Sunday, 5 May 2013

finance minister alexander chikwanda signs a statutory instrument which the bank of zambia will use to monitor balance of payments.

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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