BANK OF THE REPUBLIC OF BURUNDI

THE GOVERNOR

CIRCULAR NO. 003/RC/2023 ON THE APPROVAL OF EXCHANGE OFFICES AND THEIR MANAGERS, ISSUED PURSUANT TO FOREIGN EXCHANGE REGULATIONS

Pursuant to Law No. 1/34 of December 2, 2008 establishing the Statutes of the Bank of the Republic of Burundi;

Pursuant to the Foreign Exchange Regulations of December 28, 2023;

The Bank of the Republic of Burundi, hereinafter referred to as the "Central Bank", enacts:

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CHAPTER I: GENERAL PROVISIONS

Article 1: Subject Matter

This circular aims to specify the conditions required for the approval of exchange offices and their Managers.

Article 2: Scope of Application

This circular applies to exchange offices that are not established within commercial banks.

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CHAPTER II: APPROVAL OF AN EXCHANGE OFFICE

Article 3: Approval Conditions for an Exchange Office

The applicant for an operating permit of an exchange office must meet the following conditions:

1. be a legal entity whose sole purpose is the operation of an exchange office;
2. be registered in the commercial register as an exchange office;
3. possess a tax identification number (TIN);
4. demonstrate a minimum capital amount of: a. five hundred fifty million Burundi Francs (550,000,000 BIF), fully paid up at the time of application, and which must be maintained at least at this level throughout the life of an exchange office with entirely Burundian shareholders; b. four hundred forty thousand United States dollars (440,000 USD) or the equivalent in another currency, fully paid up at the time of application, and which must be maintained at least at this level throughout the life of an exchange office with entirely foreign or mixed shareholders.
5. establish, from the minimum capital, a bank guarantee with the BRB of fifty million Burundi Francs (50,000,000 BIF) for exchange offices with entirely Burundian shareholders, or of forty thousand United States dollars (40,000 USD) or the equivalent in another currency for exchange offices with foreign or mixed shareholders. This guarantee must be maintained permanently at this level;
6. demonstrate each time a cash reserve equivalent to 75% of the minimum capital net of the guarantee;
7. hold operational accounts in foreign currencies and in BIF with a resident bank;
8. possess fixed and identifiable premises and equipment suitable for the activities of an exchange office;
9. have a Manager with a minimum qualification of Senior Technician or equivalent in Management, Accounting, or similar fields, enjoying good reputation and moral standing. The Manager must not have managed and/or played a leading role in an institution that has gone bankrupt or had its approval withdrawn or been liquidated by the BRB;
10. have promoters enjoying good reputation and not holding shares in another exchange office;
11. use a trade name or corporate name that does not cause confusion with an already approved exchange office;
12. possess an information and management system acquired from the BRB;
13. submit a receipt justifying the payment of analysis fees for the approval application file, the amount of which is fixed in the circular on the fee schedule for services provided by the Central Bank to exchange offices;
14. possess a feasibility and profitability study for at least 3 years (business plan) of the exchange office;
15. any other information deemed useful by the Central Bank.

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Article 4: Modification of Elements Submitted with the Approval Application

Any modification made to any element submitted with the approval application must require prior non-objection from the Central Bank.

Article 5: Issuance of the Approval Act to the Exchange Office

The approval is formalized by an act issued to the new exchange office upon payment of fees fixed by the circular on the fee schedule for services provided by the Central Bank to exchange offices.

The posting of the approval act in a publicly accessible location is a prerequisite for commencing operations.

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CHAPTER III: APPROVAL OF THE MANAGER OF AN EXCHANGE OFFICE

Article 6: Approval of the Manager of an Exchange Office

The applicant for approval submits to the BRB the manager's criminal record extract, curriculum vitae, a certified copy of their diploma conforming to the original, and a copy of their national identity card.

The Manager must hold at least a Senior Technician qualification or equivalent in Management, Accounting, or similar fields, and enjoy good reputation and moral standing.

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CHAPTER IV: REJECTION AND WITHDRAWAL OF APPROVAL

Article 7: Rejection of Approval

The Central Bank rejects the approval of an exchange office, particularly when it deems that the shareholders' honorability is questionable, that the planned human, technical, or financial resources are insufficient, that the proposed Managers do not meet the required approval criteria, and when any of the approval conditions for an exchange office outlined in Article 3 are not met.

Article 8: Withdrawal of Approval for an Exchange Office or Managers

The Central Bank may proceed with the withdrawal of approval, without prejudice to sanctions provided by other legislative and regulatory texts, in the following cases:

1. the exchange office ceases operations following voluntary liquidation or bankruptcy;
2. the conditions to which approval is subject are no longer met;
3. the information submitted to the BRB in support of the approval application proves false or misleading;
4. the exchange office has not utilized its approval for a period of six (6) months;
5. the exchange office has not resumed operations after a period of six (6) months from the day of lifting a voluntary or forced suspension;
6. the exchange office is unable to maintain the required bank guarantee permanently over a period of 30 calendar days;
7. the exchange office refuses to execute an instruction from the BRB;
8. there is a serious or repeated breach of the legal and regulatory provisions to which the exchange office is subject.

The withdrawal of approval for the Manager of an exchange office may be pronounced in case of a serious breach for which they are responsible.

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Article 9: Entry into Force

This circular enters into force on the day of its publication on the Central Bank's website and in the Official Gazette of Burundi.

Done in Bujumbura, on December 28, 2023

Edouard Normand BIGENDAKO
Governor