Regulatory Alerts2022-01-01
Circular 01/2022: Handling of Unclaimed Funds for Electronic Money Issuers and Money Transfer Service Providers
The Bank of Zambia issued these procedures to standardize how Electronic Money Institutions and Money Transfer Service Providers handle unclaimed customer funds. Regulated entities must notify affected customers and relinquish presumed abandoned funds to designated Bank of Zambia accounts within thirty days, accompanied by detailed KYC documentation and authorized signatory letters. Customers may reclaim these funds through the original provider within six years, subject to the Bank’s due diligence review, with post-six-year claims generally barred unless exceptional hardship warrants discretionary payment.
HANDLING OF UNCLAIMED FUNDS FOR ELECTRONIC MONEY ISSUERS AND MONEY TRANSFER SERVICE PROVIDERS
July 2022
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
1. INTRODUCTION
These procedures have been drawn up to give guidance in the handling of unclaimed funds in line with Directive 16 of the National Payment System Money Transfer Services Directives and Directive 18 of the National Payment Systems Directives on Electronic Money Issuance. The purpose of these procedures is to standardise, across all Electronic Money Institutions and Money Transfer Service Providers, the handling of unclaimed funds relinquished to the Bank of Zambia, as well as claims from customers. For the purpose of these procedures, we shall refer to Electronic Money Institutions and Money Transfer Service Providers as regulated entities.
All Electronic Money Institutions and Money Transfer Service Providers shall, at a minimum, take the following steps in the handling of unclaimed funds:
2. Relinquishing of Funds to Bank of Zambia
2.1 A regulated entity holding funds presumed abandoned in line with the National Payment System Money Transfer Services Directives or the National Payment Systems Directives on Electronic Money Issuance shall relinquish the funds to the Bank within thirty days after the funds are deemed abandoned.
2.2 Prior to relinquishing the funds to the Bank, a regulated entity shall notify the affected customer of its intention to relinquish the funds.
2.3 A regulated entity shall submit to the Bank together with the relinquished funds, a letter containing the following:
- Confirmation that the customer has been duly notified that the funds would be relinquished to the Bank of Zambia on account of dormancy;
- Total amount of funds relinquished;
- Schedule showing breakdown per customer for funds that have been relinquished; and
- Know Your Customer details such as full names, identification number and contact details for customers whose funds have been relinquished.
2.4 The letter shall be signed by two authorised signatories of the regulated entity.
2.5 The relinquished funds shall be held in the following bank accounts at the Bank of Zambia (as per denomination of the funds) as detailed below:
Kwacha denominated relinquished funds
| Account Name: | Payment System Business – Unclaimed Funds Account |
|---|---|
| Account Number: | ZMW1503000020001 |
| Bank: | Bank of Zambia |
| Branch: | Head Office |
| SWIFT Code: | BAZAZMLU |
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
United States Dollar (USD) denominated relinquished funds
| Account Name: | Payment Service Provider – Unclaimed Funds USD |
|---|---|
| Account Number: | USD1506100020001 |
| Bank: | Bank of Zambia |
| Branch: | Head Office |
| SWIFT Code: | BAZAZMLU |
South African Rand (ZAR) denominated relinquished funds
| Account Name: | Payment Service Provider – Unclaimed Funds ZAR |
|---|---|
| Account Number: | ZAR1506200020001 |
| Bank: | Bank of Zambia |
| Branch: | Head Office |
| SWIFT Code: | BAZAZMLU |
British Pound denominated relinquished funds
| Account Name: | Payment Service Provider – Unclaimed Funds GBP |
|---|---|
| Account Number: | GBP1506300020001 |
| Bank: | Bank of Zambia |
| Branch: | Head Office |
| SWIFT Code: | BAZAZMLU |
3. Claim by Customer for Unclaimed funds from the Bank of Zambia
3.1 A person whose funds has been relinquished to the Bank in accordance with the National Payment System Money Transfer Services Directives and the National Payment Systems Directives on Electronic Money Issuance may claim the funds from the Bank within a period of six years from the date of receipt of the funds by the Bank.
3.2 All such applications shall be channeled through the Electronic Money Institution or Money Transfer Service Provider that relinquished the funds.
3.3 The E-money institution shall carry out sufficient due diligence and verify the customer submitting the claim.
3.4 The e-money institution shall submit the claim in form of a letter addressed to Director – Payment Systems.
3.5 The letter shall be signed by two authorised signatories of the regulated entity that relinquished the funds to the Bank of Zambia.
3.6 The letter shall indicate the following details:
- Full names of customer claiming for unclaimed funds;
- Certified KYC documentation such as copy of National Registration Card or Passport;
- Amount of funds being claimed by the customers; and
- The date the funds were relinquished to the Bank and the amount remitted.
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
4. EVALUATION OF CLAIM FOR UNCLAIMED FUNDS
In evaluating the claim, the Bank of Zambia shall consider the following:
4.1 Review the due diligence carried out by the regulated entity;
4.2 Verify the information submitted on the claim against records submitted by the regulated entity at the time of relinquishing the funds to the Bank;
4.3 The Bank may request the regulated entity for additional information on the claim;
4.4 The Bank may contact the customer directly to verify and request for additional information where deemed necessary;
4.5 Where the Bank is satisfied with the claim, the Bank shall transfer the funds to the regulated entity for onward payment/transfer to the customer;
4.6 The regulated entity shall submit to the Bank evidence of the payment to the customer; and
4.7 Where the claim is unsuccessful, the Bank shall write to the regulated entity providing the reason for the unsuccessful outcome.
5. CLAIMS AFTER SIX YEARS
No action to recover, and no other action in respect of any funds presumed abandoned and paid in or relinquished in accordance with the National Payment System Directives on Electronic Money Issuance and the National Payment System Money Transfer Services Directives may be brought against the paying regulated entity or against the Bank after the sixth year following payment or relinquishing of the funds to the Bank.
However, where the Bank considers it desirable, to avoid hardship or injustice, the Bank may make a payment to a claimant in respect of the funds presumed abandoned to that person.
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