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>]