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Foreign Exchange (Bureaux de Change) Regulations, 1999

Government Notice 86 of 1999

Revoked
This Government Notice was revoked on 2008-07-01 by Foreign Exchange (Bureaux De Change) Regulations, 2008.
Foreign Exchange (Bureaux de Change) Regulations, 1999
This is the latest version of this Government Notice.
Citation
Government Notice 86 of 1999
Primary work
Foreign Exchange Act
Date
31 July 2002
Language
English
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Tanzania
Foreign Exchange Act

Foreign Exchange (Bureaux de Change) Regulations, 1999

Government Notice 86 of 1999

  • Published in Tanzania Government Gazette
  • Commenced
  • [This is the version of this document at 31 July 2002.]
  • [Note: This legislation was revised and consolidated as at 31 July 2002 and 30 November 2019 by the Attorney General's Office, in compliance with the Laws Revision Act No. 7 of 1994, the Revised Laws and Annual Revision Act (Chapter 356 (R.L.)), and the Interpretation of Laws and General Clauses Act No. 30 of 1972. All subsequent amendments have been researched and applied by Laws.Africa for TANZLII.]
  1. [Revoked on 1 July 2008 by Foreign Exchange (Bureaux De Change) Regulations, 2008 (Government Notice 88 of 2008)]
[sections 6(a) and 7(1); G.N. No. 86 of 1999]

Part I – Preliminary provisions (regs 1-2)

1. Citation

These Regulations may be cited as the Foreign Exchange (Bureaux de Change) Regulations.

2. Interpretation

(1)In these Regulations, unless the context requires otherwise—"Act" means the Foreign Exchange Act 1;1Cap. 271"authorised dealer" means in relation to gold or any foreign currency, a person for the time being authorised by the Bank, to act, for the purposes of the Foreign Exchange Act 2, as an authorised dealer in relation to gold or as the case may be, to foreign currency;2Cap. 271"bank" means a bank within the meaning of section 3 of the Banking and Financial Institutions Act 3;3Cap. 342"the Bank" means the Bank of Tanzania operating under the Bank of Tanzania Act 4;4Cap. 197"Bureau de Change" means a business enterprise licensed under regulation 6(3) to carry on the business of buying and selling foreign currency;"foreign currency" means any currency other than the currency of Tanzania;"foreign currency account" is any account credited with foreign currency only, maintained with a bank which is an authorised dealer;"Governor" means the Governor of the Bank of Tanzania;"licence" means a licence issued under regulation 6(3) of these Regulations to carry on the business of a Bureau de Change.
(2)In these Regulations, a reference to any amount in United State dollars shall unless the context requires otherwise, include reference to an equivalent amount in any foreign currency or combination thereof.

Part II – Licensing (regs 3-9)

3. Dealing in foreign currency

Subject to the Act and to these Regulations, any Bureau de Change established in accordance with these regulations may carry on the business of on the spot buying and selling of foreign currency.

4. Application

Any person intending to carry on the business of a Bureau de Change shall apply in writing to the Bank for a licence.

5. Mode of application

(1)An application for a licence shall be in the form prescribed by the Bank from time to time and shall state among other things, the name in which the Bureau de Change is proposed to be registered.
(2)Applications for a "Bureau de Change" licence, change of name and premises shall be accompanied with a non refundable application fee of two hundred and fifty thousand shillings or its equivalent in United States dollars.

6. Processing of application

(1)The Bank shall, within twenty-one days after receipt of an application for a licence, consider the application and approve or reject it.
(2)The Bank shall, within seven days after the expiry of the period prescribed by paragraph (1) of this regulation inform the applicant of its decision.
(3)Where an application is approved by the Bank, the applicant shall upon payment to the Bank of a registration fee of four hundred thousand shillings or its equivalent in United States dollars be issued with a Bureau de Change licence in the form prescribed in the Second Schedule of these Regulations.

7. Effect and duration of licence

(1)Any person who holds a Bureau de Change licence issued under these Regulations shall carry on the business of a Bureau de Change subject to provisions of these Regulations.
(2)No Person, financial institution or its Bureau de Change or any other Bureau de Change shall operate or manage a Bureau de Change on behalf of another person or another Bureau de Change.
(3)A Bureau de Change licence shall be valid for one year and may be renewed upon the Bank being satisfied that the operations of the Bureau de Change have been carried out in compliance with the Act, the Regulations and directions issued by the Bank from time to time.
(4)Where a licensed Bureau de Change fails to commence operations within a period of three months from the date licence was granted or suspends or closes down its operations for a period of three months, the Bank may revoke its licence.

8. Opening of foreign currency account

A Bureau de Change shall open and maintain a foreign currency account for the Bureau de Change with a bank which is an authorised dealer and the foreign currency account shall be used solely for the day to day operations of the Bureau de Change.

9. Revocation of licence

(1)A Bureau de Change licence shall not be revoked except as provided for in these Regulations.
(2)Where a licence has been issued and it is subsequently found that it was issued as a result of a materially false or fraudulent representation supplied to the Bank by the proprietor of a Bureau de Change, the Bank shall give written notice to that Bureau requesting the Bureau de Change to show cause within seven working days as to why the licence of the Bureau should not be revoked.
(3)Where a Bureau de Change is in breach of any provision of these Regulations, the Bank shall give written notice to that Bureau de Change requiring it to show cause within seven working days as to why the licence of the Bureau de Change should not be revoked.
(4)If a Bureau de Change fails to comply with a notice given under this subregulation or the Bank is not satisfied with the cause shown, the Bank may revoke the licence.
(5)The Bank's action to revoke a licence shall be final and shall not be subject to any appeal.

