Regulatory Alerts2026-02-24
Added
Bank of Botswana Guideline on Simplified Due Diligence Measures
This guideline specifies procedures and minimum conditions for licensed financial institutions, including banks, bureaux de change, and payment service providers, to apply simplified customer due diligence measures under Section 28 of the Financial Intelligence Act, 2022. Institutions must conduct risk assessments to confirm low money laundering, terrorist financing, or proliferation financing risk before applying reduced identification, verification, or ongoing monitoring measures, and must document the rationale for such determinations. For low-risk customers, identification information may be updated every five years unless a trigger event occurs, though suspicious transaction reporting obligations remain in force regardless of risk rating. The guidelines prohibit automatically applying simplified measures to pre-defined customer lists without active demonstration of genuinely low risk and require senior management and the Board of Directors to ensure compliance with the Financial Intelligence Act, 2022, and 2025 legislative amendments.
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