Bank of South Sudan Act, 2011 _ Bank of South Sudan

10/02/2015 BANKOFSOUTHSUDANACT,2011|BankofSouthSudan

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BANKOFSOUTHSUDANACT,2011

THELAWSOFSOUTHSUDAN

BANKOFSOUTHSUDANACT,2011

______________________________________________________________________

PrintedbytheMinistryofJustice

BankofSouthSudanAct,2011

CHAPTERI



PRELIMINARYPROVISIONS

1.TitleandCommencement

2.RepealandSaving

3.Purpose

4.AuthorityandApplication

1. Interpretation

CHAPTERII

ESTABLISHMENTOFTHEBANK

6.Establishment

7.Objectivesandbasictasks

8.IndependenceoftheBank

9.LegalprotectionfortheBank,itsofficials,employeesandagents

10.TaxationprovisionsapplicabletotheBank

11.Prohibitedactivities

12.Authoritytoissueregulationsandcirculars

13.Internationalcooperation



CHAPTERIII

ORGANIZATIONANDADMINISTRATION

14.Organization

15.CompositionoftheBoard

16.FunctionsandpowersoftheBoard

17.ConditionsformembershipontheBoard

18.CompensationofmembersoftheBoard

19.RemovalofBoardmembers

20.ResignationofBoardmembers

21.VacanciesontheBoard

22.MeetingsoftheBoard

23.Proceedings,minutes,anddecisionsoftheBoard

24.AuditCommitteeoftheBoard

25.Othercommittees

26.PowersanddutiesoftheGovernor

27.InternalAuditorandInternalAuditDepartment

28.PowersoftheInternalAuditDepartment

29.Professionalstaff,otheremployeesandagents

30.LimitationsoncreditbyBankofficialsandstaffmembers

31.Conflictsofinterest

32.Secrecy

CHAPTERIV



FINANCIALAFFAIRS

33.Capital

34.ReservesoftheBank

35.CalculationofnetprofitornetlossoftheBank

36.Allocationofnetprofit

37.Allocationofnetloss

38.Coverageofshortfallsincapital

CHAPTERV

MONETARYUNIT,BANKNOTESANDCURRENCY

39.Monetaryunit

40.Issueofbanknotesandcoins

41.FunctionsoftheBankregardingcurrency

42.Currencyfeatures

43.UnfitCurrency

44.Accountingtreatmentofcurrencyissued



45.Currencyrecall

CHAPTERVI

LEGALTENDER

46.SouthSudanesepoundaslegaltender

47.Publicaccountsandcompulsorypayments

48.Sumsmentionedinlaws,valuation,andconversion

49.Designationofpricesforgoodsandservices

50.Freedomofcurrency

51.Enforcementofforeigncurrencypaymentobligations

CHAPTERVII

MONETARYFUNCTIONSANDOPERATIONS

1. Monetaryandexchangeratepolicy

53.ExternalvalueoftheSouthSudanesepound

54.Overnightadvances

55.Issuanceofdebtsecurities



56.Requiredreservesofbanks

57.Publicationofinformationrelatingtocurrency

CHAPTERVIII

FOREIGNEXCHANGEOPERATIONS

58.Generalpolicy

59.ResponsibilitiesoftheBank

60.Internationalclearingandpaymentsagreements61.Internationalreserveassets

62.Acquisition,holdinganddisposalofinternationalreserves

63.Investmentofinternationalreserveassets

CHAPTERIX

RELATIONSWITHTHEGOVERNMENT

64.Banker,adviser,andfiscalagent

65.AdvancestotheGovernment

66.Consultationsandreportingonpublicsectorborrowing

67.DepositoryandcashierfortheGovernment

68.Fiscalagencyfunction

69.RequiredInformation



CHAPTERX

RELATIONSWITHREGULATEDENTITIES

70.Supervisionofregulatedentities

71.Lenderoflastresortfunction

CHAPTERXI

ACCOUNTS,FINANCIALSTATEMENTS,

AUDIT,ANDREPORTS

72.Financialyear

73.Accountingpractices

74.Financialstatements

75.Auditofaccounts

76.Transmittalandpublicationofstatementsandreports

CHAPTERXII

COLLECTIONOFSTATISTICALINFORMATION

77.Collectionofstatisticalinformation



CHAPTERXIII

MISCELLANEOUSPROVISIONS

78.Preferentialright

79.Standardsofgoodadministration

CHAPTERXIV

TRANSITIONALPROVISIONS

80.Executionofcontractsandtransactions

81.Temporarymonetarypolicyobjective

1. TemporarysuspensionoflimitationonadvancestotheGovernmentbasedontheBankscapital

BankofSouthSudanAct,2011

InaccordancewiththeprovisionsofArticle55(3)(b)readtogetherwithArticle85(1)oftheTransitionalConstitutionoftheRepublicofSouthSudan,2011,theNationalLegislature,withtheassentofthePresidentoftheRepublicofSouthSudanherebyenactsthefollowing:

CHAPTERI

PreliminaryProvisions

1.TitleandCommencement



ThisActshallbecitedasBankofSouthSudanAct,2011andshallcomeintoforceonthedateofitssignaturebythePresident.

2.RepealandSaving

AnyexistinglegislationinSouthSudan,thatgovernsthesamemattersassetforthinthisAct,areherebyrepealedorceasetooperateinSouthSudanprovidedthat,allproceedings,ordersandregulationstakenormadethereunder,excepttotheextenttheyarecancelledbyorareotherwiseinconsistentwiththeprovisionsofthisAct,shallremaininforceoreffect,untiltheyarerepealedoramendedinaccordancewiththeprovisionsofthisAct.

3.Purpose

ThepurposeofthisActistoprovidefortheestablishmentandgovernanceoftheBankofSouthSudanandanymattersorissuesrelatedthereto.

4.AuthorityandApplication

ThisActisdraftedinaccordancewiththeprovisionsofArticle182(1)oftheTransitionalConstitutionoftheRepublicofSouthSudan,2011whichprovidesfortheestablishmentofacentralbankintheRepublicofSouthSudantobeknownastheBankofSouthSudan.

Interpretation

InthisActunlessthecontextotherwiserequires,thefollowingwordsandexpressionshallcarrythemeaningassignedtothemrespectively

NationalLegislaturemeanstheNationalLegislativeAssemblyandCouncilofStates

AuditorGeneralmeanstheAuditorGeneralofSouthSudan



bankmeansalegalentityengaginginthebusinessandreceivingofmoneydepositsorotherrepayablefundsfromthepublicandmakingcreditsforitsownaccount,andlicensedtodobusinessinSouthSudan

BankmeansBankofSouthSudan

banknoteincludesanyinstrumentused,orintendedtobeusedasmoneyorastheequivalentofmoney,issuedunderlawfulauthorityinSouthSudanorelsewhere

BoardmeanstheBoardofDirectorsoftheBank

capitaloftheBankmeanstheexcessofthevalueoftheBanksassetsoveritsliabilities

chequecashingmeansreceivingcompensationfortakingpaymentinstrumentsorstoredvalue,otherthantravellerscheques,inexchangeformoney,paymentinstruments,orstoredvaluedeliveredtothepersondeliveringthepaymentinstrumentorstoredvalue,including,butnotlimitedto:

(a)thepresentationtoamoneyserviceproviderbyacustomerofachequepayabletotheorderofthecustomer,inexchangeforcashofequivalentorlesseramount

(b)thepresentationtoamoneyserviceproviderbyacustomerofachequepayabletotheorderofthemoneyserviceprovider,inexchangeforcashofequivalentorlesseramountor

(c)thepresentationbyamoneyserviceprovidertoacustomerofachequepayabletotheorderofthecustomer,tobeexchangedforcashofequivalentorlesseramountatacreditinstitutionoranyotherinstitutionwherethemoneyserviceprovidermaintainsacurrentaccounttheprovisionbyamoneyserviceprovidertoacustomerofareferencenumber,thepresentationofwhichnumberandpersonalidentificationatacreditinstitutionoranyotherinstitutionwherethemoneyserviceprovidermaintainsacurrentaccountentitlesthecustomertoreceivecashofapredeterminedamount

counterfeitmoneyincludes:

(a)afalsecoinorfalsepapermoneythatresemblesoristakenforacurrentcoinorcurrentpapermoney

(b)aforgedbanknoteorforgedblankbanknote,whethercompleteorincomplete

(c)agenuinecoinorgenuinepapermoneythatispreparedoralteredtoresembleorpassforacurrentcoinorcurrentpapermoneyofahigherdenomination

(d)acurrentcoinfromwhichthemillingisremovedbyfilingorcuttingtheedgesandonwhichnewmillingismadetorestoreitsappearance

(e)acoincasedwithgold,silverornickel,thatisintendedtoresembleorpassforacurrentgold,silverornickelcoinand

(f)acoinorapieceofmetalormixedmetalsthatiswashedorcolouredbyanymeanswithawashormaterialcapableofproducingtheappearanceofgold,silverornickelandthatisintendedtoresembleorpassforacurrentgold,silverornickelcoin



currencyexchangemeansreceiptofrevenuesfromtheexchangeofmoneyofonecountryformoneyofanothercountry

debtsecuritymeansanybond,debenture,orfunctionallyequivalentinstrumentofindebtedness,andanyinstrumentwhichgivestherighttoreceiveanotherdebtsecuritythroughsubscriptionorexchangedebtsecuritiesmayalsobeinbookentryform.Thetermdebtsecuritydoesnotincludepromissorynotes,billofexchange,orchequesasdefinedintheNegotiableInstrumentsLaw.

electronicmoneymeanselectronically(includingmagnetically)storedmonetaryvalueasrepresentedbyaclaimontheissuerthatisissuedonreceiptoffundsforthepurposeofmakingpaymenttransactionsasdefinedinthisLaw,andacceptedbyanaturalorlegalpersonotherthantheelectronicmoneyissuer.

electronicmoneyinstitutionmeansanylegalentitythathasbeengrantedalicensebytheBanktoissueelectronicmoney.

electronicmoneyissuermeansanyentityauthorizedbylaworregulationoftheBanktoissueelectronicmoney.

foreigncurrencyorforeignexchangemeansthemoneyofacountryorintergovernmentalorganizationotherthanSouthSudan.

foreignexchangedealermeansanypersonwhoengagesinthebusinessofbuyingandsellingforeigncurrencies,forwardexchangecontracts,options,paymentinforeigncurrencies,swapsorotherderivativecontractsinvolvingaforeigncurrencytransaction.

