Esheria Esheria Statutes
Ask AI Sign in

Zambia Act or statute

Zambia legislation

Banking and Financial Services (Amendment) Act, 2005

This provision amends section 3 and section 4 of the principal Act by changing specified words and inserting new wording. This provision amends section five of the principal Act by deleting the word “banking.” This…

amendmentappealsapplication procedurebank governancebank supervisionBanking and financebanking limitsbanking supervisionboard meeting conductbranch closuresbranch notificationbranch openingscapital requirementsconflict of interestCompany lawcorporate restructuringcorporate structuredirectorsdisclosure of interestsfinancial businessfinancial business licensingfinancial businessesfinancial institution authorisationfinancial institutionsfinancial regulationfinancial service providerfinancial service providersBanking and financefinancial services terminologyfit and proper criteriainsolvencyinsolvent financial businesslegislation amendmentlegislative draftinglicence applicationBusiness registrationliquidity requirementsmergers and acquisitionsprudential liquidity ratioregistersregulated financial servicesregulatory amendmentregulatory appointmentsregulatory approvalregulatory conditionsregulatory overrideregulatory requirementsregulatory scoperegulatory standardsregulatory terminologyreportingreserve requirementsstatutory amendmentstatutory amendmentsstatutory citationstatutory draftingstatutory repeal and replacementstatutory text amendmentsupervisionterminology replacementtransferability of licencesvoting controlwinding up
Jurisdiction
Zambia
Structure
70 provisions
Citation
Act 25 of 2005
Dates
As at 7 Oct 2005
More statute details
Dates
As at 7 Oct 2005

Publicly available, excluded from search-engine indexing

This page remains available for direct research for the following reasons:

  • The record does not meet this release's canonical indexing criteria. (market-indexing-disabled)
  • The record does not meet this release's canonical indexing criteria. (emergency-noindex)
On this page

Professional statute overview

Enactment structure, operative effect and source provenance

Official source

01

Purpose and legislative effect

“This provision amends section 3 and section 4 of the principal Act by changing specified words and inserting new wording.”

This provision amends section 3 and section 4 of the principal Act by changing specified words and inserting new wording. This provision amends section five of the principal Act by deleting the word “banking.” This section changes the principal Act by deleting one word and adding new words in a paragraph. This section amends the principal Act by adding and replacing words in subsections dealing with banks and financial institutions. The Registrar may grant a licence to conduct business as a financial institution if the applicant meets the stated conditions.

02

How the instrument operates

  1. 01

    Start with the recorded version

    As at 7 Oct 2005. The date shown identifies this source expression and should not be treated as proof that no later change exists.

  2. 02

    Locate the controlling provision

    Use the provision map, part headings and full-text filter to move from the broad subject to the exact legal language.

  3. 03

    Read conditions and exceptions together

    Keep subsections, definitions, provisos and cross-references in context before drawing a legal conclusion.

  4. 04

    Verify currency and official wording

    Confirm later legislation, commencement notices and corrections with the official publisher before advice, filing or reliance.

03

Research entry points

Selected provisions across the instrument. Open any row to continue with the exact stored text.

Section

The Bank of Zambia may set a different voting-control limit for financial businesses, and a person who controls one financial service provider cannot own or control another without prior written approval.

Section 18

Section 76

This section refers to the Schedule, the Second Schedule, and the Third Schedule.

Section 76

04

Source and current-law status

Source record view

Source record from zambialii.org · As at 7 Oct 2005

Verify current force

The source record does not state a definitive current-law status. Check the official publisher and later amendments before relying on this text.

For advice, pleadings, or compliance decisions, retain the official source and confirm the current consolidated provision.

Official record

Source-indexed provision map

Sections and provisions

Search by section, heading, part or exact legal wording. Every result remains linked to the stored source record.

Showing 70 of 70 provisions

Substitution 37Amendment 17Repeal 10Provision 5
§ 3Section three of the principal Act is amendedAmendment

This provision amends section 3 and section 4 of the principal Act by changing specified words and inserting new wording.

3. Section three of the principal Act is amended - (rr) by the deletion of the word " and "between the words " banks·" and" financial insritutioris ·· and"the • ... substifotion therefor·of a conuna; and ' ' ' . • j . ' • .. • ' (b) by the insertion after the.words'.' financiaUnstitutions "of • .. . thewords "-and financial businesses.'\ , '• ' . . 4. Section four of the principal Act is.amended- . . . �' ,. . . - ·J . . ' ,, - •. - , (a) ill'paragraph (d)'of subsection (2) by the deletion of ihe . • ·word'." company " and the substitutiori'thetefof ·ofthe · word '_'· app�ic��� 1 .(b}.iµ Sl!b\ei;tip� (.'>)�' ·. ,,, '; 0 . . . � ' .. _ �. - :· ·. '.·. :\ Cap.388 Amendment of section 3 Aincndmcnt of-SecriOn 4 . ' . . " ' - . ' . ' - -- . --­ ·--- .. . •:·--� .·;· .,. ,-,· -·•· ,; ' �, - ,- : -- ,- - - - -·, � ., " "· .'(i• �� �t::.t·::, Jl;':�t ;' '. '. � '' \ ' Banking and Financial Services .[No. 25 of 2005 187 (i) by the deletion of the words" subsecti_on '(2), (3) or ( 4) arl_cl fl.le substitupon therefor19iP.ie words " this section "; and (ii) by the insertion after· the words " different applicants �,of the words ''-�r categories of applicants ".
Section 3Verify source
§ 5Section.five of the principal Act is amended by the deletionAmendment

This provision amends section five of the principal Act by deleting the word “banking.”

5. Section.five of the principal Act is amended by the deletion of the word" banking". seven
Section 5Verify source
§ 6SectionAmendment

This section changes the principal Act by deleting one word and adding new words in a paragraph.

6. Section of the principal Act is amended- by the deletion of the word " banking " after the (a) (b) words " to grant a "; (c) in paragraph by the insertion of the words" or other owners or founders "after the words " major shareholders ". nine �,
Section 6Verify source
§ 7SectionSubstitution

This section amends the principal Act by adding and replacing words in subsections dealing with banks and financial institutions.

7. Section in subsection by the insertion of the words " or financial of the principal Act is amended- (I) ( a) institution " after the words "bank"; (b) (2) in subsection by the deletion of the words " or subsidiary " after the words " A bank " and. the substitution therefor of the words " or financial institution or a subsidiary of a bank or financial institution "; and (c) (3) in subsection by the insertion of the words " or fmancial institution" after the words" a bank".
Section 7Verify source
§ 8The principal Act is amended by the repeal of sectionRepeal

The Registrar may grant a licence to conduct business as a financial institution if the applicant meets the stated conditions.

8. The principal Act is amended by the repeal of section and the substitution therefor of the following new section: ten · 10. (I) Upon application by any person the Registrar may grant a licence authorising the applicant to. conduct business as a financialinstitution,"ifthe·applicant is-, (a) (b) a c6�pany; or , .. « . ' .. . . �··:.��:: �·- '.:·'": • :·· ·-·:� ' ":, �-�as:ae:r�i:mined a body corporate, created under an Act of Parliament, . that-is recognised by. the Bank·or Zainbia-as an .. · : · · _ac�eptable form for _a financial institutioi1; and fails i�tfun a defined· category of finandai institutions, 0 byjh� Bankiifi�iiiHa: .... :-.�. �- ::· .,_. , ... • . Amendment of section 5 Amendment of section 7 Amendment of section 9 Repeal and replacement of.section 10 Grant of licence - ,, - ... :.�··:: . .:.:� -'----- ·�· __ :-.. -:.·• : __ .::-.:.··--·--=-- - ·- - :· "; ;_, - - - •,' - - i -� ·: ·- . ·:�- - • I '•'· ,• �-• • • 188 No. 25 of2005] Banking and Financial Services (2) The application shall be in such form and accompanied by such fees as may be prescribed by regulation, and the form ofapplication shall require at least the particulars required except as otherwise under subsection (2) of section provided in this section. four, (3) !fan applicant is not a company, then, in (a) lieu of (c) of the information referred to in paragraphs the applicant shall provide subsection (2) of section information with respect to the formation, governance, and owners of the applicant, by whatever term designated, as shall be prescribed by the Bank of Zambia. four, and �, ( 4) The governance documents referred to in subsection (3) shall, in the case ofa building society, include the rules of such building society. (5) The Bank of Zambia may limit the activities of a financial institution licensed under this section to those activities that the Bank of Zambia determines are appropriate for an institution that accepts deposits: Provided that the limits referred to in this subsection may be in the form of conditions ofa licence or may be prescribed by the Bank of Zambia, by regulations. ( 6) The regulations made under subsection (5) may create different categories of financial institutions that are permitted to conduct different fmancial services. (7) An appeal shall lie under Chapter VII against a decision of the Registrar to refuse to grant the application.
Section 8Verify source
§ 9The principal Act is amended by the repeal of sectionRepeal

This section replaces an earlier section of the Act and says certain provisions apply, with necessary modifications, to the licensing of financial institutions.

