In a significant move, the Bank of Tanzania (BoT) has announced the issuance of fresh regulations governing Foreign Exchange (Bureau de Change). These regulations, which supersede the previous Foreign Exchange (Bureau de Change) Regulations of 2019, were unveiled through Government Notice No. 730 of 2023, as published in the Government Gazette on October 6, 2023.
Central Bank Governor Emmanuel Tutuba released a statement detailing the key provisions of the new regulations. One of the major highlights is the introduction of three distinct classes of Bureau de Change licenses, denoted as Classes A, B, and C.
Class A bureau de change entities, whether foreign or locally owned, are permitted to establish branches across the nation. Foreign-owned Class A businesses are required to maintain a minimum capital of Sh1 billion, whereas their locally owned counterparts must have a minimum capital of Sh500 million. These Class A establishments are authorized to engage in spot buying and selling of foreign exchange, money remittance transactions, and operate as agents of financial institutions, including banks, insurance companies, mobile network operators, and other approved financial-related activities.
Class B bureau de change, characterized by local shareholding, is restricted from opening multiple branches. These entities must maintain a minimum capital of Sh200 million and are allowed to conduct spot buying and selling of foreign exchange through a single outlet. Similar to Class A, they can act as agents for banks, insurance firms, mobile network operators, and other approved financial activities.
Furthermore, the BoT Governor outlined Class C Bureau de change establishments, which are exclusively designated for hotels or hotel owners. These entities, situated within three-star hotels, are exempt from maintaining a minimum capital requirement.
These regulations mark a significant shift in the landscape of Bureau de Change operations in Tanzania, introducing clarity and structure while accommodating various types of businesses under the new classifications. Stay tuned for further updates as these regulations come into effect, reshaping the financial landscape of the nation.