Consolidated Version of the Central Bank of Sudan Law of 2002

After the introduction of the amendments of 2005, 2006 and 2012 thereto

Pursuant to the provisions of the Constitution of the Transitional Republic of Sudan of 2005, the National Legislature approved and the President of the Republic enacted the following Law, the text of which is as follows:

Chapter One

Preliminary Provisions

Name of the Law and Commencement

1- This Law shall be called "Central Bank of Sudan (Amendment) Law of 2012" and shall come into force from the date of its signature.

Repeal

2- The Central Bank of Sudan Law of 1959 is hereby repealed; however, all regulations, orders and rules issued or procedures carried out thereunder shall remain in force until they are repealed or amended in accordance with the provisions of this Law.

Exemption

3- The Central Bank of Sudan and its employees are exempted from the following laws and any other laws that replace them, namely:

Public Service Employees Accounting Law of 1994,

Public Service Law of 1995,

Public Service Pensions Law of 1992,

Financial and Accounting Procedures Law of 1977,

Public Service Employees Reserve Justice Bureau Law of 1998.

Interpretation

4- In this Law, unless the context otherwise requires:

"The Bank" means the Central Bank of Sudan established under the Central Bank of Sudan Law of 1959 (Repealed).

"The Minister" means the Minister of Finance and National Economy.

"The Governor" means the Governor of the Bank appointed under the provisions of Article 9(1).

"The Board" means the Board of Directors of the Bank established under the provisions of Article 7.

"The Member" means a member of the Board.

"The Bank" means any bank established by law or registered under the provisions of the Companies Law of 1925 after fulfilling the requirements of the Banking Control Law of 1991 and practicing banking business inside or outside Sudan.

"Licensed Non-Bank Entities" means non-bank entities which have been approved by a decision of the Governor to deal in foreign currency,

"Banking Business" means the banking, investment and financing services provided by the Bank in accordance with the provisions of this Law.

"Demand Liabilities" means the total liabilities of the Bank which must be paid on demand.

"Term Liabilities" means any liabilities other than demand liabilities.

"Financing" means the investment of money in accordance with Islamic forms.

"Loan" means the transfer of ownership of money or a thing to another on the condition that its equivalent in quantity, type and quality is returned to the lender at the end of the loan period.

"Financing Sukuk" means the financing instruments issued by the Bank and traded in the primary and/or secondary market.

"The Pound" means the currency unit in Sudan in accordance with the provisions of Article 19.

"Foreign Currency" means foreign currency, foreign balances, balances, cheques, transfers and bank remittances denominated in foreign currencies and convertible as determined by the Governor.

Chapter Two

Nature of the Banking System, the Bank, its Branches and its Personality

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(1) The head office of the Bank shall be in Khartoum, and it may establish branches or agencies inside Sudan and appoint correspondents outside Sudan.

(2) The Bank shall have an independent legal personality, perpetual contractual capacity, a common seal, and the right to litigate in its own name.

Basic Responsibilities of the Bank

-6 The basic responsibilities of the Bank are as follows: - (a) Ensuring price stability, maintaining exchange rate stability and the efficiency of the banking system, and issuing, regulating and supervising all types of currency,

(b) Formulating and implementing monetary policy, relying primarily on market mechanisms to help achieve the national objectives of the aggregate national economy, in consultation with the Minister,

(c) Regulating, supervising and controlling banking business, and working to develop and improve its efficiency to help achieve balanced economic and social development,

(d) Acting as the government's bank, advisor, and agent in monetary and financial affairs.

(e) Adhering to the provisions of Islamic Sharia and banking customs in the performance of its duties, the achievement of its objectives, the exercise of its powers, and its supervision and control of the banking system.

(f) Regulating and developing payment systems and supervising them to ensure their safety, stability, and efficiency.

Chapter Three

Administration

Establishment, Composition and Supervision of the Board

7 - (1) A Board of Directors of the Bank shall be established consisting of seven persons as follows:

The Governor President

The Deputy Governor Members

The Undersecretary of the Ministry of Finance and National Economy Member

Three Sudanese persons of high qualifications, competence and experience appointed by the President of the Republic, Members.

(2) The Board shall be accountable to the President of the Republic.