9. The principal Act is amended by the repeal of section and the substitution therefor of the following new section: eleven · - U. 8ubsections (:i) to (7) of section/our and sections: ... ,Jrve, :six> seven, _and 1ii11e __ shaI! apply with necessary modifications to the licensing of fmancial institutions:'· . . . ' . Repeal and replacement . OfsectlOn. J 1 Applicaiion · or" certairi provisions ·· of this '·, ' . " .,_, . -,;··· : ••. r· . � • . ,.- . •;·, ,- . .• •. . • . , Banking and Financial Services [No. 25 of 2005 189
Section 9Verify source
§ 11The principal Act is amended by the insertion in ChapterAmendment

The principal Act is amended to insert a new Part on the licensing of financial businesses.

11. The principal Act is amended by the insertion in Chapter ill immediately after Part,.2� .of the following new Part,. Insertion of new Part 28 Grant Qf licences Part 2B - Licensing of Financial Businesses
Section 11Verify source

Part

Part 2B - Licensing of Financial Businesses

§ 12C(!) Upon application by any person, the RegistrarProvision

A person may apply for a licence to run a financial service business, and the Registrar may grant it.

12C. (!) Upon application by any person, the Registrar may grant a licence authorlsing the applicant to conduct a fmancial service business other than as a fmancial institution. (2) The application shall be in such form, contain such information and be accompanied by such fees as the Bank of Zambia may, by regulations prescribe'. (3) The Bank of Zambia may establish designations for different categories of fmancial business and may impose different requirements for each category. (4) The Registrar shall, within one hundred and eighty days after receipt of an application for a licence under subsection (I) consider the application and shall if satisfied that the appli,ant has satisfied the requirements for licensing under this Part grant a licence and may refuse to grant the licence if not so satisfied. (5) Any applicant for a licence who is aggrieved by the refusal of the Registrar to grant a licence may appeal against the decision in accordance with Chapter Vill.
Section 12CVerify source
§ 12D(!) Unless the conditions of a licence limit or restrictProvision

A financial business may operate licensed services at any place unless its licence limits locations. It must tell the Bank of Zambia in writing within 14 days after opening a branch, and at least 60 days before closing one.

12D. (!) Unless the conditions of a licence limit or restrict the financial business to one or more specific sites or locations, a financial business may conduct, at any place or places in Branches of financial businesses · Zambia, any fmancial service that it is licensed to conduct. (2) Within fourteen days after opening a new branch, a financial business shall notify the Bank of Zambia in writing of the fact and of its location. (3) At least sixty days before closing a branch, a financial busin.ess shall notify the. Bark. of Zambia in writing of its intention to· do so. . . .
Section 12DVerify source
§ 12EAny financial business in existence at theCommencement

Certain existing non-deposit-taking financial businesses are treated as licensed financial businesses.

12E. Any financial business in existence at the commencement of this Act that is licensed as a financial . institution but does not accept dep_osits shall be deemed to .be licensed under this. part a·s a financial business and shall be · subject io the reqtiiremerits applicable to financial businesses . .. . begil)1ling ·on the date of the commencement of this Aci... . - ' . . . ... -· . - :_ -,_ . Existing, tin"aii'c:fa\ businesses 190 No. 25 of2005] Banking and Financial Services Repeal and replacement of section 15
Section 12EVerify source
§ 12The principal Act is amended by the repeal ofRepeal

This section replaces the existing text with a new section titled “Licence not transferrable.”

12. The principal Act is amended by the repeal of and the substitution therefor of the following new section: sectionfifteen Licence not transferrable
Section 12Verify source
§ 15A licence shall not be transferred, assigned orAmendment

A licence cannot be transferred, assigned, or encumbered, except that it may be transferred for an amalgamation or similar corporate restructuring if the Bank of Zambi'a approves the terms and conditions.

15. A licence shall not be transferred, assigned or encumbered in any manner: Provided that a licence may be transferred in the event of an amalgamation or similar corporate restructuring transaction, on such terms and conditions as the Bank of Zambi'a may approve. Amendment of section 1 6 Amendment of section 1 7 Amendment of section 1 9 Amendment of section ·2p
Section 15Verify source
§ 13SectionAmendment

This section amends the principal Act by inserting the word “with” after “failed to comply” in paragraph (b) of subsection (!).

13. Section of the principal Act is amended in paragraph (b) of subsection (!) by the insertion of the word " with " after the words " failed to comply ". sixteen
Section 13Verify source
§ 14SectionSubstitution

This section amends the principal Act by expanding references to include licensed financial businesses.

14. Section of the principal Act is amended - seventeen (a) in subsection (2) by the insertion of the words " or a licensed financial business " after the words " a licensed financial institution "; and (b) in subsection (3) by the deletion of the words " or financial institution " after the words " A bank" and the substitution therefor of a comma and the words " a financial institution or financial business ".
Section 14Verify source
§ 15SectionSubstitution

This section amends the principal Act by changing “a register” to “two registers” and adding “the Register of Financial Businesses” after “Register of Banks and Financial Institutions.”

15. Section of the principal Act is amended- nineteen (a) by the deletion of the words " a register " and the substitution therefor of the words " two registers "; and (b) by the insertion of the words " and the Register of Financial Businesses " after the words " Register of Banks and Financial Institutions ". twenty
Section 15Verify source
§ 16SectionSubstitution

The Minister must appoint a Registrar of Banks, Financial Institutions and Financial Businesses on the Bank of Zambia’s recommendation, and may designate a Bank of Zambia employee as Deputy Registrar.

16. Section of the principal Act is amended by the . deletion of. subsection ( I ) and the substitution therefor of the subsection: following new _ 'The Minister shall, on the· recommendation of the Bank of Zambia, appoint a Registrar of Banks, Financi;i . . 'Instifutlons and Financial Busi�'esses to administer the (1) registers 'referred tci in section apd ,t,o exer.cise and . ;.," , .. . _" perform sucli oihe� furicticins as are conferre,f or imposed . · 'upon tl1�· llegistra� l;>y,or under this or any other.Actor by 'ih� " · Governor of the. Bank o( Zambia,.and may designate an . • ••• - .. • • - •·, -- u, ,'. - • ' . ' • ""' •• • _, .. . •· ·- ·- · nineteen •.· 1 . ' ,,, ,, ,, , , , Banking and Financial Services [No. 25 of 2005 191 employee of the Bank of Zambia as the Deputy R,egistrar of Banks, Financial I:risiitutions and Financial Businesses who shall be subject to the control and direction of the Registrar and be competent to exercise and perform any of the powers and functions of the Registrar: I Provided that any person appointed as Registrar of Banks and Financial Institutions or as Deputy Registrar of Banks and Financial Institqtions before the date of coming into force of this Act shall continue to hold office as Registrar of Banks, Financial Institutions and Financial Businesses or as Deputy Registrar of Banks, Financial Institutions and Financial Businesses as if appointed under this Act.
Section 16Verify source
§ 17Section 17Substitution

This section changes the title to Part I of the principal Act by replacing “Banks” with “Financial Service Providers”.

17. Chapter ill of the principal Act is amended in the title to Part I by the deletion of the word " Banks " and the substitution therefor �f the words " Financial Service Providers ".
Section 17Verify source

Part

Part I by the deletion of the word " Banks " and the substitution

§ 18SectionSubstitution

The Bank of Zambia may set a different voting-control limit for financial businesses, and a person who controls one financial service provider cannot own or control another without prior written approval.

