REPUBLIC OF GUINEA

WORK - JUSTICE - SOLIDARITY

B.C.R.G

CENTRAL BANK OF THE REPUBLIC OF GUINEA

FOREIGN EXCHANGE REGULATIONS

Conakry, 2012

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Table of Contents

1. Law L/2000/006/AN, establishing the regulation of financial relations related to transactions between the Republic of Guinea and abroad. ................................................................................. 5
2. Decree n°032/PRG/88, establishing the generalization of invoicing and payment of goods and services in Guinean francs throughout the national territory........................................................ 15
3. Instruction n°105/DGI/99 of August 20, 1999, regarding the monitoring of the exchange position of credit institutions........................................................................................................ 18
4. Instruction n°112/DGAEM/RCH/00, Instruction on the regime of financial relations related to transactions between the Republic of Guinea and abroad................................................................ 24
5. Instruction n°I/2003/001/DCI/DB, regarding the fight against money laundering ................. 43
6. Instruction N°003/BCRG/05 regarding the operation of foreign currency accounts in the Republic of Guinea................................................................................................................ 52
7. Instruction n°025/DGEEM/RCH/11, establishing the regulation of the activity of manual exchange offices in the Republic of Guinea................................................................................................................ 56
8. Instruction n°032/DGEEM/RCH/11, establishing the regulation of the activity of transfer establishments in the Republic of Guinea................................................................................................................ 70
9. Instruction n°036/DGCC/RCH/11, modifying Article 19 of Instruction n°032/DGEEM/RCH/11 of April 15, 2011 regarding money transfer establishments................................................................................................................ 83
10. Instruction n°037/DGCCRCH/11 Modifying Article 11 of Instruction n°025/DGEEM/RCH/11/ of March 29, 2011 regarding exchange offices................................................................................................................ 85
11. Instruction n°038/DGCC/RCH/11, modifying Article 2 of Instruction n°003/BCRG/2005 of May 29, 2005 regarding the operation of currency accounts................................................................................................................ 87

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REPUBLIC OF GUINEA

WORK - JUSTICE - SOLIDARITY

NATIONAL ASSEMBLY OF THE REPUBLIC OF GUINEA

LAW L / 2000/006/AN

ADOPTING AND PROMULGATING THE LAW ON THE REGULATION OF FINANCIAL RELATIONS RELATED TO TRANSACTIONS BETWEEN THE REPUBLIC OF GUINEE AND ABROAD.

THE NATIONAL ASSEMBLY OF THE REPUBLIC OF GUINEE

In view of the Fundamental Law, particularly Article 59, having deliberated, adopts:
The President of the Republic promulgates the LAW as follows:

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Chapter 1: OBJECT

Article 1: This Law aims to establish the procedures for regulating financial relations related to current transactions and certain capital transactions between the Republic of Guinea and abroad, referred to as "Foreign Exchange Regulations".

Article 2: Financial relations between the Republic of Guinea and abroad, concerning current transactions on the one hand, and loans to residents and direct investments in Guinea on the other, are based on the principle of freedom.

Within the framework of respecting international commitments undertaken by Guinea, particularly in accordance with the provisions of Article VIII of the International Monetary Fund's Articles of Agreement, this general principle of freedom is exercised according to the procedures provided for by this Law.

CHAPTER 2: DEFINITION OF TERMS USED

This chapter aims to define the terms used in financial relations related to international current transactions.

Article 3: International Current Transactions For the purposes of this Law, an international current transaction refers to any operation between a resident and a non-resident resulting from transactions in goods, services, income (interest and dividends), and current transfers (donations, salaries, contributions, various royalties).

Article 4: Residents and Non-Residents:

Considered as "Residents"

• Natural persons of Guinean nationality having their habitual residence in Guinea:
• Guinean nationals posted abroad by the State or other Guinean public bodies, as well as their family members, regardless of the duration of their stay;
• Natural persons of foreign nationality established in Guinea for at least one year, with the exception of foreign officials on diplomatic posting in Guinea and international officials or equivalent personnel and their families;
• Refugees or stateless persons who have opted for resident status before the expiration of the one-year period;
• Legal entities having their headquarters in Guinea, as well as branches or subsidiaries in Guinea of foreign legal entities;

Considered as "Non-residents"

• Natural persons of foreign nationality having their habitual residence abroad or living in Guinea for less than one year, including stateless persons and refugees who have not opted for resident status;
• Foreign officials on diplomatic posting and international officials or equivalent personnel, as well as their families, regardless of the duration of their stay in Guinea;
• Natural persons of Guinean nationality established abroad for at least one year, with the exception of officials seconded by the Government or by Guinean public bodies;
• Branches or subsidiaries abroad of legal entities having their headquarters in Guinea.

