Sudan’s Banking Regulations: A Strong Framework Against Money Laundering and Terrorism Financing

The Central Bank of Sudan has implemented a range of banking regulations to combat money laundering and the financing of terrorism in the country’s financial system. These regulations are designed to ensure that banks operating in Sudan adhere to strict standards and guidelines, promoting a stable and efficient financial system.

Key Regulations

• Banking Business Act: This regulation outlines the requirements for banks operating in Sudan, ensuring that they conduct their business in accordance with internationally accepted standards.
• Anti-Money Laundering and Financing of Terrorism Act: This regulation prohibits transactions involving proceeds from illegal activities and requires financial institutions to implement measures to prevent money laundering and terrorist financing.

Property and Electronic Transactions Regulations

• Property Mortgaged to Banks Regulation: This regulation sets out the rules for securing property as collateral for bank loans, ensuring that banks have a secure basis for lending.
• Electronic Transactions Regulation: This regulation governs the use of electronic means for conducting banking transactions, promoting efficiency and security in financial dealings.

Additional Regulations

• Deposit Guarantee Fund Act: This regulation provides a safety net for depositors in case of bank failures, protecting their deposits up to a certain amount.
• Foreign Exchange Dealing Act and Regulation: These regulations regulate the activities of foreign exchange dealers and bureaus operating in Sudan, ensuring that foreign exchange transactions are conducted transparently and securely.

Licensing and Operations Regulations

• Regulation governing Licensing for Conducting Banking Business: This regulation outlines the requirements for obtaining a banking license, ensuring that banks meet strict standards before commencing operations.
• Rules for Conducting Business and Licensing of Representative Offices of Foreign Banks: These regulations govern the operations of foreign banks in Sudan, promoting cooperation and stability between local and international financial institutions.

Financial Investment and Leasing Institutions

The Central Bank also has regulations in place to govern the business of financial investment institutions and financial leasing institutions, commonly known as “Lil-Ijara”. These regulations aim to promote a stable and efficient financial system that can support economic growth and development in Sudan.