KYC Requirements in Botswana: A Compliance Guide for Financial Institutions

Introduction

In a bid to prevent money laundering and terrorist financing, the Bank of Botswana has introduced stringent Know Your Customer (KYC) requirements that all financial institutions must adhere to. Metropolitan Health Botswana emphasizes the importance of KYC compliance through its annual mandatory requirement.

Understanding KYC Requirements

The following are the key requirements for individual customers:

Personal Information

• Detailed personal information, including:
  • Address and contact details
  • Banking information
  • Proof of identity (valid identification document with at least three months’ validity)
• Customers must submit a valid identification document for verification purposes.

Proof of Residence

• Utility bills not older than three months
• Lease agreements
• Affidavits
• Letters from employers

Declaration and Notification Obligations

• Customers are required to declare that the details furnished are true and correct to the best of their knowledge and belief.
• They must undertake to inform the financial institution of any changes immediately.

Anti-Money Laundering and Counter Terrorist Financing Regulations

Financial institutions in Botswana must also adhere to anti-money laundering and counter terrorist financing regulations, which include:

Verifying Customers’ Source of Funds and Income

• Customers’ source of funds and income must be verified through payslips or bank statements.
• Failure to comply with these regulations may result in liability for any false or misleading information provided by customers.

Conclusion

The KYC requirements serve as a crucial tool in preventing financial crimes and ensuring the integrity of the financial system in Botswana. Financial institutions must take these requirements seriously, not only to comply with regulatory obligations but also to maintain customer trust and confidence in their services.