18. Section of the principal Act is amended - in subsection (!) by the insertion of the words " or financial (a) twenty-three (b) (c) institution " after the words " a bank "; in subsection (2) by the deletion of the word bank " wherever it appears and the substitution therefor of the words " financial service provider "; by the insertion immediately after subsection (2) of the following new subsection: (b) (2A) Notwithstanding the provisions of paragraph of subsection (2), the Bank of Zambia may prescribe a different limit of voting control for financial businesses.; and (d) 19:' Se�tion in subse�tions (3) and ( 4) by the deletion of the 'Word · "· bank " wherever it appears and the substitution therefor of the words " financial service provider ". . principal Act is amended in subsect ion (l) by the deletion of the words " bank or financial . institution ''and the substitution th�refor of the words " financi�l service prm�der :• . . · twe11ty-ihre� A '' of the -20�- - Section twenty:folirbfthe principal Act is ambnd�ct-:..· · Amcndm·ent .. . . ··· ... orsection 24 ., ; .. _ . ,.. . . . ... · . · - . - . - Amendment of Chapter III Amendment of section 23 Amendment o f section 23A . . ,_ ... . .. . . ' - - �•. . . - '- - 192 No. 25 of 2005] Banking and Financial Services (a) by the deletion of subsection ( 1) and the substitution therefor of the following new subsection : ( 1) A person who has dejure or de facto control of the financial service provider shal] not own any share in the capital of, or acquire or maintain dejure or de facto control of, any other financial service provider without the prior written approval of the Bank of Zambia.; and (b) in subsection (2) L (i) by the deletion o f the word " bank " after the words " the capital of a " and the substitution therefor of the words " financial services provider "; and (ii) by the deletion o f the words " of two or more banks ". Amendmc,!lt of Chapter III Amendment of section 25 Am endment of section 26
Section 18Verify source
§ 21Chapter ill o f the p rincipal Act is amended in the headingAmendment

This section amends the Part 2 heading by adding the words “or Financial Institutions” after “Restructuring of Banks”.

21. Chapter ill o f the p rincipal Act is amended in the heading to Part 2 by the insertion of the words " or Financial Institutions" after the words " Restructuring o f Banks ".
Section 21Verify source
§ 22Section twenty-jive of the principal Act is amended inAmendment

This provision amends the principal Act to add “financial institution” after “bank” in paragraphs (a) and (b).

22. Section twenty-jive of the principal Act is amended in paragraph (a) and (b) by the ins ertion of the words " or fin ancial institution " after the word " bank ".
Section 22Verify source
§ 23Section twenty-six of the principal Act is amendedSubstitution

Banks and financial institutions are barred from certain corporate restructuring transactions, but may do one with a financial business if the bank remains the surviving company and the acquired business is within permitted activities.

23. Section twenty-six of the principal Act is amended- (a) by the deletion of subsection ( 1) and the substitution therefor o f the fo11owingnew subsection : (I) A bank or financial institution shall not effect a corporate restructuring transaction with another company that is not a bank, financial institution or financial bu siness.; (b) by the inser tion immediately after subs ection ( 1) ofthe .following new subsection : (IA) A bank or fin an cial instituti on may effect a · corporate restructuring tran saction ·with ano ther .-:• company that is a fii:iancial bt1siness as long as the�'­ bank or financial institution is the surviving company''·' an& the business be ing· acquired th rough. such transactiot) o�!) fJDn�J�ir•1s actw1t,es tflat the bank or f lo_condriCL.; and financial instil·UtiUn!iS pennittef - · . · - - . ··• - � • . - • . . · 1 -·- - - - · · .__ .. _,_ ' ' • \ •· ·o • ,, .... L ' .-', • , ' Banking and Financial Services [No. 25 of 2005 193 (c) in subsection (2),by the insertion of the words ':•,or financial institution -;;aft�r the words " with anotli�r bank ". twenty-seven
Section 23Verify source
§ 24SectionAmendment

This section amends subsection (2) of the principal Act by adding the words “or financial institution or other company” after “Each bank”.

24. Section of the principal Act is amended in subsection (2) by the insertioqpfthe words " or f\nancial institution or other company " after the words " Each bank ". twenty-nine
Section 24Verify source
§ 25SectionSubstitution

This provision amends terms in the principal Act and says every bank, financial institution, and incorporated financial business must have a board of directors.

25. Section (a) (a) in paragraph of subsectionJl)- of the principal Act is amended­ (i) by the insertion of the words " or financial institution " after the words " a bank "; (ii) by the deletion of the word " bank " after the words " the new bank " and the substitution therefor of the word " entity "; (iii) by the deletion of paragraph and the substitution therefor of the following new paragraph: {b) -, (b) (b) (c) (d) an amalgamating bank, financial institution or financial business or a bank, financial institution or financial business transferring assets in accordance.with such a transaction is referred to as " the old entity ".; to (d) (a) in paragraphs of subsection (2) by the deletion of the words " bank " and " bank or transferee " wherever they appear and the substitution therefor of the word " entity "; in subsection (3)- (i) by the deletion of the word " bank " after the words " in favour of the old " and the sub�titution therefor of the word " entity 1 '; (b) (ii) by the deletion in pa!"agraph of the word " bank " wherever it appears and the substitution therefor of the word '' entity "; and in subsection (5) by th,; deletion of the word " barik " wherever it appears and'the substitution therefor of the word " entity ": thirty ·· · · '. of \he princ_ipai Act is' amended by the ct''ihe. suhstitl!li�i, theref9.r of-the . · . 26. Section· . .,,. �•'':'cleietion' of 'sLibsec\ion' (ff �n · .. : followi:ignew subsection:· Amendment of section 27 Amendment of section 29 Amendment of section 30 . . . .. . ' . . . . - . . . · .. ..... 194 No. 25 of2005] Banking and Financial Services ( 1) Every b ank, financial institution and incorp orated finan cial business shall have a b oard of directors in which shall vest all the p owers of management and control and which shall be r esponsible for the formulation of policies of the bank, finan cial institution or incorporated financial business.
Section 25Verify source
§ 27S ection thirty A of the principal A ct is amended by theSubstitution

This provision amends section 30A of the principal Act by replacing the word “bank” with “incorporated financial service provider” after “Every”.

27. S ection thirty A of the principal A ct is amended by the deletion of the w ord " bank " after the word " Every " and the substitution therefor of the words " incorp orated financial service provid er". •
Section 27Verify source
§ 28Section thirty-one of the prin cipal Act is amended­Substitution

This provision amends section 31 of the principal Act, including replacing “bank” with “licensee” and updating disqualification criteria.

28. Section thirty-one of the prin cipal Act is amended­ (a) in subsection ( 1)-- Amendment of section 30A Amendment of section 3 1 (i) by the deletion of the word " bank " and the substitution therefor of the word " licensee " ( fin ancial service provider); (ii) by the deletion of paragraph (c) and the substitution therefor of the following n ew para grapl;i: (c) at any time has been adjudged bankrupt by a comp et ent court, whether in Zambia or elsewhere, or is a p erson who, whether in Zambia .or elsewhere, has mad e an a rran gement or composition with the p erson's creditors; (iii) by the insertion in paragraph (g) of the w ords " or financial service provider" after the words " manager of a company "; (iv) by the deletion of the fu ll-stop at the end of paragraph (g) and the substitution therefor of a colon and the word " or"; ( v) by the insenion after paragraph (g) of the followin g new paragraph: (h) has been removed.by a competen t court. . wli.ether i{i Z ambia or else·where,· from ' . . . an .offi ce of , tr ust .on acc oun t . of ::.: . miscondu ct or breach cir that trust.; . (b) in �ubs cction (2) by the deletion oftl;e �vords " or financial. .- inst itution ;, 2ftcr the _words ·\, in -the numa gernent·of·a ·.-: ' I;• ·•• ,. . - . '""i. :r .. ·- 1$;-, •. f.,.:._. '. .:. i.� ·- tt- ;;;:
Section 28Verify source
§ 1This Act may be cited as the Banking and Financial ServicesProvision

This section identifies the Act as the Banking and Financial Services Act.

1 .... -. :<,,, . . ria-'. i:;:.� Banking and Financial Services [No. 25 of2005 195 bank " , and .the· sub stitution therefor,.of a comma and the,w'oicis" financial institution·mi:iiicorporated financial business " ; (c) (d)
Section 1Verify source
§ 30Section 30Substitution

A person may not be a director of more than one financial service provider unless the Bank of Zambia gives prior written approval.

