Bank of Tanzania Gives Clearance for Forex Shop Licence Application

Businessmen who are interested in running Forex shops in Tanzania can now apply for licences. This is after the government through Bank of Tanzania (BoT) announced on Monday that it has finalized working on new regulations for bureau de change.

The statement said Forex shops that will be licensed to run the business should operate according to new regulations.

The new regulations calls for a minimum capital requirement of TSh 1 billion for one to secure a licence, a rise from the earlier minimum capital of TSh 300 million. Owners of such shops will also be required to release a detailed feasibility study to substantiate demand as well as address or location of the business as part of the new regulations

Further, the statement said Forex shops which were currently under investigations after last and this year’s crackdown should not apply for the licence. “Those under investigations will have to wait until the investigations are concluded,” read the statement in part.

Under the new regulations, the Forex shops are also required to record identity details of persons exchanging money, including the source and planned use of the foreign currency.

In the past year, more than 50 Forex shops across the East African country were closed in a crackdown, following reports that some of the them were being used in tax evasion and money laundering.