The Bank of Zambia Act, 2022

Bank of Zambia [No. 5 of 2022 29
THE BANK OF ZAMBIA ACT, 2022
ARRANGEMENTS OF SECTIONS
PART I
PRELIMINARY PROVISIONS
Section
1. Short title and commencement
2. Interpretation
3. Bank of Zambia
PART II
ADMINISTRATION OF THE BANK OF ZAMBIA
4. Capital and ownership of Bank
5. Additional functions of Bank
6. Prohibited activities
7. Board of Directors
8. Functions of Board
9. Delegation of functions of Board
10. Governor
11. Deputy-Governor
12. Prohibition of Governor and Deputy-Governor to engage in other
business, profession or employment
13. Resignation or removal from office of Governor or Deputy-Governor
14. Staff of Bank
15. Emoluments and other terms and conditions of service of Governor,
Deputy-Governor and other staff
PART III
MONETARY UNIT, BANKNOTES AND COIN ISSUE
16. Currency of Republic
17. Authority to issue banknotes and coins
18. Legal tender
19. Currency features
20. Currency production, safekeeping and inventory
21. Currency exchange
22. Management of unfit currency
23. Exchange of forged, lost or stolen or damaged banknotes or coins
24. Accounting treatment of currency issued
25. Currency recall
26.

nfit currency
23. Exchange of forged, lost or stolen or damaged banknotes or coins
24. Accounting treatment of currency issued
25. Currency recall
26.

Counterfeit notes and coins
Single copies of this Act may be obtained from the Government Printer,
P.O. Box 30136, 10101 Lusaka, Price K224.00 each.

Counterfeit notes and coins
Single copies of this Act may be obtained from the Government Printer,
P.O. Box 30136, 10101 Lusaka, Price K224.00 each.

Bank of Zambia30 No. 5 of 2022]
PART IV
MONETARY POLICY
27. Monetary Policy Committee
28. Composition of Monetary Policy Committee
29. Publication of statement of decisions
30. Publication of minutes
PART V
FINANCIAL STABILITY
31. Financial Stability Committee
32. Composition of Financial Stability Committee
33. Cooperation with other supervisory authorities
34. Publication of Financial Stability Report
PART VI
BANK’S RELATIONSHIP WITH GOVERNMENT
35. Advisor to Government
36. Banker to Government
37. Fiscal Agent
38. Advances to Government
39. Limitations on lending to Government
40. Acquisition of securities issued or guaranteed by Government
41. Management of public debt
42. Consultation and exchange of information
PART VII
BANK’S RELATIONSHIP WITH FINANCIAL SERVICE PROVIDERS
43. Banker to banks and financial institutions
44. Bank’s service to financial service providers
45. Publication of Bank’s rates
46. Cash reserve requirements for Provincial Service Provider
47. Minimum liquidity asset ratios and reserve requirements
48. Disclosures by financial service providers
49. Consultation with financial service providers
50. Money Market and foreign exchange market
51.

ents
48. Disclosures by financial service providers
49. Consultation with financial service providers
50. Money Market and foreign exchange market
51.

Regulation and supervision of financial service providers

Regulation and supervision of financial service providers

Bank of Zambia [No. 5 of 2022 31
PART VIII
INTERNATIONAL RESERVES AND FOREIGN EXCHANGE OPERATIONS
52. Exchange rate policy
53. Maintenance of official international reserves
54. Bank depository of external assets
55. Authorised transactions and limitation of contracting parties
PART IX
REGULATION AND SUPERVISION OF PAYMENT SYSTEMS
56. Mandate over payment system
57. Regulation and supervision of payment system
PART X
GENERAL PROVISIONS
58. Furnishing of information
59. Oath or affirmation of secrecy
60. Confidentiality
61. Examination of financial or payment system service providers
62. Exemption from taxes
63. Restriction on execution against property and assets of the Bank
64. Restriction of liability
65. Fees and recovery of expenses
66. Offences relating to directorship and acceptance of gifts
67. Offences relating to currency
68. Offences relating to non-disclosure of information or furnishing of false
information
69. General penalty
70. Administrative penalties
71. Offences by principle officers of body corporate or unincorporate
body
72. Liquidation, dissolution or winding up of Bank
73. Regulatory statement
74. Regulations
75. Repeal of Act No.

body corporate or unincorporate
body
72. Liquidation, dissolution or winding up of Bank
73. Regulatory statement
74. Regulations
75. Repeal of Act No.

43 of 1996 and savings and transitional provisions
SCHEDULES

43 of 1996 and savings and transitional provisions
SCHEDULES

An Act to provide for the additional functions, operations
and management of the Bank of Zambia; provide for the
composition of the Board of Directors of the Bank of
Zambia and provide for their functions; provide for the
establishment of the Monetary Policy Committee and the
Financial Stability Committee and provide for their
functions; repeal and replace the Bank of Zambia Act,
1996; and provide for matters connected with, or
incidental to, the foregoing. [29th July, 2022
ENACTED by the Parliament of Zambia. PART I
PRELIMINARY PROVISIONS
1. This Act may be cited as the Bank of Zambia Act, 2022,
and shall come into operation on the date appointed by the Minister
by statutory instrument. 2. In this Act, unless the context otherwise requires—
“active politics” has the meaning assigned to the words in
the Benefits of Former Presidents Act;
“associate” has the meaning assigned to the word in the
Anti-Corruption Act, 2012;
“Bank” means the Bank of Zambia established under the
Constitution and continued in existence under section 3;
Short title
and
commence-
ment
Enactment
Interpretation
Bank of Zambia [No. 5 of 2022 33
Cap.15
Act No. 3 of
2012
Cap. 1
GOVERNMENT OF ZAMBIA
ACT
No.

Short title
and
commence-
ment
Enactment
Interpretation
Bank of Zambia [No. 5 of 2022 33
Cap.15
Act No. 3 of
2012
Cap. 1
GOVERNMENT OF ZAMBIA
ACT
No.

5 of 2022
Date of Assent: 29th July, 2022

5 of 2022
Date of Assent: 29th July, 2022

Bank of Zambia34 No.

Bank of Zambia34 No.

5 of 2022]
“bank” has the meaning assigned to the word in the Banking
and Financial Services Act, 2017;
“banking business” has the meaning assigned to the words in
the Banking and Financial Services Act, 2017;
“Board” means the Board of Directors of the B ank
constituted under the Constitution;
“emoluments” has the meaning assigned to the word in the
Constitution;
“Emoluments Commission” mean the Emoluments
Commission established by the Constitution;
“financial business” has the meaning assigned to the words
in the Banking and Financial Services Act, 2017;
“financial institution” has the meaning assigned to the words
in the Banking and Financial Services Act, 2017;
“financial service” has the meaning assigned to the words
in the Banking and Financial Services Act, 2017;
“financial service provider” has the meaning assigned to the
words in the Banking and Financial Services Act, 2017;
“financial intermediary” means an entity that provides a
financial service and facilitates a financial transaction among
persons;
“Financial Stability Committee” means the Financial Stability
Committee established under section 31;
“financial system” means a set of financial intermediaries,
financial markets and financial infrastructure that facilitates
the exchange of funds and assets among persons;
“financial system stability” means the financial system’s
resilience to shocks and its ability to smoothly conduct its
core tasks of intermediation of financing, transmission of
payments, pricing of instruments and redistribution of
risks;
“general reserve fund” means the general reserve fund of
the Bank continued and maintained under paragraph 10 of
the First Schedule;
“legally disqualified” means the absence of legal capacity as
provided under section 4 of the Mental Health Act, 2019;
Act No.

of
the First Schedule;
“legally disqualified” means the absence of legal capacity as
provided under section 4 of the Mental Health Act, 2019;
Act No.

7 of
2017
Act No. 7 of
2017
Cap. 1
Cap. 1
Cap. 1
Act No. 7 of
2017
Act No. 7 of
2017
Act No. 7 of
2017
Act No. 7 of
2017
Act No. 6 of
2019

7 of
2017
Act No. 7 of
2017
Cap. 1
Cap. 1
Cap. 1
Act No. 7 of
2017
Act No. 7 of
2017
Act No. 7 of
2017
Act No. 7 of
2017
Act No. 6 of
2019

Bank of Zambia [No.

Bank of Zambia [No.

5 of 2022 35
“macro-prudential” means the use of prudentia l tools to limit
systemic risks by strengthening the resilience of the
financial syst e m and decreasing the build-up of
vulnerabilities, thereby ensuring a sustainable contribution
of the financial sector to economic growth;
“member” means a person appointed as a director of the Board
in accordance with section 7;
“Monetary Policy Committee” means the Monetary Policy
Committee established under section 27;
“official international reserves” means the reserves specified
under section 53;
“ordinary revenue” means revenue from taxes, levies, royalties,
fees, duties, rents, profits and income from any investment
or any undertaking by the Government, Government
institutions and agencies, statutory bodies and local
authorities, but does not include any funds raised by way
of borrowing, grants in cash or in kind, or any other form
of economic assistance”
“payment service provider” means a person licensed or
authorised by the Bank under the National Payment
Systems Act, 2007, to provide a service or system that
facilitates the transfer of funds from one person to another
using various forms of payment instruments;
“payment system” has the meaning assigned to the words in
the National Payment Systems Act, 2007;
“public officer” has the meaning assigned to the words in the
Constitution;
“regulated entity” means a person licensed under the Banking
and Financial Services Act, 2017, the National Payment
Systems Act, 2007, and the Credit Reporting Act, 2018 to
carry out a licensed activity;
“regulatory statement” has the meaning assigned to the
words in the Banking and Financial Services Act, 2017;
“relative” has the meaning assigned to the word in the Anti-
Corruption Act, 2012;
“repealed Act” means the Bank of Zambia Act, 1996;
“revaluation reserve account” means a reserve account
maintained in the financial records of the Bank to which
unrealised gains and losses from gold, special drawing
rights, foreign currency or other financial instruments
are transferred from the income statement;
Act No.

gains and losses from gold, special drawing
rights, foreign currency or other financial instruments
are transferred from the income statement;
Act No.

1 of
2007
Cap. 1
Act No. 7 of
2017
Act No. 1 of
2007
Act No. 8 of
2018
Act No. 3 of
2012
Act No. 43
of 1996
Act No. 1 of
2007
Act No. 7 of
2017

1 of
2007
Cap. 1
Act No. 7 of
2017
Act No. 1 of
2007
Act No. 8 of
2018
Act No. 3 of
2012
Act No. 43
of 1996
Act No. 1 of
2007
Act No. 7 of
2017

Bank of Zambia36 No. 5 of 2022]
“secondary market” means the market where persons trade
the previously issued debt securities;
“securities” has the meaning assigned to the word in the
Securities Act, 2016;
“superior court” has the meaning assigned to the words in the
Constitution;
“supervisory authority” has the meaning assigned to the
words in the Financial Intelligence Centre Act, 2010; and
“systemic risk” means the risk of disruptions to the provision
of banking and financial services that is caused by an
impairment of all or parts of the financial system and can
cause serious negative consequences for the real
economy. PART II
ADMINISTRATION OF THE BANK OF ZAMBIA
3. (1) The Bank of Zambia established by the Constitution is
a body corporate with perpetual succession and a common seal,
capable of suing and being sued in its corporate name, and with
power, subject to the provisions of this Act, to do all acts and things
that a body corporate may, by law, do or perform. (2) The First Schedule applies to the Bank. 4. (1) Subject to subsection (2), the authorised capital of the
Bank is five hundred million kwacha.

form. (2) The First Schedule applies to the Bank. 4. (1) Subject to subsection (2), the authorised capital of the
Bank is five hundred million kwacha.

(2) The Board may, subject to the consen t of the Minister,
increase or reduce the authorised capital of the Bank to an amount
the Board may determine by resolution. (3) The Government shall be the sole subscriber to the paid-up
capital of the Bank and the Bank’s holdings of the paid-up capital
shall not be transferrable to any person in whole or in part or be
subject to any encumbrance. (4) The Government shall pay in full any increase in the
authorised capital effected under subsection (2). (5) Despite other provisions of this Act, the Minister shall
transfer ownership to the Bank negotiable interest-bearing securities,
at market rate, issued by the Government, for an amount the Board
may determine is necessary for the purpose of preserving the Bank’s
capital from any impairment. Act No. 41
of 2016
Cap. 1
Act No. 46
of 2010
Bank of
Zambia
Cap. 1
Capital and
ownership
of Bank

of preserving the Bank’s
capital from any impairment. Act No. 41
of 2016
Cap. 1
Act No. 46
of 2010
Bank of
Zambia
Cap. 1
Capital and
ownership
of Bank

Bank of Zambia [No. 5 of 2022 37
5. (1) Subject to the Constitution, the additional function of
the Bank is to formulate and implement monetary and supervisory
policies, directed at achieving and maintaining price stability and
financial stability. (2) Where it is considered that there is a conflict between price
stability and financial stability referred to under subsection (1), price
stability shall take precedence.

ered that there is a conflict between price
stability and financial stability referred to under subsection (1), price
stability shall take precedence.

