Zambia Act or statute

Zambia legislation

Banking and Financial Services (Amendment) Act, 2020

amendmentanti-money launderingappealsbank possessionbank regulatory powersbusiness closurecapital adequacycompensationcounter financing of terrorismdebt prioritydeposit protectionemployee wagesfinancial service providerfinancial service providersBanking and financelegislative amendmentlending limitsliquidationpetition processpublic inspectionrecord keepingregulatory supervisionrepealresolutionstatutory amendmentstatutory headingsstatutory repealstatutory substitutionsupervisiontribunal establishmenttribunal procedureunclaimed fundswinding-up

Jurisdiction: Zambia
Structure: 17 provisions
Citation: Act 7 of 2020
Dates: As at 26 Oct 2020

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Dates: As at 26 Oct 2020

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Purpose and legislative effect

“The Register must be open for public inspection during the Bank’s normal operating hours, and the Bank may keep the Register electronically or in another form it decides.”

The Register must be open for public inspection during the Bank’s normal operating hours, and the Bank may keep the Register electronically or in another form it decides. The principal Act’s heading after section 51 is repealed and replaced with a heading for section 62A on the regulatory and supervisory power of the Bank. This provision amends the principal Act by inserting a new section after section 62 on anti-money laundering and countering the financing of terrorism supervision. The Bank may exercise authority over a financial service provider when it considers supervision necessary for anti-money-laundering, counter-terrorism financing, proliferation, or other serious offences. This section repeals section 72 of the principal Act.

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Section 21 of the principal Act is amended by the deletion

The Register must be open for public inspection during the Bank’s normal operating hours, and the Bank may keep the Register electronically or in another form it decides.

Section 4

The principal Act is amended by the repeal of section 72

This section repeals section 72 of the principal Act.

Section 7

The principal Act is amended by the repeal of section 75

Section 10 amends the principal Act by repealing section 75 and replacing it with new text.

Section 10

Section 137(3) of the principal Act is amended by the

Section 137(3) of the principal Act is amended by deleting specified words.

Section 13

Section 160 (1) of the principal Act is amended by the

This provision replaces section 160(1)(b) with a new rule about funds paid toward buying certain shares or interests and related interest or dividends.

Section 16

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Source record from zambialii.org · As at 26 Oct 2020

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Showing 17 of 17 provisions

Repeal 10Amendment 4Substitution 3

§ 4Section 21 of the principal Act is amended by the deletionRepeal

The Register must be open for public inspection during the Bank’s normal operating hours, and the Bank may keep the Register electronically or in another form it decides.

4. Section 21 of the principal Act is amended by the deletion of subsection (2) and the substitution therefor of the following: (2) The Register shall be open for public inspection during normal operating hours of the Bank. (3) The Bank may maintain a Register in an electronic form or any other form determined by the Bank. Repeal and replacement of heading

Section 4Verify source

§ 5The principal Act is amended by the repeal of the headingRepeal

The principal Act’s heading after section 51 is repealed and replaced with a heading for section 62A on the regulatory and supervisory power of the Bank.

5. The principal Act is amended by the repeal of the heading immediately after section 51 and the substitution therefor of the following: Insertion of section 62A REGULATORY AND SUPERVISORY POWER OF BANK

Section 5Verify source

§ 6(1) A company shall not conduct a banking businessAmendment

This provision amends the principal Act by inserting a new section after section 62 on anti-money laundering and countering the financing of terrorism supervision.

6. The principal Act is amended by the insertion of the following new section immediately after section 62: Anti-money laundering and counter financing of terrorism supervision

Section 6Verify source

§ 62AThe Bank may exercise its authority over a financialRepeal

The Bank may exercise authority over a financial service provider when it considers supervision necessary for anti-money-laundering, counter-terrorism financing, proliferation, or other serious offences.

62A. The Bank may exercise its authority over a financial service provider where the Bank considers that it is necessary to implement supervision for the purposes of the prevention and combating of money laundering and financing of terrorism or proliferation or any other serious offence. Repeal section 72 of Repeal and replacement of section 73

Section 62AVerify source

§ 7The principal Act is amended by the repeal of section 72Repeal

This section repeals section 72 of the principal Act.

7. The principal Act is amended by the repeal of section 72.

Section 7Verify source

§ 8The principal Act is amended by the repeal of section 73Repeal

This section repeals section 73 and replaces it with a new heading, “Possession of financial service provider by Bank.”

8. The principal Act is amended by the repeal of section 73 and the substitution therefor of the following: Possession of financial service provider by Bank

Section 8Verify source

§ 73Section 73Amendment

When the Bank takes possession of a financial service provider, it must take specified resolution steps and prepare a statement of affairs.

73. (1) The Bank shall, where the Bank takes possession of a financial service provider— (a) restructure or re-organise the financial service provider; (b) sell the financial service provider as a going concern; Banking and Financial Services (Amendment) [No. 7 of 2020 117 (c) close the financial service provider; (d) transfer all or part of the business of the financial service provider to a bridge bank; (e) initiate a purchase and assumption transaction; (f) dispose of some of the assets of the financial service provider; or (g) take an action that the Bank considers necessary to enable the Bank carry out its functions in accordance with this Act. (2) Where the Bank decides to close a financial service provider under subsection (1) (c), the closure may take effect— (a) by an order of the Bank placing the financial service provider under liquidation; or (b) in the case of a financial business, by cancelling the financial business licence and recommending to an appropriate authority the placing of the financial business into liquidation. (3) Despite subsection (1), the Bank shall, on taking possession of a financial service provider, prepare a statement of affairs showing the financial position of the financial service provider.