Article 5: Approved Intermediaries

Considered as approved intermediaries for the application of this Law:

• Credit institutions approved in accordance with Law L/94/017/CTRN of June 1, 1994, relating to the activity and supervision of credit institutions;
• Exchange offices and other organisms approved by the Central Bank of the Republic of Guinea.

Chapter 3: REGULATED REGIMES

Article 6: The Governor of the Central Bank specifies by instruction or circular the regulation relating to the following regimes:

• regime for foreign currency accounts;
• regime for the import of goods and services;
• regime for the export of goods and services;
• regime for the import and export of payment instruments;
• regime for technical assistance and audiovisual royalties;
• regime for external financing;
• regime for direct investments in Guinea;
• regime for various current transactions.

Chapter 4: GENERAL REGIME

Article 7: The control of the application of the regulation of financial relations related to current transactions between the Republic of Guinea and abroad is the responsibility of the Central Bank.

Article 8: Any financial or commercial arrangement entered into between a resident and a non-resident that must result in settlement between Guinea and abroad (commercial contract, financial agreement, etc.) must necessarily pass through a local bank and be denominated either in Guinean francs or in one of the convertible currencies quoted by the Central Bank.

Article 9: Payments to abroad are made either by purchasing foreign exchange on the Foreign Exchange Market, or by withdrawal from a foreign currency account opened with a local bank in the name of the payer.

Article 10: Payments from abroad are realized by repatriating foreign exchange, which is either sold to the Foreign Exchange Market or the Central Bank, or deposited into a foreign currency account opened with a local bank.

Article 11: The import of payment instruments denominated in foreign currency is free. However, an instruction from the Governor of the Central Bank will set a threshold from which an import must be declared to Customs.

The export of payment instruments denominated in foreign currency is regulated by Instruction of the Governor of the Central Bank.

Article 12: The export and import of Guinean currency are regulated by the Central Bank.

Chapter 5: GUINEAN NATIONALS ABROAD

Article 13: Guinean nationals established abroad, while enjoying non-resident status in accordance with Article 4 above, additionally benefit from all advantages linked to resident status for their operations in Guinea.

CHAPTER 6: SPECIAL REGIMES

Article 14: Special regimes concern countries with which Guinea is linked by specific commercial and financial agreements.

The procedures for special regimes will be defined, for each Agreement, by Instruction of the Governor of the Central Bank.

CHAPTER 7: OFFENSES AGAINST FOREIGN EXCHANGE REGULATIONS.

Article 15: All maneuvers aimed at evading the obligations or prohibitions established by the foreign exchange regulations are considered offenses and are recorded, prosecuted, and penalized as such.

Article 16: Offenses are prosecuted and penalized under the conditions defined by this Law. They are subject to a three-year statute of limitations. The limitation period for offenses such as possession, failure to declare, or failure to repatriate assets or revenues of any nature, as provided for by this Law or the texts adopted for its implementation, only begins to run from the date of cessation of the unlawful state.

Article 17: The recording of offenses committed against this Law or against the texts that will be adopted for its implementation, as well as the seizure of the corresponding sums or goods, is the responsibility of:

• agents of the Customs Administration;
• or inspectors of the Finance Administration;
• or Judicial Police Officers;
• or inspectors of the Central Bank;
• or Approved Intermediaries.

The agents referred to in the first points of this article may request all public services for the necessary information for the execution of their mission, without professional secrecy being invoked against them.

The official reports of recording are transmitted to the Governor of the Central Bank, who refers the case to the Public Prosecutor depending on the severity of the case.

Article 18: All persons called upon, by reason of their functions or duties, to intervene in the application of the foreign exchange regulations are bound by professional secrecy and subject to the penalties provided for in Article 375 of the Penal Code. However, when regular proceedings have been initiated against them, these same persons cannot invoke professional secrecy against the Investigating Judge or the Court questioning them on the facts subject to the complaint or on related facts.

Article 19: Prosecution for offenses against the foreign exchange regulations can only be initiated upon complaint by the Governor of the Central Bank.

Article 20: In all proceedings resulting from an offense against the Foreign Exchange Regulations, the Governor of the Central Bank, or his duly authorized representative, has the right to present the case before the Court and to be heard in support of his conclusions.

Article 21: The Governor of the Central Bank may settle with the fraudster and set the conditions of this settlement himself. This may occur before the final judgment.

Article 22: When offenses against the Foreign Exchange Regulations are committed by the administrators, managers, or directors of a legal entity, or by one of them acting in the name and on behalf of the legal entity, in addition to the proceedings brought against them, the legal entity itself may be prosecuted and subject to the monetary penalties provided for by this Law.

