The Bank of Zambia (BoZ) Agent Banking Directives (2022) have been issued and gazetted by the Government of the Republic of Zambia under the Gazette Notice No. 1476 dated 30th September, 2022.
The purpose of the Agent Banking Directives is to provide a regulatory framework for Agent Banking to promote financial inclusion, cost effective delivery channels for payment system, electronic money or financial services and to provide authorized activities of agents.
Further, the directives are meant to set minimum standards for data, network security, consumer protection and risk management in the conduct of Agent Banking.
This entails that regulated entities by BoZ that intend to engage in Agent Banking shall apply in writing to the Bank for authorization.
Applicants for Agent Banking are required to include a Risk Assessment Report on Agent Banking with measures to be adopted to mitigate the risks, internal audit report for internal controls, approved internal policies and procedures for anti-Money Laundering/Combating Financing of Terrorism (AML/CFT) and the list of financial services to be provided.
On the use of Third-Party Technology Service Providers, a regulated entity may enter into a written contract for the provision of equipment or technology platform to be used for Agent Banking.
However, the regulated entity shall remain liable for Agent Banking Activities even where a third-party technology service provider is engaged.
The Agent Banking Directives came into force on the day they were published in the Government Gazette on the 30th September, 2022.
Under the Strategic Partnership Component, RUFEP signed a Memorandum of Understanding (MoU) with BoZ in 2016 to deliver specific outcomes within the Central Bank’s mandate as a financial sector regulator to promote financial inclusion. The issuance of the Agent Banking Directives, Gazette Notice No.1476 of 2022 under the Banking and Financial Services Act of 2017 and the National Payment Systems Act, 2007 is one of the outcomes of the Strategic Partnership between RUFEP and BoZ.