Centra Bank in Tanzania now monitors real-time transactions of bureaux de change

(image: Wikimedia)
Bank of Tanzania (BoT) has developed a system that monitors real-time transactions of the bureaux de change across Tanzania to enhance supervisions.

This new development comes amid concerns by stakeholders that some bureaus are violating transaction regulations including non-issuing of receipts to hide actual transactions.

So, To deal with this challenge, Bank of Tanzania has introduced the real-time transaction system to monitor the bureaus’ activities thus curbing some bookkeeping malpractices.

“(BoT) has developed Bureaux de Change Management System which will enable capturing real-time transactions and enhance effective supervision of bureaus,” BoT Monetary Policy Statement of June 2016 said.

Instead the report said the Foreign Exchange (Bureau de Change) Regulations, 2015 were translated into Kiswahili in order to broaden its understanding among stakeholders. In August 2014, BoT deregistered 15 bureaux de change in the last three years for operating illegally.

The central bank said the shops violated various provisions of the Foreign Exchange Regulations of 2008 enforced under the Foreign Exchange Act, 1992. However, during the stated period, there was no bureau de change that was found to indulge in money laundering activities, according to the BoT.

According to the BoT data at the end of December 2012, the central bank had registered 222 bureaux de change across the country.

Meanwhile, the central bank continued to implement prudential measures to strengthen risk management practices in the financial sector. In line with intensifying BoT efforts of ensuring compliance to internationally acceptable standards, the central bank has started to develop rules and regulations for Basel II/III implementation in the country.
  • via DAILY NEWS