Regulatory Alerts2024-01-01
CB Circular No. 01/2024 - Revised Directives on Foreign Exchange Cash Transactions
The Bank of Zambia has revised its foreign exchange cash transaction directives to exempt export-related cash payments from the daily US$100,000 limit. Exporters must deposit foreign currency cash into Zambian bank accounts, supported by an invoice, Form CE20 with a unique consignment reference, and a matching cash deposit slip. Commercial banks remain obligated to enforce strict Know Your Customer protocols and submit accurate reports to the Financial Intelligence Centre and the central bank.
[Logo: Bank of Zambia]
Bank of Zambia
OFFICE OF THE DEPUTY GOVERNOR - OPERATIONS
BOZ/EXEC/DGO/ecd/ns
January 2, 2024
CB Circular No. : 01/2024
To : All Heads of Commercial Banks
REVISED CIRCULAR NO. 08/2021: DIRECTIVES ON FOREIGN EXCHANGE CASH TRANSACTIONS.
Kindly refer to the above subject matter.
The Bank of Zambia issued subsidiary legislation (Directives) on December 29, 2023 governing the Export Proceeds Tracking Framework. The Directives provide for exporters to receive cash payments in foreign currencies, which should be deposited in a bank account domiciled in Zambia. In view of this, CB Circular No. 08/2021 has been revised to exempt payments for exports from the daily limit of US$100,000. All payments related to export proceeds shall be supported by necessary documentation which should include the invoice, export declaration Form CE20 with a unique consignment reference (UCR) and a clearly referenced relevant cash deposit slip. The cash deposit must be equivalent to the declaration on the necessary export documentation.
Commercial banks are reminded about their continuous compliance obligation to the laws and directives with regard to Know Your Customer and reporting requirements as prescribed by the Financial Intelligence Centre and the Bank of Zambia as they execute these transactions.
[Signature]
Francis Chipimo (PhD) DEPUTY GOVERNOR – OPERATIONS
cc Governor
Bank Square, Cairo Road, P.O. Box 30080, Lusaka, Zambia Tel:+260-211-399303, 399300, E-mail: dgo@boz.zm. Web: http://www.boz.zm