Bank of Botswana Electronic Payment Services Licensing Guidelines V1.0 (February 2022)

The Bank of Botswana Electronic Payment Services Licensing Guidelines, Version 1.0 (February 2022), are supervisory guidance that operationalise the licensing of electronic payment service (EPS) providers under the Electronic Payment Services Regulations, 2019 and the National Clearance and Settlement Systems Act, 2003. The Guidelines set out, in practical detail, how an applicant should apply for an EPS licence and the criteria the Bank applies in assessing applications, providing transparency and predictability for prospective entrants such as mobile money operators, payment aggregators, switches and other non-bank payment providers. They apply to any entity seeking authorisation to provide electronic payment services in Botswana. A central requirement reflected in the Guidelines is that an EPS provider must be a company incorporated in Botswana under the Companies Act; applications must include completed application forms together with information about the company's directors, senior managers and ultimate beneficial owners, demonstrating that they are fit and proper. The Guidelines describe the categories of EPS, the documentation and disclosures required, the assessment of the applicant's business plan, governance, risk-management and operational readiness, technology and security arrangements, customer-fund safeguarding and trust-account requirements, and compliance with anti-money-laundering and counter-terrorist-financing obligations. They reflect the minimum capital framework established by the Regulations (a P2 million ongoing requirement for account-based services such as mobile money, which must be operated through a separate dedicated company, and P100,000 for non-account-based services) and the associated cash- and account-management protocols, including periodic reporting to the Bank. The Guidelines also set out the Bank's process for considering applications, the possibility of conditional approval, and the provider's ongoing obligations once licensed, including supervision, inspection and the circumstances in which a licence may be varied, suspended or withdrawn. As guidance sitting beneath the Regulations and the Act, Version 1.0 is the operative how-to instrument for fintech licensing in Botswana and remains in force.

1. 1Operationalise EPS licensing under the Electronic Payment Services Regulations, 2019 and the National Clearance and Settlement Systems Act
2. 2Require applicants to be companies incorporated in Botswana and to disclose fit-and-proper directors, senior managers and ultimate beneficial owners
3. 3Specify application forms, documentation, business-plan, governance, technology/security and customer-fund-safeguarding requirements
4. 4Reflect the minimum-capital framework (P2 million ongoing for account-based services via a separate company; P100,000 for non-account-based) and cash/account-management and reporting protocols
5. 5Set out AML/CFT obligations and the Bank's assessment process, conditional approval and ongoing supervision
6. 6Provide for variation, suspension or withdrawal of licences