BANQUE DE LA REPUBLIQUE DU BURUNDI

FOREIGN EXCHANGE REGULATION

DECEMBER 2023

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TABLE OF CONTENTS

CHAPTER I: GENERAL PROVISIONS................................................................................ 7
Article 1: Definition of terms....................................................................................................... 7
Article 2: Purpose................................................................................................................................ 9
Article 3: Scope of application ....................................................................................................... 9
Article 4: Transaction currency.................................................................................................... 9
Article 5: Principle of freedom in international transactions ............................................. 9
Article 6: Foreign currency transactions ................................................................................... 9
Article 7: Transfer of foreign currency ...................................................................................... 10
Article 8: Compliance of transactions........................................................................................ 10
Article 9: Market manipulation.................................................................................................. 10
Article 10: Control of authorized intermediaries ...................................................................... 10
Article 11: Import and export of banknotes and coins in BIF. 10
Article 12: Import and export of banknotes and coins in foreign currency ........................................................................................................................................................ 11
Article 13: Declaration of cash held by travelers............................................................... 11
Article 14: Repatriation of export and re-export proceeds ......................................... 11
Article 15: Opening of foreign currency accounts ................................................................ 11
Article 16: Domiciliation of external financing .................................................................... 11
Article 17: Hedging of exchange rate risk ................................................................................ 12
CHAPTER II: PROVISIONS APPLICABLE TO BANKS ............................................12 SECTION I: GENERALITIES.......................................................................................................12
Article 18: Authorized transactions ........................................................................................... 12
Article 19: Appointment of a foreign exchange dealer ................................................................ 12
Article 20: Transmission of information .................................................................................... 12

SECTION II. CURRENT INTERNATIONAL OPERATIONS ........................................13 II.1. IMPORTS....................................................................................................................13 II.1.1. IMPORT PROCEDURES .................................................................................13
Article 21: Access to foreign currency ......................................................................................... 13
Article 22: Import Declaration (DI)...................................................................................... 13
Article 23: Elements of the DI.................................................................................................. 14
Article 24: Validation of a DI................................................................................................... 14
Article 25: Validity of a DI ...................................................................................................... 15
Article 26: Modification of DI elements............................................................................... 15
Article 27: Cancellation of the DI ........................................................................................... 15
Article 28: Payment after import of goods........................................................................... 15
Article 29: Advance payment for import of goods..................................................... 15
Article 30: Payment for import by documentary credit or documentary collection 16
Article 31: Goods imported by supplier credit ............................................................................ 16
Article 32: Goods imported for hire-purchase or leasing ........................................................ 16
Article 33: Responsibility of banks in the proper completion of operations ....................................... 16
II.2 EXPORTS ...................................................................................................................16 II.2.1 EXPORT PROCEDURES .................................................................................16
Article 34: Export Declaration (DE) ................................................................................... 16
Article 35: Validity of a DE.......................................................................................................... 17
Article 36: Validation of a DE ..................................................................................................... 17
II.2.2. COLLECTION PROCEDURES .............................................................................17
Article 37: Collection methods ............................................................................................. 17
Article 38: Collection deadline ..................................................................................................... 17
Article 39: Repatriation of export proceeds ........................................................................ 18

Article 40: International trade ..................................................................................................... 18
III.3. OPERATIONS ON SERVICES AND INCOME .......................................................18
Article 41: Request for exchange and/or transfer of foreign currency ......................................... 18
Article 42: Travel expenses abroad .......................................................................................... 18
Article 43: Investment income ............................................................................................. 19
Article 44: Insurance and/or reinsurance premiums ....................................................................... 19
Article 45: International transport costs for goods....................................................................... 20
Article 46: Ancillary costs for import or export during road transport ........................................................................................................................................................ 20
Article 47: Telecommunications fees ............................................................................. 20
Article 48: Foreign administrative fees for posts ................................................................... 20
Article 49: Fees in favor of non-residents ......................................................................... 21
Article 50: Distributed profits, dividends, and emoluments.............................................................. 21
Article 51: Revenues of passenger transport companies........................................................ 21
Article 52: Revenues of diplomatic and consular missions ...................................................... 21
Article 53: Repayment of loans, interest, and bank commissions........................................ 21
Article 54: Rents related to leasing or hire-purchase............................................................. 22
Article 55: Contributions to international organizations............................................................ 22
Article 56: Subscription and correspondence courses ...................................................................... 22
Article 57: Retro-transfer ............................................................................................................... 22
Article 58: Restitutions and various misappropriations ................................................................................. 23
Article 59: Advances and payments on account related to service supply contracts................................... 23
SECTION III, CAPITAL OPERATIONS..............................................................................23
Article 60: Investments in Burundi by non-residents........................................................ 23
Article 61: Repatriation of investments by non-residents ................................................ 23

