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FOREX BUREAU REGULATION: A WIN-WIN FOR THE NATIONAL BANK OF RWANDA

In a bid to regulate the Foreign Exchange Bureau (Forex) industry, the National Bank of Rwanda has introduced a set of guidelines aimed at promoting transparency and stability in the sector. The regulation, which took effect on [Date], is designed to ensure that Forex Bureaus operate efficiently and effectively.

Licensing Requirements

To obtain a license from the Central Bank, applicants must meet specific requirements:

  • Proof of payment of a non-refundable application fee of Frw 150,000.
  • A comprehensive business plan containing projected financial statements for at least two years.
  • Documented procedures for preventing, detecting, and reporting incidents of money laundering and combating the financing of terrorism.

Directors and Managers

The regulation also outlines requirements for directors and managers of Forex Bureaus:

  • Directors must have a strong financial background and be able to demonstrate their integrity.
  • Managers must be reliable, competent, and have experience in the financial sector.

Operational Requirements

Once licensed, Forex Bureaus are required to maintain minimum working capital at all times. The regulation also outlines prohibited operations, including:

  • Sale of foreign currency to non-residents unless they can prove that the funds were obtained from a legitimate source.

Central Bank Supervision

The Central Bank will conduct regular inspections and monitoring to ensure compliance with the regulations. Any breaches or non-compliance will be subject to penalties and fines.

Contact Us

For more information on the Forex Bureau Regulation, please contact:

  • [Name]
  • Director-General, National Bank of Rwanda
  • Email: [email]
  • Phone: [phone]

Regulation Excerpts

The full regulation can be accessed at: [website link]

CHAPTER III: MODE OF OPERATIONS

Article 11: Authorized Operations

  • A Forex Bureau shall deal only in spot exchange transactions.
  • However, a Forex Bureau may be authorized to deliver other financial-related services.

Article 12: Available Funds at All Times

  • Category one Forex Bureaus must maintain a minimum working capital of Frw 40,000,000 or its equivalent.
  • Category two Forex Bureaus must maintain a minimum working capital of Frw 20,000,000 in cash at all times.

Stay Tuned for More Updates

The National Bank of Rwanda will continue to monitor the Forex Bureau sector and provide updates on any changes or developments. Stay tuned for more information!