Financial Crime World

BOTSWANA TELECOMS: KNOW YOUR CUSTOMER (KYC) REGULATIONS LOOM LARGE

In an effort to combat the widespread issue of identity theft and fraud in Botswana’s telecommunications sector, the Communications Regulatory Authority (BOCRA) has enforced Know Your Customer (KYC) regulations on service providers. Failing to comply with these regulations can have severe consequences for both providers and their customers.

Understanding the Regulatory Framework

The Communications Regulatory Act governs KYC practices in Botswana’s telecoms sector, with BOCRA responsible for ensuring safe, reliable, efficient, and affordable services throughout the country. In terms of its powers and responsibilities, BOCRA has mandated that all service providers carry out a KYC exercise and submit the necessary information to the authority.

The Penalty for Non-Compliance

  • Section 50(3) of the Act requires service providers to maintain a register of their customers or subscribers.
  • Section 50(4) sets out the penalty for non-compliance, stating that failure to provide prescribed information is an offence punishable by a fine not exceeding P10,000, imprisonment for up to 12 months, or both.

For corporations, failure to collect KYC information on customers can result in a civil penalty of up to 10% of their net turnover in the previous financial year.

Service Providers Take Action

To shield themselves and their customers from potential liability, service providers have opted to disconnect all customers who failed to comply with the regulations by the deadline set by BOCRA. This move aims to mitigate the risks associated with non-compliance.

Takeaways

  • KYC practices in Botswana’s telecoms sector are governed by the Communications Regulatory Act and BOCRA guidelines.
  • All service providers must maintain a register of their customers or subscribers.
  • Failure to provide prescribed information can result in severe penalties for both individuals and corporations.

In conclusion, the imposition of KYC regulations on Botswana’s telecoms sector is a significant step towards tackling identity theft and fraud. Service providers must comply with these regulations to avoid severe penalties and protect themselves and their customers from potential liability.