RegAlertLesotho: fintech & payments regulation — 2026-09
RegulatedCBN regulates fintech via Payment Systems Act 2014; e-money & MT licenses required
Frozen snapshot — the guide as it stood at the end of 2026-09. See the live guide for the current state.
The Central Bank of Lesotho (CBL) is the primary supervisor for fintech and payment services under the Payment Systems Act 2014. The regime requires specific licensing for e-money issuers and money transfer operators, with strict capital and governance standards. Agent banking is permitted under the 2024 regulations but must be tied to a licensed institution.
Which licence do you need?
| Your activity | Requirement | Capital | Timeline | Authority |
|---|---|---|---|---|
| Payment processing / gateway | Uncertainverify with regulator Payment processors may fall under e-money or MT licenses | — | — | — |
| E-money & wallet issuance | LicenceIssuer of Electronic Payment Instruments[1] Minimum unimpaired capital M 2m; customer funds must be safeguarded | M 2m | — | Central Bank of Lesotho |
| Domestic money transfer | LicenceMoney Transfer Operator[2] Licensing under Financial Institutions Act 2012; fit-and-proper tests apply | — | — | Central Bank of Lesotho |
| Cross-border remittance | LicenceMoney Transfer Operator[2] Cross-border transfers require Money Transfer Operator license | — | — | Central Bank of Lesotho |
| Agent network | RegistrationAgent Banking[3] Agents must be appointed by licensed financial institutions | — | — | Central Bank of Lesotho |
| Open banking / account information | Unregulated No specific open banking framework identified | — | — | — |
| Foreign-exchange services | LicenceForeign Exchange Bureau[4] Type IV license required; fit-and-proper assessments mandatory | — | — | Central Bank of Lesotho |
New — what changed recently
- 2024-01-01Financial Institutions (Agent Banking) Regulations, 2024 — Established comprehensive licensing and operational framework for banks appointing agents as delivery channels.[3]
- 2023-01-01Financial Institutions (Amendment) Act 2023 — Modernized regulatory oversight for traditional money lenders and microfinance operators.[5]
- 2023-01-01Central Bank (Capital Markets) (Amendment) Regulations, 2023 — Standardized licensing procedures and fee schedules for securities exchanges and advisers.[6]
Market-entry checklist
- 1Secure CBL LicenseApply for Issuer of Electronic Payment Instruments or Money Transfer Operator license.
- 2Meet Capital RequirementsDemonstrate minimum unimpaired capital of M 2m for e-money issuance.
- 3Safeguard Customer FundsEstablish segregated trust accounts for all customer funds held.
- 4Pass Fit-and-Proper TestsEnsure directors and key personnel meet CBL fit-and-proper criteria.
- 5Register Data ProtectionComply with Data Protection Act 2021 and register with the Authority.
Sources
- Payment Systems (Issuers of Electronic Payment Instruments) Regulations 2017
- Financial Institutions (Money Transfer) Regulations, 2014
- Financial Institutions (Agent Banking) Regulations, 2024
- Financial Institutions (Foreign Exchange Bureau) Regulations 2014
- Financial Institutions (Amendment) Act 2023
- Central Bank (Capital Markets) (Amendment) Regulations, 2023