Article 62: Investments abroad by residents................................................................ 23
Article 63: Investments abroad by establishments authorized by the BRB ......................... 24
Article 64: Borrowing from non-residents ............................................................................... 24
Article 65: Borrowing and lending by foreign currency banks ..................................................................... 24
Article 66: Restrictions on capital operations ....................................................................... 24
SECTION IV. FOREIGN CURRENCY ACCOUNTS ....................................................................................25
Article 67: Operations on foreign currency accounts.......................................................................... 25
Article 68: Balances and remuneration of foreign currency accounts............................................................. 25
Article 69: Statistical information................................................................................................... 25
Article 70: Legality of transactions ................................................................................................. 25
SECTION V. SANCTIONS APPLICABLE TO BANKS..................................................26
Article 71: Types of sanctions........................................................................................................ 26
CHAPTER III. PROVISIONS APPLICABLE TO EXCHANGE BUREAUX ...............26 SECTION I. GENERALITIES.......................................................................................................26
Article 72: Conditions for operating an exchange bureau................................................. 26
SECTION II. APPROVAL ...........................................................................................................26
Article 73: Approval of an exchange bureau................................................................................. 26
Article 74: Approval of directors ............................................................................................... 27
Article 75: Opening of an agency ................................................................................................ 27
Article 76: Processing of the approval application........................................................................... 27
Article 77: Fees related to services provided by the BRB ................................................................ 27
Article 78: Affiliation to the professional association of exchange bureaus................................ 27
Article 79: Subsequent modification of elements of the approval application .................................. 27
Article 80: Holding of foreign currency accounts by exchange bureaus ........................................ 27
Article 81: Insurance of the exchange bureau.................................................................................... 28

Article 82: Withdrawal of approval ................................................................................................ 28
SECTION III. OPERATION OF EXCHANGE BUREAUX ...................................28
Article 83: Obligation to hold an account in the books of the BRB .......................................... 28
Article 84: Authorized transactions ................................................................................................. 29
Article 85: Prohibited transactions................................................................................................... 29
Article 86: Declaration, registration of operations, and retention of documents ................ 29
Article 87: Verification of counterfeits ....................................................................................... 29
Article 88: Transmission of periodic reports and financial statements........................................ 30
Article 89: Locations of activities of exchange bureaus....................................................................... 30
Article 90: Voluntary suspension of activities of an exchange bureau........................................... 30
Article 91: Voluntary cessation of activities of an exchange bureau ............................................. 30
SECTION IV: SANCTIONS APPLICABLE TO EXCHANGE BUREAUS.....................31
Article 92: Types of sanctions........................................................................................................ 31
CHAPTER IV: DIVERSE PROVISIONS ............................................................................31
Article 93: Manual exchange operations by commercial banks ....................................... 31
Article 94: Collaboration between the Banque de la République du Burundi and the Burundian Revenue Office....................................................................................................................................... 32
Article 95: Authorized operations for payment and fund transmission establishments .... 32
Article 96: Penalties for exercising foreign exchange activity without authorization ..................................... 32
CHAPTER V: TRANSITIONAL AND FINAL PROVISIONS ...........................................32
Article 97: Provisional maintenance of export procedures........................................................ 32
Articles 98: Provision relating to international conventions .................................................. 32
Article 99: Management of unforeseen cases ........................................................................................... 33
Article 100: Entry into force........................................................................................................ 33

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FOREIGN EXCHANGE REGULATION DECEMBER 2023

Having regard to Law No. 1/02 of February 4, 2008 on combating money laundering and the financing of terrorism;

Having regard to Law No. 1/34 of December 2, 2008 establishing the statutes of the Banque de la République du Burundi;

Having regard to Law No. 1/17 of August 22, 2017 governing banking activities;

Having regard to Law No. 1/27 of December 29, 2017 revising the Penal Code;

Having regard to Law No. 1/07 of May 11, 2018 establishing the national payment system;

Having regard to Law No. 1/19 of June 17, 2021 modifying Law No. 1/24 of September 10, 2008 establishing the Burundi Investment Code;

Having regard to Law No. 1/19 of August 4, 2023 modifying Law No. 1/21 of October 15, 2013 establishing the Burundi Mining Code;

Having reviewed the Foreign Exchange Regulation of September 17, 2019;

The Banque de la République du Burundi enacts this Regulation.

CHAPTER I: GENERAL PROVISIONS

Article 1: Definition of terms

For the application of this Regulation, the following terms are understood as:

1. BRB: Banque de la République du Burundi.
2. Bank: A legal entity authorized by the BRB to carry out, as a habitual profession, operations mainly related to the receipt of public funds, credit operations, making payment means available to clients and their management, as well as foreign exchange operations.
3. Exchange Bureau: Any establishment authorized by the BRB to carry out purchase and sale operations of foreign currency in cash.
4. Foreign Currency: Foreign money.
5. Payment Institution: Any legal entity, other than the Public Treasury, the BRB, a credit institution, the National Post Office, a microfinance institution, which is authorized by the BRB to provide payment services as a habitual profession.

