Financial Crime World

Enhancing Financial Regulations in Botswana

The Bank of Botswana has taken significant steps to strengthen its regulatory framework for banks and other financial institutions, aiming to promote financial stability, market integrity, competition, fair business practices, and high standards of governance in the financial sector.

Regulatory Framework

The Bank of Botswana is committed to upholding high standards of professional conduct in line with international regulatory and accounting standards. The bank’s efforts are guided by the following regulations:

  • Bank of Botswana Act (Cap. 55:01)
  • Banking Act (Cap. 46:04)
  • Banking Regulations 1995
  • Bureaux de Change Regulations 2004
  • Relevant directives, policies, and guidelines

Operational Measures

To promote financial stability, the Bank of Botswana has implemented a range of measures, including:

  • Transparent Criteria: Setting transparent criteria, guidelines, and other requirements for market entry
  • Prudential Policies: Establishing prudential policies and standards to ensure sound banking operations
  • Monitoring: Monitoring solvency, liquidity, large exposures, insider loans, provisioning, and risk-management strategies
  • Governance Structures: Ensuring the adequacy of management and governance structures for sound banking operations
  • Off-Site Surveillance and On-Site Examination: Establishing effective systems for off-site surveillance and on-site examination, including reporting, accounting, auditing, and disclosure standards

Supervisory Action

The Bank of Botswana takes timely supervisory action to ensure compliance with banking laws and related regulations governing banks in Botswana. Additionally, the bank:

  • Monitors Unlicensed Activities: Monitors and investigates unlicensed, illegal deposit-taking activities and practices to protect the integrity of the financial system
  • Protects Public Interest: Protects the public interest by ensuring that banks operate in a fair and transparent manner

Contact Information

For more information on these efforts, please contact:

Banking Supervision Department

Phone: (267) 3606354 Fax: (267) 3913862 Email: Lopezl@bob.bw

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