30. (a) i n subsection (3) b y the deletion of the words " ' or financial institution " after the words " in th.e management of any bank " and the substitution therefor of the words " financial institution or incorporated financial; and business ", and by the deletion of subsection (4) and the sub stitution therefor of the following subsection: (4) A person shall not directly or indirectly, be a director of more than one financial service provider without the prior written approval of the Bank of Zambia .. thirty-two of the principal Act is amended - Section in subsection (1) by the insertion of the words " or financial institution " after the words " directors of a bank " and " employees of the bank "; and in subsection (2) by the deletion of the words " other clas s or type of incorporated financial institution " and the substitution therefor of the words " class or type of incorporated financial business ". thirty-three Section of the principal Act is amended - by the deletion of the word " bank " after the words " concerned in the management of a " and the substitution therefor of the words " financial service provider "; and in paragraph by the deletion of the word" bank " and the substitution therefor of the words " financial service provider ". thirty­ (b) (a) five
Section 30Verify source
§ 31The pri�cipal Act is amended by the repeal of sectionRepeal

This section says the principal Act is amended by repealing a section and replacing it with a new one.

31. The pri�cipal Act is amended by the repeal of section and the substitution therefor ofihe following new section: Amendment of section 32 Amendment of section 33 Repeal and replacement of sc.ction 35 ,. ' , · · , " · of " annually, the names and addresses,ofthe'director'.s associates . · interest : · , -'
Section 31Verify source
§ 35(I) A director shall aeclare ill' writing to'the board DisclosureSubstitution

Directors and certain senior officers of a financial service provider must disclose material interests in contracts, proposed contracts, and advances to the board or the provider.

35. (I) A director shall aeclare ill' writing to'the board Disclosure . ,.. and full pa_rticulars of every material interest.. , . .. . . . . . ·· (2) · A director, ·chief executive officer, chief financial · . officer or_rrianager of a financial servic.e provider who, -'- ' , . . to, : . (q) ·;s a' party -_-- · _or has an interest, pect{n iary or r. in.dir��t,·'ih '.a' c-'ontract or· · ; :_ . ·· . .. ---· . . .. proposed ·contract·with the financial servic•c· ' - ' -- · ... .. ,-- : �_-_- .�t}fenvis_it<lireci ' ·, . .. . . . . - � . . :. ' · . i;i . ' . . . :_ - :: .:,-.· _. '. • ·: · -�- ·- -. ' " · . . ·· · · ,._., · '.,. .. .. -. .. ·•·· .. ·- ·· · ,·, · · .. . -- .... .. ·. :- .. . ,, . ,,. - -: . ... , .. , ...... - . _ ..... , ·_: ::�' . ·"'·· . . ,- ' . ' • • · ; > - •• .. . •• "i.... . . •• ,..� . ,_ . . ,·· •; • '. '. - ,:1 . . 196 No. 25 of 2005] Banking and Financial Services provider or in the granting of an advance by the financial service provider shall declare the nature of the director, officer or manager's interest to the board of directors of the financial service provider in accordance with this section; or (b) has an interest in, or a material relationship to, a party or prospective party to a contract or a proposed contract with the financial service provider 'shall disclose in writing to the financial service provider the nature and extent of the interest or relationship. (3) In the case of a proposed contract or a proposed advance, the declaration required by this section to be made by a director shall be made at the meeting of the directors at which the question of entering into the contract or granting the advance is first taken into consideration, or, if the director was not at the date of that meeting interested in the proposed contract or advance, at the next meeting of the directors held after the director becomes so interested. (4) Where a director becomes interested .in a contract after it is made, the declaration required by this section shall be made at the first meeting of the directors held after the director becomes interested in the contract. (5) At any meeting of the board, a director who has an interest or a relationship within the scope of this section shall leave the meeting at which the contract concerned is discussed, and shall refrain from voting on any matter related to the contract which becomes the subject of action by the board of the financial service provider, but such departure froin the meeting shall not disqualify the interested diicctor for the purposes of constituting a quorum. (6) Adirector need not make a declaration ·or give a notice under this section by attending in persofl'at a meeting of the directors, if the director takes reasonable steps tq ens"ii.re . that the _declaration or notice is brought up _and read at the'" meeting. - - (7) .. For the pllf!)OSes of this section, a general. n o t i.c.c · gi ve\r at a. meetil).g of _directors of a building· society by ·a_ . . . ,,,,.., . . ,,.., . -, "');: ,;,1•-.J "'•1·1 i�:'�'I'{ :,l:' ., .,, · · ' ' �. '• [No. 25 of2005 197 Banking and Financial Services director to the effect that the director is a member, of a specified company oz: firni, and is to be regarded as :interested in any contract which niay, after the date o� the no'tice, be made with that company or firm, is a sufficient declaration of interest in relation to any CO!)-tract made after,�hat date with that company or firm. (8) A director, chief executive officer, chief financial officer or manager who fails to cpmply �th the provisions of this section commits an offence and is liable on conviction to a fine not exceeding seven thousand five hundred penalty units. (9) Where a director, chief executive officer, chief fmancial officer or manager fails to disclose a material interest in accordance with this section-. the court shall, on the application of the fmancial service provider concerned or of any of its shareholders or members oroftheBank of Zambia, contract on such terms as it may set aside the determine; and the Bank of Zambia may suspend the director, chief executive officer, chief financial officer or manager from office in writing addressed to the person suspended. (a) �, (b) (a) (10) For the purposes of this section - an interest is material if it is material with reference to the wealth, business or family interests of the person having the interest and, without limiting the , ' " �i;;��;:::;;:;�';\:/:E�;:f.��-:_,,� :, '.tft:;t��:· '}t;f:'.'\V':•?:; :, .. : f J.·�-\�::.�·;:��,./:::t]t;i;?\. .. (t · ,.. . .. , -,,.: ·,/. >)\;�.:::::.�, ... :.::,'.:-/ : . -��::�:i����e· �oregJin�, a person has a ma�:ri:al . (i). ��y c6rii�im; �f,whjsli t�� pe;s-on own�, �r�o/.!�\It��}�ae�:t!l�:'�0�1io:�!;;f · ,direct]y·or_.indi,rect!y. more than.t�n:per . _ .. , . i . . :: -'.· . (ii) any_'�;,[h�i'siiip iri:_�l;ich· tlic person' i� a . / , . . _) -: _ d-, ; · �artn�i.;,a ";, : -'· •·:_ · . - :::'· >:, .;" � _: _ : : :, _(p) persons lia�e a_matenal re.l�tionsh,1p,with,acl:i 0th.er . . - • . : ·,· , - · .r. ; .. :_;-� ........ -�. /1.. \ _. �- ·ib,.• ·· ,- ("":-., r:1 . .. ·�/'-···- ··=· ·"'- ,. ·L"� ·:... - - _: • • ·.,.-}:,� Y-v 1r:�u.e::o.1. pi:l.J._�,e:;:..:...i.j),d {U/.04 Si.; ,.)CCLlGu � , ••·'"''1.,,i�-"" . ..... , .. . -• .. . . : , i--'-'· · i ·' .... :...:�·.:.., � .. :-.� �•.,,. - ·",:.!-� d , ·---::-:·.'· -·'""• ;'· ""- · · -,l · . . , _ ... . · · .!: ..,., d�•. •, ·· · · b .. ) o • . -·-·- ' . " ' . -, _ _ ·-, _ _ , . · : : · - ·-- _ ... . . . _ .. -._ -·-·-· - :- . -- � . ·.: ·,.:_ .:. .. ::. · : , · -- - . - ·- - --·· --- - -...,, . ...., -; c·· ,,, . . :·:: :-· --· ' . . .. _ .• .:: .: -... . .. � --- ·;,- . - - , :•:;-;;/\-;�;�;;.j---� .:: :· ·�- - . · • .. · ·- · 198 No. 25 of 2005] Banking and Financial Services Amendment of section 36 Amendment of section 3 7 • Amendment of Chapier III thirty-six . 32. Section of the principal Act is amended by the · ·deletion of the word " bank " wherever it appears and the substitution therefor of the words " financial service provider ". of the principal Act is amended-
Section 35Verify source
§ 33SectionSubstitution

This section amends subsection (1) and subsection (4) by replacing references to “bank or financial institution” with “financial service provider.”

33. Section thirty-seven (a) (b) in subsecti_on (1) by the.deletion of the words" bank or financiai' institutic;n " wherever it appears and the substitution therefor of the words " financial service provider"; and , l in subsection (4) by the deletioJ of the words" bank or financial institution " and the substitution therefor of the words " financial service provider" .
Section 33Verify source
§ 34Chapter ill of the principal Act is amended in the headingSubstitution

The heading of Part 4A is amended by replacing the word “Institutions” with “Businesses”.

