Regulatoryframework

Ministry of Finance and Economic Development (MFED)

MFED is the primary regulator of the financial markets and is responsible for formulating and reviewing regulations governing different non-bank financial institutions including the BSE; oversight of the development of capital markets in Botswana and the prevention of money-laundering.

Bank of Botswana (BoB)

BoB is given the responsibility to supervise and regulate deposit taking institutions; as well as regulate the foreign exchange and money markets.

The Bank also has specific responsibilities to prevent money laundering. The Banking (Anti-Money Laundering) Regulations 2003 address anti-money laundering practices and measures, Know-Your-Customer (KYC) principles, record-keeping and other measures aimed at preventing and identifying money laundering.

Non-Bank Financial Institutions Regulatory Authority (NBFIRA)

NBFIRA is an independent regulatory agency for the non-bank financial institutions. Regulates and supervises the BSE, The Central Securities Depository Company of Botswana (CSDB) and the four licensed stockbrokers in conjunction with the BSE. The operations of both NBFIRA and the supervised institutions are governed by the financial service law which includes the NBFIRA Act, BSE Act, Pension and Provident Fund Act, Insurance Industry Act and the Collective Investment Undertaking Act.

Botswana Stock Exchange Committee

BSE is governed by a committee of nine members; three are appointed by the Minister of Finance and Economic Development and six are elected from the brokerage community (with no more than two members coming from any one brokerage firm).

The members have promulgated Rules (Members Rules) which provide for the requirements to be fulfilled for the securities listed and trading on the exchange.

Central Securities Depository of Botswana (CSDB)

The CSDB is regulated under the BSE Act, Non-Bank Financial Institutions Regulatory Authority Act (NBFIRA), and the National Clearing and Settlement Systems Act no. 5 (NCSS).