Compliance

The Compliance Department is responsible for providing legal services and enforcement of Financial Services Laws to NBFIRA. The Department which has a highly skilled team of professionals aims to provide quality and professional, legal and enforcement support services to NBFIRA and all its Departments.

In carrying out its responsibilities, the Department is tasked with investigating cases referred by respective departments within NBFIRA as well as regulated entities, and taking appropriate legal and enforcement action as appropriate in line with applicable financial services laws.

Principles

• The Department seeks to carry out its enforcement mandate with integrity and in a manner that is transparent, responsive to the issue, and consistent with mission statement and vision of NBFIRA.
• The Department also strives to observe the principles of natural justice and fair treatment when carrying out its enforcement mandate.

The main functions of the Compliance Department are:

Provision of Legal Advice

The Compliance Department is responsible for providing legal advice to Departments within NBIFRA to ensure strict compliance with the NBFIRA Act and other Financial Services laws in all activities carried out by NBFIRA. The Department also ensures that all the Departments of NBFIRA understand and implement Financial Services Laws uniformly.

The Department is also responsible for the development, negotiation and custody of commercial contracts for all Departments in NBFIRA.

The Compliance Department is also responsible for drafting Legal and Governance framework for NBFIRA.

The Financial Services Laws enforced by the Compliance Department includes the following:

  (a) the NBFIRA Act;

  (b) the Insurance Industry Act;

  (c) the International Insurance Act, 2005;

  (d) the Pension and Provident Funds Act;

  (e) the Botswana Stock Exchange Act;

  (f) the Collective Investment Undertakings Act;

  (g) Part XVI of the Income Tax Act, so far as it relates to non-bank financial institutions; and

  (h) any regulations and rules made under any of the above Acts. 

Other laws which impact on the financial services sector include:

  (a) the Banking Act;

  (b) the Bank of Botswana Act;

  (c) the National Clearance and Settlement Act;

  (d) the Companies Act 2003 and the Companies Regulations 2007;

  (e) the Financial Reporting Act

  (f) the Financial Intelligence Act  and

  (g) the Competition Act.

The enforcement of financial services laws is done in line with statutory objectives in the NBFIRA Act, and NBFIRA is empowered under the NBFIRA Act to inter alia:

• issue directives to regulated entities to pay compensation, to remedy contravention of financial services laws;
• disqualify a licensee from holding a licence;
• disqualify an officer of a licensee;
• impose an administrative penalties;
• revoke a licences;
• request for information and production of such records or documents by a licensee;
• hold on-site inspections to be carried out on the business premises of a licensee;
• appoint an administrator in relation to the whole or part of the business activities of a person whose licence has been suspended, revoked or otherwise terminated;
• apply to Courts for Injunctive reliefs;
• apply to Courts for an attachment order.
• apply to Courts for a winding up order.

These powers assist NBFIRA to take the appropriate disciplinary measures to avert illegal, dishonorable and improper practices, market abuse and financial fraud in relation to any activity in the financial services so as to maintain the soundness and stability of the financial services system in Botswana.

Litigation

The Department oversees litigation for and against NBFIRA in cases before the Courts of Botswana.

Board Secretarial Services

The Department also provides the NBFIRA Board with secretarial services which include drafting meeting agendas, ensuring timeous delivery of Board packs, drafting of resolution logs and drafting of Board Minutes. The department is further responsible for ensuring compliance with good corporate governance practices.

Memoranda of Understanding (MoUs)

The Department also facilitates cooperation with other sector regulators and strategic partners through drafting, negotiating and signing of Memoranda of Understandings to collaboratively address issues of mutual concern.