(3) Despite the generality of subsection (1), the functions of
the Bank are to—
(a) formulate and implement macro-prudential policies;
(b) implement the exchange rate policy;
(c) hold and manage the international reserve assets of the
Republic;
(d) licence, regulate and supervise financial service providers
and credit reporting agencies;
(e) establish, conduct, monitor, regulate and supervise, and
promote the soundness and safety of payment systems;
(f) act as a banker and fiscal agent to the Government;
(g) act as a banker to banks;
(h) assist the Government in the management and
administration of domestic and external debt;
(i) foster the liquidity, solvency and proper functioning of a
stable market-based financial system;
(j) provide banking services for the benefit of foreign
governments, foreign central banks and monetary
authorities, and for the benefit of international
organisations in which the Bank or the Government
participates;
(k) collaborate with international financial institutions in
furtherance of the Bank’s functions;
(l) u ndertake and discharge responsibilities, and perform
transactions, concerning the Government’s
participation in international organisations;
(m) act as an economic adviser to the Government;
(n) issue debt securities on behalf of the Government on
terms and conditions that the Bank considers appropriate;
(o) issue debt securities for the purpose of implementing
monetary policy on terms and conditions that the Bank
considers appropriate;
Additional
functions of
Bank
Cap.

urities for the purpose of implementing
monetary policy on terms and conditions that the Bank
considers appropriate;
Additional
functions of
Bank
Cap.

1

1

Bank of Zambia38 No.

Bank of Zambia38 No.

5 of 2022]
(p) acquire shares in any domestic or international institution,
company or other body in furtherance of the Bank’s
functions;
(q) regulate the foreign currency market;
(r) grant secured or unsecured loans and advances to any of
the Bank’s subsidiaries in furtherance of the Bank’s
functions or its staff as approved by the Board
(s) assist financial service providers in financial diff iculty;
(t) acquir e, in the course o f satisfying a debt, any interest
or right if that interest or right can be disposed of at the
earliest suitable opportunity;
(u) buy, sell or otherwise deal in—
(i) financial instruments and, in accordance with the
provisions of any other written law regulating
the safe deposit of securities, hold the finacial
instruments in safe custody, or cause the
financial instruments to be held in safe custody,
for any person;
(ii) gold and other precious metals, and hold in
safe custody, for any person, gold and other
precious metals, securities or other articles of
value;
(iii) foreign currency;
(iv) notes, bills, securities or other instruments
of indebtedness issued or guaranteed by
local authorities, public entities or any foreign
country that the Board may determine; and
(v) discount or re-discount bills of exchange or
promissory notes issued for commercial,
industrial or agricultural purposes;
(v) issue its own interest-bearing securities for purposes
of implementing monetary policy and buy, sell, discount
or re-discount, or grant loans or advances against those
securities;
(w) enter into, repurchase or reverse repurchase agreements
with any institution in respect of interest-bearing
securities or other securities that the Bank may
determine;

chase or reverse repurchase agreements
with any institution in respect of interest-bearing
securities or other securities that the Bank may
determine;

Bank of Zambia [No.

Bank of Zambia [No.

5 of 2022 39
(x) effect transfers in accordance with generally accepted
banking practice and sell drafts drawn on the Bank’s
br anches and correspondents;
(y) open accounts in financial institutions in foreign countries
and appoint agents or correspondent banks carrying
on business outside the Republic;
(z) make arrangements or enter into an agreement with any
institution, locally or in a foreign country, to borrow
foreign currency at a rate of interest and on terms that
the Bank considers appropriate, in furtherance of the
Bank’s functions;
(aa) by notice, direct any person to furnish the Bank,
within a specified period of time, with any specified
information that the Bank may reasonably require—
(i) to determine the balance of payments;
(ii) for purposes related to financial system stability;
(iii) for statistical reports; or
(iv) for the performance of any other function of
the Bank under this Act;
(bb) promote the effective and efficient operation of the
foreign exchange system by monitoring —
(i) foreign exchange inflows and outflows and
amounts remitted;
(ii) import and exports of goods and services ;
(iii) international transactions in goods and services;
(iv) international transfers to or from residents and
non-residents;
(v) profits or dividends received or paid in respect
of investments abroad and foreign
investment in the Republic;
(vi) borrowings and trade credits from non-residents;
(vii) investment in the form of equity and debt
securities abroad;
(viii) receipts and payments of both principal and
interest on loans to non-residents;

i) investment in the form of equity and debt
securities abroad;
(viii) receipts and payments of both principal and
interest on loans to non-residents;

Bank of Zambia40 No. 5 of 2022]
(ix) i nternational money transfers into and out of the
Republic; and
(x) any other transaction the Bank may prescribe;
(cc) promote the continuous development of the domestic
financial markets and the safe, sound and efficient
operation and t h e developm ent of t h e financial system;
(dd) co-operate with or assist other domestic or intern
ational regulatory authorities who are in the field of
banking or finance or any other field as the Board may
approve; and
(ee) regulate the rate of interest and other charges that a
financial service provider and a payment service provider
may impose on a financial transaction. 6. Except as otherwise expressly authorised by this Act, the
Bank shall not—
(a) engage in trade;
(b) accept shares as security;
(c) acquire immovable property other than in the ordinary course
of business;
(d) grant an unsecured loan;
(e) enter into a risk insurance contract other than to further
its own interests;
(f) guarantee a loan, advance or debt of the Government or a
public body; or
(g) part icipate in the pr imary aucti on of Gove rnment
securities. 7.

;
(f) guarantee a loan, advance or debt of the Government or a
public body; or
(g) part icipate in the pr imary aucti on of Gove rnment
securities. 7.

(1) The Board of Directors of the Bank consists of the
following members:
(a) the Governor, as Chairperson;
(b) six members appointed by the Minister; and
(c) a representative of the Secretary to the Treasury, as an
ex-officio member. Prohibited
activities
Board of
Directors

ppointed by the Minister; and
(c) a representative of the Secretary to the Treasury, as an
ex-officio member. Prohibited
activities
Board of
Directors

Bank of Zambia [No. 5 of 2022 41
(2) The members appointed under subsection (1)(b) and (c), shall
be part-time members of the Board. (3) A member appointed under subsection (1) (c) shall not—
(a) count for the purposes of a quorum;
(b) vote on any question relating to the deliberations of a
meeting of the Board; or
(c) be a member of the audit committee of the Board. (4) The members of the Board shall elect the Vice-Chairperson
from among themselves. (5) A person qualifies for appointment as member of the Board
if the person has—
(a) proven integrity;
(b) a degree from a recognised higher education institution;
and
(c) knowledge and experience of at least five years in the
field of central banking, economics, banking, finance,
law accounting, auditing or other discipline relevant to
central banking.

ast five years in the
field of central banking, economics, banking, finance,
law accounting, auditing or other discipline relevant to
central banking.

(6) A person does not qualify for appointment as a member
of the Board if that person—
(a) is an undischarged bankrupt;
(b) is legally disqualified from performing the functions of
the Board
(c) is a Member of Parliament, or performs legislative,
executive, judicial functions or holds office in a local
authority;
(d) is a director, officer, employee or a shareholder in, or
owner of, a regulated entity or provides professional
services to the Bank or regulated entity;
(e) is convicted of an offence and sentenced to a term
of imprisonment exceeding six months without the
option of a fine;
(f) is disqualified or suspended from practising any profession
on the grounds of professional misconduct or dismissed
from a position of trust due to misconduct;
(g) is an employee of Government, except for a representative
of the Secretary to the Treasury; or
(h) is engaged in active politics. (7) The Minister may, remove a member of the Board under
subsection (1) (b) from office on the following grounds:
(a) breach of any provision of this Act;
(b) gross misconduct;

ve a member of the Board under
subsection (1) (b) from office on the following grounds:
(a) breach of any provision of this Act;
(b) gross misconduct;

Bank of Zambia42 No. 5 of 2022]
(c) has been convicted of an offence and sentenced to a
term of imprisonment exceeding six months without
an option of a fine. (8) A member of the Board may resign from office at any time,
by giving a notice, in writing, to the Minister. (9) The First Schedule applies to the Board. 8. (1) The Board is the governing body of the Bank.

ime,
by giving a notice, in writing, to the Minister. (9) The First Schedule applies to the Board. 8. (1) The Board is the governing body of the Bank.

(2) Subject to the Constitution and this Act, the functions of
the Board are to—
(a) have oversignt over the operations and affairs of the Bank;
(b) provide strategic policy direction to the Bank;
(c) provide effective governance of the Bank;
(d) approve the regulations and regulatory statements to be
issued by the Bank;
(e) approve the Bank’s budget;
(f) approve the annual report;
(g) approve recommendations specified in any other written
law that the Bank is required to make;
(h) approve the terms and conditions of engagement of the
Bank’s agents and correspondents;
(i) establish and close subsidiaries, branch offices and
agencies of the Bank;
(j) approve the policies applicable to the administration and
operations of the Bank;
(k) recommend t he fees and allowances for members of the
Board,other than the Governor, for approval by the
Minister;
(l) determine the accounting policies and a pprove the financial
statements of the Bank;
(m) determine and ensure the establishment of an effective
risk management structure;
(n) ensure good corporate governance of the Bank;
(o) establish special reserves on the books of the Bank;
(p) establish occupational pension schemes for staff of
the Bank in accordance with the relevant law;
(q) permit the Bank to grant loans to the Bank’s staff or
guarantee such loans from any financial service
provider;
(r) approve appointment of external auditors of the Bank;
and
(s) approve the charter and the appointment of the head
internal audit function of the Bank.

approve appointment of external auditors of the Bank;
and
(s) approve the charter and the appointment of the head
internal audit function of the Bank.

Functions of
Board
Cap. 1

Functions of
Board
Cap. 1

Bank of Zambia [No. 5 of 2022 43
9. The Board may delegate to the Governor any of the Board’s
functions under this Act. 10. (1) The Governor is the chief executive officer of the Bank
and responsible for the d ay-today management of the affairs of
the Bank and is subject to the general or specific directions of
the Board. (2) The Governor may delegate to the Deputy- Governor or
another member of staff or committee of the Bank any f unctions
conferred on the Governor by the Board under section 9. (3) The Governor shall hold office for a term of six years and
may be re-appointed for a further term of six years. (4) The Governor shall submit to the Bank a declaration of the
assets and liabilities, businesses and financial interests in the Form
set out in the Second Schedule-
(a) wit hin thirty days of appointment or of the coming int o
operation of this Act; and
(b) at the expiry or termination of employment irrespective
of the reason for termination.

pointment or of the coming int o
operation of this Act; and
(b) at the expiry or termination of employment irrespective
of the reason for termination.

(5) Where the office of Governor becomes vacant or the
Governor is unable to perform the functions of the office due to
illness or other cause, the President may appoint a Deputy-
Governor to perform the executive functions of the Governor for
a period not exceeding twelve months. 11. (1) The President shall appoint two Deputy- Governors. (2) A person qualifies for appointment as Deputy-Governor
if the person qualifies for appointment as Governor. (3) The Deputy-Governor shall serve for a term of five years
and may be re- appointed for a further term of five years. (4) The Deputy-Governor shall exercise powers and perform
functions as the Governor may delegate to the Deputy-Governor. (5) The Deputy-Governor shall submit to the Bank a declaration
of the assets and liabilities, businesses and financial interests in the
Form set out in the Second Schedule—
(a) within thirty days of appointment or of the coming into
operation of this Act; and
(b) at the expiry or termination of employment irrespective
of the reason for termination. Delegation of
functions of
Board
Governor
Deputy-
Governor

(b) at the expiry or termination of employment irrespective
of the reason for termination. Delegation of
functions of
Board
Governor
Deputy-
Governor

Bank of Zambia44 No. 5 of 2022]
12. (1) Subject to subsection (2), the Governor and the Deputy-
Governors shall not, during their tenure of office, engage in any
business, profession, or employment, whether remunerated or not
which shall interfere or compromise the discharge of their duties. (2) Despite subsection (1), the Governor or Deputy-Governor
may—
(a) act as a member of a board or commission appointed by
the Government;
(b) serve as a governor, alternate governor, director or member
of any organ of any international monetary authority or
other international institution established under any
agreement or convention to which the Government has
acceded, has an interest in, or has given its support or
approval; or
(c) serve as a member of the board of a corporation
established by the Government for the purpose of
insuring deposits in a bank or other financial service
provider. 13. (1) The Governor or Deputy-Governor may resign from
office at any time by giving three months notice in writing to the
President.

ervice
provider. 13. (1) The Governor or Deputy-Governor may resign from
office at any time by giving three months notice in writing to the
President.

