On the 1st of September 2023, the Governor of the Bank of Tanzania issued amendments to the
Foreign Exchange Regulations 2022. The spirit of the 2022 Regulations was to regulate foreign
exchange activities. Major issues covered in the new amendments are;

  1. Bank account relationship is no longer necessary in buying or selling foreign
    currency.
  • The amendment has deleted Regulation 3(7) &(8).
  • Regulation 3(7) mandated that an exporter sell foreign currency through a bank or
    financial institution where he maintains an account relationship.
  • Regulation 7(8) prohibited a bank or financial institution from buying foreign
    currency from an exporter with no account relationship.
  • The bank account relationship is no longer necessary. This allows trading in forex
    without one necessarily having a bank account with a particular bank or financial
    institution.

2. Revised penalty for non-compliance with foreign loans registration requirement.

  • Foreign Exchange Regulations require foreign debt exceeding 365 days to be
    registered with the Bank of Tanzania.
  • The amendment now directs that the penalty for non-compliance should be as
    provided in the Foreign Exchange Act.
  • Per the Act, failure to register a foreign loan would attract a penalty of not more than
    four million or imprisonment term of not more than 14 years or both.

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Disclaimer
This article is not intended to replace professional advice. No one should rely exclusively on the
information provided as a substitute for seeking professional advice. The writers or the Firm are
not liable for any use of the information contained herein and do not guarantee the accuracy of its
contents from the date of publication to the date of usage