GovernmentmeanstheGovernmentofSouthSudan

GovernormeanstheGovernoroftheBank

investmentfundmeansacompanythatinvestsinsecuritiesbyreceivingfundsfromthepublic

InternationalFinancialReportingStandardsmeansthemostrecentinternationalfinancialreportingstandardsissuedbytheInternationalAccountingStandardsBoard

loanmeansempoweringownershipofmoneyand/orthingprovidedthatisequivalentinvalue,qualityordescriptions,topayortoberepaidtowhoevermaypasstheloanbytheexpirationoftheperioddesignedfortheloan

MinistermeanstheMinisterofFinanceandEconomicPlanning,unlessindicatedotherwise

moneymeansamediumofexchangethatisauthorizedandadoptedbySouthSudanoranothercountry,orbyanintergovernmentalorganization

moneyservicemeansanyserviceconductedinrelationtomoneyincludingsafekeeping,moneytransmission,chequecashing,orcurrencyexchange

moneyserviceprovidermeansanypersonwhoengagesinthebusinessofprovidingamoneyservice

moneytransmissionmeanssellingorissuingpaymentinstruments,storedvalue,orreceivingmoneyormonetaryvaluefortransmissionthetermdoesnotincludetheprovisionsolelyofphysicaldelivery,



onlineortelecommunicationsservices,ornetworkaccess

negotiablewithrespecttoafinancialinstrumentmeansthatthetitletothatinstrumentmaybetransferredbydeliveryoftheinstrumentorbysignedendorsementwrittenontheinstrumentorbyentryinaregisterofownersofsuchinstrument

ordermeansanobligatorydirective,issuedbytheBanktooneormoreregulatedentitiesorotherpersonsinimplementationofthisAct

paymentinstrumentmeansacheque,draft,moneyorder,travellerscheque,orotherinstrumentforthetransmissionorpaymentofmoneyormonetaryvalue,whetherornotnegotiableacreditcardvoucher,letterofcredit,orinstrumentthatisredeemablebytheissueringoodsorservicesshallbeanexceptionfromthisrule

paymentsystemmeansanyprocedures,includingcommunicationnetworks,agreedbetweenthreeormoremoneyserviceprovidersfortheprocessingofpayments,theclearingorsettlementofpaymenttransactions,andfortheexchangeofpaymentsagainstotherpayments,financialobligationsorsecurities,inanycurrency

paymenttransactionmeansanact,initiatedbythepayerorbythepayee,ofplacing,transferringorwithdrawingfunds,irrespectiveofanyunderlyingobligationsbetweenthepayerandthepayee.

personincludesanynaturalpersonorlegalentity

PresidentmeansthePresidentofSouthSudan

recordmeansinformationthatisinscribedonatangiblemediumorthatisstoredinanelectronicorothermediumandisretrievableinperceivableform

regulatedentitymeansabank,foreignexchangedealer,moneyserviceprovider,electronicmoneyinstitution,paymentsystemoperator,andanyotherpersonsubjecttoregulationorsupervisionbytheBankinaccordancewiththisActorotherrelevantlegislation

regulationmeansanobligatorydirectiveapplicabletooneormoreclassesofregulatedentities,otherlegalentitiesand/orindividuals,havingtheforceoflaw,approvedbytheBoardtoimplementanyprovisionofthisActorotherlegislationadministeredbytheBank

requiredcapitaloftheBankmeanstheamountreferredtoinsection33(1)below

securitymeansanegotiablefinancialinstrument(whetherintheformofacertificateorinbookentryform)ofoneofthefollowingcategories:

(a)shares,orcertificatesorreceiptsinrespectofshares

(b)debtsecurities,whetherornotconvertibleintoshares

(c)derivatives



(d)sharesorparticipationunitsininvestmentfundsor,

(e)anyothernegotiablefinancialinstrumentdeclaredtobeasecuritybyregulationoftheBank

sharemeansanyshareofcapitalstockorotherequitysecurityissuedbyacorporation

Governmentagencymeansanyadministrativeorpoliticalsubdivision,agencyoranyenterpriseownedorcontrolledbytheGovernmentofSouthSudanorbyanyGovernmentagency

storedvaluemeansmonetaryvaluethatisevidencedbyanelectronicrecord

unfitcurrencymeansbanknotesorcoinsthat,intheopinionoftheBank,are:

(a)mutilated,defaced,excessivelyagedordamaged

(b)inthecaseofbanknotes,illegible,misshapenorperforated,havebeensignificantlyalteredintheirexternalappearance,includinginparticularbanknotesthathavebeenwrittenon,paintedon,overprinted,stampedorperforated,ortowhichadhesivematterhasbeenapplied

(c)inthecaseofcoins,bent,mutilatedordefacedorthathavebeenreducedinweightotherwisethanbyabrasionthroughordinaryuse

tothepointofbeingunrecognizableorunusableforpurposesofthisAct.

CHAPTERII

ESTABLISHMENTOFTHEBANK

5.Establishment

(1)ThereisherebyestablishedacentralbankforSouthSudan,tobeknownastheBankofSouthSudan.



(2)TheBankshallbeanautonomousbodycorporate,withperpetualsuccessionandacommonsealandlogo,subjecttotheprovisionsofthisAct,becapableinitscorporatenameof:

(a)suingandbeingsued

(b)taking,purchasingorotherwiseacquiring,holding,changinganddisposingofproperty,movableorimmovable

(c)borrowingandlendingmoney

(d)concludingrelevantcontracts

(e)issuingrelevantsecuritiesandotherwiseborrowand

(f)doingorperformingallsuchotherthingsoractsfortheproperperformanceofitsfunctionsunderthisActthatmaylawfullybedoneorperformedbyabodycorporate

(3)TheBankshallhaveitsheadofficeinJuba.Itmayestablishoperationalunits,includingbranchoffices,representativeofficesandliaisonoffices,andmayappointagentsandcorrespondents,atsuchlocationsinSouthSudanorabroadandwithsuchfunctionsanddutiesastheBoardshalldetermine.TheseoperationalunitsshallnothavelegalstatusorauthorityindependentfromtheBank.

(4)TheBankshallhaveasealconsistingoftheimageofthecoatofarmsofSouthSudanandbearingthewordsTheBankofSouthSudan.

(5)Noactrelatingtotheinsolvency,bankruptcyorwindingupofanylegalentityotherthantheBankshallapplytotheBank.InnocaseshalltheaffairsoftheBankbewoundupexceptpursuanttoanactoftheAssembly,withtheconsentofthePresident.

6.Objectives

(1)TheprimaryobjectiveoftheBankshallbetomaintainmonetaryanddomesticpricestability.

(2)TheotherobjectivesoftheBank,whichshallbesubordinatedtotheprimaryobjectiveoftheBank,shallbetofostertheliquidity,solvencyandeffectivefunctioningofastablemarketbasedfinancialsystem,andtopromoteasafe,soundandefficientnationalpaymentsystemwhichaimstomaintainthestabilityofthefinancialsystemasawhole.



(3)Withoutprejudicetoitsprimaryobjectives,theBankshallsupportthegeneraleconomicpoliciesoftheGovernment,andpromotesustainableeconomicgrowth.

(4)BasicallytheBankshall:

(a)adoptandimplementpoliciesdesignedtomaintainmonetarystability

(b)determinethefeaturesofbanknotesandcoinsinconsultationwiththeMinisterandapprovaloftheCouncilofMinisters,andthetermsandconditionsofanycurrencyrecallinaccordancewiththisAct

(c)holdandmanagetheofficialforeignexchangereservesoftheState

(d)overseethedevelopmentandsoundfunctioningofthepaymentsystemsandsystemsfortransfersofsecuritiesissuedbytheGovernmentortheBank,andfortheclearingandsettlementofpaymenttransactionsandtransactionsinsuchsecurities

(e)establishandenforceminimumbankreserverequirements

(f)actasBankerandadviserto,andasfiscalagentof,theGovernment,andtosuchpublicagenciesasmaybedeterminedbylaw,provided,however,thatanytransactioncarriedoutbytheBankthatmayservetoextendfinancialassistancetoorforthebenefitoftheGovernmentoranysuchpublicagency,maybeundertakenonlypursuanttosection65ofthisAct

(g)regulateandsupervisebanksandsuchotherregulatedentitiesasshallbesubmittedtoitsoversightinaccordancewithrelevantlegislation

(h)receivedepositsfrom,andmaintainaccountsonitsbooksfor,regulatedentities,unitsofgovernment,foreigncentralbanksandinternationalfinancialinstitutionsonsuchtermsandconditionsasmaybeprescribedbyaccountagreementorregulationoftheBank

(i)undertakeforeignexchangeoperationsattherequestoftheGovernmentandontheBanksownbehalf

(j)issuedebtsecuritiesinaccordancewithpoliciesapprovedbytheBoard

(k)collecteconomicandfinancialdatarelatedtoitsobjectivesandtasksunderthisAct

(l)openandmaintainonitsbooksaccountsfortheadministrationoffundsprovidedbyforeignpartiestotheGovernmentortoaGovernmentAgencyinaccordancewiththetermsandconditionssetoutintrustaccountagreements,providedthat:

(i)theassetsandliabilitiesofanysuchaccountshallbesegregatedfromtheotherassetsandliabilitiesoftheBank

(ii)theassetsofeachsuchaccountshallbeavailableonlytomeetliabilitiesofthataccount



(iii)nootherassetsoftheBankshallbeavailabletomeetliabilitiesofsuchaccountand

(iv)theBankshallchargefeesfortheadministrationofsuchaccountstocoveritscostsand

(m)representSouthSudanininternationalaffairsinaccordancewiththisAct.

7.IndependenceoftheBank

(1)WhenexercisingthepowersandcarryingoutthetasksanddutiesconferreduponthembythisAct,neithertheBanknoranymemberoftheBoard,orotherBankofficialsshallseekortakeinstructionsfromanyministry,publicinstitution,office,agency,orotherentityortheirmembersorofficials.GovernmentofSouthSudanministries,publicinstitutions,agencies,offices,andotherentitiesoperatinginSouthSudan,theirmembersandofficialsmustnotimproperlyseektoinfluencetheBankoranymemberoftheBoardorotherBankofficialsintheperformanceoftheirtasks,orinterferewiththeproperexecutionofsuchtasks.

(2)MembersoftheBoard,andallofficials,employeesandagentsoftheBankshallhavethedutytopromotethereputationoftheBankasacompletelyindependentcentralbankservingallpeopleofSouthSudanwithimpartiality,andshallrefrainfromanyactivitythatisincompatiblewiththatduty.

(3)WhileservingintheirpositionsintheBank,membersoftheBoardandtheInternalAuditorshallnotengageinpartisanpoliticalactivities.

8.LegalProtectionfortheBank,itsofficials,EmployeesandAgents

NeithertheBank,noranymemberoftheBoard,official,employee,oragentoftheBank,shallbeliableforanylossordamage:

(a)sufferedbytheBankunlessthatlossordamagewascausedbyhisorherowndefaultorwillfulact

(b)inanylegalproceedingsforanythingdoneingoodfaithunderthisAct.



9.TaxationProvisionsApplicabletotheBank

TheBankshallbeexemptedfromalltaxesandduties.

10.ProhibitedActivities

(1)ExceptasotherwisespecificallyauthorizedbythisAct,theBankshallnot:

(a)grantanyfinancialassistanceorguarantee,whetherintheformofadirectloanorgrantoracontingentcommitment,orbypurchasingaloan,loanparticipationoranotherinstrumentofindebtedness,orthroughtheassumptionofadebtoracontingentliability,orinanyotherform

(b)engageincommercialactivity,orinanyotherbankingactivitydefinedassuchbytheapplicablebankinglaw

(c)purchasethesharesofanycorporation,includingthesharesofanyfinancialinstitution,orotherwisehaveanownershipinterestinanyfinancial,commercial,agricultural,industrial,orotherundertaking

(d)acceptanysharesascollateralsecurityor

(e)acquirebypurchase,lease,orotherwiseanyownershiprightsinortoimmovableproperty,exceptasitshallconsidernecessaryorexpedientfortheprovisionofpremisesfortheconductofitsfunctionsundertheprovisionsofthisAct.

