The Bank of Zambia (BoZ) has introduced comprehensive guidelines aimed at streamlining the establishment of non-deposit taking financial institutions while strengthening oversight of the country's financial sector. The new framework, developed under the Banking and Financial Services Act of 2017, outlines the procedures and requirements for investors wishing to establish financial businesses that do not accept customer deposits. These include microfinance institutions, development finance institutions, bureaux de change, credit reference agencies and other credit-only financial service providers. Under the new requirements, prospective investors must first obtain business name clearance from the Bank of Zambia before registering the company with the Patents and Companies Registration Agency (PACRA). Applicants are required to submit at least three proposed business names for consideration before proceeding with the licensing process. The central bank has also made it mandatory for applicants to attend a pre-licensing meeting, where officials will explain the licensing process and the standards expected of prospective financial institutions before a formal application is submitted. To qualify for a licence, investors must provide detailed information about their business, including company registration documents, beneficial ownership details, qualifications and background checks for directors and senior management, tax and police clearance certificates, as well as a comprehensive business plan outlining governance structures, financial projections, risk management and anti-money laundering measures. The guidelines also prescribe minimum capital thresholds depending on the type of institution. Development finance institutions will require K750 million in capital, while leasing finance institutions and other financial businesses must have K5 million. Credit reference agencies will require K1.5 million, bureaux de change K250,000 and non-deposit taking microfinance institutions K100,000. Licence application fees range between K1,000 and K5,400. According to the Bank, complete applications will be processed within 120 days after they have been accepted for assessment. Applicants will be allowed up to three opportunities to correct any deficiencies before an application is rejected. Those dissatisfied with the outcome will have the right to appeal the decision in writing. Before a licence is granted, the Bank of Zambia will inspect the applicant's business premises to ensure they meet operational standards, including adequate security systems, fire safety measures, proper office facilities and communication infrastructure. Annual licence fees will also apply depending on the category of institution. Once licensed, institutions will remain under the supervision of the Bank of Zambia and will be expected to comply with prudential regulations, consumer protection standards and anti-money laundering laws. They must begin operations within 12 months, appoint a compliance officer and obtain prior approval from the central bank before making major changes such as altering ownership, appointing new directors or opening additional branches.