Financial Crime World

SOUTH SUDAN BANKING ACT SET TO TAKE EFFECT

New Legislation Aimed at Establishing Financial Stability and Transparency

Juba, South Sudan - The National Legislative Assembly has ratified and promulgated the Banking Act, 2012, a landmark legislation aimed at establishing, regulating, and supervising banks and other financial institutions in the country.

Effective Date

According to Article 86 (2) (3) read together with Article 55 (2) (3) (b) of the Transitional Constitution of the Republic of South Sudan, 2011, the new law will come into effect on the date of its signature by the President.

Key Provisions

  • The Act repeals all existing legislation governing banking in South Sudan, except for orders and regulations that are not inconsistent with the provisions of this Act.
  • The purpose of the Act is to provide a framework for the establishment, regulation, and supervision of banks and other financial institutions in the country.
  • Key terms such as “bank”, “banking activities”, “banking group”, “banking licence”, “beneficial ownership”, and others are defined in the Act.

Authority and Application

The Banking Act outlines the authority and application of the Act, as well as its interpretation. It also provides for the establishment of regulations to govern banking activities, including:

  • Licensing requirements
  • Capital adequacy standards
  • Reporting obligations

Supervision and Regulation

The Act empowers the Bank of South Sudan to supervise and regulate banks and other financial institutions in the country.

Impact on the Financial Sector

The implementation of the Banking Act is expected to have a significant impact on the financial sector in South Sudan, promoting economic growth and development. The new law aims to ensure that banks and other financial institutions operate in a safe and sound manner, protecting depositors’ funds and maintaining public confidence.

Statement from the National Legislative Assembly

“The Banking Act is designed to ensure that banks and other financial institutions operate in a safe and sound manner, protecting depositors’ funds and maintaining public confidence,” said a spokesperson for the Assembly. “We believe this new law will be a major step towards promoting financial stability and transparency in South Sudan.”