PUBLIC NOTICE – CONDUCT BY MICRO LENDERS
May 19, 2023
The Non-Bank Financial Institutions Regulatory Authority’s (“NBFIRA”) would like to inform members of the public that Micro Lenders are regulated by the Micro Lending Regulations (2012) and Prudential Rules for Systemically Important Micro Lenders (2018).
The Authority wishes to remind the public of the following:
- Licensed Service Providers: The laws stated above govern the conduct of Micro Lenders to operate legally in the sector. The Authority reminds the public not to conduct business with unlicensed entities operating within the non-bank financial sector. If unsure check the Authority’s website for an up-to-date list of licensed entities.
- Retention of Personal Identity Documents and Bank Cards: Regulation 14 of the Micro Lending Regulations of 2012, states that it is illegal for credit providers to retain consumers’ personal instruments such as Identity Documents (IDs) and bank cards when granting credit. Consequentially, any loan agreement that requires the consumer to hand over to a micro lender their identity document, automatic teller machine access card (credit or debit card), or any similar identifying document is illegal.
It is the responsibility of micro lenders to thoroughly assess consumers’ applications and conduct an affordability assessment before advancing credit to any consumer. This assessment includes collecting KYC documents which may include taking photo copies of the front of clients’ bank cards to confirm the bank card numbers and validity periods. However, they are not to make copies of the back as it shows the CVC number, which may expose clients to the risk of bank card fraud.
The Authority advises the public to take precautions by avoiding sharing their personal documents.
- Understanding T’s and C’s of Contracts: The Authority encourages the public to ensure that they fully understand and are satisfied with the terms and conditions contained in their contract before signing.
Should customers of micro lenders or members of the public observe any breaches by a micro lender or business purporting to be a micro lender who are guilty of the aforesaid conduct, they should report the matter to the Authority directly by calling 3102595/3686100 or sending an email to info@nbfira.org.bw.
Alternatively anonymous reports may be lodged with the NBFIRA Ethics Hotline which is a whistleblowing platform.
i. Free-Call Number: 16133
ii. Email: NBFIRA@tip-offs.com
iii. Website: www.tip-offs.com
iv. Postal Address: P.O. Box 448, Gaborone
NBFIRA regulates and supervises the Non-Bank Financial Institutions (NBFI) sector to
contribute to the stability of the financial system.
NBFIRA… Working Towards Financial Stability
