Zambia Deposit Insurance Corporation Act, 2026
This section gives the Act its short title and says it starts on a date the Minister appoints by statutory instrument.
AI-assisted research synopsis — verify against the official legal text below.
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- Zambia
- Instrument
- Act or statute
- Citation
- Act 11 of 2026
- Version
- 8 Apr 2026
- Language
- en
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accounting controls accounts accounts and records administrative appeals annual audit annual surplus transfer appointment of officers appointment terms appointments asset vesting audit audit fees auditing authorisation banking beneficiary coverage board committees board composition board governance board membership board powers and functions board procedure claims deadlines claims limitation +88 more
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Statute overview
About this statute
This section gives the Act its short title and says it starts on a date the Minister appoints by statutory instrument. This section defines key terms used in the Act. The Insurance Act, 2021 does not apply to the Corporation. The Zambia Deposit Insurance Corporation is established as a body corporate and may do the acts a body corporate may do, subject to this Act. The Corporation must protect depositors, support financial stability, and carry out the listed functions in section 5.
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Legal text
Provisions of Zambia Deposit Insurance Corporation Act, 2026
Showing 63 of 63
Part
PART I
- 1
AI-assisted research summary: This section gives the Act its short title and says it starts on a date the Minister appoints by statutory instrument.
1. This Act may be cited as the Zambia Deposit Insurance Corporation Act, 2026, and shall come into operation on the date that the Minister may appoint by statutory instrument. Short title and commence- ment - 2
AI-assisted research summary: This section defines key terms used in the Act.
2. (1) In this Act, unless the context otherwise requires — Interpretation “active politics” has the meaning assigned to the words in the Benefits of Former Presidents Act; “annual premium” means an annual premium paid by a member institution under section 14; “associate” has the meaning assigned to the word in the Anti- Corruption Act; “Bank” means the Bank of Zambia established under the Constitution; Cap. 15 Cap. 91 Cap. 1 “bank” has the meaning assigned to the word in the Banking and Financial Services Act, 2026; Act No. 9 of 2026 “beneficiary” means a person who is entitled to a benefit under a trust; 470 No. 11 of 2026] Zambia Deposit Insurance Corporation “Board” means the Board of the Corporation constituted under section 7; “Chairperson” means a person appointed as Chairperson of the Board under section 7; “Corporation” means the Zambia Deposit Insurance Corporation established under section 4; “coverage limit” means the coverage limit determined by the Corporation under section 20; “deposit” has the meaning assigned to the word in the Banking and Financial Services Act, 2026; “depositor” means a person who holds a deposit in an account at a member institution; “Director-General” means a person appointed as Director- General of the Corporation under section 9; Act No. 9 of 2026 Cap. 1 Commission established under the Constitution; “Emoluments Commission” means the Emoluments Act No. 9 of 2026 Act No. 9 of 2026 Act No. 5 of 2022 “failed member institution” has the meaning assigned to the words “failed institution” in the Banking and Financial Services Act, 2026; “financial institution” has the meaning assigned to the words in the Banking and Financial Services Act, 2026; “financial system stability” has the meaning assigned to the words in the Bank of Zambia Act, 2022; “Fund” means the Deposit Insurance Fund established under section 33; “Governor” means the Governor of the Bank of Zambia Cap. 1 appointed under the Constitution; Cap. 136 the words in the Higher Education Act; “higher education institution” has the meaning assigned to Act No. 5 of 2026 “holding account” has the meaning assigned to the words in the National Payment System Act, 2026; “initial one-off premium” means the initial one-off premium paid by a member institution under section 13; Zambia Deposit Insurance Corporation [No. 11 of 2026 471 “insured deposit” means a deposit covered by the Fund up to the coverage limit determined by the Corporation under section 20; “joint account” means a deposit account held by two or more natural persons in which the persons— (a) have signed account opening mandates; (b) have accrued rights to make withdrawals; and (c) manage the account; “legally disqualified” means the absence of legal capacity as provided under section 4 of the Mental Health Act; Cap. 305 “manager” means an officer of a member institution who is in a position to control, direct or influence decision making in the member institution; “member institution” means a bank or financial institution that is a member of the Corporation as provided under section 10; “Member of Parliament” has the meaning assigned to the words in the Constitution; Cap. 1 “pay-out” means a process leading to an outflow of resources from the Fund to meet obligations relating to reimbursement of insured deposits or for purposes of effecting a resolution of a failed member institution; “Pensions and Insurance Authority” means the Pensions and Insurance Authority established under the Pension Scheme Regulation Act; “premium” means a premium paid into the Fund by a member institution under this Act; “principal administrative office” means the office where the overall administration of the affairs of a member institution is conducted, other than a branch; Cap. 255 “relative” has the meaning assigned to the word in the Anti- Cap. 91 Corruption Act; “resolution” has the meaning assigned to the word in the Banking and Financial Services Act, 2026; Act No. 9 of 2026 472 No. 11 of 2026] Zambia Deposit Insurance Corporation Act No. 9 of 2026 Cap. 354 Act No. 9 of 2026 “resolution option” has the meaning assigned to the words in the Banking and Financial Services Act, 2026; “risk-based premium” means the risk-based premium paid by a member institution under section 16; “Secretary” means the Secretary appointed under section 9; “secured deposit” means a deposit against which the depositor has obtained collateral from a member institution; “Securities and Exchange Commission” means the Securities and Exchange Commission continued in existence under the Securities Act; “senior management” means persons who are responsible for the day-to-day management of an institution or organisation and are accountable to the board of the institution or organisation, as may be determined; “senior officer” means a chief executive officer, chief financial officer or manager of a member institution; “significant shareholder” has the meaning assigned to the words “significant shareholding” in the Banking and Financial Services Act, 2026; “special premium” means the special premium paid by a member institution under section 15; “trust” means a legal relationship created by a person, whether on death or not, by that person placing their assets under the control of a trustee for the benefit of a beneficiary, class of beneficiaries or for a specified purpose and where — (a) the assets constitute a separate fund and are not part of the trustee’s own estate; (b) title to the assets of the trust are in the name of the trustee or in the name of another person acting on behalf of the trustee; and (c) the trustee manages, uses or disposes of the assets of the trust in accordance with the terms and conditions of the trust and any other relevant written law; Zambia Deposit Insurance Corporation [No. 11 of 2026 473 “trust account” means an account created under a trust deed, or similar document, which account is administered by a trustee of a trust and the funds in the account are for the benefit of one or more beneficiaries of the trust; “trustee” means a person who manages and controls a trust, in respect of which the trustee is accountable, for the benefit of the beneficiaries of the trust; “trustee deposit” means a deposit made, in a trust account, by a trustee of a trust for the benefit of the beneficiaries of the trust; “unsafe and unsound practice” has the meaning assigned to the words in the Banking and Financial Services Act, 2026; Act No. 9 of 2026 “village banking” means an informal financing arrangement where individuals in a community, pool funds of those individuals for purposes of saving the funds in an account held at a member institution or lending the funds amongst the individuals; and “Zambia Qualifications Authority” means the Zambia Qualifications Authority continued in existence under the Zambia Qualifications Authority Act, 2024. - 1
AI-assisted research summary: The Corporation’s seal is set by the Board, kept by the Director-General, and its affixing must be authenticated by specified office-holders or authorised persons.
