Branches of foreign banks/financial institutions are not allowed. Local incorporation is required for undertaking banking activities and various other financial services.
"2. (1) In this Act, unless the context otherwise requires—[...]
" financial business " means a body corporate that conducts a financial service business, excluding acceptance of deposits;[...]
" financial institution " means a company, other than a bank, providing a financial service;[...]
" financial service " means any one or more of the following services:
(a) commercial or consumer financing services; (b) brokering; (c) factoring, with or without recourse; (d) finance leasing; (e)financing of commercial transactions, including forfeiting; (f) issue and administration of credit cards, debit cards, traveller's cheques or banker's drafts;
(g) issue of guarantees, performance bonds or letters of credit, excluding those issued by insurance companies; (h) lending on the security of, or dealing in, mortgages or any interest in real property; (i) payment of cheques or other demand orders drawn or issued by customers and payable from deposits held by the payer; (j) purchase and sale of foreign exchange; (k) issue of debentures and money market instruments; (l) the acceptance of deposits; (m) issue of building society and mutual society shares, with characteristics similar or identical to deposits; (n) venture capital funding; (o) micro-financing; (p) development financing; and (q) any other service that the Bank may designate, excluding the underwriting, marketing or administration of contracts of insurance or reinsurance;
" financial service provider " means a bank, financial institution or financial business;[...]
" foreign financial service provider " means a financial service provider that is not incorporated in Zambia;
" foreign company " has the meaning assigned to the word in the Companies Act, 2017;
" subsidiary " has the meaning assigned to the word in the Companies Act, 2017;
[...]
PART II - LICENSING OF FINANCIAL SERVICE PROVIDERS
5. The following licences shall be issued by the Bank in accordance with this Act:
(a) a banking licence, which shall authorise a licensee to conduct a banking business;
(b) a financial business licence, which shall authorise a licensee to conduct a financial business; and
(c) a financial institution licence, which shall authorise a licensee to provide a financial service.
6. (1) A company shall not conduct a banking business without a banking licence.
(2) A body corporate shall not conduct a financial business without a financial business licence, or provide a financial service without a financial institution licence.
[...]
8. (1) Where an applicant meets the requirements of this Act, the Bank shall, within one hundred and twenty days of receipt of an application for a licence made in accordance with section 7, grant a licence.
(2) A banking licence, financial business licence or financial institution licence for a subsidiary of a foreign company may be granted if—
(a) the foreign company is a financial service provider and is authorised to engage in banking business in the country where its principal place of business is located; and
(b) the Bank determines that the foreign financial service provider is adequately supervised by competent authorities in the country of incorporation.[...]" (THE BANKING AND FINANCIAL SERVICES ACT, 2017)
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"3. In this Act, unless the context otherwise requires—[...]
" subsidiary " means a corporate that is a subsidiary of another corporate as provided by section 185 and includes a— (a) company in which the holding company holds more than half in value of the equity share capital, whether the company is incorporated in a jurisdiction that has or does not have nominal value for share capital; (b) company of which the holding company is a member, and whose composition of board of directors is controlled by the holding company; and (c)subsidiary of a company which is itself a subsidiary of a holding company in accordance with paragraph (a) or (b);[...]"(Companies Act, 2017)
THE BANKING AND FINANCIAL SERVICES ACT, 2017
Companies Act, 2017
[<a href="https://www.parliament.gov.zm/sites/default/files/documents/acts/The%20Banking%20and%20Finance%20Act%20No.%207%20of%202017.pdf">Act</a>],[<a href="https://www.parliament.gov.zm/sites/default/files/documents/acts/Companies%20Act%2C%202017.pdf">Act</a>]