Powers and Authorities of the Board

8 - (1) The Board shall have the following powers and authorities:

(a) Formulating the Bank's policy to achieve its objectives, and managing its general affairs and operations on sound bases.

(b) Approving monetary policies and determining exchange rate policies for the national currency upon the recommendation of the Governor.

(c) Determining the reserves to be held by the Bank from time to time in accordance with the provisions of this Law.

(d) Establishing and abolishing positions in the Bank.

(e) Issuing regulations for the terms of service of the Bank's employees and their accountability.

(f) Approving the budget and final accounts of the Bank.

(g) Forming a committee or committees, permanent or temporary, and defining their competencies and powers.

(h) Issuing an internal regulation to organize its affairs.

(i) Any other competencies or powers necessary to achieve the Bank's purposes.

(2) The Council may delegate any of its powers or competencies to its Chairman or any of his deputies or to any of its members or any committee, in accordance with the terms and conditions it deems appropriate.

Appointment of the Governor and his Deputies and Their Terms of Service

9- (1) The President of the Republic shall appoint the Governor and his deputies from among those with qualifications, competence, and experience, and shall determine their terms of service.

(2) The term of the Governor shall be five years, and the term of any of his deputies shall be three years, and they may be reappointed.

Duties of the Governor and his Deputies

10- (1) The Governor and his deputies must devote all their professional time to serving the Bank, and while holding office, they may not hold any other position or perform any other work, whether remunerated or unpaid; however, each of them may, with the approval of the Council, serve:

(a) As a member of any board of directors or any committee formed by the Government.

(b) As a Governor, alternate Governor, or Director, or as a member of any board, whatever its designation, of any international bank or any international financial body established under an agreement or treaty to which the Government has acceded or consented.

(c) As a member of the board of directors of any financial institution in which the Government or the Bank participates under the provisions of Article 54.

(2) The Governor shall manage the Bank's daily affairs, shall be responsible for them before the Council, and shall exercise the power of disposal and signing documents on behalf of the Bank, and he may delegate this power to any of his deputies or to other Bank employees.

(3) In the absence of the Governor, one of his deputies shall be commissioned to manage the Bank's daily affairs, and shall have the same powers and responsibilities of the Governor as stipulated in item (2).

(4) The Governor or any of his deputies may not, without the approval of the Council, hold a position or accept to have a substantial interest in any other bank or in any of the other financial institutions

except after the lapse of a period of one year for the Governor and six months for his deputies from the date of relinquishing the position in the Bank, provided that each of them continues to enjoy all their allowances during the aforementioned period.

Other Members of the Board of Directors

11- (1) Members appointed under the provisions of Article 7 (e) must disclose to the Board of Directors all facts relating to all their commercial, commercial or financial, agricultural, industrial, or any other interests in any contract concluded with the Bank.

(2) Members appointed under the provisions of Article 7 (c) and (e) may not act as delegates or representatives of their ministries, departments, or institutions, and they must safeguard the interest of the Bank.

(3) Members appointed under the provisions of Article 7(1)(c) shall hold their positions for a period of three years, renewable.

Ineligibility to Hold Office

12- No person shall be appointed as a member of the Council if he is:-

(a) A member of the board of directors of any commercial bank, or a director thereof, or an employee therein.

(b) An employee receiving a salary from the Government.

Vacancy of Office and Filling It

13- (1) The office of any member of the Council shall become vacant in any of the following cases:

(a) Mental or physical incapacity, or

(b) Conviction for a crime involving breach of trust, forgery, or dishonorable conduct, or

(c) Declaration of bankruptcy, suspension of payments to creditors, or a settlement with them, or

(d) Absence from three consecutive meetings of the Council without acceptable excuse, or

(e) Resignation or removal from office, or

(f) Loss of eligibility to hold office under the provisions of Article 12, or

(g) Death.

(2) The President of the Republic shall, upon the recommendation of the Council, determine the occurrence of the ineligibility stipulated in Article 12 or the vacancy of office stipulated in item (1).

(3) In the event of a vacancy in a member's office, another person shall be appointed to fill the vacant office for the remaining period, in accordance with the appointment procedures applicable to that office.

Meetings of the Council

14- (1) The Council shall hold a regular meeting at least once every three months, upon the invitation of its Chairman; in case of necessity, the Chairman may call for an extraordinary meeting;

(2) The quorum for a meeting of the Council shall be completed by the attendance of five members.