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6. Inside Information: Precise information that has not been made public, which concerns, directly or indirectly, one or more issuers of financial instruments, or one or more financial instruments, and which, if made public, would be likely to have a significant influence on the price of the concerned financial instruments or the price of financial instruments linked to them.
7. Authorized Intermediary: A bank, an exchange bureau, a payment institution, or any other entity authorized by the BRB to carry out foreign exchange operations.
8. Foreign Exchange Market: The market where purchase and sale operations of foreign currency take place.
9. Interbank Foreign Exchange Market: The market where banks intervene to buy and sell foreign currencies among themselves.
10. Foreign Exchange Dealer: A natural or legal person who acts as an intermediary on behalf of a bank on the foreign exchange market.
11. Non-resident: Any legal or natural person who does not meet the criteria listed in point 16 of this article.
12. Cash Foreign Exchange Operation: A purchase or sale operation of foreign currency in banknotes and/or coins.
13. Current International Operations: Transactions between residents and non-residents that do not have the transfer of capital as their object. They include in particular:
    a. all payments due for foreign trade and other current operations, including services, as well as normal short-term banking and credit facilities; b. payments due for interest on loans or net income from other investments;
    c. payments of a moderate amount for the amortization of loans or depreciation of direct investments;
    d. remittances of a moderate amount for family charges.
14. Capital International Operations: Capital transfers to be received and paid between residents and non-residents and the acquisition and disposal of non-produced non-financial assets between residents and non-residents.
15. Exchange Position: Net position of foreign currency assets.
16. Re-export: The act of exporting goods previously imported.
17. Resident: Any natural or legal person who carries out an activity in Burundi for at least twelve (12) months, with the exception of persons benefiting from a diplomatic status in accordance with the United Nations Charter.
    The following are also considered "Residents":
    a. natural persons of Burundian nationality who live abroad for a period of less than twelve (12) months; b. Burundian diplomatic and consular missions abroad, the personnel of Burundian nationality attached to them, as well as the members of their families;

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c. Burundian students abroad;  
d. natural persons located abroad for health care reasons; e. military contingents, military personnel, and police on mission abroad.

Article 2: Purpose

The purpose of this regulation is to determine the rules and procedures for the management of foreign currency and to define the roles and responsibilities of authorized intermediaries and any other interested party.

Article 3: Scope of application

This foreign exchange regulation applies to banks, exchange bureaus, and payment institutions or other entities authorized by the BRB to carry out foreign exchange operations.

Article 4: Transaction currency

The legal tender unit in the Republic of Burundi is the Burundian Franc (BIF).

All monetary transactions taking place on the national territory of Burundi are expressed in Burundian Francs, except for cases provided for by this regulation or on derogation granted by the BRB.

Offers from residents or non-residents bidding for contracts subject to international tender may be expressed in foreign currency, and settlement in foreign currency is carried out exclusively via bank account.

Services rendered to non-residents by airlines, travel agencies, international transport companies and agencies, freight forwarders, border and immigration services, port and airport services, hotels, and the Tax Authority may be billed and paid in foreign currency.

Foreign currency received in the context of the operations cited in the previous paragraph is deposited into their foreign currency accounts.

Article 5: Principle of freedom in international transactions

Current and capital international transactions between Burundi and the rest of the world are free and carried out in accordance with this regulation.

Article 6: Foreign currency transactions

Residents and non-residents are free to buy and sell foreign currency from authorized intermediaries in compliance with this regulation.

Authorized intermediaries must display the buying and selling rates as well as the fees and commissions applied to operations for the benefit of clients.

The purchase or sale of foreign currency must involve at least one authorized intermediary as a party to the operation, under penalty of sanctions provided for by this regulation, without prejudice to sanctions provided for by the provisions of the Penal Code.

Article 7: Transfer of foreign currency

Only banks, payment institutions, or any other entity authorized by the BRB may carry out foreign currency transfers in accordance with the standards determined by the BRB.

Article 8: Compliance of transactions

Any authorized intermediary must ensure that foreign exchange operations comply with the provisions of this regulation.

In addition, operations must be carried out in compliance with the provisions of the law on combating money laundering and the financing of terrorism and its implementing texts.

Article 9: Market manipulation

Authorized intermediaries must avoid engaging in speculative transactions and maneuvers that may mislead other market participants. They must also avoid the abusive use of any inside information at their disposal.

Failure to comply with this provision exposes the offender to the sanctions provided for in the implementing texts of this regulation, without prejudice to the provisions of the Penal Code.