34. Chapter ill of the principal Act is amended in the heading Part 4A by the deletion of the word " Institutions " and the to substitution therefor of the word" Businesses ".
Section 34Verify source

Part

Part 4A

§ 35The principal Act is amended by the repeal of sectionRepeal

This provision repeals and replaces section 37A, and the new section requires every unincorporated financial business to maintain a structure with voting rights for members or owners and priority of creditors on insolvency, dissolution, or winding up.

35. The principal Act is amended by the repeal of section ai_id the substitution therefor of the following new section: thirty­ Repeal and �{lacement � , section 37A seven A Structure of unincor• porated financial busin.aesses 37 A. Every financial business which is not incorporated shall have and maintain a structure which has the following characteristics: (a) voting rights for the members or owners; and· (b) subordination of those with voting rights to all creditors in the event of insolvency, dissolution or windingup. thirty-eight Amendment of section 38 • .. , . - • .· • .• · " • �· . • '• , . ,. , __ ·-
Section 35Verify source
§ 36SectionSubstitution

This section amends the principal Act by deleting some words and replacing them with new wording.

36. Section of the principal Act is amended by the deletion of the wo�ds " or incorporated financial institution " and the substitution th�efor oft)le words " financial in.stitutiqn,or ,(·· ..... · ,, . . •,·•·. '=. � . · . , _.,· �:. .... .-" � ., : ..-" : · -� , -- ;;, , .'r .. �-,; .. f \,� ... ·•·c:·c •. , · • •· ·,· ::· ·, · " !,;-.,,. •··« · .·.financia!·l?,llcSmess that-1s a.cr,nma..11y., ·.-.,sc, · '· • . . , , . • • _ , � : . • _. � .. :, _ ;_; •· ;/ ·; __ i!�i:�!�-\if ·.: :31.: ·�-· S,cc.ft�;/1;�� -:, '" :·. , (a)):iy: the .d�l.etion _of *"·;wm:df:: �r in�orp�r�rect . . - .' . ,.; : ,·.: ·. . .. _, ;; •· . . . · · .'· "'t,_�i:;:� .i , _ ·;· " .. (Ii) .... , _ . .. , · , . .. , .. ?th�'.�for ,?f!l:�o��(_:. : bythc insertion·arre�tr.� ,.,ords " •inc11ci0i _ .'1-h',l�()��- ,·,·: .','J. . . ... '.•• .the �.ords ·''· tinanciaFinstimt1bn ,, and tn�:sub:Sifo11ioni:·:;. :·.:: ·. ;1/;:�:off <P���!��\;Acf jt:n��:,:�ct';;]��i/<;i:'' . '·'•·
Section 36Verify source
§ 0i:.'.::·: _.;,, ,::,:i: : .•:· :,: :)-1}\/\:.l:iJli;:::::�Substitution

This provision amends section 40(d) by replacing one word: it deletes “a” after “carrying on” and inserts “the” instead.

0.i:.'.::·: _.;,, ,::,:i: : .•:· :,: :)-1}\/\:.l:iJli;:::::�;- ; institution"·"r'. ··: .. , ·· · ., . . ...... , . .. . ... . . .. .. •: · 0 . > . ... ' . :,·• · ·--· , ., .,. C Banking and Financial Services [No. 25 of2005 199 Amendment of section 40 (d) by the deletion of the word " a "after t he words " carrying on " an d tJi�·substitution therefor of the 1word " the ".
Section 0Verify source
§ 38Section forty of the principal A ct is a men dedSubstitution

This provision amends section 40 of the principal Act by replacing certain references to “bank or financial institution” with “financial service provider,” and adding one reference to “financial institution” in subsection (3)(c).

38. Section forty of the principal A ct is a men ded- (a) in subse ctions (I) al)d (2) by the delepon of the words " bank or financial institution "wherever they appear and the substitution therefor of the words " financial servi ce provider " and (b} in subsection ( 3) - (i) by the deletion of the words " bank or financial institution " and the substitution therefor of the words " financial service provi der "; and (ii) by the in sertion in paragraph (c) of the words " or financial institution " after the words " any se curity by a bank ".
Section 38Verify source
§ 39• ,Se ction forty-one of the principal Act is amended by theSubstitution

This section changes section 41 of the principal Act by replacing “bank or financial institution” with “financial service provider.”

39 . • ,Se ction forty-one of the principal Act is amended by the deletion of the words " bank or financial institution " and the substitution therefor of t he words " fmancial ser vice provider ".
Section 39Verify source
§ 40Section forty-three of the principal A ct is amende d ­Substitution

Section 43 is amended so that "financial service provider" replaces "bank or financial institution" in subsections (1) and (2).

40. Section forty-three of the principal A ct is amende d ­ (a) in subsection ( 1) by the delet ion o f the words " bank o r financial institution " and the substitution therefor of t he words " financial service provider "; and (b) in subsection (2) by the deletion of t he words " bank or financial institution " and the substitution therefor of the words " finan cial ser vice provider " . Amendment of section 41 Amendment of section 43
Section 40Verify source
§ 41Section forty-four of the prin cipal A ct is amended by theAmendment

This section amends another section by replacing references to “bank and financial institution” and “bank or financial institution” with “financial service provider.”

41. Section forty-four of the prin cipal A ct is amended by the deletion of the words " bank and financial institution" a nd " bank or financial institut ion " wherever they appea r and the su bst itution therefor o f the words " financial service provide r ".
Section 41Verify source
§ 42Section forty-five of the principal A ct is amended inAmendment

This section amends section 45 by replacing the words "bank or financial institution" with "financial service provider" in subsections (1) and (2).

42. Section forty-five of the principal A ct is amended in su bse ctions (I) and (2) by the dele tion of the words " bank o� financia l institution " and t he subst i tu ti on the refor o f the · words " finan ci a l s ervice. provi de r ".
Section 42Verify source
§ 43Section forty-seven of the prin cipa l Act is amended inAmendment

Section 47(2) is amended to replace the words “bank or financial institution” with “financial service provider.”

43. Section forty-seven of the prin cipa l Act is amended in · sub section (2) by the de letion of the words '' bank or fina ncial instiJ!.1ti_oI\ �•- �nd t)}e _substitulicm 1he,e {�r o f the· word� " finaiwia l st:!:'l�e provider _". Amendment of section 44 Amendment of section 45 Amendment of Section 47 , _ .. ,_ - 200 No. 25 of 2005] Banking and Financial Services Amendment of section 48 Amendment of section 49 Amendment of section 50 Amendment of section SI • · ._ . . _. ' . . forty-eight
Section 43Verify source
§ 44SectionSubstitution

This section amends the principal Act by replacing the words "bank or financial institution" with "financial service provider" wherever they appear.

44. Section of the principal Act is amended by the deletion of the words " bank or financial institution " wherever they appear and the substitution therefor of the words" financial service provider ". forty-nine
Section 44Verify source
§ 45SectionSubstitution

This section amends subsection (1) of the principal Act by replacing the words “bank or financial institution” with “financial service provider.”

45. Section of the principal Act is amended in subsection (1) by the deletion of the words " bank or financial institution " wherever they appear and the substitution therefor of the words " financial service provider ".
Section 45Verify source
§ 46Section 46Substitution

This section amends section 50 of the principal Act by replacing references to "bank or financial institution" and "bank" with "financial service provider".

46. (a) (b) (.c) Section.fifty of the principal Act is amended - in subsection (1) by the deletion of the words " bank or financial institution " wherever they appear and the substitution therefor of the words " financial service provider "; (e) in paragraph of subsection (2) by the deletion of the word " bank" and the substitution therefor of the words "financial service provider"; and
Section 46Verify source
§ 47Section 47Substitution

The Bank of Zambia may require a financial business to submit periodic reports about its operations, financial condition, and resources.