Article 23: When offenses against the Foreign Exchange Regulations simultaneously constitute offenses against customs legislation or any other legislation, they are, in addition to the sanctions provided for by this Law, prosecuted and penalized in accordance with the procedure provided for by the legislation that has been violated.

Article 24: The perpetrators of offenses against the Foreign Exchange Regulations are, without prejudice to the penalties established by other legal or regulatory provisions, subject to a fine ranging from three to five times the value of the object of the fraud, and imprisonment of three to six months, or one of these penalties only.

In case of recidivism, the prison sentence may be increased to one year.

Article 25: In addition to the penalties provided for in Article 24 above, the Court orders the confiscation of the corpus delicti, that is, the movable and immovable property that was the subject of the offense, whether it consists of a prohibited operation or the omission of a declaration, deposit, or transfer.

When, for any reason, the corpus delicti could not be seized or is not represented by the offender, the court is required, to substitute for confiscation, to impose a monetary penalty equal to the value of the corpus delicti, increased by the illicit profit that the offenders realized or intended to realize.

When the unlawful operation involves the participation of several parties, the corpus delicti, whether it can or cannot be represented, consists of the total of the services provided by each of the parties, including the remuneration for services.

Article 26: Any operation involving counterfeit (coins or banknotes) or false values, which constitutes an offense against the Foreign Exchange Regulations by its other elements, is subject to the penalties provided for by this Law.

Proceedings are directed against all those who participated in the offense, whether they had knowledge of the non-authenticity of the coins or values or not.

• They are exercised in accordance with the provisions of this Law, independently of those resulting from other offenses that may have been committed.

Article 27: Accomplices are subject to the same penalties as the perpetrators.

CHAPTER 8: FINAL PROVISIONS

Article 28: All prior provisions contrary to this Law are repealed, particularly Ordinance n°237/PRG/85 of September 28, 1985, establishing Foreign Exchange Regulations and financial relations with abroad.

Article 29: This Law, which enters into force on the date of its promulgation, shall be registered, published in the Official Journal of the Republic of Guinea, and executed as a Law of the State.

Conakry, March 28, 2000
GENERAL LANSANA CONTE

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DECREE N°032/PRG/88

• DECREE -

ESTABLISHING THE GENERALIZATION OF INVOICING AND PAYMENT OF GOODS AND SERVICES IN GUINEAN FRANCS THROUGHOUT THE NATIONAL TERRITORY.

THE PRESIDENT OF THE REPUBLIC,

In view of the Declaration of the Army's effective assumption of Power dated April 3, 1984; In view of the Proclamation of the Second Republic; In view of Ordinance n°009/PRG/84 of April 18, 1984, proroguing the validity of Laws and Regulations in force on April 3, 1984; In view of Ordinance n°235/PRG/85 of September 28, 1985, establishing the Statute of the Central Bank of the Republic of Guinea; In view of Ordinance n°237/PRG/85 of September 28, 1985, establishing Foreign Exchange Regulations and financial relations with abroad; In view of the General Policy Declaration of the CMRN dated December 22, 1985; In view of Ordinance n°321/PRG/85 of December 22, 1985, appointing Members of the Government; In view of Ordinance n°322/PRG/85 of December 22, 1985, appointing the Governor and Deputy Governor of the BCRG;

The Council of Ministers heard;

• DECREES -

Article 1: Effective February 1, 1988, and throughout the National Territory, invoices for all goods and services, including:

• Hotel and Restaurant Bills,
• Airline Tickets, and all transport tickets,
• Airport Taxes,
• Insurance Premiums,
• Tuition Fees in public and private schools,
• Postal and Telecommunication Fees,
• Rent for residential or professional premises,
• Car Rentals,
• Fees, indemnities...

shall be denominated and paid in Guinean Francs.

Article 2: By way of exception, service fees due, on the one hand, by foreign shipowners to the Conakry Autonomous Port (PAC) and to companies operating at the Port, and on the other hand, by Airline Companies to the Conakry Airport Management Company (SOGEAC), as well as various fees and remuneration paid to non-residents from external financing, continue to be denominated and settled in foreign currencies.

Article 3: Likewise, but on a transitional basis until December 31, 1988, rent for residential or professional premises for ongoing contracts may be paid in foreign currency on accounts opened with local banks, provided that these banks sell these currencies to the auction market, in accordance with the procedures provided for by the foreign exchange regulations.

Article 4: The Minister of the Interior and Decentralization, the Minister of Justice, Keeper of the Seals, the Minister of Economy and Finance, the Minister of Equipment and Urban Planning, the Secretary of State for Commerce, the Secretary of State for Security, and the Governor of the Central Bank of the Republic, are each charged, within their respective areas of responsibility, with the implementation of this Decree.

