Botswana - Apply for Renewal of Money Lending Licence

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Procedure

Apply In Person

1. An application for the renewal of a Money Lending license must be submitted two (02) months before the expiry of the current license to the Non-Bank Financial Institutions Regulatory Authority (NBFIRA) office, Department of Microlending, which is in charge of the implementation of provisions of the Microlending Regulations such as licensing, off-site monitoring, on-site inspections, enforcements, and complaints handling. NBFIRA Office location & contact details
2. Where a non-bank lender does not wish to renew its license, it shall inform the Regulatory Authority, in writing, before the expiry of the license.
3. Applicants will be required to write an application letter expressing their interest to renew the license, and should be addressed to the Principal Officer and AML/CFT Compliance Officer.
4. The application should also include the following forms, which are obtainable at the NBFIRA receptionist desk or download via the NBFIRA website NBFIRA Microlending Forms, or directly download them using these links: Personal Questionnaire form,Security VettingForm (SV1)
5. Complete the application forms accurately, attach the supporting documentation as listed under the “Required Documents” section of this page, and should be submitted to the NBFIRA offices. Any omission of the required documents or information will render the application process incomplete.
6. The application shall also be accompanied by proof of payment of a non-refundable licensing fee of P6000.00 deposited into NBFIRA’s account. please refer to the “Fees” section of this page for the NBFIRA bank details.
7. Where a non-bank lender does not renew its license without the prescribed period, it shall pay, to the Regulatory Authority, a penalty of P250 per day during the period it does not renew its license.
8. Upon submission, the application is checked for completeness and correctness by the NBFIRA Department of Microlending receiving officer, if everything is in order the applicant is issued with an acknowledgment slip that proves submission of the application file and for inquiry referencing if the need arises.
9. Upon receipt of the application file, will evaluate the application and shall approve the application to renew the microlender business license, where it is satisfied that the applicant has met all the license renewal requirements.
10. The NBFIRA may request additional information relevant to the application. In such a case, the information must be submitted within a specific period from the date of notification. Where the applicant fails to submit the required information, the Authority shall reject the application.
11. If the license renewal process is not completed within 6 months, due to outstanding items required from the applicant, NBFIRA may instruct the entity to cease and desist from the micro-lending business and require a new application, a further application fee, and updated supporting documentation (e.g. a refreshed business plan and financial information).
12. Notice of the decision (Approval, Deferral, or Rejection) for the application will be communicated to the client in writing or by phone or email within 60 days of receiving the complete application and additional information requested.
13. Where the Authority is not satisfied that an applicant meets the requirements, it shall reject the application and notify the applicant in writing, stating the reasons for the rejection.
14. If approved, the Department of Microlending shall direct the NBFIRA registrar to draw up the cash loan/microlender renewal business license to be issued to the client, upon presenting their identity document, approval letter, and acknowledgment receipt to be validated by the NBFIRA registrar's office.
15. An applicant whose application has been rejected may re-apply to the NBFIRA Department of Microlending office if the deficiencies that formed the basis for rejection of the application have been corrected or otherwise addressed.
16. The cash loan/microlender business license shall be displayed or exhibited in a conspicuous place on the authorized place where the business is conducted.

