BANK of Tanzania (BoT) has revised minimum capital thresholds of bureau de change while suspending licensing of new facility to enable the assessment and relicensing of the existing ones.
According to BoT statement, the minimum capital thresholds for class A bureau de change has been revised to 300m/- from 100m/- and to 1bn/- from 250m/- for class B. Also the non-interest bearing deposit at the BoT has been increased to 100,000 US dollars from 50,000 US dollars.
“At least two thirds of the required minimum capital of the bureau de change should be in the form of cash as working capital,” the BoT statement stated. The Central Bank said all the existing bureau de change should apply for re-licensing by filling the forms in the next three months since when the notice was issued early this month.
Also every share holder, director and heads of branches who according to the new measures should not serve more than one bureau de change are required to fill the ‘fit and proper person form’ and authenticate the source of funds invested in the bureau de change.
For smooth implementation of the new measures, the regulator has encouraged Bureau de Change to merge, acquire or be acquired by another bureau de change.
And the implementations should be accompa nied by board resolution, pro-forma balance sheet, income statement and organisation structure resulting from meagre, acquisition or amalgamation.
The Bank said further that every bureau de change is required to fill and submit the ‘Premises Aptness Checklist’ with the contents subject for verification by the regulator through sites visits. The number of bureau de change operating in the country as of September last year is 290.