NASCU ZAMBIA

National Association of Savings and Credit Unions “Strengthening SACCOs, Advancing Financial Inclusion”

CLARIFICATION ON THE APPLICABILITY

OF THE BANKING AND FINANCIAL SERVICES ACT, 2026

TO CREDIT UNIONS

8 APRIL 2026

The Banking and Financial Services Act, 2026, which came into force on 8 April 2026, establishes a comprehensive framework for the regulation and supervision of financial service providers and repeals the Money Lenders Act (Cap 398).

Consequently, all money lending activities are now governed by the provisions of the Banking and Financial Services Act, 2026.

However, it is important to note that Credit Unions, also known as Savings and Credit Cooperative Organizations (SACCOs), continue to operate under the Cooperative Societies Act No. 20 of 1998.

In accordance with Section 76 of that Act, the provisions of the Banking and Financial Services Act, 2026 do not apply to Credit Unions duly registered under the Cooperative Societies Act No. 20 of 1998.

NASCU reaffirms its commitment to supporting Credit Unions to operate within the cooperative framework and continue advancing financial inclusion in Zambia.

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