Govt orders mandatory local currency banking to combat illicit funds
The Financial Intelligence Unit (FIU) of South Sudan has issued a sweeping directive ordering all individuals and businesses to deposit their South Sudanese Pound (SSP) holdings into licensed banks or financial institutions by 12:00 p.m. on Friday, May 9, 2025.
The move is aimed at curbing money laundering, enhancing financial oversight, and ensuring all local currency transactions occur through regulated channels.
Signed by Acting Commissioner Dr. Abraham Telar Nicknora on May 6, 2025, the directive invokes the Anti-Money Laundering and Counter-Terrorist Financing Act (2012, amended 2024) and the Bank of South Sudan Act (2011). It warns of severe penalties for non-compliance, effective immediately after the deadline.
Starting at noon on May 9, authorities will confiscate any SSP held outside regulated institutions. Non-compliant individuals and entities face criminal investigations into the sources of their funds, tax evasion, and potential terrorism financing.
Additional sanctions include license suspensions, blacklisting, and referrals to tax authorities. Violators could also face up to 10 years in prison or fines up to three times the value of seized funds under Section 14(d) of the AML/CFT Act.
The FIU emphasised that the directive applies to all natural and legal persons in South Sudan and urged swift compliance to avoid penalties. “This is a critical step to safeguard our financial system and eliminate illicit activities,” Dr. Nicknora stated.
The order comes amid reports of local currency shortages, which hit the market in recent days, coinciding with heightened political tensions across the country. The institution did not specify if the directive applies nationwide or only in the capital, Juba. It also did not state the minimum or maximum amount subject to confiscation.
The FIU is a government institution which operates under the authority of the Government of South Sudan, specifically established to combat money laundering, terrorist financing, and other financial crimes.
The FIU derives its mandate from legislation such as the Anti-Money Laundering and Counter-Terrorist Financing Act (2012, amended 2024) and works in coordination with the Bank of South Sudan and other regulatory bodies.
As a government agency, it is responsible for overseeing financial transactions, enforcing compliance with financial regulations, and conducting investigations into illicit financial activities within the country.
sudanspost.com