47. (a) in subsection (3) by the deletion of the words " bank or financial institution " wherever they appear and the substitution therefor of the words " fmancial service provider ". .fifty-one of the principal Act is amended - Sectioo in subsection (1) by deletion of the words " or incorporated financial institution " after the words " Every bank " and the substitution therefor of a comma and the words " financial institution or financial business that is a company "; and (b) (b) in paragraph of subsection (2) by the inserti_on of a - c.omma and the words " financial institution or financi_al ; - business " aft the words'" creditors of the barik ". ' f"ifty:tw;,· '_fiftyit/;re�, .fiftj,-joUr, fifiy'-jiv�, er . · ', ,, :;·, : - _. .. " - :· 1 · '· . · ;J/" . /., : , - • '" - , - _ ... .-: �- ... · ' , _ _ , · - ,,: _ :, .... . .c_· ,.� . . · :, .-, ·::i _ , . ; A;,,e;;ar,;�nt ' . 48: Se�tions of·'scction 59 1 ?- ' 52 · six, f',jiy-seven, fifty-eight and.fifty-nine . ' · . ' . , amended l:iy the·deletion of the words ", bank or - financial ---- .,:, ··· :--- · . ·';. . _ , inst_it�tion· ·,,_ wher,eyer_ th,;y __ appcar. \!!t\d Hie _sµb_stit4!Ion ;, �{{ff· · . .- . i:,f the principal Act are', . · · , fift;-. ' < ' -:· . ':, --- . ·.--.. . · ... :./ ·. th_er_ef�r-of _ th� words " _financial servicc.pr9vider ''.,, . _ , . . .. Ari,end���t' . 49. Section•s;i_voithtipriµcipalA�t i; �mimcled bythii:intieitio�- - ' ' ' ; . '. ·dfscctio1.-60. irruttedfatelyafter_ subsection (2) ofthefollo-;y/pg new subsection: · ' ··. · __ : • - :.-:·. - -- -- :-,:":,_-_:::/ :<�:�': ·-'., . . .. ··- - -·· , -: . '. . _'> •. : ... --•·-�- �-�-�--� . • ::·-: : '. . ' � - -· .) , :�-. :--.r .:>::::: 7 . . __ .. • --j: ::::·_: �7-:;,;· �{_---�-':-:-::: . , �-: - : =� - , ·: ; . f. '• ---- . :-: >:.�:.-_:,;'_;,; ;\-:: _: :���--- . -' :·:_: -�: ' : , �. " -� .,, .... - -. · . . ----:-- __ •-�_:_{_,: __ -::,\.: __ -_:·i_1;:X :\ .·•· .···•. ·::� :: [::r:/:?:::;?;>�::; �:-:::: �::/'_:·:�-\�-�·��:'.�: -�,-: �-:''/t;:�/-:''; :.: '::_-'':·;,=· .?:: _ -:;,_::·.: �: -,- -=. . · __ ''":'_;" - - :;{;::\\{:\ ;i;\ 1.{'\�:-{:�:i:;":: :l '?f: >� ': -• - \i�, -·::}:,� ,.-_ i�:-�:t\}�\:_:_._�,:_· ___ :_.�_.-_._-/_·:_:·_� __ -_-._-:�_-'.:·_?-_--;'_: ,,-.,./-·:,_- , ·: :'.:"'.:_/:�: :: ::•::;;j;_. ___ : ·:�_: __ �;_'_-_.::_· __ -_.-: ,•._1 -·:·,_ .. .-- i ;'•:,• -- .. i�;_....:'._.:·r .. ;-:!:;-,,;;: •• � .... ·;;'- ··-'.,... ' -:.-7 _ - --: - --- 1·� _; " . -- • -.:,;-.. - :._· ,_'·_ �- . . , • - - _- _ - •>..:: - ':,,_. ; - _. 7._-_:_ • - . ., • .,� - ,� ·\\·'·• •• .'0: " ·•·• ••••, · f _: ;,:,::_�:_:: __ ._. �\ :_:_(_�: _ _ _ _ -·--- . - ---� ..._ Ct;_: _ _.._ - -- -- -. ,_.--.. .!. .! .; • . . . . . : , -� • ,· ,•, f • ,+,·;., . - -. - . · . ,, _,;;- - · • • ' . •• : . ' • 1t I, _ ;.. ,'\ - .• 1 • . - . ·, ·•. ·, ', · -:,�. �--� ._: • •. :_1\ ·�·:, . ,. ,. :- .·, .. , t :.-. ,-:: '. :·'· , -,:!• •·,,�•.;-, .•,• � , , . . , ,-,, •. , .,. • . ,, , ,: : :· · •·, ,/rJ: , . ,, , . ,, .· ' , - ,1;..' . , . ,- .. ,. •:� - ---� -� .. ... . ' .. . ' " • � ' ... -• • . , , . . ·, - � r_-: :,· ._ ,,, .. - . : �- •; .__ :., ' ' •!.-.., �'· �.:�-- - �•�.:; • , • · • .. · J - · , I • •• ," • -�• , .. . :(i'..f(:/\/::'.;::·:·:·� . . .. :;'\\>:i: _:: :/; � ,, ' -. . ' . . .. ... . ' ,_ - ' .. _._ ·,• . •➔ ·-·;i . ::-• ,._:--: . .'· .... .,� �/·. . ' ,, L ' •, • -' . . • . . Banking and Financial Services [No. 25 of2005 201 Amendment of section 62 (3) The Ba�J<o;·o(Zambia may require' driy.' financial business to provide periodic reports showing such information concerning its operation, financial condition and resources as the Bank of Zambia may'.detennine. '·
Section 47Verify source
§ 50Section sixty-two of the principal Act is amendedSubstitution

This section amends section 62 of the principal Act by replacing references to “bank or financial institution” with “financial service provider,” and by inserting “or members” after “report of the shareholders” in subsection (2).

50. Section sixty-two of the principal Act is amended- (a) in subsection (1) by the deletion of the words " bank or financial institution " and the substitution therefor of the words " financial service provider "; (b) in subsection (2}-- (i) by the insertion of the words" or members " after the words " report of the shareholders " and (ii) by the deletion of the words " bank or financial institution " and the substitution therefor of the words " financial service provider "; and (c) in subsections (4) and (5) by the deletion of the words " bank or financial institution " wherever they appear and the substitution therefor of the words " financial service provider ".
Section 50Verify source
§ 51Sections sixty-three, sixty-four and sixty-five of theSubstitution

This provision changes sections 63, 64 and 65 of the principal Act by replacing the words “bank or financial institution” with “fmancial service provider”.

51. Sections sixty-three, sixty-four and sixty-five of the principal Act are amended by the deletion of the words " bank or financial institution " wherever they appear and the substitution therefor of the words " fmancial service provider ".
Section 51Verify source
§ 52Section sixty-seven of the principal Act is amended by theRepeal

This section changes section 67 by replacing references to “bank or financial institution” and “bank” with “financial service provider.”

52. Section sixty-seven of the principal Act is amended by the deletion of the words "bank or financial institution " and the word " bank " wherever they appear and the substitution therefor of the words " financial service provider ". Amendment of section 63 to 65 Amendment of section 67 • ' .. Repeal and
Section 52Verify source
§ 53The principal Act is amended by the repeal of the headingRepeal

This section changes the heading for Part I of Chapter VI and updates section 69 to refer to financial service providers.

53. The principal Act is amended by the repeal of the heading rcph,1ccm1ent of Part 1 of Chapter VI and the substitution thereforofthe following· of heading: · ' . he:,dingof P,art. / - Provisi<Jns Relating. to Fin ancial.Service· Providers .-. · · �f��a�ter ·. < : ·• :vi, ·, . , . . . . . . . - ' . . . . . . 54; · · Section·sixty-niize of the principal Act is amended�- •. . · Amendment .:.·- · · · · · ' . . . _., . '. .:. · " , . of.section 69 · .. - - .- · (a). in subsection (1) by the· deletion ofthe words " bank or . . . . financial institution " aiid -the substitution therefor of the ... ,. --� . . . · · · . . . . · , · ·· .. .• . . . .. . .. �- .. "··'·"'� ···woi·ds " fihancialsemcc pr�•'fder''· · . : .... �-- -.' � - -- - -- � . ·-··· .. . - • -· ., . .... , -: - ,. · • • • · · r0Jin subsection(2Y,... _ · · . �. ,, .. ·-- ·- - - · _ - · . -- • ·· - --,• -,•· ,-- , ,, _ -.. 1 . - • ' r •• ·"';· •• :, • - . ..'. ,.,.,_ -·,'; ·. � . : : . :. · ' ' . . ' . . .. .. . ·., .• ·-· ' . . . - - - �- , . - ••• • · - - 0• .. ··•- . , , ,, ... . ; _· C • " �··.; •• ->'.::::.' .�:::·· .• • .• ::- . �-.-:; . �,· ,. ' . . :'.\ , ' :�- •:.:( ·� -. -;, :-· : -- .... ,·, -�:- '• :; 7· "- . . ::/., _, �-,,- 202 No. 25 of2005] Banking and Financial Services (i) by the deletion of the full stop at the end of that subsection and the substitution therefor of a colon; and (ii) by the insertion after the colon of the following new proviso: Provided that the Bank of Zambia may, by statutory instrument, prescribe different reserve requirements for different c ategories of financial service providers and may vary any matters prescribed under this section for different categories of financial service providers.; (c) in subsections (3) and (4) by the deletion of the words " bank or financial institution" and the substitution therefor of the words " financial service provider "; and (d) in subsection (5) by the deletion of the words " bank or financial institution's capital or of enabling the bank or financial institution " after the words " preventing an impairment of the" and the substitution therefor of the words " fmancial service provider's capital or of enabling the financial service provider ".
Section 53Verify source
§ 55Section seventy of the principal Act is amendedSubstitution

Section 70 is amended so the Bank of Zambia may prescribe, by regulation, which assets count as liquid assets and which liabilities count as liabilities to the public, with different rules allowed for different categories of financial institutions.

