Bank of Tanzania (the Bank) is mandated to license, regulate and supervise bureau de changes. The Bank may authorise the establishment of bureau de change for the purposes of carrying on the business of buying and selling foreign currency. It is prohibited to engage in bureau de change business without a valid license issued by the Bank.

In other hand, it is allowable to any person whether resident or not resident in the United Republic to: -

hold any amount of foreign currency and raw gold within the United Republic;

sell any amount of foreign currency to an authorised dealer or a bureau de change; or

open and maintain a foreign currency account with a bank which is an authorised dealer.

In 2023, the government issued new regulations (the Foreign Exchange (Bureau de Change) Regulations, 2023) to guide the Bureau de Change business in the country.

These regulations set the basis of how to start and run the business of exchanging foreign currencies and any other financial related activities in the country. Below we will briefly explain how to start this business in the country and how to run it as described by the Foreign Exchange (Bureau de Change) Regulations, 2023).

Class of Bureaus de change

There are three class of Bureaus de change:-

i. Class A bureau de change- means a foreign or locally owned bureau de change licenced by the Bank to deal with spot transactions, money transfer and other financial services related activities;

ii. Class B bureau de change- means bureau de change with one hundred percent local shareholding licenced to deal with spot transactions;

iii. Class C bureau de change- means a bureau de change established in a hotel to deal with spot transactions to the hotel’s customers only.

Who can apply for a bureau de change licence

i. a company limited by shares incorporated under the laws of Mainland Tanzania or Tanzania Zanzibar

ii. a hotel incorporated or registered under the laws of Mainland Tanzania or Tanzania Zanzibar.

Note: If you wish to establish a company or a hotel intending to operate a bureau de change, it is a necessary requirement to include in the name of the business the words “bureau de change”, “forex bureau” or “foreign exchange bureau”. Any change in a bureau de change’s name shall be registered with the Registrar of Companies and evidence submitted to the Bank accompanied by proof of payment of a non- refundable fee of one million Tanzania Shillings, within fourteen days from the date of registration.

Capital Requirements

The capital required to commence bureau de change operations is as follows: -

License Class	Shareholding	Capital Requirements
A	Majority foreign shareholding	One Billion Tanzania Shillings
A	Majority local shareholding	Five hundred million Tanzania Shillings
B	-	Two hundred million Tanzanian Shillings

However, it is a requirement to register additional capital with the Registrar of Companies upon notification to the Bank and submit evidence of such registration to the Bank within seven days of registration.

Application for Class A & B licence

The application is made to the Bank and it must be signed by the director, and in the case of a company, not less than two directors or a person authorised by the applicant and be accompanied by the following: -

i. a certified copy of a board resolution authorising the application;

ii. a duly completed application Form A

iii. a certified copy of a certificate of incorporation;

iv. a certified copy of Memorandum and Articles of Association;

v. evidence from the Registrar of Companies that a paid-up share capital of –

- not less than one billion Tanzanian Shillings has been registered for Class A bureau de change with foreign majority shareholding;

- not less than five hundred million Tanzanian Shillings for Class A bureau de change with local majority shareholding

- not less than two hundred million Tanzanian Shillings for Class B bureau de change;

vi. reference letters from two individuals who are not relatives vouching for the good moral and character of each of the applicant’s shareholders, the proposed director and chief executive officer;

vii. a certified copy of a page of passport which contains personal information, national identity card or birth certificate as proof of citizenship for every shareholder, the proposed director and chief executive officer

viii. a certified copy of a residence permit for non- Tanzanian shareholders or director of the applicant;

ix. a duly completed Form C

x. proof of source of funds with supporting document for proposed business

xi. proof of payment of a non-refundable application fee of one million Tanzanian Shillings;

xii. proposed organisational structure of the applicant;

xiii. a detailed curriculum vitae and one recent passport size photograph;

xiv. a declaration that a capital of not less than –

- one billion Tanzanian shillings has been set aside for Class A bureau de change with foreign majority shareholding;

- five hundred million Tanzanian shillings for Class A bureau de change with majority local shareholding; or

- two hundred million Tanzanian shillings for Class B bureau de change; and

xv. credit reference report for every shareholder, director and chief executive officer.

Application for Class C licence

This licence is for a hotel intending to conduct bureau de change. An application for this licence is made to the Bank and must be accompanied by the following: -

a duly completed Form B

a certified copy of certificate of business name registration or certificate of incorporation;

a certified copy of licence to conduct hotel business; and

evidence of rating as a three stars hotel or above issued by the relevant authority

Annual fee

A Class A and Class B bureau de change shall pay an annual fee of five hundred thousand Tanzania Shillings for each operating branch.

Change of Ownership and Business relocation

No change of ownership of bureau de change without prior approval of the Bank. Upon receipt of the Bank’s approval on change of ownership, the bureau de change must register the change with the Registrar of Companies and submit evidence to the Bank within seven days of registration.

A bureau de change shall not relocate its business without prior approval of the Bank. The application for approval for relocation is made to the bank and must be accompanied with proof of payment of relocation fee of one million Tanzanian Shilling.

Branch opening

A Class A bureau de change may, open a branch anywhere in the United Republic subject to prior approval of the Bank. An application for branch opening shall be accompanied with the following: -

a duly completed Form D

proof of payment of a non-refundable licence fee one million Tanzanian Shillings;

projected capital expenditure for opening of branch;

curriculum vitae of the proposed head of branch; and

reference letters from two individuals who are not relatives vouching for the good moral and character of the proposed head of branch.

Closing of Head office or Branch

Any bureau de change intending to close its head office or branch temporarily or permanently must notify the Bank in writing within three days from the date of closure, giving reason for such close. In case of temporally closure, the closure shall not exceed six months.

If you need more information/assistance on the business of buying and selling foreign currency in Tanzania, please do not hesitate to contact us.

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