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Zambia: fintech & payments regulation

Regulated

Zambia fintech & payments: BoZ oversight under NPSA; VASP registration mandatory

Lead regulator:
Bank of Zambia
Key law:
National Payment Systems Act
Last updated:
2026-07-12

The Bank of Zambia (BoZ) is the primary regulator for fintech and payments, operating under the National Payment Systems Act and its associated Directives. The regulatory framework mandates licensing for electronic money issuers and money transfer services, with strict capital and operational standards enforced through circulars.

The BoZ has recently expanded its oversight to include virtual assets, requiring all virtual asset and stablecoin service providers to register with the central bank by March 27, 2026. This registration is a prerequisite for commercial banks and payment service providers to engage with these entities, ensuring rigorous due diligence.

The regulatory environment emphasizes modernization and security, with the BoZ mandating the migration to ISO 20022 standards for the Zambia Interbank Payment and Settlement System (ZIPSS) and enforcing strict cybersecurity controls. The sector is moving towards a fully digital infrastructure, evidenced by the planned phase-out of cheques by June 2026.

Who regulates

  • Bank of Zambia

    Primary supervisor of payment systems, electronic money, and virtual assets.

    [1][2][3]

  • Securities and Exchange Commission Zambia

    Regulator of capital markets and securities market participants.

    [4]

Core laws & rules

  • National Payment Systems Act (Undated (referenced in 2022/2023 circulars))

    Establishes the legal mandate for the Bank of Zambia to oversee financial market infrastructures and payment systems.

    [1][5]

  • Securities Act, No. 41 of 2016 (2016)

    Comprehensive framework for capital markets, administered by the Securities and Exchange Commission.

    [4]

  • Banking and Financial Services Amendment Act (2020)

    Redefines insolvency for financial service providers and mandates strict licensing for banking and financial business activities.

    [6]

Licensing & registration

  • Electronic Money Issuance

    Comprehensive licensing and operational framework established by the 2023 Directives, replacing 2018 regulations.

    [3]

  • Money Transfer Services

    Entities offering money transfer services must obtain authorization and meet minimum capital requirements.

  • Virtual Asset Service Providers

    Mandatory registration with the Bank of Zambia for all virtual asset and stablecoin service providers operating in Zambia. Timeline: Registration deadline: March 27, 2026

    [2]

Restrictions & warnings

  • Commercial banks and payment service providers must conduct due diligence on virtual asset providers and verify their valid licensing status before engagement.

    [2]

  • Electronic money institutions are prohibited from imposing unwarranted charges such as wallet opening, PIN resets, or balance inquiries.

    [7]

  • Cheques are mandated to be completely phased out as a payment instrument by June 24, 2026.

    [8]

Direction of travel

  • The BoZ is driving a 24/7 digital economy through extended operating hours for ZIPSS and the Central Securities Depository, alongside the migration to ISO 20022 standards.

    [9][10]

  • Regulatory focus is shifting towards enhanced cybersecurity, including mandatory SWIFT CSP compliance and real-time read-only access for regulators to e-money platforms.

    [11][12]

Sources

  1. Bank of Zambia Payment System Oversight Framework 2026 · 2026-06-15
  2. Mandatory Registration of Virtual Assets and Stablecoin Service Providers Operating in Zambia · 2026-01-01
  3. National Payment Systems Directives on Electronic Money Issuance, 2023 · 2023-01-01
  4. The Securities Act, No. 41 of 2016 (Amended by Act No. 21 of 2022) · 2023-12-27
  5. Bank of Zambia Circular 16/2022: Due Diligence on Entities Partnered with Payment Service Providers · 2022-01-01
  6. Banking and Financial Services Amendment Act No. 7 of 2020 · 2020-01-01
  7. Directives on Unwarranted Charges and Fees on Electronic Money Services · 2024-01-01
  8. Phasing Out of Cheques as a Payment Instrument in Zambia · 2024-01-01
  9. Adoption of Extended Operating Hours on ZIPSS and CSD · 2025-01-01
  10. ZIPSS and ISO 20022 Migration Plan of Activities · 2023-01-01
  11. Bank of Zambia Circular No. 14/2024 on SWIFT Customer Security Programme Compliance · 2024-01-01
  12. Circular 08/2025: Requirement to Provide Real-Time Read-Only Access · 2025-01-01

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This guide is compiled automatically from 12 primary-source documents published by Zambia's regulators, reviewed by RegAlert, and refreshed monthly (last updated 2026-07-12). It is not legal advice — always confirm requirements with the regulator or local counsel before acting.