1. (1) The seal of the Corporation shall be a device that may be determined by the Board and shall be kept by the Director-General. (2) The affixing of the seal shall be authenticated by the Chairperson or the Vice-Chairperson and the Director-General or any other person authorised in that behalf by a resolution of the Board. (3) A contract or instrument which, if entered into or executed by a person not being a body corporate, is not required to be under seal, may be entered into or executed without seal on behalf of the Corporation by the Director-General or any other person authorised in that behalf by a resolution of the Board. (4) A document purporting to be a document under the seal of the Corporation or issued on behalf of the Corporation shall be received in evidence and shall be considered to be so executed or issued, without further proof, unless the contrary is proved. - 2
AI-assisted research summary: Board members serve three-year terms, may get one final three-year reappointment in some cases, can stay on for up to three months while a replacement is pending, and the Minister must fill a vacancy before the term ends.
2. (1) A member of the Board shall, subject to other provisions of this Act, hold office for a term of three years from the date of appointment and may be re-appointed for a further and final term of three years, except for a member referred to under section 7(1)(a). (2) A member of the Board shall, on the expiration of the term for which the member is appointed, continue to hold office until another member is appointed, but in no case shall an extension of the period exceed three months. (3) The office of a member of the Board becomes vacant if the member— (a) dies; (b) is adjudged bankrupt under any written law; (c) is absent, without reasonable excuse, from three consecutive meetings of the Board of which the member has had notice, without the prior approval of the Board; Zambia Deposit Insurance Corporation [No. 11 of 2026 496 (d) resigns, by giving one month’s notice in writing, to the Minister; Financial year Accounts and audit Proceedings of Board and Corporation (e) is legally disqualified from performing the functions of a member of the Board; (f) ceases to be an employee or a member of the ministry, institution or organisation that nominated the member of the Board; and (g) is convicted of an offence under this Act or any other written law and sentenced to imprisonment for a term exceeding six months without the option of a fine. (4) The Minister shall, where the office of a member of the Board becomes vacant before the expiry of the term of office, appoint another member of the Board in place of that member, but that member shall hold office as a member of the Board only for the unexpired part of the term of the Board. - 3
AI-assisted research summary: This section sets rules for how the Board meets, decides, keeps minutes, and who may call or chair meetings.
3. (1) Subject to the other provisions of this Act, the Board may regulate its own procedure. (2) The Board shall meet for the transaction of business at least once every three months at a place and time that the Chairperson may determine. (3) The Chairperson of the Board shall, on giving notice of not less than fourteen days, call for a meeting of the Board, or where one third or more of the members of the Board so request, in writing, except that if the urgency of a particular matter does not permit the giving of a notice, a special meeting may be called on giving a shorter notice. (4) Five members shall form a quorum at a meeting of the Board. (5) There shall preside at any meeting of the Board— (a) the Chairperson; (b) in the absence of the Chairperson, the Vice-Chairperson; or (c) in the absence of the Chairperson and the Vice- Chairperson, a member of the Board as the members of the Board present may elect for the purpose of that meeting. 497 No. 11 of 2026] Zambia Deposit Insurance Corporation (6) A decision of the Board on any question shall be by a majority of the members of the Board present and voting at the meeting and, in the event of an equality of votes, the person presiding at the meeting shall have a casting vote in addition to the deliberative vote. (7) A member may, where the member is for any reason unable to attend a meeting of the Board, nominate another person at senior management level, in writing, from the same ministry, institution or organisation to attend a meeting of the Board in that member’s stead and that person shall be considered to be a member for the purpose of that meeting. (8) The Board may invite a person whose presence is in the Board’s opinion desirable to attend and to participate in the deliberations of the meeting of the Board but that person shall have no vote. (9) The Board shall cause minutes to be kept of the proceedings of every meeting of the Board and any committee of the Board. Committees of Board - 4
AI-assisted research summary: The Board may form committees, delegate functions to them, appoint their members, and committees may set their own procedure subject to Board directions.
4. (1) The Board may, for the purpose of performing its functions under this Act, constitute a committee and delegate any of its functions to the committee as the Board considers necessary. (2) The Board may appoint as members of a committee persons who are or are not members, except that at least one member of the Board shall be a member of a committee. (3) A member of a committee shall hold office for a period that the Board may determine. (4) Subject to any specific or general directions of the Board, a committee may regulate its own procedure. - 5
AI-assisted research summary: Board and committee members are to be paid allowances set by the Emoluments Commission on the Minister’s recommendation.
5. A member of the Board or a member of a committee of the Board shall be paid allowances that the Emoluments Commission may, on the recommendation of the Minister, determine. - 6
AI-assisted research summary: A person at a Board or committee meeting who has a private interest in the matter must declare that interest promptly and must not join the discussion or vote unless the Board or committee allows it.
6. (1) A person who is present at a meeting of the Board or committee of the Board, at which any matter is the subject of consideration and in which matter that person or that person’s relative or associate is directly or indirectly interested in a private capacity, shall, as soon as is practicable after the commencement of the meeting, declare that interest and shall not, unless the Board or committee otherwise directs, take part in any consideration or discussion of, or vote on, any question relating to that matter. Allowances Disclosure of interest Zambia Deposit Insurance Corporation [No. 11 of 2026 498 (2) A disclosure of interest made under subparagraph (1) shall be recorded in the minutes of the meeting at which it is made. - 7
AI-assisted research summary: No action or other proceedings may be brought against Board members, committee members, or Corporation staff for acts or omissions done in good faith while exercising powers, functions, or duties under the Act.
7. An action or other proceedings shall not lie or be instituted against a member of the Board or committee of the Board or a member of staff of the Corporation for, or in respect of, an act or thing done or omitted to be done in good faith in the exercise or performance of any of the powers, functions or duties conferred under this Act. Immunity of members - 8
AI-assisted research summary: A person must not publish or disclose certain information obtained under the Act without written consent from the Corporation, unless it is done in the course of that person’s duties.
8. (1) A person shall not, without the consent, in writing, given by, or on behalf of, the Corporation, publish or disclose to a person, other than in the course of duties of that person, the contents of a document, communication or information which relates to or which has come to the knowledge of that person in the course of that person’s duties under this Act. Prohibition of publication or disclosure of information to unauthorised person (2) A person who contravenes subparagraph (1) commits an offence and is liable, on conviction, to a fine not exceeding two hundred thousand penalty units or to imprisonment for a term not exceeding two years, or to both. (3) A person who, having information which to that person’s knowledge has been published or disclosed in contravention of subparagraph (1), unlawfully publishes or communicates the information to another person, commits an offence and is liable, on conviction, to a fine not exceeding two hundred thousand penalty units or to imprisonment for a term not exceeding two years, or to both. PART II FINANCIAL PROVISIONS
Part
part of the trustee’s own estate;
- 3
AI-assisted research summary: The Insurance Act, 2021 does not apply to the Corporation.