(3) The Council's decisions shall be adopted by a majority of the members present, and in case of a tie, the Chairman shall have the casting vote.

(4) The Governor or one of his deputies shall chair the meetings of the Council.

(5) No decision or act taken under the authority of the Council shall be invalidated merely because a person who sat or worked at the time the decision was taken or the act was approved or authorized was ineligible for appointment under the provisions of Article 12 or had vacated his office under the provisions of Article 13.

(6) The Council shall have a Secretary appointed by the Governor, who shall determine his competencies and allowances.

Appointment of Employees and Their Accountability

15- (1) The Governor shall, in consultation with the Board of Directors and his deputies, appoint holders of senior positions in the Bank.

(2) The Governor shall appoint the Bank's employees, hold them accountable, and terminate their service in accordance with the provisions of the regulations, observing professionalism and the principles of justice and equality among all Sudanese without discrimination, in accordance with the guidelines determined by the Governor in consultation with his deputies, provided that they may only be appointed to positions established by a decision of the Council.

(3) The Bank may not link any salary, fees, wages, or any other benefit or allowance payable to employees with its net profit.

Chapter Four

Capital, Reserves, and Profits

Capital

16- The authorized capital of the Bank is thirty thousand and fifteen pounds, which the Government has paid in full, and it may be increased whenever necessary.

Determination of Net Profits

17- The Bank shall determine its net profits for each financial year after deducting the value of its current expenses for that year, including the value of bad or doubtful debts, depreciation and replacement of assets, or its obligations towards end-of-service bonuses or any other social security systems.

Allocation of Reserves and Distribution of Remaining Profits

18- (1) At the end of each financial year of the Bank, there shall be allocated to the general reserve fund:-

(a) 25% of the net profits until the balance of the fund reaches 50% of the capital.

(b) 15% of the net profits once the balance exceeds 50% of the capital and until it reaches 100% thereof.

(2) Any other allocations or reserves determined by the Board.

(3) The remainder of the net profits shall be paid to the Government.

Chapter Five

Currency

Currency Unit

19- (1) The currency unit in Sudan is the Sudanese pound.

(2) The Sudanese pound is divided into one hundred equal units, each called a piastre.

(3) The Bank shall announce the new currency and the start date of dealing with it in the Official Gazette.

Exchange Rate

20- The Board shall determine, based on the recommendation of the Governor in consultation with the Minister, the exchange rate policies of the pound.

The Bank's Exclusive Right to Issue Currency

21- The Bank shall have the exclusive right to issue currency, and no person may issue banknotes, paper money, coins, or any documents that the Bank deems capable of circulating as legal tender.

22- (1) The Bank shall:

(a) Take the necessary measures to print banknotes and mint coins and ensure their safekeeping and security.

(b) Issue banknotes and coins at its offices and at the agencies it establishes or appoints from time to time, and it may also reissue and replace them at those locations.

(c) Take measures to cancel and destroy banknotes or to cut, break, or destroy coins that are withdrawn from circulation under the provisions of Article 25- (3) or those that the Bank finds unfit for use.

(2) Any foreign currency seized within Sudan and in respect of which a judicial judgment or settlement is issued in accordance with the applicable laws shall devolve to the Bank.

Denominations, Forms, and Composition of Banknotes and Coins

23- The Bank shall issue banknotes and coins in the denominations, forms, designs, and emblems that reflect the cultural diversity in Sudan, approved by the President of the Republic upon the recommendation of the Governor, and they shall be announced in the Official Gazette.

Standard Weight of Coins

24- The standard weight of coins, their composition, and the amount of deficiency and change therein shall be as approved by the President of the Republic upon the recommendation of the Governor, and that shall be announced in the Official Gazette.

Legal Tender

25- (1) Banknotes issued or reissued by the Bank shall be legal tender discharging obligations in the Republic of Sudan.

(2) Coins issued by the Bank shall be legal tender in the Republic of Sudan to the extent determined by the Governor from time to time, unless they have been subjected to unlawful use in accordance with the provisions of Article (26), provided that the Bank may, after the approval of the President of the Republic, issue coins and/or paper money for special purposes, and such money shall be legal tender for any amount determined by the Bank.