Section 73Verify source

§ 9The principal Act is amended by the repeal of section 74Repeal

This section repeals section 74 of the principal Act.

9. The principal Act is amended by the repeal of section 74.

Section 9Verify source

§ 10The principal Act is amended by the repeal of section 75Repeal

Section 10 amends the principal Act by repealing section 75 and replacing it with new text.

10. The principal Act is amended by the repeal of section 75 and the substitution therefor of the following:

Section 10Verify source

§ 75Section 75Repeal

A financial service provider, or someone acting for it, may petition the Minister within 21 days after the Bank takes possession of the provider.

75. (1) A financial service provider or an interested person acting on the financial service provider’s behalf may, within twenty-one days after the date on which the Bank takes possession of the financial service provider, petition the Minister to establish a tribunal to enquire into the the decision of the Bank to take possession of the financial service provider. Repeal section 74 of Repeal and replacement of section 75 Petition to Minister against possession

Section 75Verify source

§ 11Section 82 of the principal Act is amended by the deletionSubstitution

Section 82(2) is replaced with a rule limiting the total value of a grant, credit facility, and guarantee to 25% of regulatory capital, except as may be prescribed under subsection (1).

11. Section 82 of the principal Act is amended by the deletion of subsection (2) and the substitution therefor of the following: Amendment of section 82 (2) Except as may be prescribed under subsection (1), the total value of a grant, credit facility and guarantee specified in subsection (1) shall not exceed twenty-five percent of the regulatory capital. 118 No. 7 of 2020] Banking and Financial Services (Amendment) Amendment of section 132 Act No. 9 of 2017

Section 11Verify source

§ 12Section 132 of the principal Act is amended by the deletionSubstitution

In a compulsory winding-up or dissolution of a financial service provider, certain debts must be paid first, in the listed order.

12. Section 132 of the principal Act is amended by the deletion of subsection (1) and the substitution therefor of the following: (1) Despite the Corporate Insolvency Act, or any other written law, in any compulsory winding-up or dissolution of a financial service provider, the following shall be paid in priority to all other debts in the order set: (a) expenses incurred in the process of compulsory winding-up or dissolution; (b) depositors whose deposit claims— (i) are covered by a deposit protection scheme; and (ii) not covered by a deposit protection scheme; (c) taxes and rates dues; (d) wages and salaries of employees of the financial service provider, excluding executive employees, senior management and other categories of staff that the Bank may determine, for a period of three months; (e) charges and assessments due to the Bank; or (f) other claims against the financial service provider in an order of priority that the Court may determine on application by the Bank. Amendment of section 137 Amendment of section 140

Section 12Verify source

§ 13Section 137(3) of the principal Act is amended by theAmendment

Section 137(3) of the principal Act is amended by deleting specified words.

13. Section 137(3) of the principal Act is amended by the deletion of the words “or set aside by a tribunal on appeal or by the Court”.

Section 13Verify source

§ 14Section 140 of the principal Act is amendment by theRepeal

A tribunal must hear and decide an appeal on its merits within 30 days of being convened, considering this Act and any other relevant written law.

14. Section 140 of the principal Act is amendment by the deletion of subsection (1) and the substitution therefor of the following: Repeal and replacement of section 141 Decision of Tribunal (1) A tribunal shall hear and determine an appeal on its merits, within thirty days of being convened, taking into account this Act and any other relevant written law.

Section 14Verify source

§ 15The principal Act is amended by the repeal of section 141Repeal

The principal Act is amended by repealing section 141 and replacing it with new text.

15. The principal Act is amended by the repeal of section 141 and the substitution therefor of the following:

Section 15Verify source

§ 141Section 141Amendment

A tribunal may order the Bank to pay compensation if it finds the Bank acted contrary to this Act or another written law on the matter before it.

141. (1) A tribunal may order compensation against the Bank where the tribunal finds the Bank to have acted contrary to this Act or any other written law on the matter before the tribunal. (2) An appeal against a decision of a tribunal, on a point of law, shall lie to the Court of Appeal. Banking and Financial Services (Amendment) [No. 7 of 2020 119

Section 141Verify source

§ 16Section 160 (1) of the principal Act is amended by theSubstitution

This provision replaces section 160(1)(b) with a new rule about funds paid toward buying certain shares or interests and related interest or dividends.

16. Section 160 (1) of the principal Act is amended by the deletion of paragraph (b) and the substitution therefor of the following: Amendment of section 160 Act No. 41 of 2016 (b) funds paid toward the purchase of a share or other interest in a security, issued by a financial service provider not listed or quoted on an exchange regulated under the Securities Act and any interest or dividend relating thereto, excluding any charge that may lawfully be withheld, in respect of which the owner has not, within the last ten years— (i) increased or decreased the amount of the funds or deposit; (ii) corresponded, in writing, with the bank or financial institution; or (iii) otherwise indicated an interest in the funds as evidenced by a memorandum in the records of the financial service provider; and. 120

Section 16Verify source

Legislative relationships

6 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

1 instrument

Bank. 5. The principal Act
Section 5

N–S

5 instruments

of section 141 The principal Act
Section 15
of section 72 This section repeals section 72 of the principal Act
Section 7
of section 74 This section repeals section 74 of the principal Act
Section 9
of section 75 Section 10 amends the principal Act
Section 10
principal Act
Section 6

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26 Oct 2020 · currentEnglish

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