Regulation No. 098/2022/BCRG on the Monitoring of Precious Metals Export Revenues in the Guinean Financial System

[Logo: BCRG CENTRAL BANK OF THE REPUBLIC OF GUINEA]

Conakry, January 04, 2022

REGULATION NO. 098/2022/BCRG
ON THE MONITORING OF PRECIOUS METALS EXPORT REVENUES IN THE GUINEAN FINANCIAL SYSTEM

THE GOVERNOR

Having regard to Law No. L/2017/017/AN of June 8, 2017, repealing Law No. L/2016/064/AN of November 9, 2016, which itself amended Law No. L/2014/016/AN of July 2, 2014 establishing the Statute of the Central Bank of the Republic of Guinea;

Having regard to Law No. L/2000/006/AN of March 28, 2000 on transactions between the BCRG and foreign entities;

Having regard to Law No. L/2021/0024/AN of June 16, 2021 on the Fight against Money Laundering and Terrorist Financing in the Republic of Guinea;

Having regard to Decree No. D/2021/0145/PRG/CNRD of November 27, 2021 appointing the Governor of the Central Bank;

Having regard to Decision No. 028/DGSIF/DSB of August 13, 2014 organizing the framework for combating money laundering and terrorist financing at the BCRG;

Having regard to Instruction No. 112/DGAEM/RCH/00 of September 11, 2000 establishing the financial relations regime regarding transactions between the Republic of Guinea and foreign countries, particularly Article 11 thereof;

Having regard to Regulation No. 088/2019/LBC-FT of September 4, 2019 on the procedures for foreign currency payments to the Central Bank of the Republic of Guinea;

Having regard to Regulation No. 095/2021/BCRG of June 25, 2021 on the Central Bank's requirements regarding international transfers to its counterparties.

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12, Boulevard du Commerce, 6th Avenue de la République du Kaloum - P.O. Box 692 - Conakry - Republic of Guinea Tel: (+224) 664 67 77 77 - Fax: (+224) 669 08 88 88 - email: secretariat.gouv@bcrg-guinee.org www.bcrg-guinee.org

HEREBY DECIDES:

Article 1: A foreign exchange flow monitoring mechanism is established under the coordination of the BCRG, with operating rules set forth in this Regulation.

Article 2: The stakeholders in the operation of this mechanism essentially comprise the BCRG, primary banks, approved gold counters, and manual exchange offices.

Article 3: Monitoring is carried out via a reporting system, the templates for which are attached to this Regulation.

Article 4: The BCRG's Foreign Exchange Regulation Control and Monitoring Directorate (DCSRCH) is responsible for establishing a database and providing repatriation status reports, ensuring that these are accurately linked over time to each precious metals export file.

For reconciliation purposes, the DCSRCH may at any time require approved counters to submit withdrawal slips for precious metals export revenues repatriated to their benefit in banks.

Article 5: Banks must transmit, on a weekly basis via the Type A reporting template attached to this Regulation, reports of foreign currency withdrawals made at their counters by approved counters, in connection with the repatriation of precious metals export revenues.

Banks must also comply with the provisions of Regulation No. 088/2019/LBC-FT of September 4, 2019, on foreign currency payment procedures to the Central Bank. Accordingly, they must complete and submit to the BCRG 72 hours prior to fund transfer, the Type C reporting template indicating the breakdown by depositing client of the amount to be paid.

Article 6: Manual exchange offices must, via the Type B reporting template, transmit to the BCRG's DCSRCH on a weekly basis, reports of foreign currency purchases and sales conducted with their clients.

Through this Type B reporting, exchange offices must demonstrate that they have implemented sufficient due diligence measures toward their clients (verification of client identity and fund source, and verification of supporting document consistency).

Article 7: The BCRG's Compliance Unit will monthly centralize data from Types A and B reports, submitted respectively by banks and manual exchange offices, via a consolidated Type D statement.

Through the consolidated Type D statement, the BCRG's Compliance Unit will, on one hand, rule on the acceptability of currencies proposed for payment to the BCRG by banks, and, on the other hand, update and disseminate to banks and approved precious metals counters the list of deemed-compliant exchange offices (exchange offices with current approval and compliant with the weekly reporting obligation).

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Article 8: In case of non-compliance with this Regulation, violators are subject to the following restrictions:

• for banks, failure to comply with the due diligence in Article 5 exposes them to restrictions on foreign currency deposits at the BCRG;
• for Approved Counters, the BCRG reserves the right to restrict future operations if they fail to meet the obligation to repatriate export revenues through the banking circuit within 45 days;
• for Manual Exchange Offices, in case of non-compliance with Article 6, the BCRG will exclude the violator from the list of deemed-compliant exchange offices;

Approved counters must only transfer their export revenues to exchange offices deemed compliant by the BCRG. Banks must only accept foreign currency payments if they originate from compliant exchange offices.

Article 9: This Regulation, effective as of its signature date, repeals all prior contrary provisions and shall be published where necessary.

[Signature]

Dr. Karamo KABA

[Stamp: BCRG CENTRAL BANK OF THE REPUBLIC OF GUINEA - The Governor]

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