(2)Notwithstandingsubsection(1)above,theBankmayacquire,inthecourseofsatisfactionofdebtsduetoit,anyinterestsorrightsprovidedthatallsuchinterestsorrightssoacquiredcanbepromptlydisposedof.

(3)Bywayofanexceptiontosubsection(1)above,theBankmayissueguaranteesonbehalfoftheGovernment,subjecttocreditworthinessstandardsandundertermsandconditionsdeterminedbytheBank.

11.AuthoritytoissueRegulationsandCirculars



(1)TheBankshallhavetheauthoritytoissueregulationsandcircularstoenableittofulfilitsresponsibilitiesunderthisActandotherrelevantlegislation.

(2)TheBankshallpublishthetextofeachproposedregulation,togetherwithaconcisegeneralstatementoftheregulationsbasisandpurpose,atleast30daysbeforetheproposedeffectivedatethereof.AnyinterestedpersonmaysubmitcommentsontheproposedregulationtotheBankwithinatimespecifiedbytheBank.

(3)Inpreparingthefinaltextofaregulation,theBankshalltakeintoconsiderationthecommentsmadeinaccordancewithsubsection(2)above.Iftheregulationisissued,theBankshallpublishitsresponsetosuchcomments.Ifthefinaltextoftheregulationdifferssignificantlyfromtheproposedtextpublishedundersubsection(1)abovetheBankshallalsopublishageneralexplanationforthedifference.

(4)Theprovisionsofsubsections(2)and(3)aboveshallnotapplytoaproposedregulationiftheBankdeterminesthatthedelayinvolvedincomplyingwiththeserequirementswouldbeaseriousthreattotheinterestsofthebankingsystem.SuchadeterminationshallbeexplainedinthepreambletotheRegulation.

(5)TheBankmayatanytimepublishcircularsnotinconsistentwiththisAct:

(a)indicatingthemannerinwhichitproposestoexerciseanyofitsfunctionsunderthisActorotherrelevantlaws,orregulationsissuedhereunder

(b)explainingorclarifyinganyprovisionofthisAct,oranyotherrelevantlaworregulation,fortheguidanceofregulatedentitiesincomplyingwiththerequirementsofsuchlaws

(c)indicatinghowtheBankexpectsregulatedentitiestoconducttheirbusinessinordertomeettherequirementsofthisActorotherrelevantlawsorregulationsor

(d)specifyingbusinesspracticesthatshouldnotbeengagedinbyregulatedentitiesbecause,inthejudgmentoftheBank,suchbusinesspracticescouldbedetrimentaltothesoundnessorfinancialstabilityofsuchregulatedentities,orthefinancialsystemasawhole.

(6)IfaregulatedentityorotherpersonsubjecttothejurisdictionoftheBankengagesinbusinesspracticesinconsistentwiththeprovisionsofacircularissuedbytheBank,theBankmaydeemtheregulatedentityorpersonnottobeincompliancewiththeprovisionsoftherelevantlaworregulation,andmayexerciseanyoftheauthoritiesgivenunderrelevantlegislationwithrespecttosuchnoncompliance.

(7)TheBankshallmaintainapublicregisterofallregulationsandcircularsissuedpursuanttothis



Actandotherrelevantlaws.

13.InternationalCooperation

(1)TheBankshallrepresentSouthSudaninallintergovernmentalmeetings,councilsandorganizationsconcerningmonetarypolicy,regulationandsupervisionofbanksandotherpersonssubjectedbylawtoitsoversight,andtheothermattersthatarewithinitscompetence.

(2)TheBankmayprovidebankingservicesforthebenefitofforeigngovernments,foreigncentralbanksandmonetaryauthorities,andforthebenefitofinternationalorganizationsinwhichitorSouthSudanparticipates.

(3)TheBankmayobtainmembershipininternationalorganizationsthatpursuefinancialandeconomicstability.

(4)TheBankmayundertakeresponsibilitiesandperformtransactionsconcerningtheparticipationofSouthSudanininternationalorganizations.

(5)WithoutprejudicetothenationalinterestsofSouthSudan,theBankshallcloselycooperatewithanyforeignfinancialsupervisoryauthoritiesonthebasisofreciprocitywithrespecttothesupervisionofregulatedentitiesthatoperateinboththeirrespectivejurisdictions.SuchcooperationmaybeformalizedinanagreementbetweentheBankandtheforeignfinancialsupervisoryauthority,andmayincludeexchangewithsuchforeignfinancialsupervisoryauthorityofinformationconcerninganyregulatedentitythatoperatesinboththeirrespectivejurisdictions,providedthattheprincipleofconfidentialityiscompliedwith.

CHAPTERIII

ORGANIZATIONANDADMINISTRATION



14.Organization

TheBankshallhave:

(a)aBoardofDirectorsasitshighestpolicyanddecisionmakingbody

(b)aGovernor,twoDeputyGovernors,andthreeDirectorsGeneralchargedwithimplementingpoliciesapprovedbytheBoardandwiththemanagementoftheBank

(c)anInternalAuditorresponsibleforassessingtheinternalcontrolsystemapprovedbytheBoardandperformingtheinternalauditoftheoperationsoftheBankand

(d)aChiefFinancialOfficer

(e)aHeadofFinancialSupervisionand

(f)otherstaffassetforthinthisActorapprovedbypoliciesenactedbytheBoard.

15.CompositionoftheBoard

(1)TheBoardshallbecomposedofnine(9)votingmembers,asfollows:

(a)theGovernorasChairmanoftheBoard

(b)thetwoDeputyGovernors,whoshallbedesignatedbytheGovernoras1stDeputyand2ndDeputyGovernorrespectivelyoftheBoard

(c)sixnonexecutivemembers,whoshallnotbeemployeesoftheBank.

(d)TheGovernorandDeputyGovernorsshallbeappointedbythePresident.

(e)TheBoardshallbeproposedbytheGovernorandappointedbythePresident.

(2).TheBoardmembersreferredtointhissubsectionshallbeeligibleforreappointment,unlessagroundforremovalundersection19ofthisActwouldapplytothem.

(3)ThetermsoftheGovernorandDeputyGovernorsshallbefiveyears,exceptthatthetermofthefirstappointedDeputyGovernorsshallbefouryearsandthreeyears,respectively,inordertoestablishstaggeredterms.

(4)ThetermsofthenonexecutivevotingmembersoftheBoardshallbe7years,exceptthatthefirst



3suchmembersshallbeappointedfor7,4,and2years,respectively,soastoensurethatallnonexecutivememberstermsdonotexpiresimultaneously.

(5)Upontakingoffice,eachmemberoftheBoardshall,beforeassumingtheirduties,takethefollowingoathoraffirmationbeforetherelevantappointingauthority:

I.,doherebyswearbytheAlmightyGod/solemnlyaffirmthatasBoardMemberoftheBank,Ishallbefaithful,andshalldiligentlyandhonestlydischargemyfunctionsanddutiesandshallstrivetoexercisethepowersvesteduponmebythisAct,withintegrityanddignityinthebestinterestofthepeopleofSouthSudanandthatIshallrespectandabidebyalltherules,regulationsandinstructionsthereunderandthatIshallnotwithoutdueauthoritydiscloseormakeknownanyinformation,matterorthingthatcomestomyknowledgebyreasonofmyemploymentintheAuthoritysohelpmeGod

16.FunctionsandPowersoftheBoard

(1)TheBoardshallbechargedwiththeadoptionoftheprincipalpoliciesoftheBankandthesupervisionoftheadministrationandoperationsoftheBank.

(2)Incarryingoutitsfunctions,theBoardshallperiodicallyassessthemonetaryandeconomicsituationinSouthSudan,andshallrequiretheGovernorandotherseniorofficialsoftheBanktoprovidereportstoenabletheBoardtomakesuchassessments.

(3)TheBoardshallhavethefollowingpowers:

(a)toadoptallapplicableregulationsandordersthataretobeissuedbytheBank,andtodeterminetheproceduresfortheissuanceofcircularsbytheBank,pursuanttothisActoranyotherapplicablelaw

(b)toapproveallreportsandrecommendationsthattheBankistomaketotheGovernmentortheAssembly

(c)todecideontheparticipationbytheBankininternationalorganizations

(d)inconsultationwiththeMinisterandtheapprovalofthePresident,todeterminethefacevalueanddesignofbanknotesandcoins,andtheconditionsofanycurrencyrecall

(e)todecideondebtsecuritiesoftheBankandthetermsandconditionsofsuchsecurities

(f)todeterminethecategoriesofassetsthatshallbesuitableforinvestmentoftheforeignexchangereservesandotherresourcesoftheBank



(g)todeterminethereservesthattheBankshallkeepfromtimetotimeinaccordancewiththeprovisionsofthisAct

(h)toadopttheoperationalpoliciesoftheBankandtheregulationsapplicabletotheadministrationandoperationsoftheBank

(i)todeterminetheorganizationoftheBank

(j)toappointtheInternalAuditoroftheBank

(k)toapprovetheappointmentoftheDirectorsGeneralandotherseniorprofessionalstaffmembersoftheBank

(l)toapprovesubsequentserviceatanotherfinancialinstitutionbytheGovernor,DeputyGovernors,andotherseniorprofessionalstaffmembersuponcompletionoftheirserviceintheBank,inaccordancewithsection31(2)ofthisAct

(m)toestablishandclosesubsidiaries,branchofficesandagenciesoftheBank

(n)todecideonthepurchase,construction,utilizationandsaleofbuildingsandotherpropertybytheBank

(o)toapprovethebudgetoftheBankandthetermsandconditionsofemployment,work,pensionsoftheemployees,andagentsoftheBankotherthanthemembersoftheBoard

(p)todeterminetheaccountingpoliciesoftheBank,providedtheseareconsistentwithInternationalFinancialReportingStandards,aswellastheinternalcontrolsandtheriskmanagementpoliciesoftheBank

(r)toadopttheannualreportsandfinancialstatementsoftheBank

(s)toestablishspecialreservesonthebooksoftheBank,toapprovethenetprofitandlossoftheBank,andtodecidewhatamountofanysuchnetprofitshallbetransferredtoanyreserveand

(t)toexercisesuchotherpowersasshallbegrantedtotheBoardbythisAct.

(4)TheBoardshallbeconsultedonanyproposalswithrespecttomattersthatrelatetoitsobjectivesorthatotherwisearewithinitsfieldsofcompetence,beforetheyaresubmittedtotheAssembly.

17.ConditionsforMembershipontheBoard

MembersoftheBoardshallfulfillthefollowingeligibilityrequirementsfortheappointment:

(a)beapersonofrecognizedintegrity

(b)haveadegreeofhighereducationorextensiveworkexperienceineconomics,banking,finance,



accountingorlaw

(c)notbesubjecttoanygroundsforremovalpursuanttoparagraphs(b)through(e)ofsubsection19(1)

(d)notbeanemployeeoftheBankotherthantheexecutivemembersspecifiedbythisAct

(e)notbeashareholder,memberoftheboardofdirectors,ormemberofseniormanagement,oranysimilarbody,ofanyregulatedentitysubjecttothesupervisionoftheBankbylaw

(f)notbeamemberoftheCouncilofMinistersoraMemberoftheNationalLegislatureand

(g)notbeanemployeeoftheGovernmentifthatemploymentrelationshipcouldcompromisehisabilitytocarryouthisdutiesunderthisAct.