(3) Notwithstanding the provisions of items (1) and (2), the Bank shall have the authority, after announcement in the Official Gazette, to withdraw from circulation any banknotes or coins against payment of their nominal value, and any banknotes or coins in respect of which such announcement is issued shall cease to be considered legal tender upon the expiry of the period of that announcement.

(4) Banknotes or coins may not be exported except to the extent determined by the Bank.

Money Subjected to Unlawful Use

26- (1) Coins shall be considered to have been subjected to unlawful use if they are damaged or become smaller in size or lighter in weight for a reason other than normal wear, or if they are defaced.

(2) The Bank may withdraw any coins subjected to unlawful use and cut, break, or destroy them.

(3) Paper currency shall be considered to have been subjected to unlawful use as determined by the regulations.

Recovery of Lost, Defaced, or Defective Currency

27- No person shall be entitled to recover from the Bank any lost, stolen, defaced, or defective banknotes, and the Bank shall have absolute discretion to determine the circumstances under which the value of defective or defaced banknotes may be recovered, in accordance with the conditions and within the limits prescribed in the regulations.

Gold and Foreign Assets Reserve

28- (1) The Bank may maintain a reserve of gold and foreign assets denominated in currencies determined by the Board from time to time, including all or any of the following types:-

Foreign cash

Bills of exchange and cheques denominated in foreign currency and payable anywhere outside the Republic of Sudan.

Financial instruments or investment deposits determined by the Board from time to time and issued by foreign governments.

Instruments determined by the Board from time to time that are issued or guaranteed by foreign governments or international institutions.

(2) The Bank shall maintain a reserve determined by the Board from time to time, in accordance with the provisions of item (1).

Chapter Six

Foreign Exchange Operations

Deposit of Balances

29- (1) The official external balances of the Republic of Sudan shall be deposited with the Bank.

(2) The Bank may permit any other official entity to hold and manage foreign balances.

Dealing in Gold, Gold Bullion, and Foreign Exchange

30- The Bank may:-

Buy, sell, or deal in gold or silver coins or gold or silver bullion in accordance with the Sharia bases of the exchange contract or any other precious metals inside or outside the country, and it may also hold gold coins or gold bullion or any other precious metals deposited with it.

Buy, sell, or deal in foreign exchange using for these purposes any of the documents used by banks.

(c) Buy and sell treasury bills and other instruments issued or guaranteed by foreign governments or international financial institutions.

(d) Open and maintain accounts and act as agent and correspondent outside the country.

(e) Open and maintain accounts and act as agent or correspondent for banks, foreign governments and government agencies, and international institutions.

Determination of Foreign Exchange Operations

31- Except in special circumstances, the Bank may not engage in the operations set out in Article 30 except with banks and approved non-banking entities and authorized persons operating in Sudan, and with the Government and its institutions, central, commercial, and foreign banks, foreign governments and their institutions, and international institutions.

Authority to Grant and Receive Foreign Loans

32- The Bank shall have the right to grant financing to any of the institutions stipulated in Article 31 or to obtain financing from them, provided that such financing is consistent with the nature of the Bank's work.

The Bank's Functions in Relation to Currency Control

33- The Bank shall perform the functions and duties related to the control of foreign exchange operations conferred upon it by law, and the Bank shall be the sole entity with the authority to grant licenses in the field of dealing in foreign exchange.

Chapter Seven

Relations with Banks

Opening Accounts for Banks

34- The Bank may open accounts for banks and other financing institutions operating in the Republic of Sudan, and it may also accept deposits from them.

Liquidity Management

35- The Bank may:-

(a) issue, purchase and sell sukuk of all types for the purpose of managing and regulating liquidity.

(b) finance or guarantee, when necessary, banks through Sharia-compliant modes against the guarantees and conditions it determines in each case.

Determination of Profit Ratios

36- The Bank may determine and announce to banks and non-banking entities approved by it, from time to time, the profit ratio and its distribution in the various transactions and modes, the partner's contribution ratio in the capital of participations, and all that regulates and serves the public interest in this regard.

Determination of the Legal Reserve for Banks

37- (1) The Bank may require banks to maintain a reserve in the form of deposits with the Bank or in any other form it determines, provided that the reserve shall be at a specified ratio to the liabilities of those banks, whether they are demand liabilities or time liabilities.

(2) Banks must be notified at an early time before the first request is directed to them under the provisions of item (1), or be given a sufficient period to adjust their positions to the request.

