owned % of Amount Number Capital ................................................. ............................ ..................... .................. ................................................. ............................ ..................... ................... ................................................. ............................ ..................... ................... ................................................. ............................ ..................... ................... ................................................. ............................ ..................... ................... ................................................. ............................ ..................... ................... 750

  18. Certification and Undertaking I, .................................................................................................. certify that all information contained in and accompanying this form is complete and accurate to the best of my knowledge and belief. I also undertake to forthwith notify the Central Bank of Lesotho within a period of fifteen days of any material change to this Information Sheet. Sworn at Maseru, Lesotho This ........................................ day of ........................................ ........................ ....................................................... Signature of Deponent (Position) Deponent understands contents of this affidavit Before me, ............................................................ A COMMISSIONER OF OATHS N.B. 1. All sections in this form must be filled and therefore no section shall be left blank.

  19. Where information is not provided, please place “NOT APPLICA￾BLE” or “NONE”, as the case may be.

  20. If any space provided in the form is adequate, the required information or data needed may be supplied, as on annex.

  21. Reference shall be made in the relevant section of the form by placing the words “REFER TO ANNEX………………..” 751

SCHEDULE III PERSONAL DECLARATION SHEET (Regulation 7(1))

  1. Name and Capacity of person making this declaration: (1) Name: ........................................................................................ (2) Position or Capacity: ..................................................................
  2. Date and place of birth: .................................................................................................................. .................................................................................................................
  3. (1) Citizen of:................................ (2) Resident of:....................... (Country) (Country) Since ................................... Since ............................... (Year) (Year)
  4. Addresses: (1) Present Business Address (Lesotho, since ...........) (Outside Lesotho since .........) ........................................................... .................................................. ........................................................... .................................................. ........................................................... .................................................. (2) Present Residential Address: (Lesotho, since .............) (Outside Lesotho, since .................) ................................................ ................................................... ................................................ ................................................... ................................................ ................................................... 752

(3) Last two addresses in Lesotho, if any, during the past 10 years: (Since ............ ) (Since ...........) ........................................................ .................................................. ........................................................ .................................................. ........................................................ .................................................. ........................................................ .................................................. ........................................................ .................................................. ........................................................ .................................................. 5. Professional Qualifications: Particulars Year Obtained (1) Highest Academic Degree ....................................................................... ...................................... ....................................................................... ...................................... ....................................................................... ...................................... (2) Special Awards or Honours ....................................................................... ...................................... ....................................................................... ...................................... ....................................................................... ...................................... ....................................................................... ...................................... ....................................................................... ...................................... (3) Training Courses or Seminars ....................................................................... ...................................... ....................................................................... ...................................... ....................................................................... ...................................... ....................................................................... ...................................... ....................................................................... ...................................... (4) Membership in Professional Organisations ....................................................................... ...................................... ....................................................................... ...................................... ....................................................................... ...................................... ....................................................................... ...................................... 753

  1. Occupation or Employment (Present or most recent and for the last 10 years): Inclusive Date (M & Yr) Name & Business of Employer Positions Held From Year .................................................... .............................. ........... ............ .................................................... .............................. ........... ............ .................................................... .............................. ........... ............ .................................................... .............................. ........... ............ .................................................... .............................. ........... ............
  2. Other Business Affiliations (Direct and Indirect): Nature of Affiliation i.e. Director, Officer, Share- Inclusive Date Holder with % holdings (M & Yr) Name of Business specified etc. From To ................................... .......................................... .................... .............. ................................... .......................................... .................... .............. ................................... .......................................... .................... .............. ................................... .......................................... .................... ..............
  3. Family Group Business Affiliation (State Name of Business and Nature of Affiliation i.e. Director, Officer, Shareholder with % holdings specified) Name (1) Spouse ....................................................... .................................................. 754

........................................................ .................................................. (2) Children: ....................................................... .................................................. ....................................................... .................................................. ....................................................... .................................................. ....................................................... .................................................. (3) Parents: ....................................................... .................................................. ....................................................... .................................................. ....................................................... .................................................. (4) Brothers or Sisters: ....................................................... .................................................. ....................................................... .................................................. ....................................................... .................................................. ....................................................... .................................................. 9. Record of court cases or any investigation by governmental, professional or any regulatory body (including pending cases or on-going investigations): Name of Court or Investigative Body Full Particulars Status ........................................................... ............................... .......................... ........................................................... ............................... .......................... ........................................................... ............................... .......................... ........................................................... ............................... .......................... ........................................................... ............................... .......................... ........................................................... ............................... .......................... ........................................................... ............................... .......................... ........................................................... ............................... .......................... 10. Documentary Requirements - (1) Certified statement of assets and liabilities; (2) Latest tax compliance certificate or certified true copy of income tax returns; 755

