The Minister Of Finance Alexander Bwalya Chikwanda Has Signed A
Statutory Instrument Which Will Bring Into Force The Bank Of Zambia Monitoring
Of Balance Of Payments Regulations, 2013, With Effect From 16th May,
2013.
The Main Objective Of The Statutory Instrument Is To Monitor Balance
Of Payments In A Transparent And Accountable Manner And This Is In Line With
The Exercise Of The Powers Contained In Section Fifty-Seven Of The Bank Of Zambia Act.
Mr Chikwanda Says In No Way Do The Regulations Stipulated In Si 32 Of
2013 Constitute Any Intentions - Implied, Disguised, Concealed Or Otherwise By
Any Other Definition - To Introduce Exchange Controls In Zambia
He Has Appealed To Members Of The Public To Ensure That Instead Of
Denigrating The Regulations, The Measures Should Be Seen As A Significant Step
Towards Creating High Transparency Standards In Managing The Zambian Financial
System.
The Finance Minister Says The Private Sector And All Affected
Stakeholders Now Have The Opportunity To Adopt Genuinely Transparent Practices
And Standards, Backed By Law Through Si 32 Of 2013.
Mr Chikwanda Has Explained That The Regulations Apply To Financial
Service Providers Licensed Under The Banking And Financial Services Act; Importers And Exporters Of Goods Or
Services Exceeding $10,000 Or The Equivalent In Other Foreign Currency And
Financial Service Providers Designated Under The National Payment Systems Act,
2007.
He Says In Relation To Outflows, The Bank Of
Zambia Shall Monitor The Value Of Any Imported Goods; The Value Of Any Imported
Services, Including Management Services; Any Amounts Remitted Out Of Zambia
Whether Unrequited Or Otherwise; The Amounts, If Any, Deposited Abroad But
Generated By A Person Resident In Zambia From The Supply Of Goods Produced Or
Services Rendered In Zambia.
Mr Chikwanda Says This Shall Also Apply To
Loans Granted To Non-Residents; Trade Credits From Non-Residents; Investments
Made In The Form Of Equity Outside Zambia By Persons Resident In Zambia; And
Investments Made In The Form Of Debt Securities Outside Zambia By Persons
Resident In Zambia.
He Says In Relation To Inflows, The Bank Of Zambia Shall Monitor: The
Value Of Any Goods Or Services Exported Out Of Zambia; Profits Or Dividends
Received In Respect Of Investments Abroad; Borrowings From Non-Residents; Trade
Credits To Non-Residents; Investments In The Form Of Equity From Abroad;
Investments In The Form Of Debt Securities From Abroad; And Receipts Of Both
Principal And Interest On Loans To Non-Residents.
Mr Chikwanda Says The Bank Of Zambia Shall Also, In Relation To
International Transactions, Monitor: The Value Of Imported Or Exported
Manufacturing Services Or Goods To Or From Non-Residents; The Net Cost Effect
Of Telecommunication Services; The Value Of International Transport, Courier
And Postal Services, The Value Of Accommodation And Other Hospitality Services
To Or From Non Residents; And ,International Money Transfers Into And Out Of
Zambia.
He Says For Purposes Of Ensuring That Records Are Well Maintained, The
Bank Shall Also Establish An Electronic Reporting And Monitoring System Which
Will Have Linkages With Government Ministries, Agencies Or Institutions
Responsible For The Collection Of Revenue And The Administration Of Import And
Export Formalities.
Mr Chikwanda Says This Entails That Ict Systems In Participating
Institutions Should Be In Proper Functional Order Adding That The Regulations
Also Require Exporters, Importers Or Foreign Investors To Open And Maintain
Foreign Currency Denominated Accounts With Financial Service Providers.
He Says To Demonstrate This, A Foreign Investor Who Acquires
Incentives Under The Zambia Development Agency Act, 2006, Shall Deposit The
Pledged Capital Into Such Account, Similarly, An Exporter Shall, Within Sixty
Days Of The Date Of Shipment Of Any Goods, Remit The Proceeds Of The Exports
Into Their Foreign Currency Account Held In A Local Bank.
The Finance Minister Has Stated That Si32 Of 2013 Does Not Exempt Any
Financial Service Provider From Obligations Under The Financial Intelligence
Centre Act, 2010, The Prohibition And Prevention Of Money Laundering Act, 2001,
Or Any Other Written Law Relating To Money Laundering And Proceeds Of Crime.
Mr Chikwanda Has Warned That In This Regard, Any Person, Who
Contravenes Any Provision Contained In Si 32 Of 2013, Will Be Deemed To Have
Committed An Offence And Is Liable, Upon Conviction, To A Fine Not Exceeding
One Hundred Thousand Penalty Units Or To Imprisonment For A Period Not
Exceeding Ten Years, Or To Both Such Fine And Imprisonment.
He Says The People Of Zambia Have Been Complaining About Lack Of
Reliable And Accurate Information On The Resources That Are Generated In The
Country Or Which Come From Foreign Sources, To Develop Zambia.
Mr. Chikwanda Says This Is An Opportunity For Affected Players To
Ensure That Accurate Records On Foreign Exchange Transactions Are Maintained.
He
Says This Is The Way To Go For A Country That Is So Richly Endowed With
Resources But Whose Capacity To Unroll Development To Higher Echelons Has Been
Hampered By Poor Transparency And Accountability Practices
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