(3) The Bank may amend from time to time the required reserve ratio and determine different ratios for demand liabilities and time liabilities.

(4) If any bank fails to maintain the required reserve, it shall be subject to the financial and administrative sanctions as determined by the decisions issued by the Governor from time to time in accordance with the regulations.

Limitation of Banking Financing

38- (1) The Governor may, whenever he deems it necessary:-

(a) require banks to submit for approval all applications submitted to them to obtain financing exceeding the amount specified from time to time, by approving those applications.

(b) determine the maximum limit for financing investment operations granted by each bank for the various activity purposes in which they are used.

(c) determine the maximum limit for the total value of financing of investment operations granted by any of the banks and payable at any time.

(2) Every bank that exceeds any of the limits determined by the Governor under the provisions of item (1) shall be liable to the administrative and financial sanctions determined by the regulations.

Right to Request Information from Banks

39- (1) The Governor or his delegate may require banks to provide him with:-

(a) within four months from the end of the financial year, certified copies of the balance sheet reviewed by legal auditors accompanied by a certified copy of the auditors' reports.

(b) within thirty days from the end of each month, a certified statement of the assets and liabilities of the bank concerned at the end of the previous month, in the form approved by the Governor.

(c) any other information requested by the Governor or his delegate.

(2) The Governor or his delegate may require any bank to prepare its electronic or paper records for examination and to submit the documents and evidence proving that it has implemented the directives issued to it under the provisions of this Law.

(3) The Governor may require financial institutions that practice part of banking business to provide any information or data.

Treatment of All Branches of Any Bank as One Bank

40- All branches belonging to any bank in Sudan shall be considered as one bank for the purposes stipulated in Articles 37, 38 and 39.

Clearing and Settlement Systems

41- The Bank may establish clearing and settlement systems electronically or manually and organize them in accordance with what is determined by the regulations or orders.

Establishment of New Banks or Carrying Out Part of Banking Business

42- No person may establish any bank or carry out banking business or any part thereof in the Republic of Sudan except with a license from the Bank.

Authority to Issue Directives and Instructions to Banks

43- The Governor or his delegate shall have the authority to issue directives and instructions to any bank or any person carrying out banking business or part thereof, and that bank or person must comply with and implement those directives.

Chapter Eight

Relationship with the Government

Bank of the Government and its Financial Agent

44- The Bank shall be the bank of the Government and its advisor and financial agent.

Keeping Government Accounts

45- (1) Government funds shall be deposited with the Bank.

(2) The Bank shall receive government funds and keep its accounts.

Issuance and Administration of Government Financing Sukuk

46- The Bank shall be entrusted with the task of issuing and administering government financing sukuk in accordance with the texts and conditions agreed upon between the Government and the Bank.

The Bank Carrying Out Other Tasks on Behalf of the Government

47- The Bank may act as agent for the Government in accordance with the texts and conditions agreed upon between the Government and the Bank, provided that this is in accordance with the provisions of this Law.

Granting Financing to the Government

48 (1) The Bank may grant temporary financing to the Government on the terms it determines, provided that the financing does not exceed at any time 15% of the Government's estimated public revenues in the fiscal year in which the financing is granted, and that the entire financing is repaid within a period not exceeding the six months following the end of the fiscal year in which it was granted.

(2) If the financing is not repaid in whole or in part within the period specified in item (1), it shall be dealt with in the manner agreed upon between the Bank and the Government.

Dealing in Financing Instruments

49- The Bank may buy and sell financing instruments issued by the Government and offered for public subscription or that are part of an offering.

Restriction on Lending to the Government

50 (1) Except as provided in Articles 46, 47 and 48, the Bank may not, directly or indirectly, provide loans or financing to the Government, provided that the Bank may retain what it received from the Sudan Currency Board in the form of non-convertible Treasury bills.

(2) State governments may borrow and take loans locally and externally in accordance with the following:

(a) Financial capacity to meet borrowing and loan obligations.

(b) The standards and controls set by the Bank's Board of Directors to govern borrowing or lending in accordance with the requirements of monetary and banking policies and foreign exchange and currency policies.

(c) That borrowing or lending does not negatively affect the set of policies related to the macroeconomy.

