Tanzania's central bank to monitor bureaux de change's transactions in real-time
This initiative stems from concerns that some bureaus are violating transaction regulations.The Bank of Tanzania (BoT) has unveiled a new system for monitoring the transactions of bureaux de change (BDC) across the country in real-time.
"The BoT has developed the Bureaux de Change Management System, which will enable capturing real-time transactions and enhance effective supervision of bureaus," said the BoT in its Monetary Policy Statement of June 2016.
This initiative stems from concerns that some bureaus are violating transaction regulations including non-issuing of receipts to hide actual transactions, according to Tanzania Daily News.
A few months ago, Nigeria took similar steps to curb fraud in the sector. The central bank raised the minimum capital requirement for BDCs' operations from N10 million (€32,000) to N35 million, in addition to a mandatory cautionary deposit.
It also introduced a new guideline forbidding ownership of multiple BDCs and including penalties for fraudsters.
The CBN said these regulatory steps were being adopted to curb observed deficiencies in the operational effectiveness of BDCs, which showed "gross violation" of these objectives, "particularly the activities of operators only interested in profiteering from the foreign exchange market, regardless of prevailing official and interbank rates".