Financial Crime World

Regulatory Requirements for Financial Institutions in Chad

Chad’s financial sector is subject to regulations aimed at promoting stability, transparency, and investor confidence. The Commission de Banque de l’Afrique Centrale (COBAC), a regional banking agency, oversees the country’s banking system.

Banking System

  • Chad has ten commercial banks operating in the country, offering a range of financial services including letters of credit, short-term and long-term loans, foreign exchange operations, and savings instruments.
  • Credit is available from commercial banks on market terms, averaging 16 to 25 percent for short-term loans.

Currency and Exchange Rates

  • The Central African CFA Franc (FCFA) is the country’s official currency, pegged to the Euro at a fixed rate of one Euro to 655.957 FCFA.
  • The average exchange rate with the US dollar in 2019 was 592.73 FCFA per USD.

Foreign Exchange Controls

There are no restrictions on transferring funds into Chad, but individuals and companies must comply with regulations when transferring money out of the country:

  • Transactions exceeding $1,000 for individuals and $50,000 for companies must be documented.
  • Transactions above $800,000 for companies require additional approvals.

Temporary Capital Outflows Restrictions

The Central Bank has temporarily restricted capital outflows during periods of low oil prices, which may lead to high demand for USD and foreign currency in the country.

U.S. Banks and Local Correspondent Banks

No U.S. banks operate in Chad, but several local banks have correspondent relationships with U.S. and European banks, enabling international transfers through SWIFT-identified codes:

  • Société Générale des Banques (former BTCD)
  • Banque Commerciale du Chari
  • Ecobank Tchad
  • Orabank (former Financial Bank Tchad)
  • Commercial Bank Tchad (former Banque de Développement du Tchad)
  • Banque Agricole et Commerciale
  • Banque Sahelo Saharienne pour L’Investissement et le Commerce (Tchad) S.A.
  • United Bank for Africa (UBA) Tchad

Banque de l’Habitat du Tchad

Established in 2017, this bank provides traditional banking services with a focus on home loans. It is backed by the Government of Chad (50 percent), the national oil company (SHT, Société des Hydrocarbures Tchad) (25 percent), and the national social security agency (CNPS, Caisse Nationale de Prévoyance Sociale) (25 percent).