Regulatory Alerts2024-01-01
CB Circular No. 17 of 2024 – Notice on Statement of Affairs and Licence Cancellation for Betternow Finance Company Limited
The Bank of Zambia has approved the Statement of Affairs and cancelled Betternow Finance Company Limited’s financial service provider licence following its confirmed insolvency. The institution faces a K30.5 million capital deficiency against an assessed insolvency of K25.5 million, prompting the Board to terminate its possession and transfer bank account control to shareholder-appointed representatives effective September 23, 2024. Financial service providers are directed to acknowledge this licence cancellation and coordinate with the appointed representatives regarding the transferred accounts.
[Logo: Bank of Zambia]
Bank of Zambia
OFFICE OF THE DEPUTY GOVERNOR - OPERATIONS
BOZ/EXEC/DG/fcs/bp
September 24, 2024
CB Circular No. : 17/2024
To : All Chief Executive Officers of Financial Service Providers
NOTICE ON STATEMENT OF AFFAIRS AND CANCELLATION OF LICENCE OF BETTERNOW FINANCE COMPANY LIMITED
Notice is hereby given that pursuant to Section 73 of the Banking and Financial Services (Amendment) Act, 2020 as read together with the Banking and Financial Services Act, 2017, No. 7 of 2017, the Statement of Affairs of Betternow Finance Company Limited (In Possession) was concluded and approved by the Bank of Zambia Board of Directors at a meeting held on June 25, 2024. The Statement of Affairs confirmed that as at July 21, 2023, Betternow Finance Company Limited (In Possession) was indeed insolvent. The extent of the insolvency was assessed to be K25.5 million, resulting in a capital deficiency of K30.5 million to satisfy the required minimum capital for a financial business.
At the same meeting, the Bank of Zambia Board of Directors resolved to terminate the possession of Betternow Finance Company Limited and to cancel the licence which allowed the institution to operate as a financial service provider.
Further, we advise that effective September 23, 2024, the Bank of Zambia handed over control of all the bank accounts for Betternow Finance Company Limited to your respective institutions. In that regard, these accounts will be controlled by representatives to be appointed by the shareholders of Betternow Finance Company Limited.
Kindly be advised accordingly.
[Signature]
Francis Chipimo (PhD) DEPUTY GOVERNOR AND REGISTRAR OF FINANCIAL SERVICE PROVIDERS
cc Governor Deputy Registrar of Financial Service Providers Director – Prudential Supervision General Counsel and Bank Secretary
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