55. Section seventy of the principal Act is amended- (a) in subsection (I) by the deletion of the words " Minister, on the recommendation of the Bank of Zambia may by regulation prescribe for banks of its class or description " and the substitution therefor of the words " Bank of Zambia may, by regulation, prescribe for banks or financial institutions of the same category "; (b) in the proviso to subsection ( 1 )- (i) by the insertion of the words " or financial institution ·· after rhe words " each bank "; �nd Amendment of section 70 ' ' (ii) by the deletion of paragraph (c) and the substitution therefor of the following new paragraph: . (c) no bank or financial institution may be.­ required to main.fain ·any htghe't'· percentage than any other bank or f inancial institution of the same _category.;•. ' Banking and Financial Services [No. 25 of2005 203 (c) in paragraph __ (b) of subsection (2) by the insertion of the words " or financial institution " after the words " in writing to each bank"; and . , (d) by the deletion 0£: subsection (3) a11d the substitution therefor of the following new subse'ction: (3) For the purpose of this section the Bank of Zambia may prescribe, by regu laJions- (a) assets that q ualify as liquid assets; and (b) liabilities that qualify as liabilities to the public: Provided that the regulations made under this section may p rovide for different liquid assets and liabilities for different categories of financial institutions.
Section 55Verify source
§ 56', The principal Act is amended by the repeal of sectionRepeal

The principal Act is amended by repealing section 70A and replacing it with a new section.

56.', The principal Act is amended by the repeal of section seventy A and the substitution therefor of the following new section : Repeal and replacement of section 70A
Section 56Verify source
§ 70ASection 70AProvision

The Bank of Zambia must make regulations prescribing the assets and liabilities used to compute the prudential liquidity ratio for financial institutions.

70A. The Bank of Zambia shall, by regulations, p rescribe the assets and liabilities for the computation of the prudential liquidity ratio for financial institutions. Prudential liquidity ratio
Section 70AVerify source
§ 57Section seventy-one of the principal Act is amended bySubstitution

This section amends section 71 of the principal Act by replacing specified wording with new wording.

57. Section seventy-one of the principal Act is amended by the deletion of the words " bank are, or the prudential liquidity.ratio of a financial institution is " and the comma after those words and the substitution therefor of the words " bank or financial institution are ".
Section 57Verify source
§ 58Section seventy-two of the principal Act is amended inAmendment

This provision amends section 72(a) of the principal Act by adding the words “or financial institution” after “any asset of the bank.”

58. Section seventy-two of the principal Act is amended in p a ragraph (a) by the insertion of th_e words " o r fin anci al institution " after the words " any asset of the han k".
Section 58Verify source
§ 59Section seventy-three o f the principal Act is amended­Amendment

Section 73 is extended to financial businesses, and the Bank of Zambia may set limits, restrictions, and prohibitions for them.

59. Section seventy-three o f the principal Act is amended­ . (a) in subsection (S)by the insertion of the words " or financial institution" atler the word " ban k " wherever it appears; (b) by the insertion after subsection (9)o f the following new subsection : . ( 10) The provisions of this section shall apply - .. with necessary111od {fications to fin ancial b�sii1esses : Amendment of section 7 1 Amendment ofsectton 72 Amendment of section 73 204 No. 25 of2005] Banking and Financial Services Amendment of section 74 Amendment of section 75 Amendment of section 77 Provided tha t the Bank of Zambia may establish lending and other limits for, and impo se restrictions and p roh ibitions o n, financial businesses.similar to. those sp ecified under this sectio n and may impose different limits for d ifferent categories of financial bu sine sses.
Section 59Verify source
§ 60Section seventy-four of the principal Act i s amended inSubstitution

This section amends subsection (2) of section 74 by replacing the phrase “bank or financial institution” with “financial service provider.”

60. Section seventy-four of the principal Act i s amended in subsection (2) by the deleti9n of the words " bank or financial institutio n " wherever they appear a nd the substitution therefor of the word s " financial service provider".
Section 60Verify source
§ 61S ec tion seventy-jive of the principal Act is amend ed­Amendment

This section amends another section of the principal Act by deleting specified words.

61. S ec tion seventy-jive of the principal Act is amend ed­ (a) in sub sections (1) to (7) b y the d eletion of the word s " depo sit-taking " wherever they appear; and (b) in subparagraphs (i) and (ii) of paragraph (c) of subsection (8) by the deletio n of the word s " company licensed a s a ".
Section 61Verify source
§ 62Section seventy-seven of the pr incipal Act is amendedSubstitution

This section amends section 77 of the principal Act by replacing references to “bank or financial institution” with “financial service provider” in several places.

62. Section seventy-seven of the pr incipal Act is amended- (a) in sub section (!) by the d eletion of the words " bank or fina ncial institution " wherever they appear and the substitution therefor of th e words " financial service provider"; (b) in sub section (2) by the d eletion of the words " bank or financial institution" and the substitution therefor of the words " financial service provider "; (c) in sub section (3)- (i) b y the deletion in p a ra graph (a) of th e word s " b ank or financ ia l institutio n " a nd the substitution the refor o f the words " (ina ncia l service provider "; (ii} b y th e de letion in p a ragrap h (b) of th e wo rd " bank's " a fter, the wo rd s " any, limi ta tion on the "· 1 ' " ,,,, • ' • 'J ',..� . ' ' .(iii) in para gra ph (c) b y the de letion o f the word s '' bank or financ ial institution from so liciting " a nd the substi tu tio n therefor cifthe word s ,, soficltatiSn of '\anii 0 ' . ....... Banking and Financial Services [No. 25 of2005 205 (iv) (d) in pa,ragraph by the deletion o f the words "· .bank or financial institutiol\ /'. and the substitution therefor elf the words " financial service provider "; and .. _ . , ' . . · " Amendment of sections 78 and 79 Amendment of section 8 1 Amendment of section 83. (d) in subsection (4) by"the deletion of the words " bank or financial institution " and the substitution therefor of the words " financial service provider ".
Section 62Verify source
§ 63Section 63Substitution

This section amends the principal Act by replacing references to “bank or financial institution” with “financial service provider”.

63. seventy-eight seventy-nine Sections of the principal and Act are amended by the deletion of the words " bank or financial institution " wherever they appear and the substitution therefor of the words " financial service provider ".
Section 63Verify source
§ 64Section 64Substitution

Section 64 amends section 81 of the principal Act by replacing references to “bank or financial institution” with “financial service provider.”

64. (a) eighty-one of the principal Act is amended- Section in subsection (!) by the deletion of the words " bank or financial institution " wherever they appear and the substitution therefor of the words " financial service provider "; (b) in subsection (2)--- (i) by the deletion in paragraph of the words " bank or financial institution " and the substitution therefor of the words " financial service provider "; and (a) (ii) by the deletion in paragraphs of the words " bank or financial institution's " and the substitution therefor of the words " financial service provider's "; and to (b) (d) (c) in subsections (3) and (4) by the deletion of the words " bank or financial institution " and the substitution therefor of the words " financial service provider ". eiglztithree
Section 64Verify source
§ 65SectionSubstitution

The Bank of Zambia may set minimum primary and regulatory capital requirements by notice for each category of financial service provider.