(2) A Governor or Deputy- Governor shall be removed from
office if the Governor or Deputy- Governor—
(a) breaches any provision of this Act;
(b) commits gross misconduct;
(c) is incompetent;
(d) is bankrupt;
(e) is legally disqualified from performing their functions; or
(f) is convicted of an offence and sentenced to imprisonment
for a term of not less than six months without the option
of a fine. (3) The President shall, where the President considers removing
a Governor or Deputy-Governor under this section, appoint a tribunal
to inquire into the matter and submit its findings and
recommendations to the President. (4) The tribunal appointed under subsection (3), shall consist
of—
(a) one person who holds or has held office as a judge of a
superior court, as chairperson; and
Prohibition
of Governor
and Deputy-
Governor to
engage in
other
business,
profession or
employment
Resignation
or removal of
Governor or
Deputy-
Governor

hibition
of Governor
and Deputy-
Governor to
engage in
other
business,
profession or
employment
Resignation
or removal of
Governor or
Deputy-
Governor

Bank of Zambia [No. 5 of 2022 45
(b) two other persons with knowledge and experience in
the field of central banking, economics, banking,finance,
law or other disciplines relevant to central banking. (5) The President may, on appointment of the tribunal, grant
the Governor or a Deputy-Governor leave of absence. (6) The tribunal shall investigate and conclude the question of
removing the Governor or Deputy-Governor within fourteen days
of commencement of the investigation and submit its report,
containing reasons for its recommendation, to the President within
seven days of concluding its investigations. (7) The President shall remove the Governor or Deputy-
Governor from office if the tribunal recommends to the President
that the Governor or Deputy-Governor should be removed from
office. (8) The tribunal shall, as soon as is practicable but not later
than thirty days after submitting the report to the President, submit
a copy of the tribunal’s report to the National Assembly for the
National Assembly’s information. 14. The Board shall appoint the staff of the Bank that the
Bank considers necessary for the performance of its functions. 15.

Assembly’s information. 14. The Board shall appoint the staff of the Bank that the
Bank considers necessary for the performance of its functions. 15.

(1) The Emoluments Commission shall, on the
recommendation of the Minister, determine the emoluments of the
Governor and Deputy-Governor. (2) The Minister shall determine the terms and conditions of
service, other than emoluments, of the Governor and Deputy-
Governor. (3) The Emoluments Commission shall, on the
recommendation of the Board, determine the emoluments of the
other staff of the Bank. (4) The Board shall determine the terms and conditions of
service, other than emoluments, of the other staff of the Bank. (5) Despite subsections (1) and (3), the emoluments payable
shall not be computed by reference to the profits of the Bank. (6) A member of staff engaged in the provision of security
services to the Bank and its operations shall not be a member of a
trade union. Staff of Bank
Emoluments
and other
terms and
conditions
of service of
Governor,
Deputy-
Governor
and other
staff

all not be a member of a
trade union. Staff of Bank
Emoluments
and other
terms and
conditions
of service of
Governor,
Deputy-
Governor
and other
staff

Bank of Zambia46 No. 5 of 2022]
(7) For purposes of this section, “security services” includes
the protection of tangible and intangible assets, provision of security
to Bank employees and providers of outsourced services. PART III
MONETARY UNIT, BANKNOTES AND COIN ISSUE
16. (1) The units of currency for the Republic is the Kwacha
and Ngwee. (2) The denomination of money in the currency of the Republic
is the Kwacha, abbreviated as “K” and the ngwee, abbreviated as
“N” or as “n”. (3) One ngwee is the one-hundredth part of the Kwacha. 17. (1) The right to issue banknotes, coins and other forms of
the currency considered appropriate in the Republic vests
exclusively in the Bank. (2) The Bank may, where the Board considers it necessary and in
consultation with the Minister, issue coins and banknotes of any
denomination for purposes other than monetary use and may designate
those coins and banknotes to be legal tender within the Republic
and every such issue shall be published in the Gazette.

onetary use and may designate
those coins and banknotes to be legal tender within the Republic
and every such issue shall be published in the Gazette.

(3) A person, other than the Bank, who issues in the Republic
notes or coins or other documents or token which are payable to
bearer on demand or purports to be the currency of the Republic or
the currency of any other country commits an offence and is liable,
on conviction, to a fine not exceeding one million penalty units or
to imprisonment for a term not exceeding ten years, or to both. 18. (1) The Kwacha and ngwee is the sole legal tender in the
Republic. (2) A tender of payment of money shall be legal tender if it is in
notes, coins or such other form considered appropriate by the Bank
and is made or issued by the Bank under this Act. (3) A banknote or coin issued as legal tender by the Bank and
not withdrawn from circulation shall be accepted, at the banknote
or coin face value, in payment of all domestic transactions. (4) Subject to subsection (5), a person who contravenes this
section commits an offence and is liable, on conviction, to a penalty
not exceeding five million penalty units or to imprisonment for a
term not exceeding five years, or to both. Currency of
Republic
Authority
to issue
bank notes
and coins
Legal tender

ty units or to imprisonment for a
term not exceeding five years, or to both. Currency of
Republic
Authority
to issue
bank notes
and coins
Legal tender

Bank of Zambia [No. 5 of 2022 47
(5) The Bank may impose an administrative sanction for a
violation of this section. 19. The Bank shall, in consultation with the Minister, determine
by regulation the face value, measures, weights, designs and other
features of a banknote and coin that is legal tender. 20. (1) The Bank shall—
(a) print banknotes and mint coins;
(b) ensure the security and safekeeping of unissued
banknotes and coins;
(c) undertake the custody and destruction of plates, dies and
withdrawn banknotes and coins; and
(d) issue currency in a form it considers appropriate. (2) The Bank shall directly administer the currency reserve
inventory and ensure the regular supply of banknotes and coins in
order to meet the currency requirements of the economy. 21. (1) Subject to this section, the Bank may, on the request of
any person, exchange, without charge or commission, banknotes
and coins that are mutilated or damaged. (2) The Bank may determine and publish in the Gazette the
conditions under which mutilated or otherwise damaged banknotes
may be exchanged by the Bank.

2) The Bank may determine and publish in the Gazette the
conditions under which mutilated or otherwise damaged banknotes
may be exchanged by the Bank.

(3) The Bank shall not, except in its sole discretion, exchange
banknotes or coins that are perforated, cut, clipped, broken or
otherwise marked or defaced or the design of which is not
recognisable. 22. (1) The Bank shall withdraw and destroy unfit currency. (2) For the purposes of this section, “unfit currency” means
currency that has lost its security features and includes soiled,
defaced, illegible or perforated currency and currency that is mutilated
in any other way. 23. (1) A person shall not be entitled to recover from the Bank
the value of any forged, lost, stolen banknotes or coins. Currency
features
Currency
production
safekeeping
and
inventory
Currency
exchange
Management
of unfit
currency
Exchange of
forged, lost,
or stolen
banknotes or
coins

es
Currency
production
safekeeping
and
inventory
Currency
exchange
Management
of unfit
currency
Exchange of
forged, lost,
or stolen
banknotes or
coins

Bank of Zambia48 No. 5 of 2022]
(2) Despite subsection (1), the Bank shall be liable for any loss,
suffered by a person, arising out of the negligence or misconduct of
a member of the Board, staff or agent of the Bank committed in
the course of that person’s official duties. 24. The aggregate amount of circulating banknotes and
coins shall be noted in the accounts of the Bank as a liability of the
Bank, which liability shall not include banknotes and coins in the
currency reserve inventory. 25. (1) The Bank may call in, and withdraw from circulation,
any banknotes or coins that are circulating within the Republic,
and may issue other banknotes or coins of equivalent amounts in
exchange. (2) The Minister shall, by statutory instrument, prescribe the
manner of withdrawal from circulation of banknotes or coins under
subsection (1), and the period during which the banknotes or coins
shall be presented for exchange, and the offices of the Bank where
the banknotes or coins are to be presented. (3) At the end of the exchange period under subsection (2),
banknotes and coins called in for exchange shall cease to be legal
tender. 26.

presented. (3) At the end of the exchange period under subsection (2),
banknotes and coins called in for exchange shall cease to be legal
tender. 26.

(1) The Bank shall cause the enforcement of any law, in
the Republic, relating to the forgery of notes or counterfeiting of
banknotes and coins. (2) A certification by a duly authorised staff of the Bank that
an item in question is or is not genuine shall be prima facie evidence
of that fact in any legal proceedings in the Republic. (3) Where a person is convicted of an offence under this Act or
any other written law relating to the forgery of banknotes or
counterfeiting of banknotes and coins, the court shall, in addition to
the penalty imposed, order that a banknote, coin, article, instrument,
machinery or equipment used in the commission of the offence be
surrendered to the Bank for destruction or disposal. PART IV
MONETARY POLICY
27. (1) There is established a Monetary Policy Committee of
the Bank. (2) The Monetary Policy Committee shall formulate the
monetary policy of the Republic on behalf of the Bank. Accounting
treatment of
currency
issued
Currency
recall
Counterfeit
notes and
coins
Monetary
Policy
Committee

y of the Republic on behalf of the Bank. Accounting
treatment of
currency
issued
Currency
recall
Counterfeit
notes and
coins
Monetary
Policy
Committee

Bank of Zambia [No. 5 of 2022 49
(3) The Bank shall implement the monetary policy formulated
by the Monetary Policy Committee under subsection (2) in order to
achieve and maintain price stability. (4) The formulation and implementation of the monetary policy
under this section shall be conducted autonomously without any
external influence. (5) The Monetary Policy Committee shall regulate its own
procedure. 28. (1) The Monetary Policy Committee consists of the
following members:
(a) the Governor, who shall be the chairperson;
(b) the Deputy-Governors;
(c) one person appointed by the Minister;
(d) two persons appointed by the Board; and
(e) three members of staff of the Bank, in senior management
appointed by the Governor each—
(i) responsible within the Bank for research or
economic policy;
(ii) responsible within the Bank for monetary policy
operations; and
(iii) responsible within the Bank for financial stability. (2) The D e puty-G overnor responsible for the monetary policy
shall be the vice- chairperson of the Monetary Pol icy Committee.

financial stability. (2) The D e puty-G overnor responsible for the monetary policy
shall be the vice- chairperson of the Monetary Pol icy Committee.

(3) A person appointed under subsection (1) shall —
(a) before performing the functions of a member of the
Monetary Policy Committee take an oath or affirmation,
and sign the form set out in the Third Schedule; and
(b) during the performance of the functions as a member
of the Monetary Policy Committee, be subject to the
Code of Conduct set out in the Fourth Schedule. (4) A person appointed by the Minister and Board under
subsection (1)(c) and (d), respectively -
(a) shall not be a member of staff of the Bank, a member
of the Board or a public officer;
(b) shall be a person of recognised professional, academic
standing and experience in the fields of economics,
banking or other fields relevant to central banking;
Composition
of Monetary
Policy
Committee

emic
standing and experience in the fields of economics,
banking or other fields relevant to central banking;
Composition
of Monetary
Policy
Committee

Bank of Zambia50 No. 5 of 2022]
(c) shall hold office for a period of three years;
(d) shall be remunerated at a rate that the Emoluments
Commission may, on the recommendation of the Minister,
determine;
(e) shall be subject to the provisions relating to disqualification
and removal from office of the members of the Board;
and
(f) may be removed from office for contravention of the
Code of Conduct set out in the Fourth Schedule. 29. (1) The Monetary Policy Committee shall, after each
meeting, publish in a manner that the Bank considers appropriate, a
statement of its decisions. (2) The Monetary Policy Committee shall, at least once a year
and in addition to the publication of the statement under subsection
(1), publish a Monetary Policy Report. 30. The Monetary Policy Committee may, after each meeting,
publish minutes of the meeting in a manner that the Bank considers
appropriate. PART V
FINANCIAL STABILITY
31. (1) There is established a Financial Stability Committee
for the Bank. (2) The Financial Stability Committee shall formulate the
macro-prudential policies of the Republic on behalf of the Bank.

ity Committee
for the Bank. (2) The Financial Stability Committee shall formulate the
macro-prudential policies of the Republic on behalf of the Bank.