3. The Insurance Act, 2021, shall not apply to the Corporation. Act No. 8 of 2024 Non- application Act No. 38 of 2021 PART II THE ZAMBIA DEPOSIT INSURANCE CORPORATION
Part
PART II
- 4
AI-assisted research summary: The Zambia Deposit Insurance Corporation is established as a body corporate and may do the acts a body corporate may do, subject to this Act.
4. (1) The Zambia Deposit Insurance Corporation is established as a body corporate with perpetual succession and a common seal, capable of suing and being sued in its corporate name and with power, subject to the provisions of this Act, to do all acts and things that a body corporate may, by law, do or perform. Establishment of Zambia Deposit Insurance Corporation (2) The Schedule applies to the Corporation. - 5
AI-assisted research summary: The Corporation must protect depositors, support financial stability, and carry out the listed functions in section 5.
5. (1) The functions of the Corporation are to protect depositors and contribute to financial system stability. Functions of Corporation (2) Despite the generality of subsection (1), the functions of the Corporation are to — 474 No. 11 of 2026] Zambia Deposit Insurance Corporation (a) manage and administer the Fund; (b) reimburse insured deposits in the event of a liquidation of a member institution; (c) levy premiums from member institutions in accordance with this Act; (d) collaborate with the Bank in the resolution of member institutions; (e) promote public awareness on matters relating to this Act; and (f) advise the Minister on matters relating to this Act. Delegation to agent - 6
AI-assisted research summary: The Corporation may delegate its functions under the Act to an agent on terms it determines.
6. (1) The Corporation may, on terms and conditions as the Corporation may determine, delegate its functions under this Act to an agent. (2) A delegation made under subsection (1) shall not prevent the Corporation from performing the functions so delegated. Constitution of Board - 7
AI-assisted research summary: The Minister appoints the Board’s members, the listed bodies must nominate their representatives, the Board elects a Vice-Chairperson, and certain people cannot be nominated or appointed.
7. (1) There is constituted the Board of the Corporation which consists of the following part-time members appointed by the Minister: (a) the Governor, as the Chairperson; (b) a representative from the Ministry responsible for finance; (c) a representative of the Attorney-General; (d) a representative of the Bank; (e) a representative from the Pensions and Insurance Authority; (f) a representative from the Securities and Exchange Commission; and (g) the Director-General, as ex-officio. (2) The Ministries, institutions and organisations referred to under subsection (1)(b) to (f) shall nominate their representatives for appointment by the Minister. (3) Despite subsection (2), the members referred to under subsection (1) (d), (e) and (f) shall be at senior management level in the institution or organisation that has nominated the member. Zambia Deposit Insurance Corporation [No. 11 of 2026 475 (4) The members of the Board shall elect the Vice-Chairperson from among themselves. (5) A person shall not be nominated or appointed as a member of the Board if that person is— (a) a director, officer or employee of a member institution; (b) a significant shareholder or controls a member institution; (c) a Member of Parliament; (d) in active politics; (e) legally disqualified; (f) an undischarged bankrupt; (g) below the age of twenty-one; (h) dismissed from a position of trust due to misconduct; (i) convicted of an offence involving fraud or dishonesty under any written law; or (j) convicted of an offence under this Act or any written law and sentenced to imprisonment for a term exceeding six months without an option of a fine. (6) The Schedule applies to the Board. - 8
AI-assisted research summary: The Board must give strategic policy direction to the Corporation and has several approval and oversight functions.
8. (1) Subject to the other provisions of this Act, the Board shall provide strategic policy direction to the Corporation. Functions of Board (2) Despite the generality of subsection (1), the functions of the Board are to— (a) approve the policies, programmes and strategies of the Corporation; (b) approve the annual budget estimates and financial statements of the Corporation; (c) approve the annual work plan, action plans and activity reports of the Corporation; (d) monitor and evaluate the performance of the Corporation against budgets and plans; (e) promote the effective corporate governance of the Corporation; 476 No. 11 of 2026] Zambia Deposit Insurance Corporation Director- General, Secretary and other staff (f)approve the rate of premiums to be paid by member institutions to the Corporation; (g) approve the reimbursement of insured deposits in the event of a liquidation of a member institution; and (h) approve funding for a resolution of a failed member institution, on recommendation by the Bank. (3) The Board may, by direction in writing and on conditions that the Board considers necessary, delegate to the Director-General any of the Board’s functions under this Act. (4) A delegation made under subsection (3) shall not prevent the Board from performing the functions so delegated. - 9
AI-assisted research summary: The Board must appoint a Director-General, and it must also appoint a Secretary and other necessary staff. The Director-General may delegate functions to another staff member, and the Emoluments Commission determines emoluments on the Board’s recommendation.
9. (1) The Board shall appoint a Director-General who shall be — (a) the chief executive officer of the Corporation; and (b) responsible for the day-to-day administration of the Corporation under the direction of the Board. (2) A person qualifies for appointment as Director-General if that person — (a) holds a degree in banking, finance, accounting, economics, business administration or other relevant discipline from a higher education institution and recognised by the Zambia Qualifications Authority; and (b) has at least ten years’ work experience in the financial sector. (3) The Director-General may, on terms and conditions as the Director-General may determine, delegate the Director-General’s functions under this Act to any other member of staff. (4) A delegation made under subsection (3) shall not prevent the Director-General from performing the functions so delegated. (5) There may be seconded from the Bank staff of the Bank as may be necessary for the performance of the functions of the Corporation under this Act. Zambia Deposit Insurance Corporation [No. 11 of 2026 477 (6) The Board shall appoint a Secretary and other staff of the Corporation that the Board considers necessary for the performance of the functions of the Corporation. (7) The Emoluments Commission shall, on the recommendation of the Board, determine the emoluments of the Director-General, Secretary and other staff of the Corporation. (8) The Board shall determine the terms and conditions of service, other than emoluments of the Director-General, Secretary and other staff of the Corporation. PART III MEMBERSHIP OF CORPORATION - 9
AI-assisted research summary: The Corporation’s funds may come from public appropriations, Board allocations, grants or donations, charges or fees, and amounts that vest in or accrue to it. The Board must approve loans for the Corporation, and the Corporation may invest unused funds.
