Includes special features of this country’s banking system and rules/laws that might impact U.S. business.
Last Published: 2/22/2017

Lesotho’s banking system consists of the Central Bank of Lesotho (CBL) and commercial banks. The CBL is responsible for management of the country's foreign exchange reserves, administration of exchange controls, and regulation of financial institutions. The banking system is dominated by three South African banks:

All banks offer a comprehensive range of products and services through branch and electronic banking infrastructures. Electronic commerce (e-commerce) is still a new concept in Lesotho; the Ministry of Communications has developed proposals for electronic commerce to be more widely developed, and an e-commerce legislation is being drafted. Electronic funds transfers are limited to $10,000 per transaction for transfers to local bank accounts, while for external bank accounts; the limit is roughly $50 million.
 
Individuals can open local currency accounts with any bank. The bank will require an individual’s identity document and proof of residential address to open an account. For businesses, the bank requires an application letter with the specimen signatures of the signatories to the account. Through Lesotho’s membership in the Common Monetary Area, the central bank does not give directions as to interest rates, exchange rates margins, or the spread of services offered and the branch network. This creates a low political risk environment for banking investment. According to the IMF, Lesotho’s banks are currently well capitalized, and are viewed to be relatively stable.
 
The Government has passed the Credit Reporting Act 2012, and the Data Protection
Act 2012; the two laws create an enabling environment for the Central Bank of Lesotho to establish a credit bureau. The Credit Bureau Project is part of the Private Sector Development component of the Millennium Challenge Corporation (MCC) compact in Lesotho.
 

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