(3) The Bank shall implement the macro-prudential policies
formulated by the Financial Stability Committee under subsection (2)
in order to achieve and maintain financial stability. (4) The formulation and implementation of the macro-prudential
policies under this section shall be conducted autonomously without
any influence. (5) The Financial Stability Committee shall regulate its own
procedure. Publication
of statement
of decisions
Publication
of minutes
Financial
Stability
Committee

ncial Stability Committee shall regulate its own
procedure. Publication
of statement
of decisions
Publication
of minutes
Financial
Stability
Committee

Bank of Zambia [No. 5 of 2022 51
32.

Bank of Zambia [No. 5 of 2022 51
32.

(1) The Financial Stability Committee consists of the
following members:
(a) the Governor, who shall be the chairperson;
(b) the Deputy-Governors;
(c) a representative of the Secretary to the Treasury;
(d) a representative of the authority responsible for
regulating and supervising the securities market;
(e) a representative of the authority responsible for
regulating and supervising the pensions and insurance
market;
(f) two persons appointed by the Board, who shall—
(i) not be members of staff of the Bank, members
of the Board of Directors or public officers;
(ii) be persons of recognised professional, academic
standing and experience in the fields of
economics, banking, finance or other fields
relevant to central banking;
(iii) hold office for a period of three years; and
(iv) be remunerated at a rate that the Emoluments
Commission may, on the recommendation of
the Minister, determine;
(g) three members of staff of the Bank, in senior management
appointed by the Governor each—
(i) responsible within the Bank for research or
economic policy;
(ii) responsible within the Bank for financial stability;
and
(iii) responsi ble wit hin the Bank for legal ma tte rs.

or research or
economic policy;
(ii) responsible within the Bank for financial stability;
and
(iii) responsi ble wit hin the Bank for legal ma tte rs.

(2) The Dep u ty-Governor responsible for financial stability
shall be the vice- chairperson of the Financial Stability Committee. Composition
of Financial
Stability
Committee

responsible for financial stability
shall be the vice- chairperson of the Financial Stability Committee. Composition
of Financial
Stability
Committee

Bank of Zambia52 No. 5 of 2022]
(3) A person appointed under subsection (1) shall —
(a) before performing the functions of a member of the Financial
Stability Committee, take an oath or ffirmation, and sign
the Form set out in the Third Schedule; and
(b) during the performance of the functions as a member of
the Financial Stability Committee, be subject to the Code
of Conduct set out in the Fourth Schedule. (4) The members of the Financial Stability Committee under
subsection (1) ( c), (d) (e) and (f)—
(a) shall be subject to the provisions relating to disqualification
and removal from office of the members of the Board;
and
(b) may be removed from office for contravention of the
Code of Conduct set out in the Fourth Schedule. 33. The Bank may, for the purposes of promoting financial
stability under this Part—
(a) enter into arrangements to co-operate with a supervisory
authority and co- ordinate financial stability measures with
the supervisory authority; and
(b) obtain any information or document from, or share any
information or document with, any other supervisory
authority if the Bank considers it necessary
that the information or document be so obtained or shared. 34.

on or document with, any other supervisory
authority if the Bank considers it necessary
that the information or document be so obtained or shared. 34.

(1) The Financial Stability Committee shall, after each
meeting, publish in a manner the Bank considers appropriate, a
statement on the financial stability of the Republic. (2) The Financial Stability Committee shall, at least once a year
and in addition to the statement under subsection (1), publish a
Financial Stability Report. PART VI
BANK’S RELATIONSHIP WITH GOVERNMENT
35. (1) The Bank shall act as an economic advisor to the
Government on matters within the competence of the Bank. (2) The Minister may request the Bank to render advice and
furnish reports on matters relatin g to the objectives and functions
of the Bank. Cooperation
with other
supervisory
authorities
Publication
of Financial
Stability
report
Advisor to
Government

e objectives and functions
of the Bank. Cooperation
with other
supervisory
authorities
Publication
of Financial
Stability
report
Advisor to
Government

Bank of Zambia [No. 5 of 2022 53
36. (1) Subject to this Act, the Bank is the banker to th e
Government on terms and conditions that may be agreed between
the Bank and the Minister. (2) D espite subsection (1) the Government—
(a) may appoint a financial institution or bank to act as its
agent in the execution of its banking transactions;
(b) may maintain cash balances with, and generally use the
services of, a financial institution or bank; and
(c) shall provide information to the Bank on the cash balances
maintained in banks and other financial institutions. 37. The Bank—
(a) is the fiscal agent for the Government; and
(b) may serve as a depository or financial intermediary for
any international financial institution of which the
Republic may be a member. 38. The Bank shall not advance funds to the Government
except as provided in section 39 and on terms and conditions that
may be agreed between the Bank and the Minister. 39.

advance funds to the Government
except as provided in section 39 and on terms and conditions that
may be agreed between the Bank and the Minister. 39.

(1) Subject to section 38, the Bank shall not directly or
indirectly, at any time, give credit to the Government by way of short
term advances, purchases of securities in a primary issue, or any
other form or extension of credit that exceeds fifteen percent of
the ordinary revenue of Government in the previous financial year. (2) If, in the opinion of the Bank, the limitation provided for in
subsection (1), is likely to be exceeded, the Bank shall submit to
the Minister a report stating the—
(a) details of the amounts then outstanding of the funds
advanced and credit facilities extended by the Bank and
the Bank’s holding of securities under subsection(1);
(b) causes which are likely to lead to such limitation being
exceeded; and
(c) Bank’s recommendation to forestall or otherwise remedy
the situation. (3) The Bank shall continue to make further reports and
recommendations to the Minister on the matters under subsection
(2), at intervals of not more than six months until a time that, in the
Bank’s opinion, the situation has been rectified. Banker to
Government
Fiscal Agent
Advances to
Government
Limitations
on lending to
Government

in the
Bank’s opinion, the situation has been rectified. Banker to
Government
Fiscal Agent
Advances to
Government
Limitations
on lending to
Government

Bank of Zambia54 No. 5 of 2022]
(4) Where the limitation provided for in subsection (1) is
exceeded, the Bank shall immediately advise the Minister of that
fact and shall not allow any further increase, whether directly or
indirectly, in the aggregate amount of the funds advanced and
credit facilities extended by the Bank and the Bank’s holding of
securities under subsection (1). (5) For purposes of this section, “short term advances” means
lending to Government for a period not exceeding twelve months. 40. (1) The Bank may, in the Bank’s implementation of
monetary policy—
(a) operate in the secondary market by purchasing and selling
debt securities issu ed by the Government; and
(b) issue and trade its own debt instruments in the market. (2) Except for purposes of implementation of monetary and
financial stability policies, the Bank may not purchase, for its own
account, debt securities issued or guaranteed by the Government or
other debt securities prescribed by the Bank. 41.

ank may not purchase, for its own
account, debt securities issued or guaranteed by the Government or
other debt securities prescribed by the Bank. 41.

The Bank shall act as an agent for the Government in the
paymen t of interest and principal debt in respect of the issue and
management of the public debt of the Republic, when authorised
by the Minister or by law to do so, and on terms and conditions
that may be agreed by the Minister and the Bank. 42. (1) Without prejudice to the powers of the Bank to formulate
and implement monetary policy and to any other provisions of this
Act, the Bank shall consult with the Minister, when necessary, to
ensure co-ordination between monetary and fiscal policies. (2) The Minister may, in writing, convey to the Bank the general
economic and financial policy of the Government. (3) The Bank and the Government shall agree the terms on
which the Government or any Government department or agency
shall supply any financial and economic information or documentation
that the Bank may reasonably require for the purpose of discharging
its functions under this Act. Acquisition
of securities
issued or
guaranteed
by
Government
Management
of public
debt
Consultation
and exchange
of
information

ctions under this Act. Acquisition
of securities
issued or
guaranteed
by
Government
Management
of public
debt
Consultation
and exchange
of
information

PART VII
BANK’S RELATIONSHIP WITH FINANCIAL SERVICE PROVIDERS
43. The Bank may operate accounts for banks and financial
institutions on terms and conditions, that the Board may determine. 44. (1) The Bank may purchase from, sell to, discount and
rediscount, from banks or financial institutions on terms and
conditions that the Bank may determine, any of the following:
(a) bills of exchange and promissory notes drawn or made of
types approved by the Bank;
(b) Government securities; and
(c) any other instrument approved by the Bank. (2) Subject to subsection (3), the Bank may grant advances
to banks or financial institutions, whether by loans or overdrafts,
for periods not exceeding one hundred and eighty days and secured
by—
(a) instruments specified in subsection (1);
(b) warehouse warrants and documents of title issued in
respect of staple commodities or other goods duly
insured, except that the Bank shall determine the
maximum percentage of advances in relation to the
current value of the commodities or goods;
(c) holdings of any assets the Bank is permitted to buy, sell,
or deal in under this Act; or
(d) securities issued or guaranteed by the Government.

s;
(c) holdings of any assets the Bank is permitted to buy, sell,
or deal in under this Act; or
(d) securities issued or guaranteed by the Government.

(3) An advance under subsection (2) shall not be made
available to a bank or financial institution if the total of advances
made by the Bank to the bank or financial institution cumulatively
is equal to or exceeds one hundred percent of the deposit liabilities
of that bank or financial institution. (4) Despite subsections (1) and (2), the Bank may in
exceptional circumstances—
(a) grant advances or contingent commitments to banks or
financial institutions if, in the opinion of the Bank, the
advance or commitment is necessary having regard to
the financial stability and the financial condition of the
bank or financial institution; or
(b) subject to subsection (5), grant advances or contingent
commitments to a bank or financial institution in distress
if, in the opinion of the Bank, the bank or financial
institution—
Banker to
banks and
financial
institutions
Bank’s
service to
financial
service
providers
Bank of Zambia No. 5 of 2022 55

ank or financial
institution—
Banker to
banks and
financial
institutions
Bank’s
service to
financial
service
providers
Bank of Zambia No. 5 of 2022 55

(i) does not constitute a systemic risk to the financial
sector at market price; and
(ii) constitutes a systemic risk to the financial sector
at a price that the Bank, after consultation with
the Minister, considers appropriate. (5) The Bank may grant advances and contingent commitments
under subsection (4)(b) if—
(a) the Bank is satisfied that the bank or financial institution
in distress shall be able to repay the amount granted,
including any additional costs, and that adequate
arrangements regarding the repayment have been
made or;
(b) in case of subsection (4) (b) (ii), the
Minister—
(i) agrees, in writing, with the advance or commitment within
twenty-four hours of a proposal having been submitted
by the Bank to that effect; and
(ii) has confirmed, in writing, that separate funds or debt
securities in bearer form with interest at market rates
shall be made available by the Government to cover the
advance or full amount of the commitment provided in
the event that it is realised. (6) Despite this section, the Bank may, without providing any
reason, refuse to discount any of the instruments under subsection
(1). 45.

is realised. (6) Despite this section, the Bank may, without providing any
reason, refuse to discount any of the instruments under subsection
(1). 45.

The Bank may fix and publicly announce the rates for
discounts, re-discounts, advances, loans or overdrafts. 46. (1) The Bank may, by Gazette and by written notice to
the main office of each financial service provider in the Republic,
prescribe—
(a) the reserves required to be maintained by a financial
service provider, including marginal required reserves,
against deposit and other similar liabilities of a bank that
may be specified for this purpose; and
(b) the proportion of reserves a financial service provider
may maintain by way of cash holdings or deposits in a
prescribed account with the Bank, or both. 56 No. 5 of 2022] Bank of Zambia
Publication
of Bank’s
rates
Cash reserve
requirement
for financial
service
provider

d account with the Bank, or both. 56 No. 5 of 2022] Bank of Zambia
Publication
of Bank’s
rates
Cash reserve
requirement
for financial
service
provider

(2) Subject to subsection (3), the Bank may prescribe different
reserve ratios for different classes of deposits and other similar
liabilities and may specify the method of their computation. (3) The reserve ratios specified under subsection (2) shall be
uniform for all financial service providers in the same class but the
ratios may differ between different classes of financial service
providers and a prescription of, or change in, the required reserve
ratios shall be effective as prescribed. (4) A financial service provider may, subject to the charges
prescribed by the Bank, withdraw the required reserves held with
the Bank for the purpose of meeting its existing liabilities and may
further serve as a basis for the clearance of cheques and the
settlement of balances among financial service providers, except
that the bank shall repay the withdrawal within the period prescribed
by the Bank. 47.

ettlement of balances among financial service providers, except
that the bank shall repay the withdrawal within the period prescribed
by the Bank. 47.