Part III – Mode of operation (regs 10-14)

10. Display of exchange rates and dealing

A Bureau de Change shall—
(a)quote its foreign exchange buying and selling rates which shall be displayed prominently in the premises of the Bureau de Change;
(b)display at all times in a conspicuous place on its premises, a notice informing customers that they are entitled to be issued with a receipt for any purchase or sale of foreign currency made by them;
(c)for every sale or purchase of foreign currency, issue receipt for the purchase or sale of foreign currency in the form prescribed by the Bank from time to time.

11. Prohibition of dealings other than spot transaction

(1)A Bureau de Change shall, in the carrying out of the business, only engage in spot transactions.
(2)No officer or staff member of a Bureau de Change shall—
(a)deposit or accept Tanzania shillings with intent to obtain or supply the foreign currency equivalent either wholly or in part at a future date; or
(b)deposit or accept foreign currency with the intent of obtaining or supplying the Tanzania shillings equivalent of it either wholly or in part at a future date; or
(c)fail or refuse to issue an accurate official receipt to cover any purchase or sale of foreign currency; or
(d)issue an official Bureau de Change receipt for any purpose other than to cover an actual purchase or sale of foreign exchange.
(3)Subject to proper identification of the individuals and verification of the instruments involved, Bureaux de Change may accept cheques, bank drafts and other payment instruments in their normal business dealings.

12. Refusal to sell

(1)A Bureau de Change shall not refuse to sell foreign currency to any customer as provided for under these Regulations, if the foreign currency required by the customer is available at the Bureau de Change.
(2)The refusal to sell foreign currency in the circumstances specified in subregulation (1) of this regulation shall constitute non-compliance with terms of the Bureau de Change licence issued under the provisions of these Regulations and shall be a good cause for the revocation of the licence in the exercise of the powers conferred upon the Bank by regulation 9 of these Regulations.

13. Inter-Bureaux clearance of excess foreign exchange

(1)A Bureau de Change may sell out to other Bureaux de Change the excess foreign exchange above its maximum balance required for its day to day business operations at an exchange rate to be determined by the Bureau de Change selling the foreign exchange.
(2)The buying and selling of excess foreign exchange between the Bureaux de Change shall be carried out by the Bureaux de Change through their foreign currency accounts or on cash basis at a Bureau de Change counter.

14. Visitors to Tanzania

All foreign visitors to Tanzania who are residing in hotels, guest houses or any other means of paid-for temporary accommodation, shall settle their lodging and boarding expenses either in foreign currency or Tanzania shillings obtained from a Bureau de Change or commercial bank.

Part IV – Foreign currencies for travel purposes (reg 15)

15. Travel allowance

(1)A person resident in Tanzania who wishes to travel outside Tanzania may purchase from a Bureau de Change at any one time for each trip up to ten thousand United States dollars upon presentation of a confirmed travel ticket and documentary proof of being a resident.
(2)At the exit point, purchase of the foreign currency will be evidenced by the relevant sale receipt in respect of the foreign currency purchased.
(3)Purchase of foreign exchange for travel purpose in excess of amount specified in subregulation (1) shall be subject to such directions as shall be issued by the Bank from time to time.

Part V – General provisions (regs 16-21)

16. Transaction to be confidential

A proprietor of a Bureau de Change together with his staff shall ensure that all transactions conducted by a Bureau de Change are done and maintained in strict confidence.

17. Submission of returns

(1)Every Bureau de Change shall submit to the Bank's Head Office–
(a)not later than Monday following the week under review, a weekly return of foreign exchange selling and buying rates in accordance with the Bank's prescribed format;
(b)not later than the first week of the following month, a monthly return of the Bureau de Change sales and purchases of the foreign currencies in accordance with the Bank's prescribed format;
(c)not later than the first week of the following month, a monthly exception report of foreign exchange sold for travelling purposes, where purchased foreign currency equals the prescribed limit of ten thousand United States dollars or above.
(2)Every Bureau de Change shall put in place an accounting system, which at the minimum will include the following:
(a)daily foreign exchange register and summary according to the prescribed format;
(b)cash book which at minimum shall contain columns for date, particulars, folio, amount on hand and amount in bank, and the record shall be kept to reflect total daily transactions;
(c)general ledger, which at minimum shall contain purchase account, sales account and expenses account and shall be updated on a monthly basis.

18. Change of ownership

Every Bureau de Change shall be required to report to the Bank any change of ownership of its licence.

19. Audited accounts

Every Bureau de Change shall prepare and submit to the Bank audited accounts (balance sheet and income statement) duly certified by the auditors and signed by the owner or director within three months after the end of a financial year.

20. Powers of inspection

(1)The Governor in accordance with the powers conferred upon him under section 7(1) of the Act, or any officer of the Bank duly authorised by him, may at any time cause an inspection to be made, on the premises of a Bureau de Change, of its books of accounts and any other records.
(2)It shall be the duty of every officer or staff of a Bureau de Change to produce to the officer making an inspection under subregulation (1) of this regulation within a reasonable time, all such books of accounts and other documents in the Bureau de Change custody or power and to furnish that officer with such statements or information relating to the affairs of the Bureau de Change as that officer may require.

21. Revocation

[Revokes the Foreign Exchange (Bureaux de Change) Regulations 1.]1G.N. No. 628 of 1998

First Schedule

Form BCA

[Editorial note: The form has not been reproduced]

Second Schedule

Form BCL

[Editorial note: The form has not been reproduced]

Third Schedule

Form BCR

[Editorial note: The form has not been reproduced]

History of this document

01 July 2008
31 July 2002 this version
Consolidation
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