Botswana - Apply for a Banking Business license

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Procedure

Apply In Person

1. The application for a Banking Business license shall be made to the Banking Supervision Department, at the Bank of Botswana, which is the Central Bank of Botswana. Bank of Botswana Contact Details
2. The application shall be made in writing to the Central Bank in such forms as shall be determined by the Bank. Forms are obtainable at the Bank of Botswana (Headquarter) or the Francistown Branch office, Banking Supervision Department
3. The duly completed forms attached to the supporting documentation as mentioned under the “Required Documents” section of this page, should be submitted to the Banking Supervision Department at either the Bank of Botswana (Headquarter) or the Francistown Branch office.
4. Upon submission, the application is checked for completeness and correctness by the receiving officer, if everything is in order the applicant will be required to pay the non-refundable processing fee as mentioned in the “Fee” section of this page, which is payable either by depositing it into the Bank of Botswana Bank account or can be received through the Point of Sale (POS) machine (swiping machine) at the Bank of Botswana offices. Alternatively, you can pay by cheque written in favour of the Bank of Botswana.
5. The application will only be registered to be processed when payment has been made, the applicant will be issued with an acknowledgment slip that proves submission of the application file and for inquiry referencing if the need arises.
6. Within 30 days after it has received the application, the Central Bank shall inform the Minister that it has been received and that it is being duly processed.
7. The Central Bank may request additional information relevant to the application and may also investigate as it may deem necessary for the purpose of ascertaining compliance by the applicant with all applicable laws and regulations, including the provisions of this Act. In such a case, the information must be submitted within the stipulated time from the date of notification. Where the applicant fails to submit the required information, the Central Bank shall reject the application.
8. Within six months after receipt of the application, a notice of the decision (Approval, Deferral, or Rejection) for the application will be communicated to the client by writing.
9. Where the Banking Supervision Department is satisfied that an applicant meets the requirements set out in this criteria, it shall notify the license issuing officer, who will then draw up the license as directed by the central bank and present it to a senior officer to be certified (signed/stamp) and made available to be issued to the client.
10. While collecting the License, the applicant will be required to produce a proof of identity document and the approval letter to be validated by the licensing officer.
11. Upon validation the licensing officer, will issue the applicant with License Annual Fees– Payment Form, to complete and pay the prescribed license fee.
12. Where the Central Bank issues an initial license to a new bank it shall give notice thereof in the Gazette and at least two newspapers circulating in Botswana.
13. The Central Bank may, after consultation with the Minister, determine different minimum prudential requirements for different classes of banks, and shall impose such restrictions as it may deem necessary on the structure of the business, operations, and banking services to be provided by any such class of banks. Such terms and conditions or requirements shall be endorsed on the License.
    

NOTES:
Application through a proxy

• The applicant may appoint a representative in Botswana to communicate with the Central Bank as part of the application procedure.
  

Appeal to the Minister

• The applicant for a banking license may, upon receipt of notice of refusal of such application, and within six weeks thereof, appeal to the Minister, in such manner and form, and on payment of such fee, as may be prescribed.
• Where the Minister considers it desirable, and before reaching his own decision, he may ask the Central Bank to review its decision, and the Central Bank shall do so within a period of one month from the date of the Minister's request.
• Within three months after the lodging of such appeal, and where necessary after considering any review by the Central Bank, the Minister shall decide whether the appeal should be upheld or rejected, and his decision shall be final and not subject to review or further appeal.

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Required Documents

• Certified copies of the certificate of incorporation in Botswana,
• Certified copies of the memorandum and articles of association
• A business plan summarizing the strategic objectives of the bank
• A set of five-year financial projections (financial documents and data)
• A plan for the establishment of branches, banking services to be provided, and a demonstration of the ability to enhance competition.
• Other corporate documents as requested by the Botswana Central Bank.
  

NOTE: All non-original documents submitted with this application must be certified-true-copy. Copies of certified copies will not be accepted.

Office Locations & Contacts

Bank of Botswana
Gaborone Branch (Headquarter)
Address: 17938, Khama Crescent, Gaborone, Botswana
Private Bag 154, Gaborone,
Botswana.
Telephone: (+267) 360 6000

Francistown Branch
Address: 9597, Thapama Circle, Francistown,
Botswana
Private Bag F212, Francistown,
Botswana.
Telephone: (+267) 241 0450, 240 0400

Banking Supervision Department
Tel: (+267) 3606354
Fax: (+267) 3913862
Bank of Botswana Contact Details
Bank of Botswana Website

Eligibility

Applicants should meet the following requirements to be eligible.

• The applicant must be a company limited by share capital and corporate under the Companies Act, as per Section 8(1) of the Banking Act.
• The statutory minimum start-up capital is P5 million. The prudential capital adequacy ratio is 12.5 percent. The promoters of the applicant bank must demonstrate the willingness and ability to provide additional financial support as and when required.
• The applicant must demonstrate adequate managerial capacity; this includes the appointment of fit and proper persons.
• In the case of the promoters of an applicant being a foreign bank, the parent bank must be subject to adequate home supervision, and the consent of the parent's home supervisor for the subsidiary to operate in Botswana must be provided.
• The proposed ownership and organizational structure must be acceptable to the Bank of Botswana, and the structure must be such that it allows for effective consolidated supervision.

Fees

• A non-refundable application fee (currently P17 100, VAT inclusive).

Validity

• The license shall be valid for an indefinite period, however, failure to compline with the conditions upon being issued may lead to it being suspended, canceled, or revoked by the Central Bank.
• The license is also subjected to an annual renewal fee.

Documents to Use

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Sample Documents

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Processing Time

• The time frame for processing the application accumulatively is within six (6) months provided everything is in order.

Related Videos

Videos explaining the procedure or to fill the applications. 
Attach videos using the following tag <&video type='website'>video ID|width|height<&/video&> from external websites. 	
Please remove the '&' inside the tags during implementation.
Website = allocine, blip, dailymotion, facebook, gametrailers, googlevideo, html5, metacafe, myspace, revver, 
sevenload, viddler, vimeo, youku, youtube
width = 560, height = 340, Video ID = Can be obtained from the URL of webpage where the video is displayed.
e.g In the following url 'http://www.youtube.com/watch?v=Y0US7oR_t3M' Video ID is 'Y0US7oR_t3M'.

Instructions

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e.g. The state office holds birth records since january 1908.

Required Information

• Full Name of Applicant/Company Name
• Address of Applicant
• Location of Foreign Exchange Bureau
• License Number
• A tax clearance certificate.
• Evidence of provisional tax payment
• Full names, addresses, and designations of the employees of the bureau.
• Proof of legal identification. (Your national driver's license or an international passport is the best for this).
• Proof of legal address. (House rent receipts, and utility bills stating your house address are acceptable).
• Bank statement. (Not all Authorities require this except for further verification purposes or alternatives).
• Utility Bill Receipt. (Some Authorities require this to further verify your legal identity and proof of social responsibility).

Need for the Document

• No person or entity shall carry out a Banking business in Botswana unless he/she is in possession of a Banking Business License issued by the Central Bank.
• The bank licensed shall at all times be displayed, in a conspicuous place in the public part of its principal place of business, and in any other office or branch or site, including a mobile site, a certified copy of the license granted by the Central Bank.

Information which might help

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Other uses of the Document/Certificate

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e.g. Birth Certificate can be used as proof of identity.

External Links

• Bank of Botswana
• Licensing Policy under the Banking Act (CAP. 46:04)
• Botswana Banking Act
• BITC Banking License

Others

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