(1) The Bank may, by Gazette—
(a) determine the mimum ratio of liquid assets which a financial
service provider is required to hold;
(b) determine the minimum reserve balance which a financial
service provider shall maintain with the Bank;
(c) determine the class or classes of assets which qualify as
liquid assets under this section; and
(d) specify the class or classes of liabilities against which
the ratio requirement may be calculated. (2) A financial service provider shall, where the Bank at any
time increases any of the ratios under subsection (1) (d),be given a
specifid period in which to comply. (3) The Bank may require a financial service provider to
furnish information that the Bank may consider necessary to
satisfy itself that the financial service provider concerned is
complying with this section. (4) The Bank may, where the Bank holds a balance in an
account for a depositor who is subject to a regulation under
subsection (1)(a) or (b), pay interest on the balances, on terms and
conditions, that the Bank considers appropriate.

is subject to a regulation under
subsection (1)(a) or (b), pay interest on the balances, on terms and
conditions, that the Bank considers appropriate.

(5) A financial service provider shall, where a financial service
provider that is subject to subsection (1) (a) or (b) fails to maintain
a balance in the financial service provider’s account with the Bank
sufficient to comply with that financial service provider’s duty
under that subsection, pay to the Bank daily interest calculated on
the amount that the financial service provider’s balance is deficient
at the rate determined by the Bank for that purpose. Bank of Zambia [No. 5 of 2022 57
Minimum
liquidity
asset ratios
and reserve
requirements

eficient
at the rate determined by the Bank for that purpose. Bank of Zambia [No. 5 of 2022 57
Minimum
liquidity
asset ratios
and reserve
requirements

(6) The Bank may impose on a financial service provider that
fails to maintain required reserves in the appropriate ratio prescribed
under this section a penalty rate determined by the Bank on the
amount of the deficiency. (7) A penalty rate under subsection (6) is payable to the Bank
on the date specified by the Bank and may be recovered by
deduction from any balance held by the financial service provider
with the Bank. 48. (1) The Bank may, by Gazette and a notice in writing to
the main office in the Republic of a financial service provider,
determine the manner of disclosure to the public of —
(a) the effective annual interest rate payable in respect of
deposits made with the financial service provider;
(b) the terms of obtaining credit including the effective
annual interest rate payable in respect of the credit
obtained; and
(c) fees, commissions and other charges payable. (2) The Bank may apply the requirements under subsection
(1) to a financial service provider whose principal objective is the
extension of credit to the public generally or to a participating group,
during any calendar year.

l service provider whose principal objective is the
extension of credit to the public generally or to a participating group,
during any calendar year.

(3) A notice issued under this section shall come into effect
on a date specified in the notice, which shall be a date not earlier
than five working days after the issue date, except that the Bank
may, in the notice, differentiate among financial service providers
in respect of the items set out in subsection (1), depending on the
nature of the business. (4) A financial service provider that is in breach of the disclosure
requirements under subsection (1) may be required to pay to the
Bank a penalty, for each violation, as prescribed in the Gazette. 49. The Bank may, at any time, consult with financial service
providers on any matter that the Bank considers necessary. 50. (1) The Bank may issue regulatory statements for the
purposes of regulating, developing, or maintaining orderly conditions
or the integrity of, the money market, the foreign exchange market
or the market for the derivatives related to the currencies, securities
and other financial instruments traded in these markets. 58 No. 5 of 2022] Bank of Zambia
Disclosures
by financial
service
providers
Consultation
with
financial
service
providers
Money
market and
foreign
exchange
market

2022] Bank of Zambia
Disclosures
by financial
service
providers
Consultation
with
financial
service
providers
Money
market and
foreign
exchange
market

(2) Without prejudice to the generality of subsection (1), the
regulatory statements may be issued to—
(a) licensed participants or dealers in the money market,
foreign exchange market and market for derivatives;
and
(b) ensure orderly dealings in the markets under paragraph
(a). 51. The Bank may perform regulatory and supervisory
functions and exercise powers that may be assigned to, or conferred
on the Bank, by the Banking and Financial Services Act, 2017 or
any other written law. PART VIII
INTERNATIONAL RESERVES AND FOREIGN EXCHANGE OPERATIONS
52. (1) Without prejudice to the provisions of this Act, the
Government shall, in consultation with the Bank, formulate the
exchange rate policy of the Republic. (2) The Bank shall implement the exchange rate policy. 53.

t shall, in consultation with the Bank, formulate the
exchange rate policy of the Republic. (2) The Bank shall implement the exchange rate policy. 53.

(1) The Bank shall, on the terms and conditions that the
Board may determine, hold the official international reserves which
shall consist of the following:
(a) gold;
(b) foreign exchange in the form of banknotes or coins or
bank balances held abroad, denominated in currencies
and located in countries that the Board may approve;
(c) the facilities to make reserve tranche purchases from
the International Monetary Fund;
(d) holding of special drawing rights;
(e) bill of exchange and promissory notes denominated and
payable in foreign currencies and in places as the Board
may approve;
(f) treasury bills and other securities denominated in foreign
currencies, issued or guaranteed by foreign governments
and payable in places that the Board may approve;
(g) securities issued or guaranteed by international financial
institutions specified by the Board; and
(h) other international reserve asset that the Board may
determine. Bank of Zambia [No. 5 of 2022 59
Regulation
and
supervision
of financial
service
providers
Act No. 7 of
2017
Exchange rate
policy
Maintenance
of official
international
reserves

022 59
Regulation
and
supervision
of financial
service
providers
Act No. 7 of
2017
Exchange rate
policy
Maintenance
of official
international
reserves

(2) The Bank shall endeavour to maintain the official
international reserves under subsection (1), at a level which is
adequate for achieving the functions of the Bank under this Act. 54. The Bank shall be the sole depository of official
international reserves and may designate agents with whom
these reserves may be held. 55. (1) Despite the generality of section 5 (t), the Bank may,
for purposes of maintaining international reserves and conducting
foreign exchange operations—
(a) buy, sell or deal in gold coins or bullion or other precious
metals;
(b) buy, sell, or deal in foreign exchange, using any of
the instruments commonly used by a bank;
(c) purchase and sell money market instruments and other
securities issued or guaranteed by foreign governments
or international institutions;
(d) open and maintain accounts outside the Republic;
(e) open and maintain accounts and act as agents or
correspondents for the institutions under subsection (2)
(c) and (d); and
(f) enter into any other transaction authorised by the Board.

t as agents or
correspondents for the institutions under subsection (2)
(c) and (d); and
(f) enter into any other transaction authorised by the Board.

(2) The Bank shall, for the purposes of subsection (1), contract
with the following institutions:
(a) the Government and its boards and agencies;
(b) a financial service provider operating within or outside
the Republic;
(c) a foreign central bank or monetary authority and its
agencies;
(d) a foreign financial institution;
(e) a supranational institution; and
(f)other institution that the Board may determine to be
appropriate. PART IX
REGULATION AND SUPERVISION OF PAYMENT SYSTEMS
56. (1) The Bank shall designate, manage, regulate and
supervise the payment system in order to—
60 No. 5 of 2022] Bank of Zambia
Bank
depository
of external
assets
Authorised
transactions
and
limitation of
contracting
parties
Mandate
over
payment
system

5 of 2022] Bank of Zambia
Bank
depository
of external
assets
Authorised
transactions
and
limitation of
contracting
parties
Mandate
over
payment
system

(a) ensure its proper functioning so as to preserve the safety,
stability, integrity, transparency, accountability,
effectiveness and efficiency of payment, clearing and
settlement systems and the financial system as a whole;
(b) ensure fair, open and equitable access to the payment
system; and
(c) oversee payment, clearing and settlement systems and
their participants. (2) The Bank may operate accounts for payment service
providers on terms and conditions that the Board may determine. 57. The Bank may perform regulatory and supervisory
functions and exercise powers that may be assigned to, or conferred
on the Bank by the National Payment Systems Act, 2007 or any
other written law regulating payment systems. PART X
GENERAL PROVISIONS
58. (1) The Bank may require a person to furnish any
information and data that the Bank may specify to perform the
Bank’s functions under this Act.

NS
58. (1) The Bank may require a person to furnish any
information and data that the Bank may specify to perform the
Bank’s functions under this Act.

(2) The Bank may publish in aggregate form classes of persons
determined in accordance with the nature of their business the
information or data to be furnished under subsection (1), except
that the Bank shall not publish information that would disclose the
affairs of a customer of a financial service provider unless the
consent of that customer has been obtained in writing. (3) Where the Bank believes that any information or data
supplied by any person for the purposes of subsection (1), is, or
maybe, inadequate or inaccurate , the Bank may, by notice in
writing to that person, require that information or data to be audited
by an auditor approved by the Bank. 59. A person appointed under this Act or employed by the
Bank shall take and subscribe before a Commissioner of Oaths an
oath or affirmation of secrecy as set out in the Fifth Schedule of
this Act. 60. (1) An employee of the Bank, member of the Board,
member of the Monetary Policy Committee, member of the
Financial Stability Committee, or a person appointed under this
Act
Bank of Zambia [No.

Board,
member of the Monetary Policy Committee, member of the
Financial Stability Committee, or a person appointed under this
Act
Bank of Zambia [No.

5 of 2022 61
Regulation
and
supervision
of payment
system Act
No.1 of 2007
Furnishing
of
information
Oath or
affirmation
of secrecy
Confidentiality

5 of 2022 61
Regulation
and
supervision
of payment
system Act
No.1 of 2007
Furnishing
of
information
Oath or
affirmation
of secrecy
Confidentiality

shall not disclose to any person any confidential information
acquired in the course of the performance of their duties, relating
to the affairs of the Bank or a financial service provider except—
(a) for purpose of the performance of their duties or the
exercise of their powers specified under this Act or
any other written law;
(b) when required to do so by a court or under any written
law; or
(c) for the purposes of meeting the requirements of an
agreement or understanding by the Bank with
supervisory authority. (2) Subsection (1) applies to any person who receives
information disclosed in terms of that subsection. (3) The Bank may share confidential information with other
central banks, local and international institutions subject to any
conditions regarding the use of that information by the recipient
that the Bank considers necessary. (4) A person who contravenes subsection (1), commits an
offence and is liable, on conviction, to a fine not exceeding five
hundred thousand penalty units or to a term of imprisonment not
exceeding five years, or to both. 61.

ble, on conviction, to a fine not exceeding five
hundred thousand penalty units or to a term of imprisonment not
exceeding five years, or to both. 61.

The Bank shall carry out, periodically or at times that the
Bank may consider necessary, an examination of any financial
service provider or payment system provider in accordance with
the Banking and Financial Services Act, 2017, the National Payment
Systems Act, 2007 or any other written law. 62. (1) The Bank shall be exempt from the payment of any
taxes levied under the Income Tax Act or any other law in respect
of its profits, operations, capital, property or any transaction, deed,
agreement or promissory note to which it is a party. (2) The Bank shall be exempt from the payment of taxes
or any duties in respect of—
(a) notes or coins issued as currency under this Act; and
(b) any other equipment or machinery connected to the Bank’s
operations. 62 No. 5 of 2022] Bank of Zambia
Examination
of financial
or payment
system
service
providers
Act No. 7 of
2017
Act No. 1 of
2007
Exemption
from taxes
Cap. 323

of 2022] Bank of Zambia
Examination
of financial
or payment
system
service
providers
Act No. 7 of
2017
Act No. 1 of
2007
Exemption
from taxes
Cap. 323

Bank of Zambia [No. 5 of 2022 63
63. Despite anything to the contrary contained in any written
law, where any judgement or order has been obtained against
the Bank, an execution or attachment, or similar process shall not
be issued against the Bank or against any property or asset of the
Bank, except that the Bank may cause to be paid amounts that
may, by the judgement or order, be awarded against the Bank to
the person entitled to the judgment or order. 64. A liability shall not lie against the Bank for exercising a
statutory duty imposed on the Bank under this Act or by any written
law. 65. The Bank may prescribe the fees to be charged and
expenses to be recovered by the Bank arising from the carrying
out of the Bank’s duties or operations under this Act or any other
written law. 66.

and
expenses to be recovered by the Bank arising from the carrying
out of the Bank’s duties or operations under this Act or any other
written law. 66.

