BANKING AND FINANCIAL SERVICES ACT, 2026 ENACTED

Kindly note the following important points:

1. Repealed Acts: The Banking and Financial Services Act and the Money-lenders Act.

2. Validity of Existing Licences: A licence issued under the repealed Acts shall continue to be valid until expiry, cancellation orsurrender as if the licence was issued under this Act.

3. Pending Applications: An application for a licence pending under the repealed Acts shall, on commencement of this Act, be issued in accordance with this Act.

4. Application: Applies to financial service providers based on the principle of proportionality as the BoZ may determine.

5. Commencement: Shall come into operation on the date appointed by the Minister by Statutory Instrument.

6. Prohibition of conducting banking business or providing financial service without licence: A person who contravenes this prohibition commits an offence and is liable, on conviction, to a fine not exceeding THREE MILLION PENALTY UNITS (K1, 200, 000.00) or to imprisonment for a term not exceeding THIRTY YEARS, or to both.

7. Additional penalty: where that person obtains funds from the public, he/she shall repay the funds in a manner that the Bank may determine.

Contact us for expert legal counsel on staying compliant with the legal requirements of the financial products and services sector in Zambia.