Money lending Act review underway

A PROJECT to modernise the Money Lenders Act and promoting integrity in the sector is being worked on by the Bank of Zambia (BoZ) and Ministry of Finance. Zambia (August 1938). Ms Mwanza denounced unlicensed entities that were carrying monetary transactions without being regulated by any other recognised regulatory body. “The BFSA is very categorical under section 157 concerning individuals that engage in money circulation schemes and it reads as follows: “(1) A person shall not - conduct, or participate in, a money circulation scheme; or issue a notice, circular, prospectus, proposal or other document inviting the public to subscribe to a money circulation scheme. (2) A person who contravenes subsection (1) commits an offence and shall be liable, upon conviction, to an administrative penalty as specified in this Part”, she warned. Ms Banda said one way to describe illegal money lenders was to visualise the pyramid structure; where at the tip, one person registered into an institution running the scheme. This is also meant to enhance the regulatory and supervisory role of the regulator, says BoZ acting Assistant Director Communications, Ms Besnat Mwanza. Ms Mwanza explained that the revised Act would provide clarity on permissible activities for money lenders. According to the ZamBanker Journal, Ms Mwanza said the Act would promote consumer protection which was a challenge due to the inadequacies in the existing law. The current Act predates pre-independence days for