(1) A member of the Board who acts as a delegate or
representative of any commercial, financial, industrial or other
person, or receives or accepts directions in relation to that member’s
duties under this Act from that commercial, financial, industrial or
other person commits an offence and is liable, on conviction, to a
fine not exceeding five hundred thousand penalty units or to a term
of imprisonment not exceeding five years, or to both. (2) A member of the Board who does not fully disclose to the
Board any commercial, financial, industrial or other interest that
the member or the member’s relative may have and that becomes
the subject of consideration or action by the Board commits an
offence. (3) A member of the Board or any officer or employee of the
Bank that accepts any gift or advantage personally or on behalf of
a family, business or financial connection, and the acceptance of
that gift or advantage could result in or give the appearance of
partiality in the performance of that member, officer or employee’s
duties under this Act, commits an offence.

uld result in or give the appearance of
partiality in the performance of that member, officer or employee’s
duties under this Act, commits an offence.

(4) A person who is convicted of an offence under subsection
(2) and (3) is liable on conviction—
(a) for a first offence, to imprisonment for a term not exceeding
fourteen years;
(b) for a second or subsequent offence, to a term of
imprisonment of not less than five years but not
exceeding fourteen years; and
Restriction
on execution
against
property
and assets of
the Bank
Restriction of
liability
Fees and
recovery of
expenses
Offences
relating to
directorship
and
acceptance
of gifts

ainst
property
and assets of
the Bank
Restriction of
liability
Fees and
recovery of
expenses
Offences
relating to
directorship
and
acceptance
of gifts

(c) i n addition to any other penalty imposed under this section,
to forfeiture to the State of any pecuniary resource,
property, advantage, profit or gratification received in
the commission of the offence under this section. 67.

to the State of any pecuniary resource,
property, advantage, profit or gratification received in
the commission of the offence under this section. 67.

(1) A person who commits any of the following acts or
omissions commits an offence:
(a) the counterfeiting or performing of any part of the process
of counterfeiting a note or coin of the Bank that is legal
tender, whether committed within or outside the Republic;
(b) the counterfeiting or unlawful alteration or issuance of a
note or coin of the Bank or anything purporting to be
a note or coin of the Bank;
(c) the uttering, tendering, accepting or having in the person’s
possession a note or coin that has been counterfeited,
or unlawfully altered, issued, produced or reproduced
knowing, or reasonably expected to have known, it to
be counterfeited, forged or unlawfully altered, issued,
produced or reproduced;
(d) without the authority of the Bank, produces, reproduces,
engraves or marks on any material any words, figures,
letters, marks, lines or devices, the print of which
resembles any words, figures, letters, marks, lines or
devices peculiar to and use dinoronany note or coin of
the Bank that is legal tender;
(e) without the authority of the Bank, uses, makes, mends,
obtains or knowingly possesses—
(i) any material on which has been produced,
reproduced, engraved or made any such words,
figures, letters, marks, lines or devices; or
(ii) any equipment, including any tool, instrument or
machinery, capable of being used for the
purpose of the commission of any of the
offences contemplated in paragraphs (a), (b)
or (d);
(f) the wilful defacing, soiling or damaging of a note or coin
of the Bank, or without a reasonable excuse the
possession of a defaced, soiled or damaged note or coin
of the Bank, or, without the authority of the Bank, writes
or places any drawing on a note or coin of the Bank that
is legal tender or attaching to the note or coin anything
in the nature of an advertisement;
64 No.

ces any drawing on a note or coin of the Bank that
is legal tender or attaching to the note or coin anything
in the nature of an advertisement;
64 No.

5 of 2022] Bank of Zambia
Offences
relating to
currency

5 of 2022] Bank of Zambia
Offences
relating to
currency

Bank of Zambia [No.

Bank of Zambia [No.

5 of 2022 65
(g) the removing from the premises where banknotes or
coin are manufactured under this Act, without lawful
authority or excuse, any blank or partially printed
banknote paper, printing plate, blank metal sheet, ink,
matrix, master punch, die, collar, piercing and cutting
tool, pattern or mould, or any other tool, machine, engine,
instrument or thing used or employed in, or in connection
with, the printing of notes, minting of coins, or any
useful part of these objects, or any blank or defective
coin of the size, shape and metal composition of any
coin of which the coinage is authorised by this Act, or
any coin or bullion;
(h) the possession, without lawful authority or excuse, of
any of the items specified under paragraph (g);
(i) the fraudulent insertion or use in a machine that vends
merchandise or services or collects fares or tolls, of
anything that is intended to pass for a banknote, coin or
the token of value that the machine is designed to receive
in exchange for the merchandise, service, fare or toll;
(j) the gilding, silvering or colouring of a piece of metal of
a size or figure fit to be coined for the purpose of minting
the metal into counterfeit coin;
(k) the making of a piece of metal into a size or figure fit to
be minted with intent to facilitate the minting of a
counterfeit coin or for the purpose of doing so;
(l) the impairing, diminishing or lightening of any coins of the
Bank with intent that the impaired, diminished or
lightened coin may still pass as a coin of the Bank;
(m) the possession, without lawful authority or excuse, the
disposing of, or dealing with, any filing or clipping, or
any gold or silver bullion or any gold or silver in dust,
solution or other form, produced or obtained by
impairing, diminishing or lightening a coin of the Bank,
knowing that it has been so produced or obtained; and
(n) producing, uttering, tendering, accepting or possessing
any counterfeit foreign note or coins in the Republic.

s been so produced or obtained; and
(n) producing, uttering, tendering, accepting or possessing
any counterfeit foreign note or coins in the Republic.

(2) This section shall be complementary to and not in
derogation of the provisions of the Penal Code relating to forgery,
coining, counterfeiting and similar offences. Cap. 87

complementary to and not in
derogation of the provisions of the Penal Code relating to forgery,
coining, counterfeiting and similar offences. Cap. 87

(3) A person convicted of an offence under subsection (1) is
liable, on conviction—
(a) in the case of an offence under paragraphs (a), (b), (c),
(d), (e), (l), (m) or (n), to a fine not exceeding one
million five hundred thousand penalty units or to a
term of imprisonment not exceeding fifteen years, or to
both;
(b) in the case of an offence under paragraphs (f), (g), (h),
(j) or (k), to a fine not exceeding one million penalty
units, or to a term of imprisonment not exceeding ten
years, or to both; and
(c) in the case of an offence under paragraph (i), to a penalty
which may in law be imposed for the crime of fraud.

ceeding ten
years, or to both; and
(c) in the case of an offence under paragraph (i), to a penalty
which may in law be imposed for the crime of fraud.

(4) For the purposes of this section—
(a) “bullion” means any gold, platinum, silver, nickel, gold
alloys, platinum alloys, silver alloys, nickel alloys or
bronze or other minting alloys in the form of ingots,
bars, strips, sheets, scissel, cuttings, granules, rejected
coins, blanks, filings, sweepings, dross, scrap or wire;
(b) “counterfeit coin” means any coin, other than a coin of
the Bank, resembling or apparently intended to resemble
or pass for a coin of the Bank, and includes a coin of
the Bank prepared or altered so as to resemble or pass
for coin of a higher denomination;
(c) “counterfeit banknotes” means any banknote, other than
a banknote of the Bank, resembling or apparently
intended to resemble or pass for a banknote of the Bank,
and includes a banknote of the Bank prepare or altered
so as to resemble or pass for a banknote of a higher
denomination;
(d) “counterfeiting” includes the making of or a reproduction
of a banknote or coin or a counterfeit by means of a
computer, a photocopy machine or a photographic
technique, minting, stamping, casting or milling or any
other process intended to create a reproduction of a
banknote or coin;
(e) “produce” or “reproduce” includes the production or
reproduction of a banknote or coin by means of
printing, photography, photocopying or any other forms
of copying, enlargement, drawing or computer
techniques, or the publishing of the banknote or coin so
66 No.

tography, photocopying or any other forms
of copying, enlargement, drawing or computer
techniques, or the publishing of the banknote or coin so
66 No.

5 of 2022] Bank of Zambia

5 of 2022] Bank of Zambia

Bank of Zambia [No. 5 of 2022 67
produced or reproduced or making of any tooling,
process, method, metals or things, that would be used
in the production or reproduction of the banknote and
coin; or
(f) a banknote and a coin shall be regarded as defective if it
has been wrongly manufactured and would accordingly
be unfit for issuance as a proper banknote and a coin in
accordance with the standards of manufacture applied
by the institution entrusted with the manufacture of
banknotes and coins for the purposes of this Act. 68. (1) A regulated entity or their respective officers and
agents or any other person to whom sections 48 and 60 on
disclosure of information are applicable commits an offence if
they—
(a) supply false information or fail to furnish any information
required by the Bank; or
(b) furnish false information to the public. (2) A person convicted of an offence under subsection (1) is
liable to a fine not exceeding five hundred thousand penalty units
or to a term of imprisonment not exceeding five years, or to both. 69.

ction (1) is
liable to a fine not exceeding five hundred thousand penalty units
or to a term of imprisonment not exceeding five years, or to both. 69.

A person who commits an offence under this Act for which
no penalty is provided is liable, on conviction, to a fine not exceeding
five hundred thousand penalty units or to a term of imprisonment
not exceeding five years, or to both. 70. (1) The Bank may impose an administrative penalty on a
person for failure to comply with a provision of this Act which is
not an offence. (2) An administrative penalty shall not exceed the amount
prescribed by the Minister, by statutory instrument, for each day
during which the failure continues. (3) An administrative penalty shall be paid to the Bank within
the period prescribed by the Minister. (4) If a person fails to pay an administrative penalty within
the stipulated time under subsection (3), the Bank may, by way of
civil action in a competent court, recover the amount of the
administrative penalty from that person as an amount due and
owing to the Bank. 71.

ay of
civil action in a competent court, recover the amount of the
administrative penalty from that person as an amount due and
owing to the Bank. 71.

Where an offence under this Act is committed by a body
corporate or unincorporate body, with the knowledge, consent or
connivance of a director, manager or shareholder of that body
corporate or unincorporate body that director, manager or
shareholder is liable, on conviction, to the penalty specified for the
offence. Offences
relating to
non-
disclosure of
information
or furnishing
of false
information
General
penalty
Administrative
penalties
Offences by
principal
officers of
body
corporate or
unincorporate
body

ion
or furnishing
of false
information
General
penalty
Administrative
penalties
Offences by
principal
officers of
body
corporate or
unincorporate
body

72. The Bank shall not be liquidated, dissolved or wound up
other than by the Constitution. 73. The Bank may issue regulatory statements for or with
respect to any matter that by this Act is required or permitted by
the Bank, or that is necessary to be prescribed for purposes of
carrying out or giving effect to this Act. 74. (1) The Minister may, on the recommendation of the Bank,
make Regulations for the better carrying out of the provisions of
this Act. (2) Despite the generality of subsection (1), the Regulations
may provide for any contravention that a person is liable to an
administrative penalty as prescribed or to a fine not exceeding one
million penalty units or to a term of imprisonment not exceeding
ten years, or to both. 75. (1) The Bank of Zambia Act, 1996, is repealed. (2) Despite subsection (1), the Sixth Schedule applies to the
savings and transitional arrangements of the Bank. (3) Despite subsection (1), a person who immediately before
the commencement of this Act, held office as a member of the
Board shall hold office as a member of the Board for a period of
six months after which the Minister shall appoint the members of
the Board in accordance with this Act.

ffice as a member of the Board for a period of
six months after which the Minister shall appoint the members of
the Board in accordance with this Act.

68 No. 5 of 2022] Bank of Zambia
Liquidation,
dissolution or
winding up of
Bank Cap. 1
Regulatory
statement
Regulations
Repeal of
Act No. 43
of
1996 and
savings and
transitional
provisions

dation,
dissolution or
winding up of
Bank Cap. 1
Regulatory
statement
Regulations
Repeal of
Act No. 43
of
1996 and
savings and
transitional
provisions

FIRST SCHEDULE
(Sections 3(2) and 7(9))
ADMINISTRATION OF BANK
PART I
BOARD OF BANK
1. (1) The seal of the Bank shall be such device as may be
determined by the Board and shall be kept by the Governor or an
officer designated by the Governor. (2) The Board may use a wafer or rubber stamp in lieu of the
seal. (3) The affixing of the seal shall be in accordance with a resolution
of the Board and shall be authenticated by a minimum of two
members of the Board. (4) A contract or instrument which, if entered into or executed
by a person not being a body corporate, would not be required to be
under seal, may be entered into or executed without a seal on behalf
of the Bank by the Governor, Deputy-Governor or another member
of the Board generally or specifically authorised by the Board in
that behalf. (5) Any document purporting to be a document under the seal
of the Bank or issued on behalf of the Bank shall be received in
evidence and shall be deemed to be so executed or issued, without
further proof, unless the contrary is proved. 2.

lf of the Bank shall be received in
evidence and shall be deemed to be so executed or issued, without
further proof, unless the contrary is proved. 2.

