Financial Crime World

Botswana Regulators Set High Bar for Banks and Financial Institutions

Maintaining International Standards in Banking Supervision

In a bid to ensure financial stability in the country, the Bank of Botswana has established a robust framework for regulating and supervising banks and other financial institutions. This commitment to maintaining international standards of banking supervision is underpinned by key legislation, including the Banking Act and relevant directives, policies, and guidelines.

Key Objectives

  • Prioritize market integrity
  • Foster competition and fair business practices
  • Maintain high levels of professionalism within the financial sector

Stringent Regulatory Requirements for Market Entry

The Bank of Botswana has established stringent regulatory requirements for market entry as set out in the Licensing Policy. This includes:

  • Regularly updating prudential policies and standards
  • Conducting rigorous off-site surveillance and on-site examinations

Focus Areas for Sound Operation of Banks

The regulator’s operational efforts are focused on ensuring the sound operation of banks by closely monitoring key areas such as:

  • Solvency
  • Liquidity
  • Large exposures
  • Insider loans
  • Provisioning
  • Risk-management strategies

Additionally, the Bank of Botswana assesses the adequacy of management and governance structures within financial institutions.

Compliance with Banking Laws and Swift Action Against Illicit Activities

Compliance with banking and other related laws is a top priority for the Bank of Botswana. The regulator takes swift action against unlicensed or illegal deposit-taking activities and has put in place robust systems for:

  • Reporting
  • Accounting
  • Auditing
  • Disclosure standards

Contact Information

For further information on the regulatory requirements for banks and financial institutions in Botswana, interested parties can contact the Prudential Authority and Payments Oversight at the Bank of Botswana via telephone (267) 3606354 or email baloyik@bob.bw.