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Required Documents

• Application letter expressing interest to renew the license.
• Duly completed and signed:
  • Personal Questionnaire form,
  • Security VettingForm (SV1) This form must be filled by Directors, CEOs or Managers
• Certified copy of national ID/Passport for non-citizens
• Work and residence permits for non-citizens
• passport size photos
• Copy of CV/Resume
• Certified copies of academic qualifications and professional qualifications
• Original copy of individual Tax Clearance Certificate
• Original copy of Botswana Police Clearance/Interpol from the country of residence
• Individual Bank reference
• Where shares are held by unnatural persons, shareholders should submit an Affidavit declaring the details of ultimate beneficial shareholders, which should include names of institutional shareholders, the full names of natural persons who are beneficial owners of shares in the institutional entity, and their respective percentage shareholding
• Where the applicant is a member of a group of Companies, a Group Corporate structure showing all the subsidiaries and associates companies should be submitted
• Proof of financial liquidity – P20 000 to be maintained at all times by the microlender. A certified bank statement in the name of the applying company should be submitted.
• The latest audited annual financial statements
• The entities must have paid up all their levies due and penalties (if any).
• Copies of the current license
• Number of agents (if any), number of employees, cost of interest, and maximum amount loanable to clients
• Number and location of branches
• Loan Underwriting Policy/Credit Policy to provide guidance to employees on lending and practical steps to be followed to access the credit-worthiness of a borrower to ensure compliance on an ongoing basis, in line with Regulation 9 of the Micro Lending Regulations, 2012
• Bad Debts /Delinquency Policy to provide guidance to employees on how to treat non-performing loans and including that the penalties should not exceed 5% of the outstanding principal amount per month with a maximum not exceeding the outstanding principal amount.
• Comprehensive Complaints Policy and Procedures Manual (after licensing it has to be kept visible to the clients) which is compliant with Regulation 21 of the Micro Lending Regulations,2012. This should include details of the person who will deal with complaints and the time it will take to resolve the complaint. It must include referrals to NBFIRA pending resolution
• AML and CFT Policy and Procedures to ensure that it has adequate internal anti-money laundering policies, controls, guidelines, and training programs upon commencement of business that will prevent criminals from laundering proceeds obtained from criminal activities. This should comply with Section 12 of the Financial Intelligence Act and Regulations of 2019.
• Standard Loan agreement which the institution intends to use. The Loan Agreement must comply with Regulation 11 and Form 5 of the Micro Lending Regulations 12, together with the KYC guidance form
• Standard consent of spouse form for customers as performs 4 of the Microlending Regulations. A form that will be completed by all spouses of customers married in the community of property.
• Any additional supporting documentation may be requested by the Authority.

Note: All of the above is to have been certified/updated not more than six (6) months prior to submission

Office Locations & Contacts

Non-Bank Financial Institutions Regulatory Authority (NBFIRA)
Department of Microlending
Address: 3rd-floor Exponential Building, Plot 54351 New CBD, Off PG Matante Road,
Gaborone.
Botswana
Private Bag 00314, Gaborone
Tel: +267 3102595 / 3686100
Fax: +267 3102376 / 3102353
NBFIRA Office location & contact details
NBFIRA Website
Business hours: Monday-Friday from 8:00 am-1:00 pm and 2:00 pm -5:00 pm, closed during Public Holidays & Weekends.

Eligibility

• Cash loan/micro-lending companies and businesses with valid money lending licenses are eligible to apply.

Fees

• A non-refundable licensing fee of P6000.00 was deposited into NBFIRA’s account.
• A penalty of P250 per day, where the license renewal application is not submitted within (02) months before the expiration of the current license.

NBFIRA’s Bank Account Details
Account Name: NBFIRA
Bank name: Stanbic Bank
Branch name: Fairground
Branch code: 064967
Account number: 9060001296510
Swift code: SBICBWGX
Reference: Company name

Validity

• The license is valid for one financial year and should be renewed two (02)months before the expiration of the current license.

Documents to Use

Personal Questionnaire form,
Security VettingForm (SV1) This form must be filled by Directors, CEOs, or Managers

Sample Documents

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Processing Time

• Regulatory Authority shall within 60 days of receiving the complete application and additional information requested, issue the renewal license to the applicant if approved.

Related Videos

Videos explaining the procedure or to fill the applications.
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Instructions

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Required Information

• Names of the applicant
• Address of applicant
• Tax Registration number
• Contacts information to include office space
• Contact details of a principal officer (manager of principal office)
• Banking details
• Particulars of Controller(s)
• Current license details
• Disclose source of funding and security (no soliciting of funds from the public unless they buy a stake in the business as investors)
• Botswana Police Service Clearance
• Description of the business
• Declaration by the applicant

Need for the Document

• All entities/persons that wish to continue operating a micro-lending business (also called cash loan), should renew their money lending license with the Department of Microlending at NBFIRA.

Information which might help

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Other uses of the Document/Certificate

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External Links

Non-Bank Financial Institutions Regulatory Authority (Leasing Companies) Regulations, 2017
NBFIRA Micro-Lenders

Others

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