Regulatory AlertsZambia: fintech & payments regulation
RegulatedZambia fintech regulated by BoZ under NPSA 2009; VASP registration mandatory by Mar 2026
- Lead regulator
- Bank of Zambia
- Also involved
- SEC (securities/capital markets) · Financial Intelligence Centre (AML/CFT)
- Core law
- National Payment Systems Act No. 1 of 2009
- Entry capital
- K10m (Electronic Money Institution)
- Approval timeline
- 3-6 months for payment institution licensing
- Customer assets
- Segregated in designated pool accounts at BoZ
- Data protection
- Data Protection Act 2021 · Data Protection Commission
- Sandbox
- Yes - Bank of Zambia Regulatory Sandbox
The Bank of Zambia (BoZ) is the primary supervisor for all payment services under the National Payment Systems Act (NPSA). The regulatory environment is active, with recent directives focusing on the mandatory registration of Virtual Asset Service Providers (VASPs) and the modernization of the national payment infrastructure (ZIPSS). While the Securities and Exchange Commission (SEC) regulates capital markets, the BoZ holds exclusive jurisdiction over payment processing, e-money, and money transfer services.
Which licence do you need?
| Your activity | Requirement | Capital | Timeline | Authority |
|---|---|---|---|---|
| Payment processing / gateway | LicencePayment Institution[1][2] Requires designation under NPSA 2009; strict operational standards apply. | — | — | Bank of Zambia |
| E-money & wallet issuance | LicenceElectronic Money Institution[3][4] Mandatory capital floor; real-time read-only access to platforms required. | K10m | — | Bank of Zambia |
| Domestic money transfer | LicenceMoney Transfer Service Provider[5] Strict authorization procedures and capital requirements under 2021 Directives. | — | — | Bank of Zambia |
| Cross-border remittance | LicenceMoney Transfer Service Provider[5] Cross-border transfers fall under MTS provider licensing and BoB oversight. | — | — | Bank of Zambia |
| Agent network | LicencePayment Institution[2] Agents must be partnered with licensed entities; due diligence required. | — | — | Bank of Zambia |
| Open banking / account information | Uncertainverify with regulator No specific open banking framework identified in source documents. | — | — | — |
| Foreign-exchange services | LicenceAuthorized Dealer[6] Interbank FX market rules apply; brokers require BoZ approval. | — | — | Bank of Zambia |
New — what changed recently
- 2026-01-01Mandatory Registration of Virtual Assets and Stablecoin Service Providers — BoZ mandates all VASPs and stablecoin providers to register by March 27, 2026, with strict due diligence requirements for banking partners.[7]
- 2025-01-01Real-Time Read-Only Access Directive — BoZ requires all e-money institutions and banks to grant the regulator real-time read-only access to platforms and pool accounts.[4]
- 2024-01-01Directives on Unwarranted Charges — BoZ prohibited unwarranted fees for e-money services (e.g., PIN resets, dormant accounts) and capped cash-out fees.[8]
- 2023-01-01National Payment Systems Directives on Electronic Money Issuance — Replaced 2018 regulations, establishing comprehensive licensing, capital adequacy, and operational frameworks for e-money institutions.[3]
Market-entry checklist
- 1Secure BoZ Payment Institution LicenseApply under NPSA 2009; ensure K10m capital for e-money or equivalent for other payment services.
- 2Register as VASP if ApplicableIf dealing in virtual assets, submit registration to BoZ by March 27, 2026.
- 3Establish Segregated Pool AccountsOpen designated pool accounts at BoZ for customer funds and ensure real-time regulator access.
- 4Implement ISO 20022 & ZIPSS ComplianceUpgrade core systems to ISO 20022 standards and connect to ZIPSS for interbank settlement.
- 5Adopt AML/CFT FrameworkRegister with the Financial Intelligence Centre and implement robust due diligence for partners.
Sources
- Bank of Zambia Payment System Oversight Framework 2026 · 2026-06-15
- Bank of Zambia Circular 16/2022: Due Diligence on Entities Partnered with Payment Service Providers · 2022-12-09
- National Payment Systems Directives on Electronic Money Issuance, 2023 · 2023-07-14
- Circular 08/2025: Requirement to Provide Real-Time Read-Only Access · 2025-07-11
- National Payment Systems (Money Transfer Services) Directives 2021 · 2021-09-10
- Bank of Zambia Circular No. 12 of 2021: Approved Foreign Exchange Broker · 2021-07-21
- Mandatory Registration of Virtual Assets and Stablecoin Service Providers Operating in Zambia · 2026-03-10
- Directives on Unwarranted Charges and Fees on Electronic Money Services · 2024-08-02