Zambia - Banking Systems Zambia - Banking Systems
Zambia’s commercial banking sector is composed of 19 international and local banks. All banks operating in Zambia must incorporate locally. As a result, there are no local retail branches of foreign (including U.S.) banks or financial institutions. Citibank Zambia Limited, a wholly-owned subsidiary of Citicorp NY, provides corporate banking services in Zambia.
The banking sector is supervised by the Bank of Zambia (BoZ), which reports to the Ministry of Finance. The sector is governed by the Banking and Financial Services Act of 1994. Industry observers generally credit the BoZ with making great strides in improving bank oversight over the past several years. The Financial Intelligence Center was established in 2010 through an Act of Parliament to combat money laundering and terrorist financing but this anti-money laundering regime has yet to meet international standards.
The banking sector has continued to expand and has led to a number of entities operating in multiple sectors such as banking, insurance, and the capital market. The regulatory environment is still fragmented with multiple regulators such as the Pensions Insurance Authority, BoZ, and SEC.