Burundi’s Currency Exchange Industry Under Scrutiny as Compliance Concerns Arise

Burundi’s Prime Minister, Lt-Gen Pol. Ndirakobuca_Gervais recently convened a significant gathering of stakeholders from the currency exchange sector on June 12, 2023. The purpose of the meeting was to address mounting concerns regarding the sector’s compliance with rules and regulations established by the Burundi Central Bank.

Several decisive actions were taken during the meeting to tackle the issues afflicting the sector. First and foremost, exchange offices were given a strict deadline of three days to restore their share capital to 500 million Burundian francs, as most of these offices had recently experienced substantial withdrawals. This measure aimed to fortify the financial stability of these entities. 

Furthermore, in a bid to safeguard the country’s economy, commercial transactions in foreign currency within the local market were prohibited. The intention behind this prohibition was to prioritize the national currency and its impact on the overall economic landscape.

In an effort to bolster transparency and accountability, exchange offices were mandated to report a minimum revenue of 50,000 euros or dollars per week. Failure to meet this financial requirement would result in their removal from the list of authorized exchange offices. Additionally, individuals and legal entities were prohibited from conducting money transfers through channels other than commercial banks, leading to the temporary suspension of all money transfer establishments.

Exchange offices with multiple shareholders were directed to submit documentation to the Central Bank, verifying their capital. This step aimed to ensure proper oversight and compliance in the sector. Notably, citizens were strongly encouraged to report any instances of individuals found in possession of foreign currencies without a travel ticket or frequenting unregistered exchange offices to the relevant security services.

The Prime Minister emphasized the government’s unwavering commitment to upholding the rule of law and ensuring full compliance within Burundi’s currency exchange sector. This crucial meeting marked a significant stride toward achieving the ultimate goal of regulatory adherence and stability in the industry.