18.RemunerationofMembersoftheBoard

(1)RemunerationfornonexecutivemembersoftheBoardshallbedeterminedbytheGovernorinconsultationwiththeMinisterandapprovedbytheCouncilofMinisters.

(2)RemunerationoftheGovernor,theDeputyGovernors,andtheDirectorGeneralforSupervision,Research,andStatisticsshallconsistoftheamountpaidtononexecutivemembersinsubsection(1)above,plusanadditionalamountdeterminedbyaresolutionoftheBoard.TheexecutivemembersoftheBoardshallnottakepartinthediscussionorvotingonthequestionoftheirremuneration.TheBoardmayadoptadditionalproceduresdesignedtoavoidconflictsofinterestonthepartoftheexecutivememberswhendeterminingtheremuneration.

(3)OncemembersoftheBoardhavebeenappointedorreappointedtoaterm,theircompensationandotheremolumentsmaynotbereducedduringthetermofappointment.

(4)MembersoftheBoardmay,withapprovaloftheGovernor,bepaidasittingallowanceandreasonabletravelexpenses.

19.RemovalofBoardMembers

(1)AmemberoftheBoardmayberemovedfromofficebythePresidentofSouthSudanonlyif:



(a)theconditionsofsection17ofthisActarenolongersatisfied

(b)hehasbeenconvictedofanoffenseforwhichhewasorcouldhavebeensentencedtoimprisonment,unlesssuchoffensewasmotivatedbyhisreligiousorpoliticalviewsoractivities

(c)hehasbeendeclaredbankruptorunabletopayhisdebtsbyacourtdecision

(d)duringtheimmediatelyprecedingfiveyears,hisactions,jobperformance,orbreachoffiduciarydutyasamemberoftheboardofdirectors,seniormanagementorinanysimilarcapacity,contributedtoacompanybeingsubjecttobankruptcy,conservatorshiporreceivership,orequivalentlegalproceedings

(e)hehas,ongroundsofpersonalmisconduct,incompetence,orviolationsoflegalorregulatoryprovisionsoranycodeofconduct,beenremovedorsuspendedfromduty,orsuspendedorprohibitedfrompracticingaprofession,byacompetentauthority

(f)hehasbeenunabletoperformthefunctionsofhisofficeformorethansixmonthsbecauseofaninfirmityofbodyormind

(g)duringmembershipoftheBoardhasengagedinsignificantviolationsofanydutyimposedbythelaw,orhasengagedinpartisanpoliticalactivities,orhasengagedinseriousmisconductordemonstratedgrossincompetenceintheoffice,substantiallyprejudicingtheinterestsoftheBankor

(h)hehasbeenabsentwithoutgoodcausefromthreesuccessivemeetingsoftheBoard.

(2)Intheeventofthediscoveryofanyofthecircumstancessetforthinsubsection(1)above,theGovernorshallnotifytheBoardandthePresidentinwritingandshallincludehisrecommendationastowhetherthememberinquestionshouldberemovedfromtheBoard.IntheeventthatthecircumstancespertaintotheGovernor,suchnotificationandrecommendationshallbemadebytheSeniorDeputyGovernor.IntheeventthatthecircumstancespertaintoboththeGovernorandtheSeniorDeputyGovernor,suchnotificationandrecommendationmaybemadebytheMinisterorbyanymemberoftheBoard.

(3)Theproceduresforthesubmissionofrecommendationsinaccordancewithsubsection(2)ofthissectionshallbedeterminedbytheBoardandshallgivetheaffectedmembertheopportunitytosubmitrepresentationsonthematter.

(4)ThedecisiononthequestionofremovalofaBoardmembershallliewiththePresident.

20.ResignationofBoardMembers



MembersoftheBoardmayresignfromtheirpositionsbywrittennoticetothePresidentofSouthSudan:

(a)inthecaseoftheGovernororDeputyGovernors,notlessthanthreemonthsinadvance

(b)inthecaseofanyothermemberoftheBoard,notlessthanonemonthinadvance,orsuchshorterperiodoftimeasthePresidentmaydeemnecessary.

21.VacanciesontheBoard

AnyvacancyontheBoardshallbefilledbytheappointmentofanewmemberoftheBoardinaccordancewithsection15ofthisActtoservetheremainingperiodofthetermofthemembertobereplaced.

22.MeetingsoftheBoard

(1)TheGovernorshallpresideatallmeetingsoftheBoardandintheabsenceoftheGovernor,theSeniorDeputyGovernorshallpreside.IntheabsenceofboththeSeniorDeputyGovernor,theotherDeputyGovernorshallpreside.

(2)TheBoardshallmeetforthedischargeofitsfunctionsasoftenasbusinessrequires,andinanycasetheBoardshallmeetatleastfourtimesinayearandtheGovernormayconveneameetingwhenevertwovotingmembersrequestforameeting.

(3)ThequorumatanymeetingoftheBoardshallbebyasimplemajorityofvotingmembers,includingeithertheGovernororatleastoneoftheDeputyGovernorsorapersonpresidingatthemeeting.

(4)AdecisiononaquestionproposedatanymeetingoftheBoardshallbedeterminedbyasimplemajorityofthevotesofthememberspresentandvotingandinthecaseofequalityofvotes,thepersonpresidingshallhaveanadditionaltiebreakingvote.

(5)TheBoardmayinviteanynumberofpersonstoattendanyofitsmeetingsasconsultantoradviser.



(6)NoactorproceedingsoftheBoardshallbeinvalidatedbyreasononlyoftheexistenceofavacancyamongthemembersoftheBoard.

(7)AllactsdonebyanypersoningoodfaithasamemberoftheBoardshallbevalidnotwithstandinganydefectinhisorherappointment.

(8)InallothermattersnotprovidedforunderthisAct,theBoardmaydetermineitsownprocedures.

23.Proceedings,Minutes,andDecisionsoftheBoard

(1)TheproceedingsofthemeetingsoftheBoardshallbeconfidential.TheBoardmaydeclaretomaketheoutcomeofallorpartofitsdeliberationspublic.

(2)ThereshallbeminutesofeachBoardmeetingsignedbythepersonpresidingatthemeeting,andbytheSecretaryoftheBoard.MinutesshallbeapprovedbythefullBoard.Summariesofsuchminutesshallbepublishedwithin1monthofsuchapproval.

(3)TheSecretaryoftheBoardshallbeappointedbytheGovernorfromamongtheseniorstaffoftheBanktheSecretaryshallnotbeamemberoftheBoard.

(4)DecisionsoftheBoardshallberecordedandissuedtotherelevantbodiesoverthesignatureoftheChairmanpresidingattheBoardmeetingthatadoptedthedecision,andshallbepublishedwithoutdelay.

24.AuditCommitteeoftheBoard



(1)TheBoardshallappointanAuditCommittee,whichshallconsistofthreenonexecutivevotingmembersoftheBoard.TheAuditCommitteeshallselectoneofitsmemberstoserveasChairpersonoftheAuditCommitteeinaccordancewiththeCharteroftheAuditCommitteeapprovedbytheBoard.

(2)TheAuditCommitteeshallassisttheBoardinfulfillingitsoversightresponsibilitiesformattersrelatingto:

(a)theintegrityoftheBanksfinancialstatements

(b)theBankscompliancewithlegalandregulatoryrequirements

(c)theannualexternalauditoftheBankand

(d)theperformanceoftheBanksInternalAuditDepartment.

(3)Toperformitsfunctionsundersubsection(2)above,theAuditCommitteeisauthorizedto:

(a)ReviewtheannualfinancialstatementsoftheBankbeforethestatementsareapprovedbytheBoard

(b)ReviewsuchotherfinancialreportsoftheBankastheBoardorAuditCommitteemaydeemnecessary

(c)Review,evaluate,andmakerecommendationsregardingtheapprovaloftheaccountingpoliciesandinternalcontrolsfortheBankbeforetheyareapprovedbytheBoard

(d)OverseetheimplementationandmaintenanceoftheaccountingpoliciesandinternalcontrolsoftheBank

(e)MeetwiththeInternalAuditorandGovernororDeputyGovernorstodiscusstheeffectivenessoftheinternalcontrolsoftheBank

(f)ReportitsfindingsregardingtheaccountingpoliciesandinternalcontrolstotheBoard,andrecommendanychangesitdeemsnecessary

(g)MakerecommendationstotheBoardregardingtheappointment,replacement,ordismissaloftheInternalAuditorandmembersoftheseniorstaffoftheInternalAuditDepartment

(h)MakerecommendationstotheBoardconcerningtheappointmentoftheexternalauditfirmfortheBank

(I)meetwiththeexternalauditorandAuditorGeneraltodiscusstheannualauditoftheBank

(j)Authorizeinvestigationsintoanymatterswithinitsscopeofresponsibility

(k)Retainindependentcounsel,accountants,orotherstoadvisethecommitteeorassistintheconductofaninvestigationand,

(l)performothertasks,relatedorincidentaltotheabove,asdeterminedbytheBoard.



(4)TheAuditCommitteeshallmeetregularlyatleastfourtimesperyear,andmayconveneadditionalmeetingsascircumstancesrequire.ThesemeetingsmaybeinexecutiveoropensessionattheCommitteesdiscretion.Meetingagendasshallbepreparedinadvanceandminutesshallbekept.

25.OtherCommittees

TheBoardmayestablishothercommitteestoassistitwithitsfunctionsunderthisAct.

26.PowersandDutiesoftheGovernor

(1)AllpowersthatarenotspecificallyreservedfortheBoardortheInternalAuditorshallbevestedintheGovernor.Withinthelimitationofhispowers,theGovernorshallhavetheauthoritytotakeallactionsrequiredfortheadministrationandoperationsoftheBank.

(2)TheGovernor,withtheapprovaloftheBoard,maydelegatesomeorallofhispowerstoeitheroftheDeputyGovernorsorothereligibleemployeesoragentsoftheBank.TheBankshallmaintainanuptodatelistofitsauthorizedsignatoriestogetherwithadescriptionoftheirauthorityandshallpublishthelist.

(3)IftheGovernorisabsentorotherwiseunabletoact,theSeniorDeputyGovernorshallcarryoutthefunctionsoftheGovernorandexerciseallthepowersoftheGovernor.

(4)TheGovernorshallberesponsibletotheBoardfortheexecutionofdecisionsoftheBoardandforthedirectionandcontroloftheadministrationandoperationsoftheBank.Tothatend,theGovernorshallreporttotheBoard,notlessthanonceeverycalendarquarter,on:

(a)theadministrationandoperationsoftheBank

(b)theconductofitsmonetaryandregulatorypolicies

(c)thesoundnessofthefinancialsystemincludinginparticularthebankingandpaymentsystemsofSouthSudan

(d)thestateofthemoney,capitalandforeignexchangemarketsand



(e)anyeventsorconditionsthat,intheopinionoftheGovernor,arelikelytohaveasignificanteffectontheadministrationoroperationsoftheBank,theconductofitspolicies,thefinancialsystemofSouthSudan,orthebeforementionedmarkets.

