Alert: Text message regarding the Cancellation of Insurance Policies due to Non-compliance to KYC Requirements
- The Non-Bank Financial Institutions Regulatory Authority (NBFIRA) has noted with concern a circulating text message stating that the Authority has ‘instructed all the insurance companies to terminate contracts/policies for any of their policyholders whose not KYC compliant effective March 30, 2019.’
- The Authority would like to clarify to the public that it did not issue the text message referenced. The public is also advised that the Authority does not issue communication to its regulated entities or other stakeholders through text messages. All communication is made through the Authority’s official communication platforms with the appropriate visible signatory and branding.
- In light of Botswana’s obligations with regard to Anti-Money Laundering and Countering the Financing of Terrorism and Proliferation (AML/CFTP), the Authority strongly encourages members of the public to comply with the Know Your Customer (KYC) requirements from the Non-Bank Financial Institutions.
- These institutions are mandated by the Financial Intelligence Act to collect such information and regularly update their records. This important exercise also serves to protect customer’s financial assets and investments, as well as ensure that the sector operates in-line with the law and the international best practice.
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SRIRAM GADE (MR)
DEPUTY CHIEF EXECUTIVE OFFICER – REGULATORY
20th March 2019