9. (1) The funds of the Corporation consist of monies that may— Funds of Corporation (a) be appropriated to the Corporation by Parliament; (b) be allocated by the Board as a proportion of interest income from investment of the funds of the Fund for purposes of meeting the operational and administrative costs of the Corporation; (c) be received by way of grants or donations from any source within the Republic and subject to the approval of the Minister, from any source outside the Republic; 499 No. 11 of 2026] Zambia Deposit Insurance Corporation (d) be paid to the Corporation by way of charges or fees; and (e) vest in or accrue to the Corporation. (2) The Board shall approve loans for the Corporation on terms and conditions that the Board may determine for purposes of facilitating a resolution or reimbursement of insured deposits. (3) There shall be paid from the funds of the Corporation — (a) the salaries, allowances and loans of members of staff of the Corporation; (b) reasonable travelling, transport and subsistence allowances for members of the Board or members of any committee of the Board when engaged in the business of the Corporation, at rates that the Emoluments Commission may, on the recommendation of the Minister, determine; and (c) any other expenses incurred by the Corporation in the performance of the Corporation’s functions. (4) The Corporation may invest, in a manner that the Board considers appropriate, funds of the Corporation that it does not immediately require for the performance of the Corporation’s functions. Financial yearr Accounts and audit - 10
AI-assisted research summary: The Corporation’s financial year is 12 months long and ends on 31 December each year.
10. The financial year of the Corporation shall be a period of twelve months ending on 31st December in each year. - 11
AI-assisted research summary: The Board must keep proper accounting books and records, the Corporation’s accounts must be audited annually or when necessary by the Auditor-General or an auditor appointed by the Auditor-General, and the Corporation must pay the auditor’s fees.
11. (1) The Board shall cause to be kept proper books of accounts and other records relating to the accounts of the Corporation. (2) The accounts of the Corporation shall be audited annually or whenever necessary by the Auditor-General or an auditor appointed by the Auditor-General. (3) The auditor’s fees shall be paid by the Corporation.
Part
PART III
- 10
AI-assisted research summary: Banks or financial institutions must be members of the Corporation, and the Corporation must publish information about member institutions in specified media.
10. (1) A bank or financial institution shall be a member of the Corporation. Membership to Corporation (2) The Corporation shall publish information relating to member institutions under this Act in the Gazette and in a daily newspaper of general circulation in the Republic or electronic media as the Corporation may determine. - 11
AI-assisted research summary: A member institution must stop being a member of the Corporation if its licence is surrendered or cancelled, it is put into compulsory liquidation, or its customer deposits are transferred to another member institution. The Corporation must then tell the public by notice.
11. (1) A member institution shall cease to be a member of the Corporation where — (a) the licence issued to the member institution is surrendered by that member institution or cancelled by the Bank; (b) the member institution is placed under compulsory liquidation by the Bank; or (c) customer deposits of the member institution are transferred to another member institution. (2) The Corporation shall inform the public of the cessation of membership of a member institution under subsection (1) by notice in the Gazette and in a daily newspaper of general circulation in the Republic or electronic media as the Corporation may determine. - 12
AI-assisted research summary: When membership ends, the member institution still owes existing liabilities, must indemnify the Corporation in some payment cases, and must not hold itself out as a member.
12. Where a member institution ceases to be a member of the Corporation under section 11— (a) the member institution shall not be discharged from the member institution’s obligations or liabilities to the Corporation that accrued prior to cessation of membership of the member institution; Cessation of membership to Corporation Effect of cessation of membership to Corporation 478 No. 11 of 2026] Zambia Deposit Insurance Corporation (b) the member institution shall indemnify the Corporation where the Corporation makes payment to — (i) reimburse insured deposits of the member institution; or (ii) facilitate resolution of the member institution; (c) a deposit received by the member institution after cessation of membership of the member institution shall not form part of insured deposits; and (d) the member institution shall not hold-out as a member of the Corporation. PART IV PREMIUM Initial one-off premium
Part
PART IV
- 13
AI-assisted research summary: Member institutions must pay an initial one-off premium into the Fund, and the Corporation must notify them in writing once it sets the rate.
13. (1) A member institution shall pay into the Fund an initial one-off premium based on the total assets of the member institution at a rate to be determined by the Corporation as prescribed. Annual premium (2) The Corporation shall, where the Corporation determines the rate of the initial one-off premium to be paid under subsection (1), notify a member institution, in writing. (3) A member institution shall, within sixty days of receipt of the notification referred to under subsection (2), pay the initial one-off premium. - 14
AI-assisted research summary: Member institutions must pay an annual premium into the Fund, and the Corporation must notify them of the rate and arrange collection through the Bank or another bank account holder.
14. (1) A member institution shall pay into the Fund an annual premium based on the twelve-month average of monthly deposits of the member institution at a rate to be determined by the Corporation as prescribed. (2) The Corporation shall, where the Corporation determines the rate of the annual premium to be paid under subsection (1), notify a member institution, in writing. (3) The Bank shall, after a member institution that is a bank is notified under subsection (2), debit, on behalf of the Corporation, an amount due as an annual premium from a current account of the member institution held at the Bank. (4) The Corporation shall, after a member institution that is a financial institution is notified under subsection (2), direct a bank where an account of that member institution is held, to debit from that account an amount due as an annual premium. Zambia Deposit Insurance Corporation [No. 11 of 2026 479 Special premium Risk-based premium Premium default - 15
AI-assisted research summary: A member institution may pay a special premium if the Fund’s money is not enough after a payout, and the Corporation sets the rate and conditions.
15. Despite section 14, where the Corporation makes a pay- out from the Fund and the monies of the Fund are not sufficient for the implementation of the purposes of the Fund following that pay-out, a member institution may pay a special premium based on the twelve-month average of monthly deposits of the member institution at a rate and on terms and conditions as may be determined by the Corporation as prescribed. - 16
AI-assisted research summary: The Corporation may set and charge a member institution a higher premium rate, if prescribed and based on the risk to the Fund.
16. The Corporation may determine, as prescribed, and levy a member institution a higher premium rate than the determined premium rate based on the risk to the Fund, by that member institution. - 17
AI-assisted research summary: If a premium is unpaid, interest is charged; a member institution also cannot pay dividends while in default on the premium or related interest.
17. (1) Where a premium remains unpaid or a debit instruction for an amount for the payment of a premium has not been executed due to insufficient funds on an account of a member institution, an amount which remains unpaid after the due date, shall without notice, attract interest at a rate equivalent to the ninety-one-day treasury bill rate or any other applicable rate as may be determined by the Corporation. (2) A member institution shall not pay a dividend or a similar payment to the shareholders of the member institution during the period the member institution is in default of payment of a premium or interest on that premium. - 18
AI-assisted research summary: A member institution must not charge or transfer the cost of a premium under this Act to a depositor.
18. (1) The cost of a premium under this Act shall not be charged or transferred by a member institution, in any form, to a depositor of the member institution. Charge or transfer of premium (2) A member institution that contravenes this section is liable to pay an administrative penalty not exceeding one million penalty units for each day that the contravention continues. - 19 Verify source ↗
PART V
AI-assisted research summary: A member institution must not reduce, adjust, or withhold a premium payment or other obligation to the Fund because of a set-off or claim against the Fund.
