Changes To Tanzania's Foreign Exchange (Bureau De Change) Regulations

In this briefing, we outline the key changes in the Foreign Exchange (Bureau De Change) Regulations, which came into force on 7 June 2019 and revoked the 2015 Foreign Exchange (Bureau De Change) Regulations. All bureaux de change licensed by the Bank of Tanzania (BOT) to operate in Tanzania Mainland and Zanzibar will be required to comply with the Regulations.

Changes in the Foreign Exchange (Bureau De Change) Regulations, Government Notice No. 450 of 2019 (the Regulations) came into force on 7 June 2019. The Regulations have been made under section 5(a) and 7(1) of the Foreign Exchange Act, 1992 (the Act) and shall apply to Tanzania Mainland and Zanzibar.

Highlights of the Foreign Exchange (Bureau De Change) Regulations of 2019

Application for a licence and the procedure thereof Processing of a licence, approval and rejection of an application Requirements for processing international money transfers Liability for non-compliance with the Regulations Other requirements Prohibited acts Key changes in the Regulations

Application for a licence and the procedure thereof

Only companies limited by shares and incorporated under the Companies Act, No. 12 Cap 212 of 2002 (for Mainland Tanzania), and the Companies Act No. 15 of 2013 (for Zanzibar), can apply for a licence to operate a bureau. Applications shall be in writing and accompanied by:

A duly completed Form A on application for bureau de change licence; A draft Memorandum and Articles of Association; Reference letters from two individuals who are not relatives of each of the shareholders and directors, vouching for their good morals and character; Proof of citizenship from the head of branch, proposed board of directors and shareholders; A duly completed Form B found in the Second Schedule to the Regulations. Form B is referred to as a fit and proper person form and is to be completed by shareholders, board members, the CEO and managers; Organisational structure comprising of an officer from the department of finance, operations and compliance; A feasibility study substantiating a demand gap in the proposed location; and Assurance that a capital of not less than TZS 1 billion has been set aside for the business. Processing of a licence, approval and rejection of an application

Within a month of receiving an application for a licence to operate a bureau, BOT may either issue a provisional approval or reject the application. If the application is rejected, the applicant will be issued with a...