CHAPTER 46:04
BANKING

ARRANGEMENT OF SECTIONS

SECTION

PART I
Preliminary

    1.    Short title

    2.    Interpretation

PART II
Licensing of Banks

    3.    Authority to transact banking business

    4.    Representative office

    5.    Investigation of unlicensed banking

    6.    Application for banking licence

    7.    Appeal to the Minister

    8.    Conditions for issuing banking licence

    9.    General conditions

    10.    Power to vary conditions of licences

    11.    Revocation and surrender of licences

    12.    Procedure in case of urgency

PART III
Capital Structure, Financial Requirements and Limitations

    13.    Capital requirements

    14.    Provision to be made for certain items

    15.    Specified investments to be maintained

    16.    Minimum liquid assets to be maintained

    17.    Limitations on specified operations and activities

PART IV
Financial Statements, Audit and Supervision

    18.    Financial records

    19.    Annual accounts

    20.    Returns

    21.    Central Bank may call for information

    22.    Audit

    23.    Audit committee

    24.    Examination of banks

    25.    Powers of examiners

    26.    Offences by principal officers, etc., and penalties

    27.    Powers of Central Bank after examination

    28.    Annual report

PART V
Responsibilities of Directors and other Officers of Banks

    29.    Fit and proper persons

    30.    Disqualification

    31.    Disclosure of interest by a director

    32.    Offences by directors and penalties

PART VI
Temporary Management by Central Bank

    33.    Conditions and procedure for temporary management

    34.    Duration of temporary management

PART VII
Winding-up and Judicial Management

    35.    Winding-up or judicial management of banks

    36.    Priority of deposit liabilities

    37.    Priority of different classes of deposit and other liabilities

    38.    Unclaimed monies or property after winding-up

PART VIII
Miscellaneous Provisions

    39.    Abandoned funds

    40.    Evidence in relation to banker's books

    41.    Methods of identification

    42.    Control of advertisements

    43.    Confidentiality of information

    44.    Identity of customers

    45.    Bank holidays

    46.    Hours of business

    47.    Acceptance of deposits by insolvent banks

    48.    Publication of information

    49.    Application of other laws

    50.    Personal liability of bank officers

    51.    Regulations

    52.    General penalties

    53.    Exemptions and exclusions

Act 13, 1995,
S.I. 53, 1995,
Act 9, 2013,
Act 10, 2018.

An Act to provide for the licensing, control and regulation of banks, and for matters incidental thereto.

[Date of Commencement: 6th November, 1995]

PART I
Preliminary (ss 1-2)

1. Short title

This Act may be cited as the Banking Act.

2. Interpretation

In this Act, unless the context otherwise requires—

"affiliate", in respect of any bank, means any entity, corporate or incorporate, where 20 percent or more of any class of its voting shares or other voting participation is directly or indirectly owned or controlled by such bank, or is held by it with power to vote;

"Agency" has the meaning assigned to it under the Financial Intelligence Act (Cap. 08:07);

[10 of 2018, s. 2.]

"bank" means a company, incorporated in accordance with the provisions of the Companies Act, which is licensed under this Act to conduct banking business;

"banking business" means—

        (i) the business of accepting deposits of money repayable on demand or after fixed periods or after notice, as the case may be, by cheque or otherwise; and/or

        (ii) the employment of deposits in the making or giving of loans, advances, overdrafts or other similar facilities, and in the making of investments or engagement in other operations authorised by law or under customary banking practice, for the account of, and at the risk of, the person or persons accepting such deposits, and includes the discounting of commercial paper, securities and other negotiable instruments, for the purpose of extending loans or other credit facilities;

"Central Bank" means the Bank of Botswana established under the Bank of Botswana Act;

"demand liabilities", means the deposits held by a bank which must be repaid on demand;

"director" in relation to a bank includes any person, by whatever name called, who performs or is empowered to perform, substantially the same functions, in respect of that bank, as those performed by the director of a company;

"foreign bank" means an institution incorporated in a country other than Botswana, and subject to a foreign jurisdiction, which is licensed to do banking business according to the laws of that country;

"investigatory authority" has the meaning assigned to it under the Financial Intelligence Act (Cap. 08:07);

[10 of 2018, s. 2.]

"money laundering" has the meaning assigned to it under the Proceeds and Instruments of Crime Act (Cap. 08:03);

[10 of 2018, s. 2.]

"place of business" means any branch, office or agency (including a mobile agency) of a bank in Botswana, open to the public for the transaction of banking business;

"principal officer" in relation to a bank in Botswana, means the chief executive officer, or other person, by whatever title he may be referred to, who is, subject to the directions of the board of directors, responsible for the day-to-day management of the affairs of the bank;

"unsecured", in relation to loans, advances or credit facilities, means loans, advances or credit facilities granted without security; or, in relation to loans, advances or credit facilities granted against security, means any part of such loans advances or credit facilities which at any given time exceeds the market value of the assets comprising the security given, or which exceeds the valuation approved by the Central Bank whenever it deems that no market value exists for such assets.

PART II
Licensing of Banks (ss 3-12)