(1) Subject to the other provisions of this Act, a member of
the Board under section 7(1)(b) shall hold office for a term not
exceeding three years and may be re-appointed for a term not
exceeding three years. (2) The office of a member of the Board becomes vacant if
that member—
(a) dies;
(b) is adjudged bankrupt;
(c) is absent from three consecutive meetings of the Board
of which the member of the Board has had notice,
without the prior approval of the Board;
(d) resigns from office;
(e) is removed from office in accordance with this Act;
(f) is legally disqualified from performing the functions of a
member; or
Seal of Bank
Tenure of
office and
vacancy
Bank of Zambia [No. 5 of 2022 69

;
(f) is legally disqualified from performing the functions of a
member; or
Seal of Bank
Tenure of
office and
vacancy
Bank of Zambia [No. 5 of 2022 69

(g) is convicted of an offence under this Act or any other
written law and is sentenced to imprisonment for a term
exceeding six months without the option of a fine within
a period of five years preceding the appointment. (3) Subject to the other provisions of this Act, a member of
the Board shall, on the expiration of the period for which the member
of the Board is appointed, continue to hold office until another
member of the Board, is appointed to succeed that member, but in
no case shall the further period exceed three months. (4) The Minister shall, where the office of a member of the
Board becomes vacant, appoint another person in place of the
member of the Board who vacates office, and the members so
appointed shall hold office for a term not exceeding three years. 3. (1) Subject to this Act, the Board may regulate its own
procedure. (2) The Board shall meet for the transaction of business at
least once every three months at a place and time that the Board
may determine.

procedure. (2) The Board shall meet for the transaction of business at
least once every three months at a place and time that the Board
may determine.

(3) The Chairperson may call a meeting of the Board on giving
notice of not less than fourteen days and if not less than one-third
of the members of the Board so request, in writing, except that if
the urgency of a particular matter does not permit the giving of that
notice, a special meeting may be called on giving a shorter notice. (4) Four members of the Board shall constitute a quorum at
a meeting of the Board. (5) There shall preside at a meeting of the Board—
(a) the Governor;
(b) in the absence of the Governor, the Vice-Chairperson;
and
(c) in the absence of the Governor and the Vice-Chairperson,
a member of the Board that the members of the Board
present may elect from among themselves for the
purpose of that meeting. (6) A decision of the Board on any question shall be
determined by a majority of the votes of the members of the
Board present and voting at the meeting and, in the event of an
equality of votes, the person presiding at the meeting shall have, in
addition to a deliberative vote, a casting vote.

meeting and, in the event of an
equality of votes, the person presiding at the meeting shall have, in
addition to a deliberative vote, a casting vote.

(7) The Board may invite any person whose presence is, in
its opinion desirable, to attend and to participate in the deliberation
of a meeting of the Board, but that person shall have no vote. Proceedings
of Board
70 No. 5 of 2022] Bank of Zambia

o participate in the deliberation
of a meeting of the Board, but that person shall have no vote. Proceedings
of Board
70 No. 5 of 2022] Bank of Zambia

(8) The Board shall cause minutes to be kept of the
proceedings of every meeting of the Board and of every committee
of the Board. 4. (1) The Board may constitute committees that it considers
necessary and delegate any of its functions to these committees. (2) The Board may appoint as members of a committee,
persons who are, or are not members of the Board, except that at
least one member of a committee shall be a member of the Board. (3) A person serving as a member of a committee shall hold
office for a period that the Board may determine. (4) Subject to any specific or general direction of the Board, a
committee may regulate its own procedure. 5. (1) A member of the Board, other than the Governor, or a
member of a committee of the Board shall be paid allowances
that the Emoluments Commission may, on the recommendation of
the Minister, determine. (2) There shall be paid from the Funds of the Bank reasonable
travelling, transport and subsistence allowances for members of
the Board or members of a committee of the Board when engaged
in the business of the Bank, at rates that the Emoluments
Committee may, on the recommendation of the Minister, determine. 6.

f the Board when engaged
in the business of the Bank, at rates that the Emoluments
Committee may, on the recommendation of the Minister, determine. 6.

(1) A person who is present at a meeting of the Board or
a committee of the Board at which any matter is the subject of
consideration, and in which matter that person or that person’s
relative or associate is directly or indirectly interested in a private
capacity, shall, as soon as is practicable after the commencement
of the meeting, declare that interest and shall not, unless the Board
or the committee otherwise directs, take part in any consideration
or discussion of, or vote on any question relating to that matter. (2) A disclosure of interest made under subparagraph (1) shall
be recorded in the minutes of the meeting at which it is made. (3) A person who contravenes this paragraph commits an
offence and is liable, on conviction, to a fine not exceeding two
hundred thousand penalty units or to imprisonment for a period
not exceeding two years, or to both. 7.

ble, on conviction, to a fine not exceeding two
hundred thousand penalty units or to imprisonment for a period
not exceeding two years, or to both. 7.

(1) A person shall not, without the consent in writing given
by or on behalf of the Bank, otherwise than in the course of the
duties of that person, publish or disclose to any other person, the
contents of any document, communication or information, which
relates to, or which has come to the knowledge of that person in
the course of that person’s duties under this Act. Committees
Disclosure
and conflict
of interest
Allowances
Prohibition of
publication or
disclosure of
information to
unauthorised
persons
Bank of Zambia [No. 5 of 2022 71

e
and conflict
of interest
Allowances
Prohibition of
publication or
disclosure of
information to
unauthorised
persons
Bank of Zambia [No. 5 of 2022 71

72 No. 5 of 2020] Bank of Zambia
(2) A person who contravenes subparagraph (1) commits
an offence and is liable, on conviction, to a fine not exceeding two
hundred thousand penalty units or to imprisonment for a term
not exceeding two years, or to both. 8. An action or other proceeding shall not lie or be instituted
against a member of the Board, the Monetary Policy Committee,
the Financial Stability Committee, a committee of the Board or a
member of staff of the Bank for, or in respect of, an act or thing
done or omitted to be done in good faith in the exercise or
performance, of any of the powers, functions or duties conferred
under this Act. PART II
FINANCIAL PROVISIONS
9. (1) The net profits of the Bank for each financial profits
year shall be determined in accordance with best international
accounting standards after—
(a) allowing for the expenses of operations of the Bank for
that year;
(b) making provision for —
(i) bad and doubtful debts, depreciation of assets and
contingencies;
(ii) pensions, gratuities and other benefits for its
employees; and
(iii) other matters which are consistent with the
functions of the Bank.

ngencies;
(ii) pensions, gratuities and other benefits for its
employees; and
(iii) other matters which are consistent with the
functions of the Bank.

(2) The unrealised exchange gains will not be included in the
determination of net profits. 10. (1) The general reserve fund of the Bank continued and
maintained in accordance with the repealed Act is continued in
existence as if established and maintained in accordance with this
Act. (2) The Bank shall, at the end of each financial year of the
Bank, transfer to the fund —
(a) thirty-five per centum of the net profits of the Bank as
calculated in accordance with paragraph 9, where the
balance in the general reserve fund is less than three
times of the Bank’s authorised capital; or
(b) twenty per centum of the net profit of the bank as calculated
in accordance with paragraph 9, where the balance in
the general reserve fund is three times the Bank’s
authorised capital, or more. Immunity
Determination
of net profits
General
reserve fund

balance in
the general reserve fund is three times the Bank’s
authorised capital, or more. Immunity
Determination
of net profits
General
reserve fund

(3) The Bank may increase the total amount of the general
reserve fund. (4) Subject to subparagraph (2), thirty-five percent of the
remainder of the net profits for the financial year shall be applied
to the redemption of any securities issued by the Government and
transferred to the ownership of the Bank under section 4(5). (5) Subject to paragraph 9, the balance of the net profits for
the financial year remaining after all deductions under subparagraphs
(2) and (4) have been made shall be paid to the Government as
soon as practicable after the completion of the financial audit at
the end of the financial year. (6) A deduction authorised under subparagraphs (2) and (4)
shall not be required to be made or a payment under subparagraph
(5) shall not be made if, in the judgement of the Board, the assets
of the Bank are, or after the deduction or payment shall be, less
than the sum of its liabilities and paid-up capital. 11.

nt of the Board, the assets
of the Bank are, or after the deduction or payment shall be, less
than the sum of its liabilities and paid-up capital. 11.

(1) Any net unrealised gains in any financial year of the
Bank arising from changes in the valuation of its assets or liabilities
in, or denominated in, gold, special drawing rights, foreign currencies,
or other financial instruments as a result of any change in the values
or exchange rates of gold, special drawing rights, foreign currencies
or other financial instruments in terms of the domestic currency
shall be credited to a revaluation reserve account. (2) Any net unrealised losses in any financial year of the Bank
arising from any changes in the revaluation of foreign denominated
assets and liabilities shall be set off against any credit balance in
the revaluation reserve account at the end of the financial year.

gn denominated
assets and liabilities shall be set off against any credit balance in
the revaluation reserve account at the end of the financial year.

(3) Where after the offset under subparagraph (2), the
revaluation reserve account results into a deficit, the deficit shall
be charged against the profit and loss account for the year, except
if this is insufficient to cover the losses, despite any other provisions
of the Act, the Government shall issue to the Bank negotiable or
nonnegotiable interest bearing government securities only where
non-issuance of the securities shall result in the Bank’s assets being
less than the sum of its capital and liabilities. (4) The securities under subparagraph (3) shall be delivered
to the Bank within the prescribed period from the date of
certification of the accounts by the auditor and the interest payable
on the securities shall be equal to the interest that the Government
pays on securities of one year maturity if those securities are not
outstanding, the interest on whatever other form of Government
indebtedness whose maturity is closest to one year. Treatment of
unrealised
gains or
losses on
certain assets
or liabilities
Bank of Zambia [No. 5 of 2020 73

dness whose maturity is closest to one year. Treatment of
unrealised
gains or
losses on
certain assets
or liabilities
Bank of Zambia [No. 5 of 2020 73

(5) Any credit balance in the revaluation reserve account at
the end of each financial year of the Bank shall be applied first, on
behalf of the Government, to the redemption of all securities issued
under subparagraph (3) and outstanding, and credit balance, if any,
shall be retained in the account to offset future unrealised losses. (6) A credit or debit shall not be made to the revaluation reserve
account except in accordance with this paragraph. 12. (1) Where the Bank incurs a net loss during a financial
year, the loss shall be charged to the general reserve fund and if
the general reserve is inadequate to cover the full amount of the
loss, the balance of the loss shall be carried forward to the general
reserve fund. (2) The Government shall, on the request of the Board and
within one month after submission of an audited financial statement
by the Bank confirming the balance of the accumulated losses,
deliver to the Bank’s funds, negotiable securities dated and bearing
market related terms and conditions or foreign exchange in amounts
that is necessary to maintain the Bank’s assets equal to or more
than the sum of its capital and liabilities. 13.

tions or foreign exchange in amounts
that is necessary to maintain the Bank’s assets equal to or more
than the sum of its capital and liabilities. 13.