19. A member institution shall not reduce, adjust or withhold the payment of a premium due, or performance of an obligation, to the Fund, on the grounds of a set-off or claim that the member institution may have against the Fund. Premium off-set 480 No. 11 of 2026] Zambia Deposit Insurance Corporation PART V COVERAGE, REIMBURSMENT AND LIMITATION OF CLAIMS Extent of cover
Part
PART V
- 20
AI-assisted research summary: The Corporation must keep pay-outs within a coverage limit it determines, and deposits are insured up to that limit.
20. (1) An amount payable by the Corporation from the Fund in a pay-out shall be in accordance with a coverage limit as may be determined by the Corporation. (2) Where a depositor maintains— Coverage of joint accounts (a) one deposit account with a member institution, the deposits on the deposit account shall be insured in respect of the principal and interest of the deposit up to the coverage limit referred to under subsection (1); or (b) more than one deposit account with a member institution, the aggregate of the deposits in the deposit accounts shall be insured in respect of the principal and interest of the deposits up to the coverage limit referred to under subsection (1). - 21 Verify source ↗
Extent of cover
AI-assisted research summary: If two or more depositors hold a joint account with a member institution, they must be identified separately when working out how much is payable to each depositor up to the coverage limit.
21. (1) Where two or more depositors maintain a joint account with a member institution, the depositors shall be identified separately for the purposes of determining the amount payable to each depositor up to the coverage limit referred to under section - 20
AI-assisted research summary: The Corporation must split a joint account deposit balance equally among depositors unless they already agreed otherwise.
20. (2) The Corporation shall divide a deposit balance on a joint account equally among the depositors of the joint account where the depositors do not have a prior agreement stating the manner in which the deposits should be shared among the depositors. (3) Where a depositor maintains a joint account and other accounts in the member institution, the amount payable to the depositor shall be the principal and interest of the deposits on the accounts up to the coverage limit referred to under section 20 on the aggregated balance across the accounts maintained by the depositor in the member institution. Coverage for trusts - 22
AI-assisted research summary: This section treats certain trust deposits as separate deposits, but the Corporation must not separately protect trust deposits if the trust mainly exists to increase deposit protection.
22. (1) Despite section 20— (a) where a member institution is under an obligation to repay monies to a depositor who is a trustee of a trust, and the trust is disclosed on the records of the member institution a— Zambia Deposit Insurance Corporation [No. 11 of 2026 481 (i) trustee deposit shall be considered to be a deposit separate from a deposit made by the trustee acting on the trustee’s own behalf or on behalf of another trust with an account with the member institution; and (ii) deposit held in trust by the trustee for each beneficiary of the trust, shall be considered to be a separate deposit where the trustee is acting for two or more beneficiaries of the trust; and (b) a deposit held in trust by a trustee for a beneficiary shall be considered to be a deposit separate from a deposit of that beneficiary on their own behalf and be separate from a deposit held in trust by another trustee for the beneficiary in another trust. (2) Despite subsection (1) — (a) the Corporation shall not separately protect deposits held in trust for a beneficiary if, in the opinion of the Corporation, the trust exists primarily for the purposes of obtaining or increasing the protection of the deposits; or (b) a deposit held in trust by the same trustee for the same beneficiary shall be aggregated and considered to be one deposit. (3) A holding account shall not be treated as a trust account under this Act. - 23
AI-assisted research summary: During a corporate restructuring, depositors of separate member institutions keep separate coverage up to the section 20 limit until the restructuring takes effect, and the member institutions must notify them at least 30 days before that effective date about when separate cover ends.
23. (1) In the event of, or prior to, a corporate restructuring transaction of separate member institutions, depositors of the separate member institutions shall receive separate coverage, up to the coverage limit referred to under section 20, until the effective date of the corporate restructuring transaction. Coverage for corporate restructuring transactions (2) The member institutions referred to under subsection (1) shall notify the depositors of the member institutions, at least thirty days before the effective date of the corporate restructuring, of the date on which separate cover of the depositors shall expire. - 24
AI-assisted research summary: Village banking account beneficiaries may be covered up to the section 20 limit, and a beneficiary with more than one such account can get separate cover for each account unless the Corporation thinks the account is mainly set up to increase protection.
24. (1) Where an account is maintained at a member institution specifically for the purposes of village banking, with identifiable beneficiaries vetted by the member institution when on-boarding the beneficiaries, the amount payable to each beneficiary shall be up to the coverage limit referred to under section 20. Coverage for village banking accounts 482 No. 11 of 2026] Zambia Deposit Insurance Corporation (2) The aggregate amount payable to the beneficiaries referred to under subsection (1) shall be paid, with the consent of the beneficiaries, into an alternative account to be provided by the signatories of the account referred to under subsection (1). (3) Where a beneficiary referred to under subsection (1) is a beneficiary of more than one village banking account, that beneficiary shall be entitled to separate cover under each account up to the coverage limit referred to under section 20. (4) Despite subsection (3), the Corporation shall not separately protect the deposits held in a village banking account for a beneficiary if, in the opinion of the Corporation, the village banking account exists primarily for the purposes of obtaining or increasing the protection of the deposits. Excluded deposits - 25
AI-assisted research summary: The Fund must insure customer deposits of a member institution, except for several listed excluded deposits.
25. Customer deposits of a member institution shall be insured by the Fund, except the following customer funds: (a) a deposit serving as collateral for a loan, to the extent of an outstanding loan amount; (b) secured deposits; (c) deposits of a member institution in another member institution; (d) deposits of directors and senior management of that member institution; (e) deposits of a significant shareholder of that member institution; (f)deposits held in a foreign branch of a member institution; or (g) a deposit account for which a depositor has not been identified. Reimburse- ment of insured deposit - 26
AI-assisted research summary: The Corporation must notify depositors and start insured-deposit payments on the stated timelines, and it may delay, withhold, or offset reimbursements in specified cases.