65. Section (a) of the principal Act is amended � by the deletion ofsubsection (I) and the substitution therefor of the following new sub.section: Gazet/e (!) The.Bank of Zambia shall, by notice, . prescribe the minimum required primary capital and the. minimum required regulatory capital for every category of financial service provider.; - . -- . -· - - - - in subsection (2) by the deletion ofthe words " bank or - - . ' . .. ' -.· - . . ' . ' - - - - - . . . . . (b) ' , _ , _ ,) . ' 206 No. 25 of 2005] Banking and Financial Services financial institution and the substitution therefor of the words " financial service provider "; (c) in subsection (3)- (i) by the deletion of the words " bank or financial institution " after the words " required primary capital ofa " and the substitution thereforofthe words '.' financial service provider "; and (ii) by the deletion in paragraphs (a) and (b) of the words " bank or financial institution's " and the substitution therefor of the words " financial service provider's "; and (d) in subsection (4) - (i) by the insertion of the words " For banks or financial institutions " and a comma before the words " the minimum required regulatory capital "; (ii) by the deletion of the full stop after the word " Zambia " and the substitution therefor of a colon; and (iii) by the insertion after the coloi:i of the following new proviso: Provided that the Bank of Zambia may prescribe a minimum regulatory capital requirement for any category of financial business that the Bank determines should be subject to such requirement. Amendment of sections 84 and 34 A to 8AH
Section 65Verify source
§ 66Sections eighty-four, eighty-four A, eighty-four B,Substitution

This section amends several listed sections of the principal Act by replacing the phrase "bank or financial institution" with "financial service provider" wherever it appears.

66. Sections eighty-four, eighty-four A, eighty-four B, eighty-four C, eighty-four D, eighty-four E, eighty-four F, eighty-four G and eighty-four II oftlie principal Act are amended by the deletion of the words " bank or financial institution " wherever they appear and the substitution therefor of the words " financial service provider ,, ,,
Section 66Verify source
§ 67Seciion eighty-six ·of the principal Act is amended by th/Substitution

This section amends section 86 of the principal Act by deleting some words and substituting new wording.

67. Seciion eighty-six ·of the principal Act is amended by th/ deletion of the words ".this Chaptc,r, a bank or financial Institution ·· after the woras for the purpose of" and·ibe substitution thereof of 'the words "' Chapter VI and_ ihis' Chapter; a fin�nciahervice • p�ovider '; __ · · --, . ·. --_- . · .. - ·· - - · · · - -- .. - ·- . ; '., -.- .. ,::. - -· ' . -· ' · . Amendment of section 86 • .• - - · - • c· - .. ' , . , ·· •·'··· Banking and Financial Services [N�. 25 of 2005 207
Section 67Verify source
§ 68Section eighty-seven of the principal Act is amended byAmendment

This section amends section 87 of the principal Act by replacing “bank or financial institution” with “financial service provider” wherever it appears.

68. Section eighty-seven of the principal Act is amended by the del�tion_ �f th.e. words " bank or financi�l institution " Whereever they··appear,and .the �ybstitution thei�for of the words financial service provider ,;_- · · ----------":; · ·'· ·
Section 68Verify source
§ 69Section eighty-seven A of the principal Act is amendedSubstitution

This provision amends section 87A of the principal Act by replacing and deleting certain words and inserting new wording.

69. Section eighty-seven A of the principal Act is amended: (a) by the deletion of the words " bank or financial institution " and the substitution therefor of the words " financial servic� provider "; (b) in paragraph (a) by the insertion of the words " or ifit is a body corporate established by or under any other written law " and a comma after the words " the Companies Act "; (c) in paragraph (b): (i) by deletion of the word" but" after the words " Companies Act " and the substitution therefor of the ..yord " and "; and -, (ii) by deletion of the semi-colon and the word " or " and the substitution therefor of a full stop; and (d) by the deletion of paragraph (c). 70 The principal Act is amended by the insertion immediately after section eighty -seven A of the following new section:
Section 69Verify source
§ 87BNotwithstanding the provisions of sections eighty­Amendment

If a licensed financial business becomes insolvent, the Company Act winding-up rules apply unless the Bank of Zambia decides the business should be dealt with under sections 84 to 84H instead.

87B. Notwithstanding the provisions of sections eighty­ /our, eighty-four A, eighty-four B, eighty-four C, eighty­ four D, eighty-four E, eighty-four F, eighty-four G and eighty-four H, where a financial business licensed under this Act becomes insolvent, the provisions of the company Act regarding the winding up of a company er body corporate, as the case may be, shall apply to such insolvent financial business, unless the bank of Zambia has determined thal the insolvent financial business be dealt with in accordance \vith provisions of seciions eighty�fow;' eighty-fo11r A, eighty­ four B, eighty -four C, eighty-four D, eighty-four E, eighty-four F, eighty-four G, and eighty-j'oi1r H Amendment of section 87 Amendment of section 87 A Insertion of new section 87B Power of Bank of Zambia in relation to insovent financial businesses Cap. 388
Section 87BVerify source
§ 71Section one hu11dred a11d 11i11eree11 of the. principal Act isRepeal

This section amends the principal Act by expanding references from “bank or financial institution” to include “financial business.”

71 . Section one hu11dred a11d 11i11eree11 of the. principal Act is . amended - ·(a] in s,ibsechcms { 1) by.the' deletion of the '.YOi-ds " bank or: Amendment · of section' - : 19 208 No. 25 of 2005] Banking and Financial Services Amendment of section I 20 Amendment of section 121 Amendment of section 121 A Amendment of section 122 Repeal of First Schedule, Second Sche<!ulc and Tmrd Schedule (b) financial institution " after the words " the business is a " and the substitution therefor of the words " bank, financial institution or financial business; and (b) in subparagraph (D of paragraph of subsection (2) by the deletion of the words " bank or financial institution " and the substitution therefor of the words " bank, financial institution or financial business ".
Section 71Verify source

Part

Schedule

§ 72Section 72Substitution

This section amends the principal Act by replacing a reference so that it now covers a bank, financial institution, or financial business.

72. one h1Jndred and twenty Section of the principal Act is amended in subsection (1) by the deletion of the words " bank or financial institution " after the words " at the instance of the " and the substitution therefor of the words " bank, financial institution or financial business.
Section 72Verify source
§ 74Section 74Substitution

This section amends the principal Act by changing references from “bank or financial institution” to “bank, financial institution or financial business.”

74. Section of the principal Act is amended by the deletion of the words " bank or financial institution " wherever they appear and the substitution therefor of the words " bank, financial institution or financial business. one hundred and twenty- one A of the principal Act is amended in s ubsection (2) by the deletion of the words " bank or financial institution " after the words " customer of a " and the substitution therefor of the words " bank, financial institution or financial business." Section one hundred and twenty- two
Section 74Verify source
§ 75SectionRepeal

This section amends the principal Act by replacing one phrase with another and begins a repeal of the First Schedule.

75. Section of the pri_ncipal Act is amended by the deletion of the words " bank or fmancial­ institution " wherever they appear and the substitution therefor of the words " bank, financial institution or financial bu�iness ". The principal Act is amended by the repeal of the First
Section 75Verify source
§ 76Section 76Provision

This section refers to the Schedule, the Second Schedule, and the Third Schedule.

76. Schedule, the Second Schedule and the Third Schedule. . ,
Section 76Verify source

Legislative relationships

14 referenced instruments

Names are derived from the stored provision headings and citation-enrichment layer. Treat this as a research index and verify each relationship against the source text.

A–F

4 instruments

  • another section of the principal Act

    Section 61

  • Bank of Zambia .. thirty-two of the principal Act

    Section 30

  • Chapier III thirty-six . 32. Section of the principal Act

    Section 35

  • Chapter VI and updates section 69 to refer to financial service providers. 53. The principal Act

    Section 53

N–S

8 instruments

  • of section The principal Act

    Section 56

  • of section This section replaces an earlier section of the Act

    Section 9

  • of section This section says the principal Act

    Section 31

  • principal Act

    Sections 5, 7, 13, 14, 15, 22, 27, 28, 36, 38, 44, 46, 50, 57, 58, 62, 63, 64, 67, 68, 69, 71, 72, 74, 75

  • section 3 and section 4 of the principal Act

    Section 3

  • several listed sections of the principal Act

    Section 66

  • subsection (1) of the principal Act

    Section 45

  • subsection (2) of the principal Act

    Section 24

T–Z

2 instruments

  • terms in the principal Act

    Section 25

  • Zambia employee as Deputy Registrar. 16. Section of the principal Act

    Section 16

Recorded versions and source checkpoint

1 version available in this collection

Current-law checkpoint
  • 7 Oct 2005 · currentEnglish

This relationship view does not by itself establish whether another instrument remains in force.

Check official source

Source-linked research

Ask AI about this statute

The overview, provisions, and source records above are public. Continue in a separate conversation with this statute’s jurisdiction and source version attached.

About this LexChat collection

Statute information is organised from identified legislative sources for professional research. Corrections can be reported to hello@esheria.ai.