(5)TheGovernorshallensurethattheBoardshalltimelyreceiveallsuchinformationastheBoardshallrequireforthesupervisionoftheadministrationoroperationsoftheBank.

27.InternalAuditorandInternalAuditDepartment

(1)AnInternalAuditoroftheBankshallbeappointedforatermoffiveyearsbytheBoard,fromcandidateswhoareprofessionallyqualifiedaccountants,andwhootherwisemeetthecriteriathatapplytomembersoftheBoardsetforthinsection17above,exceptthattheInternalAuditorshallbeafulltimeemployeeoftheBank.TheInternalAuditorshallbeeligibleforreappointment.

(2)TheInternalAuditorshallheadtheInternalAuditDepartmentoftheBank.

(3)TheInternalAuditorshallreporttotheBoard,throughtheAuditCommittee.

(4)TheInternalAuditormayberemovedfromhispositionbytheBoardonthesamegrounds,andthroughthesameprocedures,setforthinsection19above,thatapplytomembersoftheBoard,exceptthat:

(a)arecommendationforsuchremovalmaybemadebyanymemberoftheBoardand

(b)thedecisiontoremovetheInternalAuditorshallbemadebymajorityvoteoftheBoardratherthanbythePresident.

(5)TheseniorstaffoftheInternalAuditDepartmentshallbeappointedanddismissedbytheInternalAuditorwiththeconsentoftheAuditCommittee,inaccordancewithpoliciesandproceduresapprovedbytheBoardwiththeadviceoftheAuditCommittee.OtherstaffmembersoftheInternalAuditDepartmentshallbeappointedanddismissedinaccordancewithpoliciesapprovedbytheBoard.

(6)TheInternalAuditorandtheInternalAuditDepartmentshallhavetheduty:

(a)toadvisetheBoardontheeffectivenessoftheriskmanagementpoliciesapprovedbytheBoard



(b)toperformcontinuousaudits,inaccordancewithinternationalstandardsofinternalauditing,oftheadministrationandoperationsoftheBank,inordertoassisttheBoardwithsupervisingobservanceofthelawsandregulationsthatapplytotheBank

(c)toaudit,andtosubmittotheBoard,throughtheAuditCommittee,reportsandrecommendationsontheaccountsandRecordsaswellastheaccountingproceduresandinternalcontrolsandbudgetsoftheBank

(d)toformulateaCodeofConductfortheInternalAuditDepartmentstaff,makerecommendationstotheBoardregardingitsadoption,periodicreviewandanyappropriateamendments,andensureitsimplementation

(e)tomonitortheproperimplementationofthedecisionsoftheBoard,theGovernorandDeputyGovernors

(f)topresenttotheBoardsuchreportsandstudiesastheBoardshallrequestforthesupervisionoftheadministrationoroperationsoftheBankand

(g)tocarryoutanyotherassignmentanddutygiventotheInternalAuditorbytheBoardortheAuditCommittee.

(7)TheInternalAuditororamemberoftheInternalAuditstaffdesignatedbytheInternalAuditorshallhavetherightattendmeetingsoftheBoardandAuditCommittee.

28.PowersoftheInternalAuditDepartment

(1)Theemployeesoftheinternalauditunithavetherightto:

(a)examinealldocumentsoftheBank

(b)monitortheworkoftheBankateachstagewithoutrestrictionsand,

(c)requireexplanationsfromtheemployeesoftheBankconcerningdeficienciesanderrorsdiscoveredintheirwork,andtheeliminationofsuchdeficiencies.

(2)StaffoftheBankareobligedtoprovideemployeesoftheInternalAuditDepartmentwiththedocumentsandexplanationsreferredtheretointhissection.

29.ProfessionalStaff,otherEmployeesandAgents



(1)UnlessotherwiseprovidedbythisAct,theGovernor,inconsultationwiththeBoardandDeputyGovernors,shallappointanddismissmembersoftheseniorprofessionalstaffoftheBank.Seniorprofessionalstaffmembersshallinclude,ataminimum,thethreeDirectorsGeneralandtheofficialsdenotedinsubsections(d)through(e)ofsection14above

(2)OtheremployeesoftheBankshallbeappointedanddismissedinaccordancewithpoliciesapprovedbytheBoard.

(3)Nosalary,fee,wage,orotherremunerationorallowancepaidbytheBankshallbecomputedbyreferencetonetprofitorotherrevenuesoftheBank.

(4)Allsalaries,fees,wages,orotherremunerationsorallowancespaidbytheBankshall,tothemaximumextentpracticable,becomparabletoprevailingratesforsimilarworkdoneinthelocalitywheretheworkisdonebypersonshavingsimilarskillsandexperiencesasthosepersonswhoaretobepaidbytheBank.

(5)TheBoardshalladoptpoliciestoregulatetheemployeesworkandemploymentconditionsattheBank.

(6)TheBankmayengageagentstoperformtasksonbehalfoftheBank,anddeterminetheirremuneration,inaccordancewithpoliciesapprovedbytheBoard.

(7)TheBankmay,inaccordancewithtermsandconditionsapprovedbytheBoard:

(a)establishstaffretirementfundsorsimilararrangementsforthebenefitorprotectionofitsemployeesandtheirdependentsandnominees,andmakecontributionstowardsthecostsassociatedwithsucharrangements

(b)establishacreditprogramforitsemployeesandmembersoftheirfamilies.

(8)TheHeadoftheLegalAdministrationattheBankshallbedeployedbytheMinisterofJustice,inconsultationwiththeBoardoftheBank.

30.LimitationsonCreditbyBankOfficialsandStaffMembers



DuringtheiremploymentbytheBank,theofficialsandstaffoftheBankshallnotreceivecreditfromanybankorotherregulatedentitysubjecttotheoversightoftheBank,exceptinaccordancewithpoliciesapprovedbytheBoard.

31.ConflictsofInterest

(1)TheGovernor,theDeputyGovernors,theInternalAuditor,andseniorprofessionalstaffoftheBankshalldevotethewholeoftheirprofessionalservicestotheBank,andnoneofthemshalloccupyanyotherofficeoremployment,whetherremuneratedornot,exceptasnomineeoragentoftheBank,orinaneducationalcapacity,inaccordancewithpoliciesapprovedbytheBoard.

(2)NoformerGovernor,DeputyGovernor,InternalAuditor,orothermemberoftheseniorprofessionalstaffoftheBankshallserveinanycapacityataregulatedentityduringaperiodofoneyearfollowingtheirdeparturefromtheBank,withoutthepriorwrittenapprovaloftheBoard.

(3)NomemberofthestaffoftheBankshallsimultaneouslyhaveotheremployment,whethergainfulornot,exceptinaccordancewithpoliciesapprovedbytheBoard.

(4)NoGovernor,DeputyGovernor,officerormemberofthestaffoftheBankshallacceptanygiftorcreditforhimself,oronbehalfofanypersonwithwhomhehasfamily,businessorfinancialconnections,iftheacceptancethereofwouldresult,indiminishinghisimpartialdevotiontohisduties.

(5)MembersoftheBoard,theGovernor,DeputyGovernors,InternalAuditorandanyseniorofficialsoftheBankshall,uponassumptionoftheirofficesandannuallythereafter,makeconfidentialdeclarationoftheirassets,liabilitiesandbusinessandfinancialinterestsincludingthoseoftheirspousesandchildren.

(6)TheBoardshalladoptmorespecificpoliciesgoverningconflictsofinterestrelatingtotheofficialsandstaffoftheBank.

32.Secrecy

(1)Anyinformationfromwhichanindividualorbodymaybeidentifiedandthatisacquiredby



theBoardinthecourseoftheperformanceofitsfunctionsortheexerciseofitspowersunderthisActoranyotherapplicablelawshallberegardedasconfidentialbytheBoardanditsemployees.

(2)Noinformationofthetypereferredhereundertheprovisionsofsubsection(1)above,maybedisclosedwithouttheconsentofthepersonandorbodydulyauthorizedandordelegatedbytheBoardthereof,excepttotheextentthatitsdisclosureisexpresslyauthorizedorrequiredbyorunderthisActoranyotherapplicablelaworwhereitappearstotheBoardtobenecessary:

(a)toenabletheBoardtoperformanyofitsfunctionsandexerciseanyofitspowersunderthisActoranyotherapplicableact

(b)intheinterestsoftheinvestigation,detection,preventionorprosecutionofcrime

(c)inconnectionwiththedischargeofanyinternationalobligationtowhichSouthSudanmayfromtimetotimebesubject

(d)toassist,inthepublicinterest,anyauthoritythatappearstotheBoardtoexercise,inaplaceoutsideSouthSudan,functionscorrespondingtosomeorallofthoseoftheBoardwithinoroutsideSouthSudanor

(e)tocomplywiththedirectionsofanydivisionofanyCourt.

(3)Withoutprejudicetotheprovisionofsubsections(1)and(2)above,anyinformationcommunicatedtotheBoardbyacommitteeoftheGovernmentshallberegardedasconfidentialifthatcommitteeoftheGovernmentsorequests,andshallbekeptconfidentialbytheBoardanditsmembersandemployeesandnosuchinformationshallbedisclosedexceptincompliancewiththedirectionofanydivisionofanycourt.

(4)Apersonshallnot,foraperiodofoneyearafterheceasestobeamemberoftheBoard,acquire,holdormaintain,directlyorindirectly,anyoffice,employment,consultancyarrangementorbusinessinSouthSudanwherehemaybeliabletouseordiscloseinformationacquiredbyhimintheexercise,performanceanddischargeofthepowers,dutiesandfunctionsoftheBoard,andifheacquiresanysuchinterestsinvoluntarilyorbywayofsuccessionortestamentarydisposition,heshalldivesthimselforherselfofsuchinterest,withintwomonthsoftheacquisitionofsuchinterest.

(5)Whoeverdisclosesinformationorcausesorpermitsthedisclosureofinformationinamannerwhichheknowsorhasreasonablecausetobelieveisincontraventionoftheprovisionsofsubsections2and4aboveshallbeguiltyofanoffenceanduponconvictionshallbesentencedtoimprisonmentforaperiodnotexceedingsixmonthsorafinenotexceedingTenThousandSouthSudanesepounds,orboth.

CHAPTERIV



FINANCIALAFFAIRS

33.Capital

(1)TherequiredcapitaloftheBankshallbe15millionSouthSudanesepounds,whichshallbewhollyprovidedbythe[Government/State],orsuchhigheramountasshallresultfromallocationsfromnetprofitspursuanttosection36below.

(2)TheentireinitialrequiredcapitaloftheBankshallbefullypaidupincashorcashequivalentswithintwoweeksfromthedateonwhichthisActentersintoforce.ThemethodofpaymentoftheinitialrequiredcapitalshallbedeterminedbytheMinister.

(3)TheBankanditscapitalshallbeownedbytheState,andsuchcapitalshallnotbesubjecttolienortoencumbrance.

