Regulatory Alerts2013-01-01
Bank of Zambia Circular 22/2013: Settlement of Cash Shortages and Penalties
The Bank of Zambia mandates that commercial banks must directly settle cash shortages and associated penalties with the central bank, effective January 1, 2014. This directive replaces the previous administrative process where sub-chest host banks (ZANACO and Barclays) temporarily covered these shortfalls on behalf of erring institutions, a system deemed ineffective due to delayed reimbursements. Cash verification at the central bank will remain witnessed exclusively by sub-chest host representatives under electronic surveillance, with commercial banks granted access to CCTV footage as needed.
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