Regulation No. 01/2016/DSBR/BCC on the Abandonment by the Central Bank of the Comoros of Euro Foreign Exchange Operations at Its Counters

REGULATION NO. 01/2016/DSBR/BCC ...........................................

RELATIVE TO THE ABANDONMENT BY THE CENTRAL BANK OF THE COMOROS OF EURO FOREIGN EXCHANGE OPERATIONS AT ITS COUNTERS ...........................................

Having regard to Law 80-08 of May 3, 1980, relating to currency and the role of the Central Bank of the Comoros in the control of banks, financial establishments, credit, and foreign exchange, and notably Article 14 thereof;

Having regard to Law No. 08-15 of December 6, 2008, relating to the statutes of the Central Bank of the Comoros;

Having regard to Law 13-003/AU 80-07 of June 12, 2013, regulating the activities of financial institutions;

Having regard to Law No. 12-008/AU relating to the fight against money laundering and the financing of terrorism, notably Article 6 thereof;

Having regard to Decree No. 87/005/PR of January 16, 1987, regulating financial relations between the Union of the Comoros and foreign countries;

Having regard to Instruction No. 2 of February 17, 1987, in its Article 4;

Article 1 The Central Bank shall no longer carry out euro purchase operations at its counters.

Article 2 Financial institutions are authorized to sell foreign currency to travelers departing from the territory of the Union of the Comoros, subject to the mandatory presentation of supporting documents.

Within the framework of strengthened controls, the sale of currency to occasional customers, identifiable in accordance with the provisions of Articles 8 and 9 of Law 12-008/AU, shall be limited to a counter-value of 2,000,000 FC (Two million Comorian francs).

Article 3 Financial institutions are required to carry out their foreign exchange operations at the official parity, regardless of commissions charged during the transaction.

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Article 4 Financial institutions are obligated to remit to the Central Bank 70% of their surpluses (Purchase-Sale balance) in euros realized monthly. The Comorian franc equivalent shall be credited to the account of the financial institution opened in the books of the Central Bank.

Article 5 The Central Bank of the Comoros (BCC) will apply a quarterly billing of 0.2% on the euro sales realized by financial institutions.

Apart from financial institutions, a commission of 0.2% of the requested amount will be deducted by the Central Bank during euro sales to customers holding accounts in its books.

Article 6 A quarterly declaration of foreign exchange operations carried out must be transmitted to the Central Bank within 10 working days at the end of each quarter, in accordance with the attached model.

Article 7 Non-compliance with the provisions of this Regulation by financial institutions will result in disciplinary and/or financial sanctions as provided for in Articles 64 to 66 of the banking law.

Article 8 This Regulation repeals and replaces Instruction No. 07 of February 17, 1989.

The provisions of this Regulation shall enter into force as of December 1, 2016.

Moroni, November 28, 2016

[Signature and seal]

The Governor Mzé Abdou MOHAMED CHANFIOU,