Key Benefits:
[Ch4608s42]42. Non-bank financial institutions to be licensed
(1) A person who carries on a business as a non-bank financial institution otherwise than in accordance with a licence commits an offence and on conviction is liable to a fine not exceeding P2,500 for each day on which the offence occurs or continues to occur or to imprisonment for a period not exceeding five years, or to both.
(2) For the purposes of, but without limiting, subsection (1), carrying on a business as a non-bank financial institution includes carrying on such a business by providing financial services to a person outside Botswana.
(1) The Regulatory Authority may, on application made as prescribed, accompanied by such documents and statements as are prescribed and as the Regulatory Authority directs, grant a person a licence as a non-bank financial institution of a kind specified in the licence.
(2) The Regulatory Authority may require an applicant for a licence to give it further information in connection with the application.
(3) The Regulatory Authority is not bound to deal further with the application until the requirement is satisfied.
(4) The Regulatory Authority shall not grant an application for a licence unless satisfied that the applicant-
(a) will carry on the activities to be covered by the licence with integrity, prudence and professional skill;
(b) will maintain a sound financial position and not cause or promote instability in the financial system; and
(c) otherwise meets and will continue to meet the requirements of the financial services laws.
(5) The Regulatory Authority may impose conditions on a licence.
(6) A financial services law may prescribe additional criteria for granting licences.
[Ch4608s44]44. Period of licence
Regulations shall be made providing for the duration, expiration, renewal and revocation of licences issued under this Act.
[Ch4608s45]45. Display of licence
(1) If the Regulatory Authority grants an application for a licence, it shall issue the licence to the applicant.
(2) The Regulatory Authority shall publish notice of the grant of a licence in the Gazette.
(3) A licensed non-bank financial institution shall prominently display a copy of its licence at its offices in Botswana.
(4) A licensed non-bank financial institution that contravenes subsection (3) shall be liable to a civil penalty not exceeding P5,000 to be imposed by the Regulatory Authority.
[Ch4608s46]46. Variation, suspension or cancellation of licence on request
The Regulatory Authority may, on written request by a licensed non-bank financial institution, by notice to the institution-
(a) vary the conditions of the institution's licence (including by imposing additional conditions);
(b) suspend the institution's licence for the period specified in the notice; or
(c) cancel the institution's licence.
[Ch4608s47]47. Variation, suspension and cancellation of licence
(1) This section applies if it appears to the Regulatory Authority that a licensed non-bank financial institution-
(a) is not carrying on, or is likely not to carry on, the business for which it is licensed with integrity, prudence and professional skill;
(b) is in an unsound financial position or is likely to become in an unsound financial position;
(c) is causing or promoting instability in the financial system, or is likely to do so;
(d) is not complying or is likely not to comply with a financial services law;
(e) is or is likely to be involved in financial crime;
(f) has failed to submit reports as required under section 52; or
(g) has failed to pay a civil penalty imposed by the Regulatory Authority under this Act.
(2) If this section applies, the Regulatory Authority may, by notice to the licensed non-bank financial institution-
(a) vary the institution's licence-
(i) restricting the activities that can be carried on in terms of the licence; or
(ii) including further conditions on the licence;
(b) suspend the institution's licence for the period specified in the notice; or
(c) cancel the institution's licence.
(3) A financial services law may prescribe additional criteria for variation, cancellation or suspension of licences.
(4) The Regulatory Authority shall not act in terms of subsection (2) in relation to a licensed non-bank financial institution unless-
(a) the Regulatory Authority has given the institution written notice of the proposed action, setting out the reasons for the proposed action and stating that the institution has a specified period (at least 21 days) to make representations to the Regulatory Authority about the matter; and
(b) the Regulatory Authority has taken into account any representations made by or for the institution within that period.
(5) The Regulatory Authority may suspend the licence of a licensed non-bank financial institution without giving a notice in terms of subsection (4) if satisfied on reasonable grounds that it is necessary to do so to prevent or mitigate damage to the interests of nonbank financial institutions, clients of non-bank financial institutions or the financial system, but the Regulatory Authority shall-
(a) give the institution the notice as soon as practicable;
(b) give the institution the opportunity mentioned in subsection (4) (a); and
(c) having considered any representations made by or for the institution, determine whether the suspension should be confirmed.
[Ch4608s48]48. Exemptions from and modifications of this Part
(1) The Regulatory Authority may, by notice in the Gazette-
(a) exempt a person wholly or partly, as specified in the notice, from this Part; or
(b) declare that this Part applies in relation to a person as modified in the declaration.
(2) An exemption or declaration may-
(a) apply generally or to a specified case or class of cases; or
