The Bank of Tanzania (BoT) on 21st June 2017 issued a directive to all bureau de change to comply with the re-licensing procedures that were announced.
On that directive, among other issues Bank of Tanzania is undertaking measures aimed at strengthening supervision of operations of Bureau de Change in the country to ensure a vibrant and dynamic foreign exchange market in line with current economic developments.
The directive further revised the minimum capital thresholds, from Tanzanian Shillings 100 Million to Tanzanian Shillings 300 Million for Class A and from Tanzanian Shillings 250 Million to Tanzanian Shillings 1 Billion for Class B as well as increase of the non-interest bearing deposit at Bank of Tanzania from United States Dollars 50,000 to United States Dollars 100,000. The new capital threshold will take effect three months from 2nd June 2017 as per the Government Notice Number 223 published on 2nd June 2017.
In implementing the measures and assessing compliance, the existing Bureau de Change have been informed and directed to observe and comply to the following requisite directives:
The Bank of Tanzania urge for smooth implementation of the above measures, Bureau de Change are encouraged to merge, acquire or be acquired by another Bureau de Change, however, merger, amalgamation or acquisition of Bureau de Change shall require prior approval of the Bank and such request shall have to be accompanied by Board Resolution, Pro-forma Balance Sheet, Pro-forma Income Statement and Organization Structure resulting from the merger, amalgamation or acquisition.
This editorial is intended to give you a general over view of the Law. If you would like further information on any issue raised in this column, please contact.
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