Botswana Banks Face Strict Compliance Requirements Under Central Bank Oversight

The Bank of Botswana’s supervisory framework ensures that commercial banks in the country operate responsibly, maintaining public confidence and promoting financial stability. The framework is established under Part IV of the Banking Act (Cap46.04) and outlines strict compliance requirements for banks.

Key Components of the Supervisory Framework

• Accurate Financial Records: Banks are required to maintain accurate financial records that demonstrate compliance with the Banking Act provisions.
• Annual Accounts Submission: Annual accounts must be submitted within three months of the end of each financial year.
• Monthly Statements: Monthly statements of assets and liabilities must be provided to the central bank.
• Auditor Disclosure: The Bank of Botswana may impose additional duties on auditors to obtain further information deemed necessary, and requires them to disclose any breach of the Banking Act or other relevant legislation.

Central Bank Oversight

The Bank of Botswana conducts regular oversight activities, including:

• Regular Trilateral Meetings: Regular trilateral meetings with banks and their auditors are arranged to review financial operations and strategies.
• Bilateral Meetings: Bilateral meetings are held to review financial operations and strategies.
• On-Site Examinations: Regular on-site examinations of all supervised banks, including foreign branches if necessary, are conducted.

Corrective Action

If an examination reveals that a bank is operating unlawfully or unsoundly, the central bank may require the affected institution to take corrective action. In extreme cases, the Bank of Botswana can appoint experienced individuals to rectify the situation.

Annual Banking Supervision Report

The Bank of Botswana prepares an annual Banking Supervision Report for submission to the Minister of Finance and Economic Development, providing a comprehensive overview of its supervisory activities and outcomes.