34.ReservesoftheBank

(1)TheBankshallestablishaGeneralReserveforthepurposeofcoveringpossiblelossesthathavenotbeenspecificallyidentified.TheGeneralReserveshallbeusedonlytocoveracapitaldeficiency.

(2)TheBankmayestablishadditionalreservesforspecificpurposesbyunanimousdecisionoftheBoard.

35.CalculationofnetProfitornetLossoftheBank

Foreachfinancialyear,thenetprofitorthenetlossoftheBankshallbecalculatedinaccordancewithInternationalFinancialReportingStandardsasthesumofnetoperatingrevenuesorlosses(includingrealizedgainsandlosses)andnetunrealizedvaluationgainsorlosses,andaftermakingprovision:

(a)forbadanddoubtfuldebts,depreciationofassets,andcontributionstothestaffretirement



fundand

(b)subjecttotheapprovaloftheMinister,forsuchotherpurposesastheBankmaydeemnecessary.

36.AllocationofNetProfit

(1)IftheBankhasanetprofitforanyfinancialyear,thenetprofitshallbeallocatedandusedinthefollowingorderofpriority:

(a)tothecapitalaccountoftheBankinsuchamountasshallberequiredtoincreasethecapitaloftheBanktoalevelequivalenttofivepercentoftheaggregateamountofmonetaryliabilitiesshownonthebalancesheetoftheBankfortheendofthatfinancialyear

(b)anallocationfromnetprofitshallbemadetoredeemsecuritiesissuedbytheStatepursuanttosection38ofthisActandheldbytheBank

(c)intheeventthereisremainingnetprofitaftertheallocationsreferredtoinparagraphs(a)and(b)above:

(i)50%shallbeallocatedtotheGeneralReservemaintainedbytheBankinsuchamountasshallberequiredtoincreasetheamountoftheGeneralReservetoalevelequivalenttotheamountoftherequiredcapitaloftheBank

(ii)theremaining50%shallbeallocatedfirsttoanyotherreserveforspecificpurposesestablishedbyunanimousdecisionoftheBoardoftheBankinaccordancewithsubsection34(2)

(iii)anyresidualnetprofitaftertheallocationreferredtoinsubparagraph(ii)aboveshallbetransferredtotheGovernmentwithinfourmonthsaftertheendofthefinancialyear,andresidualnetunrealizedvaluationgainsifanyshallbeallocatedtoaValuationReserveAccountmaintainedonthebalancesheetoftheBank.

(2)Theallocationsfromnetprofitreferredtoinparagraphs(a)through(c)ofsubsection(1)aboveshallbedeemedtohavebeenmadeentirelyfromnetoperatingrevenues.Ifnooperatingrevenuesareincludedinnetprofit,oraftersuchallocationshaveexhaustednetoperatingrevenuesincludedinnetprofit,suchallocationsshallbecalculatedasifmadefromnetunrealizedvaluationgains.

(3)ForthepurposesofthisAct,theaggregateamountofthemonetaryliabilitiesoftheBankshallbethesumof:

(a)alloutstandingbanknotes,coinsanddebtsecuritiesissuedbytheBankand

(b)thecreditbalancesofallaccountsmaintainedonthebooksoftheBankbyaccountholders.



37.AllocationofNetLoss

IftheBankincursanetlossforanyfinancialyear,thenetlossshallbeallocatedasfollows:

(a)ifthenetlossiscomposedofnetoperatinglossesandnetunrealizedvaluationlosses,theamountofnetoperatinglossesshallbechargedtotheGeneralReserveortocapitalinthatorder,andtheamountofnetunrealizedvaluationlossesshallbeallocatedtotheValuationReserveAccountor,totheextentthatthebalanceoftheValuationReserveAccountwouldbenegativeasaresultofsuchallocation,totheGeneralReserveortocapitalinthatorder

(b)ifthenetlossisthesumofnetoperatingrevenuesandgreaternetunrealizedvaluationlosses,thenetlossshallbeallocatedtotheValuationReserveAccountor,totheextentthatthebalanceoftheValuationReserveAccountwouldbenegativeasaresultofsuchallocation,totheGeneralReserveortocapitalinthatorderor,

(c)ifthenetlossisthesumofanetoperatinglossandsmallernetunrealizedvaluationgains,thelossshallbechargedtotheGeneralReserveortocapitalinthatorder.

38.CoverageofShortfallsinCapital

Whenever,ononeofitsmonthlyproformabalancesheetspreparedpursuanttosection76(3)below,thevalueoftheBanksassetsfallsbelowthesumofitsliabilitiesandrequiredcapital,theMinistershall,withintwomonthsaftersubmissionofthenotificationtothePresidentandAssemblyasrequiredbysection76(4)below,provideSouthSudanesepoundsordebtsecuritiesissuedbytheGovernmentatamarketrateofinterestinsuchamountoramountsasshallbenecessarytoremedythisdeficit.

CHAPTERV

MONETARYUNIT,BANKNOTESANDCURRENCY

39.MonetaryUnit

ThecurrencyofSouthSudananditsmonetaryunitistheSouthSudanesepound,thesymbolofwhichshallbeSSP.TheSouthSudanesepoundshallbeissuedandputintocirculationbytheBank.



40.IssueofBanknotesandCoins

(1)TheBankshallhavetheexclusiverighttoissuebanknotesandcoinsintendedforcirculationinSouthSudan.Nootherpersonshallissuecurrencynotes,banknotesorcoins,oranydocumentsthatare,intheopinionoftheBank,likelytopassaslegaltender.

(2)BanknotesandcoinsissuedunderthissectionshallbeafirstchargeontheassetsoftheBank.

(3)BanknotesandcoinsissuedbytheBankandintendedforcirculationinSouthSudanarenotpromissorynotes,billsofexchange,oranyothertypeofcommercialdocumentsunderthelegislationofSouthSudan,andtheBankisobligatedonandwithrespecttothemonlyasprovidedbythisChapter.

(4)AnyreferenceinthisActtobanknotesorcoinsistobanknotesorcoinsintendedforcirculationinSouthSudan,issuedortobeissuedpursuanttothisChapterbytheBank.

41.FunctionsoftheBankRegardingCurrency

(1)TheBankshalldirectlyadministerthecurrencyreserveinventoryandensureanadequatesupplyofbanknotesandcoinsasneededtomeetthecurrencyrequirementsoftheeconomyofSouthSudan.Tothisend,theBankshall:

(a)arrangefortheprintingofnotesandthemintingofcoinsandsecurekeepingandsafetyofthesame

(b)issuebanknotesandcoinsinitsofficesandsuchagenciesastheBankmayfromtimetotimeestablishorappointitmayreissueorreplacethesameatsuchplaces

(c)arrangeforcancellationanddestructionofnotes,orthecutting,breakingordestructionofcoinswithdrawnfromcirculationaccordingtosection45beloworfoundbytheBanktobeunfitforuse.

(2)ThereshallvestintheBankanyforeignexchangeconfiscatedinSouthSudanorwhichisthesubjectmatterofjudicialdecisionorsettlementsubjecttothelawsinforce.



(3)Creation,possession,ordistributionofcounterfeitmoneyshallbepunishableassetbyapplicablelaw.FacilitiesforidentificationofcounterfeitmoneyshallbeprovidedbytheBank.ProceduresgoverningsubmissionforanalysisandpossiblesubsequentreferraltotheauthoritiesforcriminalprosecutionshallbepursuanttoaregulationoftheBank.

42.CurrencyFeatures

TheBank,inconsultationwiththeMinisterandwiththeapprovaloftheCouncilofMinistersshalldeterminethedenomination,measures,form,material,content,weights,designs,andotherfeaturesofbanknotesandcoins.BanknotesshallbearthesignatureoftheGovernoroftheBankandtheMinister.

43.UnfitCurrency

(1)Unfitcurrencyshallbedemonetized.Subjecttosubsection(2)below,theBankshallwithdraw,destroy,andreplaceanyunfitcurrencypresentedtoitwithcurrencyofanequivalentamount.

(2)TheBankmaydeclinetoreplaceanyunfitcurrency.Suchcurrencyshallbewithdrawnanddestroyedwithoutindemnitytotheowner,exceptthat,inspecialcases,theBankmaygrantcompensationinwholeorinpart.

(3)NopersonshallbeentitledtorecoverfromtheBankthevalueofanylost,stolen,orunfitcurrencyexceptpursuanttoaregulationoftheBank.Thecircumstanceinwhich,andtheconditionsandlimitationssubjecttowhich,thevalueofunfitcurrencymayberefundedshallbewithintheabsolutediscretionoftheBank,andsetforthinaregulationoftheBank.

(4)TheBankmayconfiscatewithoutcompensationanyunfitcurrency.

(5)EveryofficeremployedinthecollectionofrevenueinSouthSudanshallforwardtotheBankanycurrencypaidtotheofficerthathesuspectsofbeingunfitorcounterfeit.



44.AccountingTreatmentofCurrencyIssued

CirculatingbanknotesandcoinsshallbetreatedintheaccountsoftheBankasaliabilityoftheBanksuchliabilityshallnotincludebanknotesandcoinsinthevaultsoftheBank.

45.CurrencyRecall

(1)TheBankmaydecidetocallinandwithdrawfromcirculationbanknotesorcoins,byissuinginexchangethereforeotherbanknotesorcoinsinequivalentamounts.TheprocedureforsuchrecallshallbedeterminedbytheBankandshall:

(a)specifythelocation,dateandhoursduringwhichthebanknotesorcoinsmustbepresentedforexchange

(b)provideforthedeterminationandtreatmentofanycounterfeitmoneypresentedforexchange

(c)ifdeemedappropriatebytheBank,setrequirementsandconditionsastoproperidentificationofpersonspresentingbanknotesorcoinsforexchangeandfordocumentationofexchangetransactionsand

(d)provideforallothermattersrelatingtotheexchangeproceduredeemedappropriatebytheBank.

(3)Attheendoftheexchangeperiodreferredtoinsubsection(1)above,oratanyothertimespecifiedbytheprocedure,banknotesandcoinscalledinforexchangeshallbedemonetizedandceasetobelegaltender.Anynewbanknotesorcoinsissuedinconnectionwithacurrencyrecallasprovidedinthissectionshallbefullyredeemableinthesamemanner,andtothesameextent,aswerethebanknotesorcoinssubjecttotherecall.

CHAPTERVI

LEGALTENDER46.SouthSudanesePoundasLegalTender

Atenderofpaymentofmoneyisalegaltenderifmadeinbanknotesorcoins.Banknotesandcoinsshall



beaccepted,fortheamountoftheirdenominationinthecurrencyofSouthSudan,inpaymentofallpublicandprivatedebtsinSouthSudan.

47.PublicAccountsandCompulsoryPayments

(1)Allpublicbudgets,financialRecordsandaccounts,requiredbyanylawof,andestablishedormaintainedinSouthSudan,shallbeorbeassessedinSouthSudanesepounds.PaymentofmoneywhenrequiredinanyindictmentorotherlegalproceedingsotherthanfortheenforcementofaforeigncurrencyobligationshallbestatedinSouthSudanesepounds.