26. (1) The Corporation shall, in the event of a compulsory winding-up of a member institution by the Bank, in a manner that the Corporation may determine — (a) within seven days of an order for winding-up of the member institution, inform the depositors of the member institution of the procedures to be followed in claiming from the Fund, including information relating to the — Zambia Deposit Insurance Corporation [No. 11 of 2026 483 (i) manner of lodging a claim for the reimbursement of an insured deposit; and (ii) agents or persons who have been appointed to process a claim referred to under subparagraph (i) and the addresses of the location of the agents or persons where the claim shall be lodged; and (b) provide relevant information to interested parties on the process of the reimbursement of an insured deposit. (2) The Corporation shall commence payment out of the Fund in respect of insured deposits of a member institution within thirty days from the date the depositors of the member institution are informed of the procedures to be followed in claiming from the Fund under subsection (1)(a). (3) The Corporation may, where the Corporation determines that the process of full reimbursement of an insured deposit may be delayed, make an interim or partial reimbursement as the Corporation may determine. (4) Payment out of the Fund in respect of an insured deposit discharges the Fund from all liabilities to the extent of the amount of the payment made in respect of that insured deposit. (5) The reimbursement of a deposit under this Act does not restrict the right of a depositor to claim from the proceeds of winding -up of a failed member institution where the depositor has an unpaid balance on a deposit. (6) The Corporation may withhold the reimbursement of an insured deposit where— (a) the Bank, in accordance with the Banking and Financial Services Act, 2026, determines that a manager or other senior officer of a member institution has acted in a manner detrimental to the interests of depositors or engaged in unsafe and unsound practice; (b) the Bank, in accordance with the Banking and Financial Services Act, 2026, determines that a person who participates, or has the authority to participate, in policy making functions of a member institution, whether employed by the member institution or not, has acted in a manner detrimental to the interests of depositors or engaged in unsafe and unsound practice; Act No. 9 of 2026 Act No. 9 of 2026 484 No. 11 of 2026] Zambia Deposit Insurance Corporation Act No. 9 of 2026 Act No. 9 of 2026 Currency reimburse- ment (c) the Bank, in accordance with the Banking and Financial Services Act, 2026, determines that an external auditor of a member institution has acted in a manner detrimental to the interests of depositors; (d) the Bank, in accordance with the Banking and Financial Services Act, 2026, determines, pending legal proceedings before a court, that a depositor is believed to have — (i) connived with an employee of a failed member institution or had been a party to, or had knowingly benefited from, the circumstances which gave rise to the failure of the member institution; or (ii) obtained a benefit from proceeds of crime; or (e) a deposit account is subject of a garnishee order, seizure notice or restriction imposed by a relevant authority conducting an investigation. (7) The Corporation may off-set and withhold payment of a portion of an insured deposit of any depositor in a member institution against a— (a) loan or debt due and owing by that depositor to the member institution; or (b) claims for damages or losses through negligence or other wrongdoing against a depositor who may be liable to the member institution as a director, shareholder, officer, employee, agent or other person. - 27
AI-assisted research summary: The Fund must reimburse insured deposits in local currency, and the Corporation must use the previous business day’s rate if the conversion date falls on a Saturday, Sunday, or public holiday.
27. (1) The Fund shall reimburse an insured deposit in local currency. (2) Deposits held in foreign currency shall be converted to local currency using the Bank mid rate or the applicable closing rate of a failed member institution at the date the failed member institution ceases operations. (3) Where the date referred to under subsection (2) falls on a saturday, sunday or a public holiday, the Corporation shall convert the deposits held in foreign currency to local currency using the rate prevailing on the immediate preceding business day. Zambia Deposit Insurance Corporation [No. 11 of 2026 485 Limitation of claims - 28
AI-assisted research summary: This section sets deadlines for insured deposit claims and allows the Corporation to withhold payment to a third party until a written assignment is submitted.
28. (1) Despite any other written law, a claim for payment of an insured deposit shall not be brought after the expiry of six years from the date depositors are informed of the procedures to be followed in claiming from the Fund under section 26(1)(a). (2) A depositor who has been unable to make a claim within the period specified under subsection (1) shall claim from a liquidator of a failed member institution. (3) Despite subsection (2), a person shall not make a claim after the closure of a liquidation of a failed member institution. (4) The Corporation may, where the Corporation considers it necessary, withhold payment to a third party in respect of a depositor of a member institution until the depositor has submitted an assignment to the Corporation, in writing, stating the transfer, to the third party, of the rights and interests of that depositor in relation to a deposit. PART VI INSPECTORATE
Part
PART VI
- 29
AI-assisted research summary: The Corporation may appoint qualified inspectors, must give each inspector an identification card, and inspectors must carry and show that card when doing their functions under the Act.
29. (1) The Corporation may appoint suitably qualified persons as inspectors for the purposes of ensuring compliance with this Act. Inspections (2) The Corporation shall issue an inspector with an identification card which shall be prima facie evidence of the inspector’s appointment. (3) An inspector shall, in performing any function under this Act— (a) be in possession of the identification card referred to in subsection (2); and (b) show the identification card to any person who requests to see the identification card or is the subject of an inspection or investigation under this Act. - 30
AI-assisted research summary: The Corporation may inspect a member institution when it considers the inspection necessary.
30. (1) The Corporation may, at periods that the Corporation considers necessary conduct an inspection of a member institution. Inspectors (2) Despite the generality of subsection (1), the Corporation may conduct an inspection of a member institution in relation to the following matters: (a) to ascertain whether the member institution — (i) keeps and maintains proper, adequate and up-to- date records relating to deposits; 486 No. 11 of 2026] Zambia Deposit Insurance Corporation (ii) has submitted to the Corporation accurate information, data, statements and reports; or (iii) complies with the terms and conditions or any other requirements of membership; or (b) any other matter that the Corporation may consider necessary under this Act for purposes of conducting an inspection. Powers of inspector - 31
AI-assisted research summary: Inspectors may inspect member institution premises and related records, and owners or occupiers must give access and provide requested information.
31. (1) An inspector may, for the purpose of enforcing the provisions of this Act, at any reasonable time — (a) enter, inspect and search any land, building or premises of a member institution, where the inspector has reasonable grounds to believe that an offence has been committed or is likely to be committed under this Act; (b) examine any book, document, record or article, found on any land, building or premises of a member institution that has a bearing on an inspection or investigation under this Act; (c) seize any book, document, record or article found on any land, building or premises of a member institution which has been used or is being used for the commission of an offence under this Act; (d) take an extract from, or make a copy of any book, document or record that is found on any land, building or premises of a member institution that has a bearing on an inspection under this Act; and (e) require the production of a book, document, record or article found on any land, building or premises of a member institution that has a bearing on an inspection under this Act. (2) An owner or occupier of any land, building or premises shall afford an inspector access to any information, record or document for the purpose of an inspection and produce to an inspector, any information, record or document that the inspector may require for the purposes of carrying out an inspection under this Act. (3) An inspector may, in the performance of the functions of the inspector under this section, be accompanied and assisted by a law enforcement officer. Zambia Deposit Insurance Corporation [No. 11 of 2026 487 (4) An inspector who removes anything from any land, building or premises inspected under this section shall— (a) issue a receipt for anything removed to the owner, occupier or the person in control of the land, building or premises; and (b) return anything removed as soon as practicable after the thing removed has served the purpose for which it was removed. (5) An inspector shall furnish the Director-General with a written report and any other information relating to an inspection. - 32
AI-assisted research summary: It is an offence to obstruct, mislead, impersonate, or refuse reasonable assistance to an inspector acting under the Act.
