SUDAN: KNOW YOUR CUSTOMER REGULATIONS PROVE CHALLENGING FOR US BUSINESSES
Limited Access to International Banking Institutions
US investors looking to tap into Sudan’s market are facing difficulties in transferring money due to the country’s limited access to international banking institutions. Despite the lifting of comprehensive US economic and financial sanctions on Sudan in 2017 and its delisting as a state sponsor of terrorism in 2020, major international banks remain cautious about operating in the country.
Foreign Banks Operating in Sudan
Most foreign banks operating in Sudan are based in Gulf states such as Saudi Arabia, United Arab Emirates, or Qatar. This limited access to international banking institutions can make it challenging for US businesses to transfer money and conduct transactions in Sudan.
Customer Service Levels in Sudan
Customer service levels in Sudan fall short of international standards, making it essential for US businesses to be aware of the limitations they may face when doing business in the country. This includes limited capacity and influence among local professional services organizations that provide information to local businesses.
Exceptional Organizations
However, there are a few notable exceptions, including:
- US-Sudan Business Council
- Sudanese Business Club
- Sudanese Businessmen and Employers Association
- National Chamber of Importers
These organizations can provide valuable insights and support for US businesses looking to operate in Sudan.
Investment Restrictions
Despite legal protections guaranteed under the National Investment Encouragement Act of 2013, foreign investment in certain sectors is restricted. The transportation sector, particularly railway, freight transportation, inland waterways, barge service, and airport operations, is heavily regulated. Additionally, telecommunications and media, including television broadcasting and newspaper publishing, are closed to foreign-capital participation.
Foreign ownership is also restricted in the electrical power generation and financial services sectors, while a significant number of sectors are dominated by government monopolies. These restrictions make it challenging for foreign companies to invest in Sudan.
Know Your Customer Regulations
As US businesses look to expand into the Sudanese market, it is essential they have a comprehensive understanding of the country’s Know Your Customer regulations and the limitations they may face when transferring money or doing business in certain sectors. By being aware of these challenges, US businesses can better navigate the complexities of doing business in Sudan.
Conclusion
US businesses looking to tap into Sudan’s market must be prepared for the challenges that come with limited access to international banking institutions, customer service limitations, and investment restrictions. By understanding the Know Your Customer regulations and seeking support from exceptional organizations, US businesses can successfully navigate the complexities of doing business in Sudan.