New South Sudan rules to tame illicit fund transfers

Friday July 28 2017

South Sudan central bank has introduced new

South Sudan central bank has introduced new monetary policies in its push to check soaring inflation, regulate foreign currency trading and combat money laundering. TEA GRAPHIC | NATION MEDIA GROUP 

By JOSEPH ODUHA
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South Sudan's central bank has introduced new monetary policies in its push to check soaring inflation, regulate foreign currency trading and combat money laundering.

The Bank of South Sudan governor Othom Ragot Ajak said the rules were part of the regulator's financial sector reforms formulated in partnership with the International Monetary Fund (IMF) and regional central banks.

The country, ravaged by civil war since December 2013, is battling with hyperinflation and shortage of dollars, amid poor governance and high-level corruption.

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The oil-rich nation depends on its crude revenues to fund its budget, but conflict has seen output drop significantly to nearly a third of what it was producing in 2011 when it seceded from Sudan.

Dr Ajak said Thursday that all businesses, UN agencies and non-governmental organisations must open special accounts with the central bank for foreign exchange transactions.

He also directed all financial institutions to implement the new policy guidelines with immediate effect.

He said the anti-money laundering policy will help to limit fraud and transfer of illicit funds that endangers the financial sector.