Regulatory Alerts2003-01-01
Bank of Zambia Circular 14/2003: Banking and Financial Services (Bureau de Change) Regulations of 2003
The Bank of Zambia issued Circular 14/2003 to implement the new Banking and Financial Services (Bureau de Change) Regulations of 2003, which repeal the 1994 foreign currency rules and transfer bureau licensing to the Registrar of Banks and Financial Institutions. The circular mandates a minimum capital requirement of K40,000,000, establishes non-refundable application fees of K5,400,000, and replaces annual licence renewals with a mandatory K10,800,000 annual fee due by January 31, subject to a 20 percent monthly penalty for late payment. It further imposes strict daily transaction caps, limiting cash exchanges with the public to US$1,000, inter-bureau transfers to US$10,000, and open foreign exchange positions to 200 percent of regulatory capital, while requiring standardized customer receipts for all transactions.