(d) That borrowing or lending is not locally from the Bank, (e) That neither the central government nor the Bank provides any guarantees in exchange for borrowing or lending,

(f) The governments mentioned in this item that engage in borrowing or lending shall provide the relevant national authorities with the statistics and financial data necessary for use for national statistical purposes.

Chapter Nine

Other Bank Operations

Banking Business

51- Subject to the provisions of Article 55, the Bank may engage in any type of banking business that this Law has not expressly prohibited, provided that it does not conflict with the nature of the Bank's work.

Issuance of Sight Drafts

52- The Bank may issue sight drafts and other types of negotiable instruments payable at its office or at the offices of its agents or correspondents.

Opening Accounts of Other Persons

53- The Bank may open accounts and accept deposits from public institutions and bodies, or state governments and municipalities, and from the entities mentioned in Articles 30, 31 and 45.

Ownership of Shares in Financial Institutions

54- The Bank may subscribe to the shares of any institution, or buy, hold, or sell such shares, provided that participation in that institution or its establishment achieves the Bank's objectives or is generally in the interest of the national economy.

Operations the Bank May Not Engage In

55- The Bank may not:-

(a) Draw or accept any bills other than those payable on demand.

(b) Engage in trade or directly participate in owning agricultural, commercial, or industrial work or any other works not mentioned in Article 54 for the purpose of making a profit.

(c) Buy real estate or retain ownership of it except to the extent necessary for performing its work.

(d) Provide unsecured loans or financing other than those it provides in accordance with the provisions of Article 48.

(e) Provide loans or financing with guarantees contrary to what is stipulated in this Law, provided that if the Bank has any debts that it fears will not be repaid, it may accept real estate or other property as a guarantee for them; if this guarantee is executed, the Bank may retain those real estate and properties with the intention of selling them at the earliest opportunity.

(f) Buy or own shares or accept them as additional security except in accordance with the provisions of Article 54.

(g) Provide a guarantee for obtaining financing except for the Government and commercial banks.

Chapter Ten

Supervision by the National Council

56- The Governor shall present to the National Council at the end of each year a statement including the general policies, plans, and future programs of the Central Bank, and a report on its general performance for the previous year, in accordance with the procedures followed in presenting and approving ministers' statements before the National Council, taking into account the confidentiality of the Central Bank's information.

Chapter Eleven

Accounts

Fiscal Year

57- The Bank's fiscal year shall be the calendar year, which begins on the first day of January and ends on the thirty-first day of December of the same year.

Audit of the Bank's Accounts

58- The Bank's accounts shall be audited in accordance with the Law of the General Auditing Bureau of 1999.

Annual Accounts Statement and Annual Report

59 (1)- The Bank shall submit to the President of the Republic within three months after the end of each fiscal year a reviewed copy of the Annual Accounts Statement, and that statement shall be published in the Official Gazette.

(2) The statement mentioned in item (1) shall be accompanied by a report from the Council on the Bank's operations during the fiscal year that has ended.

Chapter Twelve

Miscellaneous Provisions

Exemption from Taxes and Stamp Duties

60- The Bank's profits, operations, capital, properties, and documents shall be exempt from all taxes and fees.

Confidentiality in the Bank's Affairs

61- Every member of the Council and the Bank's employees must observe confidentiality regarding matters related to the Bank's affairs and its clients, except as required for the performance of their duties under the provisions of this Law.

Liquidation of the Bank

62- The Bank may not be liquidated except by law.

Authority to Issue Regulations

63- (1) The Council may issue the regulations and orders necessary for the implementation of the provisions of this Law.

(2) The Governor may issue the decisions necessary for the implementation of the provisions of this Law.

Certificate:

I hereby certify that the National Council approved "The Central Bank of Sudan (Amendment) Law, 2012" in its session no. (24) of the fifth convening session on 17 Rajab 1433H corresponding to 6 June 2012. The Joint Standing Committee of the two Councils also decided in its meeting no. (5) on 25 Rajab 1433H corresponding to 14 June 2012 that the law does not affect the interests of the states.

Ahmed Ibrahim Al-Taher
President of the National Council
Chairman of the Joint Standing Committee of the Two Councils

Approved:

Field Marshal / Omar Hassan Ahmed Al-Bashir
President of the Republic
Date: 8/8/1433H
Corresponding to: 28/6/2012