Electronic Payment Services Regulations, 2019

The Electronic Payment Services Regulations, 2019 are subsidiary legislation made by the Bank of Botswana under the National Clearance and Settlement Systems Act, 2003. They establish the legal framework for the licensing, regulation and oversight of electronic payment service (EPS) providers in Botswana, consistent with the Bank's mandate of ensuring a safe and efficient payment mechanism. The Regulations are the principal instrument under which mobile money operators and other non-bank electronic payment providers are authorised to operate. They specify the types of entities permitted to offer electronic payment services in Botswana and the entry requirements, governance standards and market-conduct obligations that apply to them. A core requirement is that an EPS provider must be a company incorporated in Botswana under the Companies Act, with fit-and-proper directors, senior managers and ultimate beneficial owners disclosed to the Bank. The Regulations impose minimum capital requirements calibrated to the type of service: account-based services such as mobile money require a separate dedicated company and a minimum (and ongoing) capital of P2 million, intended to ensure that cash is available for customers to transact at all times and to support the sustainability of the operator, while non-account-based services require P100,000. Licensed providers must comply with strict account and cash-management protocols, including the safeguarding of customer funds and the submission of monthly reports to the Bank of Botswana, and must adhere to anti-money-laundering and counter-terrorist-financing requirements. The Regulations also address governance, risk management, operational standards, consumer protection and market conduct, and confer on the Bank powers of supervision, inspection and enforcement, including the imposition of conditions and the variation or withdrawal of licences. Operating beneath the umbrella National Clearance and Settlement Systems Act and supplemented by the Bank's Electronic Payment Services Licensing Guidelines, the Regulations are the central licensing instrument for fintech and digital-payment providers in Botswana and remain in force.

1. 1Establish the licensing, regulation and oversight regime for electronic payment service providers under the National Clearance and Settlement Systems Act
2. 2Require EPS providers to be companies incorporated in Botswana with disclosed fit-and-proper directors, managers and beneficial owners
3. 3Set minimum capital: P2 million (ongoing) for account-based services such as mobile money, requiring a separate dedicated company; P100,000 for non-account-based services
4. 4Require safeguarding of customer funds, strict cash- and account-management protocols and monthly reporting to the Bank
5. 5Impose AML/CFT, governance, consumer-protection and market-conduct obligations
6. 6Confer supervision, inspection and enforcement powers, including licence variation or withdrawal