(2)CompulsorypaymentsshallbeassessedandrequiredtobepaidinSouthSudanesepounds.Compulsorypaymentmeansanypaymentmadetoorbyapublicauthorityotherthanunderacontractoranyothervoluntarytransaction.Itincludesthepaymentoftaxes(eitherdirectorindirect),customdues,excise,levies,fees,chargesandpenalties,aswellasanypaymenttopublicutilities,paymentaccordingtoacourtorder,orpaymentprescribedbylaw.

48.SumsMentionedinLaws,Valuation,andConversion

(1)Anysummentionedinlegislation,includinglegislationpassedbytheformerGovernmentofSouthSudan,unlessitisotherwiseexpressed,shallbeconstruedasbeinginSouthSudanesepounds.

(2)Whereanylaworanyconvention,contractoragreementtowhichSouthSudanisapartydoesnotprovideforthemannerofconversiontothecurrencyofSouthSudan,theBankmaymakeregulationsspecifying,orspecifyingthemeansormethodofascertaining,determiningorcalculating,theequivalentSouthSudanesepoundvalueofthatforeigncurrency.

(3)Forthepurposesoftheadministration,applicationandoperationofthelawsrelatingtothecustoms,taxobligations,oranyotherpayments,theBankmayinaccordancewithregulations,specifyorspecifythemeansormethodofdeterminingorcalculating,theequivalentSouthSudanesepoundvalueofcurrenciesofcountriesotherthanSouthSudanforadayoranylongerperiodorgenerally.

(4)Incaseofadecisionwithregardtocurrencyredenominationinaccordancewiththislaw,allRecords,accounts,obligations,debts,pricequotations,andreferencesinotherlegislation,willreadtoberedenominatedaccordingtotheexchangerateoftheredenomination.



49.DesignationofPricesforGoodsandServices

PricesforallgoodsandservicesinSouthSudanshallbedenominatedinSouthSudanesepounds.

50.FreedomofCurrency

(1)Notwithstandingsection49above:

(a)whereallpartiestoaprivatecontractoranyothervoluntaryprivatetransaction,includingpartiestoabill,note,instrumentorsecurityformoney,areresidentsofSouthSudan,thepaymentobligationrelativetosuchcontractortransactionshallbedenominatedinSouthSudanesepounds

(b)whereoneofthepartiestoaprivatecontractortransactionreferencedinsubsection1(a)aboveisanonresidentofSouthSudan,thepartiesmaydenominatethepaymentobligationinanycurrencyagreedupon.

(2)Anagreementofthepartiesundersubsection1(b)abovemaybeexpressorimpliedfromsurroundingcircumstancesincludingcourseofdealing,usageoftrade,orcourseofperformance.

(3)Ifthereisnocontraryagreementbythepartiesassetforthinsubsections(1)or(2)above,everycontract,sale,payment,bill,note,instrumentandsecurityformoney,andeverytransaction,dealing,matterandthingrelatingtomoneyorinvolvingthepaymentofortheliabilitytopaymoney,shallbedeemedtobemade,executed,enteredinto,doneorcarriedoutinSouthSudanesepounds.

51.EnforcementofForeignCurrencyPaymentObligations

Aforeigncurrencyobligationmaybeenforcedaccordingtoitsterms.Inanyjudicialproceedingtoenforceanysuchobligation:

(a)wheresuchobligationprovidesforamannerofconversiontoSouthSudanesepounds,thecourtshallgiveeffecttothemannerofconversioninsuchobligation

(b)thecourtmayrequirepaymentofanamountinSouthSudanesepoundssufficienttopurchasetheamountoftheobligationinsuchforeigncurrency

(c)theamountreferencedinparagraph(b)shallbecalculatedbyabankinSouthSudanatthe



closeofbusinessonbusinessdaypriortothedaypaymentoftheobligationistobereceivedbythecreditor

(d)ifthecourtissatisfiedthatconversionasreferencedinparagraphs(b)and(c)abovewouldbeinequitabletobothparties,itmayrequirepaymentofanamountinSouthSudanesepoundssufficienttopurchasetheamountofthe

obligationintheforeigncurrencyatabankinSouthSudanonsuchotherdayasthecourtconsidersequitableinthecircumstances

(e)intheeventparagraph(d)isapplicable,thecourtshallordertheconversiontobemadeatsuchrateastomakethecreditorwholeandavoidrewardingadebtorwhohasdelayedincarryingouttheobligation.

CHAPTERVII

MONETARYFUNCTIONSANDOPERATIONS

1. 52.MonetaryandExchangeRatePolicy

TheBankshallberesponsiblefortheformulation,adoptionandexecutionofthemonetaryandexchangeratepoliciesofSouthSudan,whichshallaimtopreservethevalueoftheSouthSudanesepoundasdeterminedinaccordancewithsection53below.

53.ExternalValueoftheSouthSudanesePound

(1)TheBankshalldeterminebyregulationtheexchangeratesatwhichitshallpurchaseandsellSouthSudanesepounds.

(2)Iftheinternationalreservesmentionedinsection61belowhavedeclinedor,areindangerofdecliningtosuchanextentastojeopardizetheexecutionofthemonetaryorexchangeratepoliciesof



SouthSudanorthepromptsettlementofthecountrysinternationaltransactions,theBankshallconsultwiththeMinisterandmayadjusttheexchangeratereferencedinsubsection(1)ofthissectioninlightofexistingandexpectedconditionsintheforeignexchangemarket.

54.OvernightAdvances

(1)TheBankmay,onthetermsandconditionsestablishedbyregulation,granttoanybankthatholdsanaccountattheBank,overnightadvancesinSouthSudanesepoundsthataresecuredbyanyofthefollowingassets:

(a)internationalreserveassetsasspecifiedinSection61ofthisAct

(b)debtsecuritiesissuedbytheBankortheGovernmentofSouthSudan

(c)depositsofthatbankwiththeBankor

(d)warehousereceiptsandotherdocumentsoftitleissuedinrespectofstaplecommoditiesorothergoodsdulyinsuredagainstriskoflossordamage.

(2)Overnightadvancesmayberenewedforupto15daysandshallcarryanappropriatemarketrateofinterest.

(3)Ifanadvancemadeunderthissectionisnotrepaidattherequiredtime:

(a)untilthesituationisrectified:

(i)theBankshallmakenofurtheradvancestosuchbankunderthissection

(ii)thebankshallnotbepermittedtoparticipateintheclearingandsettlementsystemand

(b)theBankmaytakeanycorrectiveactionauthorizedbytheBankingActasitdeemsappropriate.

(4)AdvancesgrantedbytheBankunderthissectionshallbemadeonlyattheheadofficesofsuchbanksinSouthSudan.

55.IssuanceofDebtSecurities

Forthepurposeofconductingmonetarypolicyoperations,theBankmay,undertermsandconditions



determinedbyregulation:

(a)issueinitsownnamedebtsecuritieshavingamaturityofnolongerthan12months

(b)purchase,sellandredeemdebtsecuritiesissuedbytheBankpursuanttosubsection(a).

56.RequiredReservesofBanks

(1)TheBankmayrequirethatbanksshallmaintaindepositsinSouthSudanesepoundswiththeBankandcashintheirvaultsatprescribedminimumlevelsthatrelatetothesize,typeormaturityoftheirdeposits,borrowedfundsandsuchotherliabilitiesastheBankmaydeterminebyregulation(requiredreserves).Requiredreserveratiosshallbeapplieduniformlytoreserveliabilitiesandtoallbanks.

(2)TheBankmayfromtimetotimeprescribebyregulationtherequiredreservesthatshallbemaintainedbywayofcashholdingsandmoneydepositswiththeBank,whichshallbecalculatedastheaveragedailyreservesoverthestipulatedholdingperiods.RequiredreservesmaintainedwiththeBankshallberemuneratedataratedecidedbytheBank.

(3)Regulationsmentionedinsubsection(2)above,bywhichrequiredreservesareestablishedormodified,shallspecifythedatebywhichbanksshallcomplywiththenewrequirementsorreserveratios.

(4)TheBankmayimposeonandcollectfromanybankthatfailstomaintainrequiredreservesattheminimumlevelsprescribedinaccordancewithsubsection(2)above,alevyontheshortfallinsuchbanksrequiredreserves,untiltheshortfalliscorrected.SuchlevyshallbesetbyregulationoftheBank.

(5)Ifabankfailstofulfilitsrequiredreservesfortwoconsecutiveperiods,theBankshallceasetoprocesswithdrawaltransactionsforthebank,andshallrequirethebanktotakemeasurestocorrecttheshortfallwithinoneweek.Ifthefailuretofulfilthereserverequirementcontinuesforanotherweek,theBankmaytakeanyremedialactionauthorizedbyrelevantlegislationrelativetothebank.

57.PublicationofInformationRelatingtoCurrency



EachmonththeBankshallpublishmonthlyinformationconcerningthetotalamountofSouthSudanesepoundsincirculationandtheofficialforeignexchangereservesoftheBank,withabreakdownoftheholdingsofothercurrencies.

CHAPTERVIII

FOREIGNEXCHANGEOPERATIONS58.GeneralPolicy

(1)SouthSudanesepoundsshallbefreelyconvertibleintoforeigncurrencythroughoutSouthSudaninallvoluntarytransactionsundertakenbetweenprivateparties.

(3)NorestrictionsshallbeimposedbytheBankorotherauthoritiesonthemakingofpaymentsandtransfersforinternationaltransactions,unlesstheBankdeterminesthatsuchrestrictionsarerequiredintheperformanceofanobligationofSouthSudanunderinternationallaw.AlldecisionsonthesemattersmustbetakenunanimouslybytheBoard.

59.ResponsibilitiesoftheBank

TheBankshallhaveresponsibilityfor:

(a)theissuanceofregulations,circularsandordersrequiredfortheexecutionofforeignexchangepolicyandforforeignexchangemarketoperationswithintheterritoryofSouthSudan

(b)theregistrationandissuanceoflicenses,andtheregulationandsupervision,offoreignexchangedealersincludingbanks,andotherfinancialinstitutions,pursuanttorelevantlegislation

(c)settinglimitsonforeignexchangepositionsofforeignexchangedealersandbanks

(d)maintainingandmanagingtheinternationalreservesoftheBankand

(e)buyingandsellingfreelyusableforeignexchangeforSouthSudanesepoundsatitspostedexchangeratesaccordingtoitsregulations.



60.InternationalClearingandPaymentsAgreements

TheBankmay,eitherforitsownaccountoronbehalfoftheGovernment,enterintoclearingandpaymentsagreementsoranyothercontractsforthesamepurposewithpublicandprivatecentralclearinginstitutionsdomiciledabroad.

61.InternationalReserveAssets

(1)TheBankshallestablishandmaintaintheinternationalreservesofSouthSudanwhichshallconsistofalloranyofthefollowingassets:

(a)anygold,otherpreciousmetalsandpreciousstones

(b)anybanknotesandcoinsinfreelyconvertibleforeigncurrency

(c)anycreditbalancesthatarepayableinfreelyconvertibleforeigncurrencyandareheldinaccountsoftheBankonthebooksofforeigncentralbanksorotherfinancialinstitutions

(d)SpecialDrawingRightsoftheInternationalMonetaryFund

(e)anybillsofexchange,promissorynotes,certificatesofdeposit,bondsandotherdebtsecuritiesthatarepayableinfreelyconvertibleforeigncurrencyandareheldbyorfortheaccountoftheBankand

(f)anyforwardpurchaseorrepurchaseagreementsandanycurrencyswapagreementsoftheBankconcludedwithorguaranteedbyforeigncentralbanksorinternationalfinancialorganizations,andanyfutures,optionandothercontractsheldbytheBank,thatentitletheBanktoreceivepaymentinfreelyconvertibleforeigncurrency.