The Bank shall, within a period of thirty days after the
last business day of each quarter —
(a) prepare and publish in the Gazette a return of its assets
and liabilities as at the close of business on that day;
and
(b) deliver a copy of the return to the Minister whenever so
required. 14. The financial year of the Bank shall be a period of twelve
months ending on 31st December. 15. (1) The Bank shall cause to be kept proper books of
account and other records relating to its accounts. (2) The accounts of the Bank shall be audited annually or
whenever necessary by the Auditor-General or an auditor appointed
by the Auditor-General. (3) The Auditor-General’s fees shall be paid by the Bank. 16. (1) As soon as practicable, but not later than one hundred
and twenty days after the end of the financial year, the Bank shall
submit to the Minister a report concerning its activities during that
financial year. Treatment of
net losses
Quarterly
returns
Financial
year
Accounts
and audit
Annual
Report
74 No. 5 of 2022] Bank of Zambia

during that
financial year. Treatment of
net losses
Quarterly
returns
Financial
year
Accounts
and audit
Annual
Report
74 No. 5 of 2022] Bank of Zambia

(2) The report referred to under subparagraph (1) shall include
information on the financial affairs of the Bank and there shall be
appended to that report—
(a) an audited statement of financial position;
(b) an audited statement of comprehensive income; and
(c) such other information as the Minister may require.
(3) The Minister shall, not later than seven days after the first
sitting of the National Assembly next after receipt of the report
referred to under subparagraph (1), lay the report before the
National Assembly.
Bank of Zambia [No. 5 of 2022 75

bly next after receipt of the report
referred to under subparagraph (1), lay the report before the
National Assembly.
Bank of Zambia [No. 5 of 2022 75

SECOND SCHEDULE
(Sections 10(4) and 11(5))
DECLARATION OF ASSETS, LIABILITIES, BUSINESSES AND FINANCIAL INTERESTS
I, ……………………......…….., being appointed Governor/Deputy- Governor of the Bank [make
oath/solemnly affirm/declare] that-—
1. I am unmarried/married under …........................……. (matrimonial regime)
2. My assets and those of my spouse and minor children in Zambia and outside [name of the
country] are as follows:
(a) immovable property—
(i) Customary tenure ….......................……………. (ii) Leasehold ……................................................…
(b) interest in any partnership, joint venture, trust or succession
(c) motor vehicles …….......................................………....….. (d) jewellery and precious metals ………............................…. (e) Securities including treasury bills, units, etc ……...........…. (f) Cash in bank …………........................................................ (g) Cash in hand exceeding [amount] ………………................. (h) Other assets exceeding [amount] in the aggregate…….……
3.

............................. (g) Cash in hand exceeding [amount] ………………................. (h) Other assets exceeding [amount] in the aggregate…….……
3.

My liabilities and those of my spouse and minor children are as follows:
.............................................................................................. 4. Any other relevant information ……………………............…. Signature ............................................................. [Sworn/solemnly affirmed/declared] by the above-named before me at ……............…. this
……............……. day of ……………
................................................................................ Commissioner of Oaths
76 No. 5 of 2022] Bank of Zambia

. day of ……………
................................................................................ Commissioner of Oaths
76 No. 5 of 2022] Bank of Zambia

THIRD SCHEDULE
(Sections 28(3) and 32(3))
OATH OR AFFIRMATION ON APPOINTMENT OF GOVERNOR OR DEPUTY-GOVERNOR, MEMBERS OF THE
BOARD, BOARD COMMITTEES, MONETARY POLICY COMMITTEE AND FINANCIAL STABILITY COMMITTEE
Oath or affirmation by the Governor or Deputy-Governor, members of Board, Board committees,
Monetary Policy Committee members and Financial Stability Committee members
I ………………………………........................………………
(full name)
declare that I shall, in my capacity as Governor or Deputy-Governor, members of the Board,
Board committees, Monetary Policy Committee and Financial Stability Committee, fulfil my
duties and exercise my functions in good faith and with reasonable care and skill, without fear,
favour or prejudice, and as the circumstances may dictate, in the best interest of achieving and
maintaining the objectives of the Bank, in accordance with the law and customs of the Republic
of Zambia.
………………………………………
(Signature)
Sworn/Affirmed at ………….. this ……………. day of ……………, 20………
Before me: ………….…………………………………
Commissioner for Oaths
Bank of Zambia [No. 5 of 2022 77

nature)
Sworn/Affirmed at ………….. this ……………. day of ……………, 20………
Before me: ………….…………………………………
Commissioner for Oaths
Bank of Zambia [No. 5 of 2022 77

FOURTH SCHEDULE
(Sections 28 (3)(b) and (4)(f) and 32 (3) (b) and 32 (4) (b)
CODE OF CONDUCT FOR THE MONETARY POLICY AND FINANCIAL
STABILITY COMMITTEES
1. (1) Monetary Policy Committee and Financial Stability
Committee members shall act with loyalty to the Bank, be honest,
objective and impartial, and subscribe to the highest standards of
professional ethics, diligence, good faith and integrity. (2) The members of the Monetary Policy Committee and
Financial Stability Committee shall avoid any action, or inaction,
which could in any way impair the Bank’s capacity to carry out its
duties, or compromise its standing in the community and its
reputation for integrity, fairness, honesty and independence. 2. (1) In the performance of their duties, Monetary Policy
Committee and Financial Stability Committee members shall avoid
any situation that may give rise to a conflict of interest. (2) A discrepancy shall not exist between a member’s official
responsibilities and any kind of personal or external interests that
could jeopardise the member’s impartiality and integrity in
performing the responsibilities of office.

any kind of personal or external interests that
could jeopardise the member’s impartiality and integrity in
performing the responsibilities of office.

(3) Acceptance of gifts and favours that may appear to
influence a member’s performance should be avoided. (4) If Monetary Policy Committee and Financial Stability
Committee members, who are not full-time members of staff of
the Bank, undertake remunerated activities outside the Bank, those
activities are subject to the conditions that the Board or any person
assigned by the Bank, may determine, provided that those
remunerated activities shall in the opinion of the Board not threaten
the objectives and purposes of the Monetary Policy Committee
and Financial Stability Committee or have a negative impact on the
members’ obligations with regard to their duties. (5) A Monetary Policy Committee and Financial Stability
Committee member shall not become a shareholder, director,
manager, officer in any banking or other financial institution. 3. (1) To assist in the fulfilment of obligations in relation to
conflicts of interests, the Monetary Policy Committee and Financial
Stability Committee members shall on appointment make a full
written disclosure of the nature of their direct or indirect interests
that may give rise to conflict of interest.

rs shall on appointment make a full
written disclosure of the nature of their direct or indirect interests
that may give rise to conflict of interest.

Fundamental
principles
Conflict of
interest
Declaration
of interests
78 No. 5 of 2022] Bank of Zambia

Fundamental
principles
Conflict of
interest
Declaration
of interests
78 No. 5 of 2022] Bank of Zambia

(2) The matters to be covered by the member’s statement
under subparagraph (1) shall include the disclosure of-
(a) any financial or business interest of the member and that
of the member’s family; and
(b) investments in companies, partnerships or joint ventures
(3) The Monetary Policy Committee and Financial Stability
Committee members shall provide the Secretary or other custodian
of the Board records with an update of that statement on an annual
basis. 4. (1) Compliance with this Code of Conduct shall be
monitored by the Board. (2) Where the Monetary Policy Committee and Financial
Stability Committee members or members of the public become
aware or suspect that a member of the Monetary Policy Committee
and Financial Stability Committee has, or may have, contravened
this Code, this information should be reported immediately to the
Board, in writing and in a confidential manner. (3) The Board shall investigate the alleged breach of its own
violation or upon request. (4) Deviation from the standards of this Code shall be dealt
with as misconduct on the part of the member concerned and that
member shall be disciplined in accordance with the provisions of
the Act.

all be dealt
with as misconduct on the part of the member concerned and that
member shall be disciplined in accordance with the provisions of
the Act.

(5) For the duration of any investigation into any allegation of
a contravention of this Code, the Board reserves the right to suspend
the member concerned from carrying out functions of the Monetary
Policy Committee and Financial Stability Committee and the Bank. (6) Any investigation into a suspected or possible
contravention of this Code shall be kept confidential. 5. (1) The Monetary Policy Committee and Financial Stability
Committee members shall be independent from any political
influence in the performance of their duties under this Act. (2) The Monetary Policy Committee and Financial Stability
Committee members shall not act as delegates or representatives
of any interest groups or industry in the discharge of their duties. 6. In accordance with section 60(1) of this Act, members of
the Monetary Policy Committee and Financial Stability Committee
are required to maintain strict confidentiality of the information
discussed at Monetary Policy Committee and Financial Stability
Committee meetings and not to divulge any confidential information
obtained by members in the performance of their duties, provided
Compliance
Independence
Confidentiality
Bank of Zambia [No. 5 of 2022 79

information
obtained by members in the performance of their duties, provided
Compliance
Independence
Confidentiality
Bank of Zambia [No. 5 of 2022 79

that such confidentiality shall be lifted one year after they have
ceased to hold any position where they might be perceived as having
acted with the benefit of knowledge not available to the general
market place, for their own interest.
Signed by the said ................................................................. )
this ..................................day of .......................................... )
In the presence of;
Name:
Address:
Signature:
Date:
80 No. 5 of 2022] Bank of Zambia

FIFTH SCHEDULE
(Section 59)
OATH OF SECRECY
I, ………………………………………………………….., having been appointed
……………………………………….. in the Bank of Zambia, do swear/affirm that I shall
faithfully and diligently discharge my duties and perform the functions of my office and that I
shall not directly or indirectly reveal or transmit any information or matter that may come to my
knowledge by reason of my office except as may be required in the discharge of my duties or with
the authority of the Bank, or as otherwise required by law.
So help me God.
………………………………………
(Signature)
Sworn at ……………this …. day of……………………., 20………
Before me:
………………………………………
Commissioner for Oaths
Bank of Zambia [No. 5 of 2022 81

…………………………
(Signature)
Sworn at ……………this …. day of……………………., 20………
Before me:
………………………………………
Commissioner for Oaths
Bank of Zambia [No. 5 of 2022 81

SIXTH SCHEDULE
(Section 75 (2))
SAVINGS AND TRANSITIONAL PROVISIONS
1. For the purposes of this Schedule “former Bank” means
the Bank of Zambia established under the repealed Act. 2. (1) A person who, before the commencement of this Act
was an employee of the former Bank, shall be transferred to the
service of the Bank as an employee of the Bank under this Act. (2) The service of the persons referred to in subparagraph (1)
shall be treated as continuous service. (3) Nothing in this Act affects the rights and liabilities of any
person employed or appointed by the former Bank before the
commencement of this Act. 3. (1) On or after the commencement of this Act, there shall
be transferred to, vest in, and subsist against the Bank by virtue of
this Act and without further assurance, assets, rights, liabilities and
obligations that the Minister may determine which immediately
before that date were the assets, rights, liabilities and obligations of
the former Bank which are necessary for the performance of the
Bank’s functions under this Act.

ere the assets, rights, liabilities and obligations of
the former Bank which are necessary for the performance of the
Bank’s functions under this Act.

(2) Subject to subparagraph (1), every deed, bond and
agreement, other than an agreement for personnel service, to which
the former Bank was a party immediately before the
commencement of this Act, whether or not of a nature that rights,
liabilities and obligations could be assigned, shall unless its subject
matter or terms make it impossible that it should have effect as
modified, as provided under this subparagraph, have effect as if —
(a) the Bank, had been party to it;
(b) for any reference to the former Bank there was substituted,
with respect to anything falling to be done on or after
the commencement of this Act, a reference to the Bank;
or
(c) for any reference to any officer of the former Bank, not
being a party to it and beneficially interested, there were
substituted, as respects anything falling to be done on or
after the commencement of this Act, a reference to
that officer of the Bank, that it shall designate.

d, as respects anything falling to be done on or
after the commencement of this Act, a reference to
that officer of the Bank, that it shall designate.

(3) Where under this Act, any assets, rights, liabilities and
obligations of the former Bank are deemed to be transferred to the
Bank in respect of which transfer a written law provides for
registration, the Bank shall make an application, in writing, to the
appropriate registration authority for registration of the transfer. Interpretation
Staff
Transfer of
assets and
liabilities
82 No. 5 of 2022] Bank of Zambia

iate registration authority for registration of the transfer. Interpretation
Staff
Transfer of
assets and
liabilities
82 No. 5 of 2022] Bank of Zambia

(4) The registration authority, referred under subparagraph
(3), shall make entries in the appropriate register that shall give
effect to the transfer and, where applicable, issue to the transferee
concerned a certificate of title in respect of the property or make
necessary amendments to the register and shall endorse the deeds
relating to the title, right or obligation concerned and no registration
fees or other duties shall be payable in respect of the transaction.
4. (1) Any legal proceedings or application of the former Bank
pending immediately before the commencement of this Act by or
against the former Bank may be continued by or against the Bank.
(2) After the commencement of this Act, proceedings in
respect of any right, liability or obligation which was vested in,
held, enjoyed, incurred or suffered by the former Bank, may be
instituted by or against the Bank.
Legal
proceedings
Bank of Zambia [No. 5 of 2022 83

84