1. Legal framework
1.1. What laws and regulations govern exchange control regime in your jurisdiction?
- Regulation No. 09/2010/cm/UEMOA/ on the external financial relations of the member States of the West African Economic and Monetary Union (UEMOA);
- Regulation No 06/2024/CM/UEMOA of 20 December 2024 on the external financial relations of the Member States of UEMOA which repeals and replaces the above Regulation.
1.2. Which bilateral and multilateral exchange control instruments have an effect in your jurisdiction? How is regulatory cooperation and consolidated supervision ensured?
- Bilateral instruments
- Agreement between France and the UEMOA on monetary cooperation linking the FCFA to the Euro,
- Agreement on monetary cooperation between France and the UEMOA revised in 2019 on the centralization of foreign reserves.
- Multilateral instruments
- The WAEMU Treaty
- Regulation No. 09/2010/CM/UEMOA/ on the external financial relations of the Member States of the West African Economic and Monetary Union (UEMOA)
- Regulation No. 06/2024/CM/UEMOA of 20 December 2024 on the external financial relations of the Member States of the West African Economic and Monetary Union (UEMOA)
The WAEMU Council of Ministers ensures the external stability of the currency.
1.3. What are the current priorities of regulators and how do they work with the banking industry?
- Current agency priorities
- Adoption of implementing measures for Regulation No. 06/2024/CM/UEMOA of 20 December 2024 on external financial relations of the Member States of UEMOA.
- How do they work with the banking sector?
- The WAEMU Banking Commission ensures the financial stability of banks by ensuring compliance with banks’ prudential regulations.
2. Exchange control regime
2.1. Can a subsidiary or affiliate repatriate money to a non-resident parent company?
Yes.
2.2. Is there limitation of transfer of foreign currency to procure goods or payment for services to non-resident person?
Yes, in principle the transfer of foreign currency is limited to the acquisition of goods or payment for services to non-residents. For other operations, authorization from the Minister of Finance may be required.
2.3. Can a subsidiary easily make payments for intra-group transactions?
Yes.
2.4. Are there rules against intercompany netting off?
No.
2.5. Are permits required to transfer money to a third party or non-resident entity for procurement of goods or services?
Yes, for example:
Tax Office departure (transfer of funds departure);
Documents justifying the transaction on which the transfer is based.
2.6. What requirements or documentation must be in place before banks authorize requests for international transfers?
- Tax Office departure (transfer of funds departure);
- Documents justifying the transaction on which the transfer is based.
2.7. Have there been recent directives issued by your Central Bank on Exchange Control?
This is done by WAEMU. Not the Central Bank.
3. Exchange control contraventions
Enforcement
3.1. Which entities are responsible for enforcing the relevant laws and regulations? What powers do they have?
Bodies
- The BCEAO and its Banking Commission,
- Finance Ministers of the Member States.
What powers do they have?
- Appointment of interim administrator,
- Withdrawal of approval.
Sanctions
3.2. What sanctions are applicable in the event of a violation of the exchange control regime?
The sanctions are not effective in Togo because it has not yet adopted the Community rules on foreign exchange disputes internally. The reason is that these provisions impose heavier penalties than those of the Togolese penal code. But discussions have resumed recently for a solution.
4. Trends and forecasts
4.1. How would you describe the current exchange control regime and trends in your jurisdiction?
The current regime is in a state of flux in view of the changing environment, the economic and social context as well as certain endogenous realities.
4.1.1. Are there any plans for further developments in the next 12 months, including proposals for legislative reforms?
Yes. The adoption of the implementing measures for Regulation No. 06/2024/CM/UEMOA of 20 December 2024 on the external financial relations of the Member States of the West African Economic and Monetary Union (UEMOA) will bring new realities.
4.2. Does your jurisdiction regulate cryptocurrencies? Are there any legislative developments with regard to cryptocurrencies or financial technologies in general?
No regulation for crypto-assets. Cryptocurrencies are therefore not legal tender in WAEMU. Their use therefore falls within the scope of freedom of contract.
