BoSS Bans Forex Deals Outside Regulated Market

(JUBA) – The Bank of South Sudan has ordered telecommunications companies, electricity firms, petroleum companies, banks and other financial institutions to stop all foreign exchange transactions with unauthorised persons or entities.

The directive is contained in Circular No. 2 BoSS/OoG/9/2026, issued on 18th September 2026 by the bank’s governor, Dr Addis Ababa Othow.

The circular cites the Foreign Exchange Business Act, 2012 and other banking laws, stating that foreign exchange business may only be conducted by licensed banks, authorised foreign exchange bureaus or other institutions expressly authorised by the bank.

It says no foreign exchange transaction should be undertaken, directly or indirectly, with any person or entity that is not duly authorised and licensed by the bank to conduct the relevant foreign exchange business.

The bank also warned against arrangements involving substantial South Sudanese pound cash payments outside the banking system, followed by the provision of United States dollars or other foreign currencies for goods and services.

It said transactions conducted outside the regulated foreign exchange market could affect market transparency, exchange rate formation and the effectiveness of monetary and foreign exchange policies.

The bank said such activities could also facilitate the movement of funds outside the formal financial system and increase exposure to money laundering, terrorist financing and other financial crimes.

The circular directs regulated entities to immediately stop foreign exchange transactions with unauthorised persons and to verify the licence status of every foreign exchange counterparty before conducting business.

Entities have also been instructed to maintain complete records of their foreign exchange transactions, including the counterparty, amount, currency, purpose, supporting documents and settlement channel.

The bank said it will investigate suspected violations through supervisory and enforcement authorities, in coordination with the Financial Intelligence Unit and law enforcement agencies where appropriate.

Within 30 days of the circular, companies must submit a declaration to the Department of Banking Supervision detailing foreign exchange transactions conducted during the previous 12 months.

Entities are also required to designate a senior executive as compliance focal point and submit the name and contact details within 14 days.

The bank said non compliance could lead to criminal prosecution, seizure or confiscation of funds, administrative sanctions, monetary penalties, restrictions on access to foreign exchange facilities, referral to the Financial Intelligence Unit and referral to the relevant sector regulator.

The circular took effect immediately and will remain in force until amended, replaced or withdrawn by the bank.