Article 5: This Decree shall be registered and published in the Official Journal of the Republic. ./

CONAKRY, January 28, 1988
GENERAL LANSANA CONTE

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INSTRUCTION N°105/DGI/99 OF AUGUST 20, 1999 REGARDING THE MONITORING OF THE EXCHANGE POSITION OF CREDIT INSTITUTIONS

The Governor

In view of Law n°L/94/017/CTRN of June 1, 1994, relating to the activity and supervision of credit institutions; In view of Law n°L/94/018/CTRN of June 1, 1994, establishing the Statute of the Central Bank of the Republic of Guinea; In view of Ordinance n°237/PRG/85 of September 28, 1985, establishing Foreign Exchange Regulations and financial relations with abroad; In view of Decree N°96/100/PRG/SGG of July 11, 1996, appointing the Governor of the Central Bank; In view of Instruction N°5/RCH/94 of January 9, 1986, on exchange control; In view of Instruction N°69/RCH/94 of February 3, 1994, regarding the exchange position of banks;

DECIDES

Article 1: The exchange position or net position in a given currency corresponds to the difference between asset and off-balance sheet elements (actual and potential assets) and liability and off-balance sheet elements (actual and potential liabilities) expressed in this foreign currency.

The overall exchange position of the institution corresponds to the sum of the exchange positions indicated above.

Article 2: Credit institutions that conduct operations in foreign currencies must possess:

• A system enabling measurement that allows for the immediate recording of these operations and the calculation of their results, as well as the determination of the overall exchange position each day, or by currency if internal control rules require it;

• A permanent control system aimed at enabling verification of compliance with the preceding provisions, as well as, where applicable, those resulting from their own specific constraints.

Article 3: Precious metals such as gold and silver held in their assets are treated as a currency for the application of this Instruction.

Article 4:
4.1 Exchange positions are determined based on the elements indicated in the attached annex, using the Central Bank's reference exchange rates on the date of the statement in question.

For the application of this regulation, a position is classified as long when assets exceed commitments; it is classified as short when commitments exceed assets.

4.2 However, the following are excluded from the preceding elements:

• operations whose exchange risk is borne by the State
• tangible and intangible fixed assets as well as equity securities denominated in foreign currencies

4.3 Provisions allocated to cover asset or off-balance sheet elements and constituted in currencies other than those of the asset or off-balance sheet elements must, where applicable, be:

• taken into account in the calculation of the exchange position of the currency in which the claim is denominated,

• excluded from the exchange position of the currency in which the provision is constituted.

Article 5: Equity is calculated based on statutory accounts, according to the procedures fixed in Instruction n°51/RCB/91 of July 25, 1991. Net equity is evaluated by the BCRG at the end of each semester to integrate elements that may modify their level in assessments conducted during the following semester.

Article 6:

• Credit institutions subject to this regulation are authorized to hold a fraction of their long positions across all currencies equal to 35% of their net equity;

• Any excess over this 35% limit must be sold to the Central Bank within two days of its detection.

Article 7: Furthermore, subject institutions submit to the General Directorate of Economic and Monetary Affairs, on a monthly basis, a statement titled "elements of the exchange position" whose model is attached to this instruction.

Article 8: This Instruction does not apply to institutions whose share of foreign currency in assets, liabilities, or off-balance sheet items represents less than 10%. This 10% percentage is derived from the average of the amounts appearing on the accounting statements finalized at the four quarterly deadlines of the preceding year and transmitted to the BCRG. Amounts related to operations whose exchange risk is borne by the State are not taken into account for the calculation of this 10% percentage.

Article 9: Any failure to comply with the provisions of this Instruction exposes the institution to a daily penalty of 0.2% on the excess over the authorized limit, without prejudice to other sanctions provided for by Law L/94/017/CTRN of June 1, 1994, relating to the activity and supervision of credit institutions and by the foreign exchange regulations in force.

Article 10: This Instruction, which repeals all prior contrary provisions, takes effect from the date of its signature and shall be published wherever necessary.

IBRAHIMA CHERIF BAH

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ANNEX to Instruction N°105/DGI/99 of August 20, 1999

Exchange position as xxxxxxxx

LIBELLES	MONTANTS
A/ USES - ASSET
1) Cash
2) Banks and Financial Institutions	> 3months
Ordinary accounts, demand deposits	> 6 months
Investment accounts	> 9months
	> 12months
3) Loans to customers
(private and public, resident, and non-resident)
4) Interbank loans (eventual)

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