32. (1) A person commits an offence if that person— (a) willfully delays or obstructs an inspector in the performance of the inspector’s functions under this Act; (b) refuses to give an inspector reasonable assistance as the inspector may require for the purposes of performing the inspector’s functions; (c) impersonates an inspector or presents oneself to be an inspector; or (d) knowingly or negligently gives an inspector false or misleading information orally, in writing or otherwise. (2) A person who contravenes subsection (1) commits an offence and is liable, on conviction, to a fine not exceeding five hundred thousand penalty units or to imprisonment for a term not exceeding five years, or to both. PART VII THE DEPOSIT INSURANCE FUND
Part
PART VII
- 33
AI-assisted research summary: This section establishes the Deposit Insurance Fund and lets the Corporation use and invest it for deposit protection and financial stability, subject to stated conditions.
33. (1) There is established the Deposit Insurance Fund for the purposes of protecting depositors and contributing to financial system stability. (2) Despite the generality of subsection (1), the Fund may be applied for the purposes of— (a) making payments in respect of insured deposits; (b) facilitating a resolution of a member institution, through the resolution option of a purchase and assumption transaction or any other resolution option relating to deposit transfer, provided the amount to be incurred in the resolution option does not exceed the amount which would be incurred in a payout in a liquidation; or (c) any other matter relating to the protection of depositors, as prescribed. Deposit Insurance Fund 489 No. 11 of 2026] Zambia Deposit Insurance Corporation (3) Despite subsection (2)(b), the Corporation may, on the recommendation of the Bank, apply the Fund to a resolution option relating to deposit transfer that exceeds the amount which would be incurred in a payout in a liquidation where the Bank considers it necessary for the purposes of maintaining financial stability. (4) The Fund consists of monies that may— (a) be paid by member institutions as premiums; (b) be recovered, through subrogation, from liquidation of a member institution; (c) be paid as interest from investments; (d) be paid as penalties levied on member institutions; (e) vest in, or accrue to, the Fund; (f) be received by way of grants and donations from any source, with the approval of the Minister; and (g) be payable to the Fund by or under any other written law. (5) The Corporation shall hold and maintain an account with the Bank in which the monies referred to under subsection (4) shall be deposited. (6) The Corporation may invest any monies of the Fund that are not immediately required for the purpose of the Fund, in a manner authorised by the Board. - 34
AI-assisted research summary: The Corporation must manage and administer the Fund, and it must put prudent controls in place for the Fund.
34. (1) The Fund shall be managed and administered by the Corporation. (2) The Corporation shall ensure that prudent controls are established for the Fund relating to— (a) fiscal controls and accounting procedures governing the Fund; (b) reporting procedures for matters relating to the Fund; and (c) investment of the monies of the Fund. Management of Fund Accounts and audit - 35
AI-assisted research summary: The Corporation must keep proper accounts and records for the Fund, the Fund must be audited annually or when necessary, and the Corporation must pay the audit fees.
35. (1) The Corporation shall cause to be kept proper books of accounts and other records relating to the Fund. (2) The Fund shall be audited annually or whenever necessary by the Auditor-General or an auditor appointed by the Auditor- General. Zambia Deposit Insurance Corporation [No. 11 of 2026 490 Annual report (3) The fees for the audit of the Fund shall be paid by the Corporation. - 36
AI-assisted research summary: The Corporation must send the Minister a yearly activity report within 90 days after the financial year ends, and the Minister must table it before the National Assembly within 7 days after its next sitting.
36. (1) The Corporation shall, as soon as practicable, but not later than ninety days after the end of the financial year, submit to the Minister a report stating the Corporation’s activities during the financial year. (2) The report referred to under subsection (1), shall include information on the financial affairs of the Corporation and there shall be appended to the report— (a) an audited statement of financial position; (b) an audited statement of comprehensive income and expenditure; and (c) other information that the Minister may require. (3) The Minister shall, not later than seven days after the first sitting of the National Assembly next after receipt of the report under subsection (1), lay the report before the National Assembly. PART VIII GENERAL PROVISIONS
Part
PART VIII
- 37
AI-assisted research summary: The Bank or Government may grant a loan to the Fund when the Fund cannot meet an obligation of the Corporation, and the Corporation may borrow from the market for emergency funding, but market borrowing cannot be the only source.
37. (1) The Bank or Government may grant a loan, on terms and conditions as the parties may agree, to be paid into the Fund where the Fund is unable to meet an obligation of the Corporation. Emergency funding (2) The Corporation may borrow from the market, on terms and conditions as the parties may agree, for purposes of enabling the Fund to meet an obligation of the Corporation, except that borrowing from the market shall not be a single or only source of emergency funding. - 38
AI-assisted research summary: The Corporation must create a General Reserve Fund at the Bank and move its annual operational surplus into that fund each financial year.
38. (1) The Corporation shall establish a General Reserve Fund to be held at the Bank. (2) The Corporation shall, at the end of each financial year, transfer the annual operational surplus of the Corporation to the General Reserve Fund. (3) The General Reserve Fund shall be applied for the purposes of — (a) meeting the operational and administrative costs of the Corporation; or (b) performing payment obligations of the Corporation in respect of insured deposits in the case where the Fund is unable to meet the payment obligations. General Reserve Fund 491 No. 11 of 2026] Zambia Deposit Insurance Corporation Subrogation - 39
AI-assisted research summary: The Fund must be subrogated to a depositor’s rights and interests, but only up to the amount the Corporation pays out of the Fund for that depositor.
39. The Fund shall be subrogated to the rights and interests of a depositor, to the extent of the amount of a payment made out of the Fund by the Corporation in respect of that depositor. Collaboration with Bank - 40
AI-assisted research summary: The Corporation and the Bank must work together so the Bank can assist the Corporation in carrying out its functions.
40. (1) The Corporation shall collaborate with the Bank for purposes of the Bank assisting the Corporation in the performance of the functions of the Corporation. (2) Despite the generality of subsection (1), the Corporation and the Bank shall collaborate on the following matters: (a) reporting arrangements under this Act; (b) the manner and processes for conducting joint inspections of member institutions; (c) requests for information and documents, including returns, reports or any other relevant information or documents necessary for the effective operation of the Corporation; (d) arrangements and agreements for purposes of ensuring that transit arrangements relating to clearing and settlement of payments are dealt with in an appropriate, consistent and timely manner for purposes of establishing depositor balances during a resolution or liquidation of a failed member institution; (e) cooperation with a liquidator of a failed member institution, where the Corporation is not appointed as a liquidator by the Bank under this Act, for purposes of facilitating the process of reimbursement of insured deposits of that failed member institution; and (f) provision of resources by the Bank to the Corporation, including the staff of the Bank. Appointment of Corporation as liquidator Submission of information Act No. 3 of 2021 - 41
AI-assisted research summary: The Corporation may be appointed by the Bank to act as liquidator for a failed member institution.
41. The Corporation may be appointed by the Bank as a liquidator of a failed member institution. - 42
AI-assisted research summary: A member institution must submit depositor-related information, data, statements, and reports to the Corporation in the form and manner the Corporation تعیینs, subject to the Data Protection Act, 2021.
