Rule · BOZ · 27 Feb 2001

Bank of Zambia Circular 11/2001: Ban on Deposit Mobilisation Through Raffles, Lotteries, and Competitions

The Bank of Zambia issued Circular 11/2001 to immediately ban commercial banks and financial institutions from using raffles, lotteries, or competitions to attract public deposits. Regulators classify these promotional schemes as unsafe, unsound, and speculative practices that undermine the development of a trust-based banking system. Financial entities must cease all such deposit mobilisation activities effective immediately to align with prudential standards and maintain public confidence.

ZambiaBank of Zambia

Tel. 228888/228903-20

BANK OF ZAMBIA
P.O. BOX 30080
Lusaka
10101

February 27, 2001

CB Circular No 11/2001

To: ALL COMMERCIAL BANKS AND FINANCIAL INSTITUTIONS

Dear Sirs/Madam

DEPOSIT MOBILISATION THROUGH RAFFLES, LOTTERIES AND COMPETITIONS SPONSORED BY BANKS AND FINANCIAL INSTITUTIONS

The Bank of Zambia wishes to inform banks and financial institutions that with immediate effect the use of raffles, lotteries or any other form of competition to attract deposits from the public has been banned.

The Bank of Zambia considers such schemes as unsafe and unsound, and speculative practices, which are inconsistent with the development of a sound banking system, based on trust.

Yours faithfully

Dr Abraham Mwenda
DEPUTY GOVERNOR - OPERATIONS

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Lineage: Amended

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Amended by

Deposit Mobilisation Through Raffles, Lotteries and Competitions Sponsored by Banks and Financial Institutions2001 · BOZ
“Further to our Circular No 11/2001 of 27 February 2001, we write to advise that any bank or financial institution wishing to mobilize deposits through raffles, lotteries and competitions should seek prior approval of the Bank of Zambia.”

Timeline

Amended 1 time · last 2001-03-09

2001-03-09BOZDeposit Mobilisation Through Raffles, Lotteries and Competitions Sponsored by Banks and Financial Institutionsamends

Lineage: Amended

Timeline

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