(3) Two letters of character reference certified and duly notarised from individuals other than relatives who have personally known the undersigned for at least ten years; (4) Two letters, duly certified and notarised, from financial institu￾tions with whom the undersigned has had dealings for the last two years on the performance of past and present accounts such as, unauthorised overdraft on deposit accounts, past-due or delin￾quent accounts; and (5) Police Clearance. 11. Certification and Understanding I, ....................................... certify that all the above information contained and accompanying this form is complete and accurate to the best of my knowledge and belief and that I do not possess any of the disqualification’s provided under section 43(1) of the Financial Institutions Act. I also undertake to notify the Central Bank of Lesotho within period of fifteen days, of any material change to this Personal Declaration Sheet. Sworn to at Maseru, Lesotho This ..................................... day of .......................................... ......................... ............................................................. .................................................... Signature of Deponent (Position) Deponent understands contents of this affidavit Before me, ............................................................................... A COMMISSIONER OF OATHS 756

N.B. 1. All sections in this form must be filled and therefore no section shall be left blank. 2. Where information is not provided, please place “NOT APPLICA￾BLE” or “NONE”, as the case may be. 3. If any space provided in the form is adequate, the required information or data needed may be supplied, as on annex. 4. Reference shall be made in the relevant section of the form by placing the words “REFER TO ANNEX……………”. 757

SCHEDULE IV LICENCE FEES FOR APPLICATION TO CONDUCT FOREIGN EXCHANGE BUSINESS (Regulation 7(1)) Business Investigation Registration Licence Licence Branch Type Fee Renewal Opening Fee Fee Foreign M500.00 M500.00 M1000.00 Exchange Bureaux 7 5 8

SCHEDULE V PERIODIC RETURNS (Regulation 20) This return is to be completed monthly and quarterly as at the following dates: 31 March, 30 June, 30 September and 31 December. The return must be signed by the Chairman and the Chief Executive Officer and returned to the Director of Supervision, Central Bank of Lesotho within 21 days of the date to which it relates. Name of Institution: ............................................................................................ Period ending: .................................................................................................... MONTHLY REMMITANCE INFLOWS Other Currencies (Specify) Purpose GBP USD Euro Country of Source Total 75 9

MONTHLY REMMITANCE OUTFLOWS Other Currencies (Specify) Purpose GBP USD Euro Country of Destination Total 7 6 0

Disclosure Return This return is to be completed monthly and quarterly as at the following dates: 31 March, 30 June, 30 September, and 31 December. The return must be signed by the Chairman and the Chief Executive Officer and returned to the Governor, Central Bank of Lesotho within 21 days of the date to which it relates.

  1. Disclose any unusually large transaction, or unusual patterns of transac￾tions, that have no apparent or visible economic or lawful purpose; ………………………………………………………………………………… …………………… …………………………………. ………………………………………………………………………………… …………………… …………………………………… ………………………………………………………………………………… …………………… …………………………………….
  2. Disclose any suspicious transaction that occurred in your business which you need to inform the commissioner of ………………………………………………………………………………… …………………… ………………………………………… ………………………………………………………………………………… …………………… …………………………………………. ………………………………………………………………………………… …………………… …………………………………………. 761

Statement of Financial Performance This return is to be completed monthly and quarterly as at the following dates: 31 March, 30 June, 30 September, and 31 December. The return must be signed by the Chairman and the Chief Executive Officer and returned to the Governor, Central Bank of Lesotho within 21 days of the date to which it relates. Name of Institution: ............................................................................................ For the year to date ending / quarter ending / month ending: ............................. Income Exchange Gains Commission Fees Income Interest from investments Any other income Total Income Expenses Audit fees Board fees (Sitting allowances etc.) Stationery and Printing Interest expenses Salaries Other expenses Total expenses Profit/Loss before Tax Tax Net profit/loss Transfer to reserves Unappropriated surplus 762

Statement of Financial Position This return is to be completed monthly and quarterly as at the following dates: 31 March, 30 June, 30 September, and 31 December. The return must be signed by the Chairman and the Chief Executive Officer and returned to the Governor, Central Bank of Lesotho within 21 days of the date to which it relates. Name of Institution: ............................................................................................. For the month/quarter/ year ended: ...................................................................... Assets M Current Assets Cash in hand Maluti US $ Euro Pound Other Currencies (Specify) Bank deposits maturity < 1 year Unearned Interest Accounts Receivable Other deposits maturity < 1 year Loans repayable < 1 year (Less) Provision for doubtful debts Net Loans Other current Assets Total Current Assets Non-Current Assets Investments maturity > 1 year Loans repayable > 1 year Provision for doubtful debts Net Loans Office furniture and fittings Less provision for depreciation Net Office furniture and fittings Land and Buildings 763

Less provision for depreciation Net Land and Buildings Other Non-Current Assets Total Non- Current Assets Total Assets Equity and Liabilities ( Shareholders’ funds) M Fully paid up share capital Statutory reserves Other reserves Unappropriated surplus Surplus for the year to date Sub-Total Current Liabilities Amounts payable to creditors due < 12 months Sub-Total Non-Current Liabilities Amounts payable to creditors due >12 months Total Equity and Liabilities 764

Declaration: As an authorized representative of .........................................., I declare that all information contained in this form is accurate to the best of my knowledge and belief. There has been no compromise of truthfulness or any code of professional conduct. ................................................... ....................................... Signature Date 765

Printed by the Government Printer, P.O. Box 268, Maseru 100 Lesotho

769

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