42. (1) Subject to the Data Protection Act, 2021, a member institution shall submit to the Corporation information, data, statements and reports relating to depositors in a manner and form as may be determined by the Corporation. (2) A member institution that contravenes subsection (1) commits an offence. Zambia Deposit Insurance Corporation [No. 11 of 2026 492 - 43
AI-assisted research summary: The Corporation must give member institutions yearly information about deposit insurance matters, and member institutions must display that information and comply within 24 months after commencement.
43. (1) The Corporation shall, at least once a year, furnish member institutions with information, including public education materials, relating to the following: Public awareness (a) the Corporation; (b) insured deposits and excluded deposits; (c) the coverage limit; (d) procedures to be followed by a depositor in claiming from the Fund; and (e) any other information that the Corporation considers necessary for purposes of ensuring that depositors are made aware of matters relating to this Act. (2) A member institution shall display the information referred to under subsection (1) in a conspicuous place at the member institution’s principal administrative office and any other premises where the member institution carries on business or electronic media as the Corporation may determine. (3) A member institution shall comply with the requirements of this section within twenty-four months after the commencement of this Act. - 44
AI-assisted research summary: A person aggrieved by a Corporation decision may appeal in writing to the Minister within 30 days, and the Minister must decide the appeal within 30 days and give written reasons. A person aggrieved by the Minister’s decision may then appeal to the High Court within 30 days.
44. (1) A person who is aggrieved with a decision of the Corporation may, within thirty days from the date of receipt of the decision appeal, in writing, to the Minister. Appeals (2) The Minister shall, within thirty days of receipt of an appeal under subsection (1), determine the appeal and inform the appellant, in writing, of the Minister’s decision, stating the reasons for the decision. (3) A person who is aggrieved by the decision of the Minister may, within thirty days of receipt of the decision, appeal to the High Court. - 45
AI-assisted research summary: A person who commits an offence under this Act, where no penalty is otherwise provided, may be punished on conviction by a fine of up to 200,000 penalty units, imprisonment for up to 2 years, or both.
45. A person who commits an offence under this Act, for which a penalty is not provided is liable, on conviction, to a fine not exceeding two hundred thousand penalty units or to imprisonment for a term not exceeding two years, or to both. General penalty - 46
AI-assisted research summary: The Corporation may impose an administrative penalty on a person for a non-offence breach of the Act.
46. (1) The Corporation may impose an administrative penalty on a person for a failure to comply with a provision of this Act which is not an offence. Administrative penalty 493 No. 11 of 2026] Zambia Deposit Insurance Corporation (2) An administrative penalty shall not exceed the amount prescribed by the Minister, by statutory instrument, for each day during which the failure continues. (3) An administrative penalty shall be paid to the Corporation within the period specified by the Corporation. (4) If a person on whom an administrative penalty is imposed in accordance with this section fails to pay the administrative penalty within the time specified under subsection (3), the Corporation may, by way of civil action in a competent court, recover the amount of the administrative penalty from that person as an amount due and owing to the Corporation. - 47 Verify source ↗
Coverage for trusts
AI-assisted research summary: If a body corporate or unincorporate body commits an offence with a director’s, manager’s, shareholder’s, or partner’s knowledge, consent, or connivance, that person can be liable on conviction for the penalty for the offence.
47. Where an offence under this Act is committed by a body corporate or an unincorporate body, with the knowledge, consent or connivance of the director, manager, shareholder or partner of the body corporate or an unincorporate body, that director, manager, shareholder or partner is liable, on conviction, to the penalty specified for that offence under this Act. - 48
AI-assisted research summary: If a judgment or court order is obtained against the Corporation, the Corporation must pay the awarded amount from its funds to the person entitled to it.
48. Where a judgment or court order is obtained against the Corporation, execution, attachments or process of any nature shall not be issued against the Corporation or against the property of the Corporation, but the Corporation shall cause to be paid out of the funds of the Corporation an amount that may, by judgement or court order, be awarded against the Corporation to the person entitled to the amount. Offence by principal officers of body corporate or unincorporate body Execution of judgment against assets of Corporation Guidelines - 49
AI-assisted research summary: The Corporation may issue guidelines under the Act, and it must publish them in specified media; the guidelines take effect on publication and bind all persons on matters relating to the Act.
49. (1) The Corporation may, in the exercise of the functions of the Corporation under this Act, issue guidelines that are necessary for the better carrying out of the provisions of this Act. (2) The Corporation shall publish the guidelines issued under this Act in the Gazette and in a daily newspaper of general circulation in the Republic or any other electronic media that the Corporation may determine. (3) The guidelines issued by the Corporation shall take effect on the date of publication and shall bind all persons on matters relating to this Act. Regulations - 50
AI-assisted research summary: The Minister may, on the Corporation’s recommendation, make regulations by statutory instrument to carry out the Act.
50. (1) The Minister may, on the recommendation of the Corporation, by statutory instrument, make Regulations for the better carrying out of the provisions of this Act. Zambia Deposit Insurance Corporation [No. 11 of 2026 494 (2) Despite subsection (1), regulations made under subsection (1) may provide for— (a) determination and payment of premiums to be paid by member institutions; (b) determination of the target fund size, depositor coverage and coverage limit for depositors; (c) investment of the monies of the Fund; (d) investment guidelines; (e) matters relating to member institutions; (f) reporting procedures and submission of information on matters relating to the Fund; (g) information sharing arrangements with the Bank and other relevant institutions; (h) penalties to be imposed by the Corporation on member institutions for non-payment of premiums; (i) fees and charges; (j) accounting procedures governing the Fund; (k) operationalisation of the Fund; (l) administration and management of the Fund; (m) reimbursement of insured deposits in the event of a pay- out; (n) grievance procedure in respect of an insured deposit; (o) appointment of agents of the Corporation; (p) public awareness by member institutions; or (q) any other matter necessary for the efficient operation, administration and management of the Fund. - 51 Verify source ↗
SCHEDULE
AI-assisted research summary: On commencement, the listed assets, liabilities, powers, rights, obligations, and privileges of the deposit protection scheme vest in the Corporation, despite repeal of the earlier Act.
51. Despite the repeal of the Banking and Financial Services Act, the assets, liabilities, powers, rights, obligations and privileges of the deposit protection scheme established by the Bank under the repealed Banking and Financial Services Act shall vest in the Corporation on the commencement of this Act. Transitional provisions Cap. 387 Cap. 387 495 No. 11 of 2026] Zambia Deposit Insurance Corporation Seal of Zambia Deposit I n s u r a n c e Corporation Tenure of office and vacancy SCHEDULE (Section 4(2) and 7(6)) PART I THE ZAMBIA DEPOSIT INSURANCE CORPORATION
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Zambia Deposit Insurance Corporation Act, 2026
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