(2)TheBankshallmaintaintheinternationalreservesatalevelthatshallbeadequatefortheexecutionofthemonetaryandexchangeratepoliciesofSouthSudanandforthepromptsettlementofthecountrysinternationaltransactions.

62.Acquisition,HoldingandDisposalofInternationalReserves

TheBankshallhavetheauthoritytotakeallactionsnecessarytoacquire,tohold,andtodisposeof,theinternationalreserveassetsspecifiedinsection61(1)above,andmanagetheminaccordancewithinternationallyrecognizedbestpractices.



63.InvestmentofInternationalReserveAssets

TheinternationalreserveassetsoftheBankreferencedinsection61aboveshallbeinvestedabroadinaccordancewithinvestmentguidelinesestablishedbytheBoard,givingprioritytosafety,liquidity,andincome,inthatorder.

CHAPTERIX

RELATIONSWITHTHEGOVERNMENT64.Banker,Adviser,andFiscalAgent

(1)TheBankshallactasbankerandadviserto,andasfiscalagentof,theGovernment,andsuchGovernmentagenciesastheBoard,inconsultationwiththeMinistershalldetermine.

(2)TheBankshallconsultwiththeMinisteronanyproposalsconcerningmattersthatrelatetotheMinistrysobjectivesorthatotherwisearewithinitsfieldsofcompetence.

(3)Eachyear:

(a)theMinistershallconsulttheBankontheoccasionofthepreparationoftheGovernmentbudgetforthenextfollowingbudgetyear,includingtheextentofexternalfinancingofdomesticexpenditures

(b)theBankshallsubmittotheMinisterawrittenreportoneconomicandfinancialmatterspertinenttothebudget

(c)theMinistershallincludethereportoftheBankreferredtoinsubsection(b)aboveinitsbudgetproposaltotheAssemblyforthefollowingyear.

65.AdvancestotheGovernment



(1)TheBankmaymakeadvancestotheGovernmentonlyinrespectoftemporarydeficienciesofrecurrentrevenue.

(2)Thetotalamountofadvancesmadeoroutstandingundersubsection(1)shallnotatanytimeexceed:

(a)5percentofthegrossrecurrentrevenueoftheGovernment,asshownintheappropriationaccountforthelatestyearforwhichthataccounthasbeenauditedbytheAuditorGeneral,or

(b)50percentofthecapitaloftheBank,asshownonthemostrecentmonthlyfinancialstatementsoftheBank,whicheveramountislower.

(3)EachadvancemadetotheGovernmentunderthissectionshall:

(a)haveamaturityofnolongerthan3months

(b)besecuredbynegotiablesecuritiesissuedbytheGovernmentandhavingamaturityofnotmorethan12months

(c)bearinterestatamarketrateand

(d)bemadesolelyforthepurposeofprovidingtemporaryaccommodationtotheGovernment.

(4)Foratleast6monthsofeverycalendaryear,theremustbenooutstandingliabilitiesoftheGovernmenttotheBank.

(5)Forpurposesofthissection,recurrentrevenuesoftheGovernmentshallincluderevenuefromtaxes,customs,exciseandotherduties,fees,rents,profitsandincomefromanyinvestmentorundertaking,butshallnotincludeproceedsfromgrants,loans,ordisposalofassetsforpurposesofprivatisationoranyformofborrowing,whethershorttermorlongterm.

(6)Whereanyadvanceunderthissectionisnotrepaidwithintherequiredtimeperiod,theBankshallreportthisfacttotheAssembly,andshallnotmakeanyadditionaladvancestotheGovernmentuntilthesituationisrectified.

66.ConsultationsandReportingonPublicSectorBorrowing

(1)Eachyear,theMinistershallconsultwiththeBankonitsplanfordomesticandexternalpublicsectorborrowingduringthenextfollowingfinancialyear,includingtheamountstobecontractedanddisbursedundersuchborrowingandtheexpectedtermsandconditionsofsuchborrowing.



(2)AllborrowingtransactionsbytheGovernmentanditsagenciesshallbereportedinsuchdetailastheBankshallrequirebyregulation.

67.DepositoryandCashierfortheGovernment

(1)TheBankshallacceptdepositsfromtheGovernmentandfromsuchGovernmentagenciesastheMinistershalldetermine.

(2)Asdepository,theBankshallreceiveanddisbursemoniesandkeepaccountthereofandprovideotherfinancialservicesrelatedthereto.

(3)TheBankshallpaytothelimitsofthedepositedamountsagainstpaymentordersconcerningsuchaccounts.

(4)TheBankshallpayinterestonsuchdepositsatrelevantmarketrelatedratesafterdeductionofitsadministrativecostsrelatedtosuchdeposits.

(5)TheBankmayauthorizeotherfinancialinstitutionstoreceivesuchdepositsincompliancewithconditionsprescribedbytheBank.

68.FiscalAgencyFunction

(1)TheBankmay,onlythroughatrustfundandonsuchtermsandconditionsasitshallagreewiththeMinister,actasfiscalagentfortheaccountoftheGovernmentanditsagencies,inthefollowingmatters:

(a)marketingofdebtsecuritiesissuedbytherelevantauthorities,orasregistrarandtransferagentthereof

(b)paymentofprincipalof,andinterestandotherchargeson,suchsecuritiesand



(c)suchothermattersasshallbeconsistentwiththeobjectivesandbasictasksoftheBank.

(2)TheBankshallchargefeesforanyservicesperformedunderthissectionatitscost.

69.RequiredInformation

TheBankshallbeentitledtoreceivefromtheGovernmentallsuchfinancialandeconomicinformationanddocumentsastheBankshallreasonablyrequestforthecarryingoutofitsfunctions.

CHAPTERX

RELATIONSWITHREGULATEDENTITIES70.SupervisionofRegulatedEntities

(1)TheBankshallbeexclusivelyresponsibleforthesupervision,regulationandlicensingoffinancialentitiesinSouthSudaninaccordancewiththeregulation.

(2)TheprincipalfunctionsoftheBankwithregardtoregulatedentitiesshallbe:

(a)topromotethegeneralsafety,stability,efficiency,andtransparencyofthebankingandfinancialsystemsofSouthSudan

(b)tocounteractundesirabledevelopmentsinregulatedentitiesthatmayendangerthesafetyofassetsentrustedtothem,impairtheproperconductoftheirbusiness,orproduceunacceptablesystemicriskinthebankingorfinancialsystems,orseriousdisadvantagestothenationaleconomy.

(3)Withoutanylimitationonsubsection(2)above,theBankshall:

(a)beresponsibleforsupervisingcompliancewiththeprovisionsofthisAct,otherrelevantlawsandregulationsoftheBankpertainingtoregulatedentities

(b)takeappropriatestepstoensurethatregulatedentitiesconductingbusinessinSouthSudanareoperatedinasafe,responsible,honestandbusinesslikemanner



(c)suppressoraidinsuppressingillegal,dishonourableorimproperpracticesintheconductofthebusinessofregulatedentities,includingmisuseofregulatedentitiesforcriminalpurposes,moneylaunderingorterroristfinancing

(d)cooperatewithandassistfinancialservicessupervisoryauthoritiesinSouthSudanandabroad,wheneverappropriate,totheextentpermittedbythisoranyotherprovisionoflawand

(e)considerandproposereformsoflawsrelatingtosupervisionofregulatedentities.

(4)InperformingthesupervisoryfunctionsassignedtoitbythisAct,theBankshallbeauthorized,inparticular,to:

(a)carryoutthelicensingofanyregulatedentities,includingsettingeligibilityrequirementsforthosewishingtoengageinthebusinessofregulatedentitiesasauthorizedbyrelevantlegislation

(b)submitanyregulatedentitiestoprudentialrequirements,and/orotherrequirementsdesignedtofacilitatesupervisionbytheBankand/orprotectionofcustomersandclients

(c)requireregulatedentitiestoprovideinformationtotheBanktofacilitatesupervisionbytheBank

(d)conductinspectionsofregulatedentitiesasauthorizedbyrelevantlegislation

(e)issuecorrectiveordersto,andimposepenaltiesandsanctionson,regulatedentitiesinaccordancewithrelevantlegislationincasesoflegalorregulatoryviolations

(f)revokelicensesofregulatedentitiesinaccordancewithlegalrequirementsand,

(g)performotherfunctionsprovidedbyrelevantlegislation.

71.LenderofLastResortFunction

(1)TheBankmayprovidelenderoflastresortliquiditysupporttoasolventbank,bygrantingtoitfinancialassistanceasmaybeprovidedintheregulation.

(2)Eachcommitmentreferencedinsubsection(1)mustbesecuredbyassetsspecifiedinsection54(1),unless:

(a)theBankdeterminesinwritingthatothercollateralwouldbejustifiedbyexceptionalcircumstances,dictatedbytheliquiditysituationofthebankandbythepublicinterestand

(b)theMinisterhasconcurredinwritingwithsuchdeterminationwithin24hoursafterithasbeensubmittedtohimbytheBank.

(3)Commitmentsundersubsection(1)maynotexceed50percentoftheBankscapitalunlessanyexcessismatchedequallybyfundsfromtheMinistry.



(4)Thetermsandproceduresforprovidingassistanceundersubsection(1)shallbedeterminedbytheBank.TheinterestrateforsuchcreditsmustbeatmarketratesasdeterminedbyregulationoftheBank.

(5)Theperiodforassistancereferencedinsubsection(1)maybeextendedbytheBankforoneadditional3monthperiod,withtheapprovaloftheBoardandthewrittenconcurrenceoftheMinister,ontheconditionthatthebanktakesanymeasuresrequiredbytheBanktoovercomeitsliquiditydeficiencies,tothesatisfactionoftheBank.

CHAPTERXI

ACCOUNTS,FINANCIALSTATEMENTS,

AUDIT,ANDREPORTS72.FinancialYear

ThefiscalyearoftheBankshallbetheyearaccordingtotheGregoriancalendar,andcommenceonthefirstdayofJanuaryandend,onthe31stofDecemberofthesameyear.

73.AccountingPractices

TheBankshallmaintainaccountsandrecordsadequatetoreflectinaccordancewithconsistentlymaintainedInternationalFinancialReportingStandardsitsoperationsandfinancialcondition.

74.FinancialStatements

TheBankshallpreparefinancialstatementsforeachofitsfinancialyears.Theyshallincludeabalancesheet,incomestatement,astatementofcashflows,andrelatedstatements.



75.AuditofAccounts

(1)TheaccountsandrecordsoftheBankshallbeauditedannuallyinaccordancewithInternationalStandardsonAuditingbytheAuditorGeneral.

(2)TheBankshallprovidetheAuditorGeneralwithsuchassistanceastheAuditorGeneralmayrequire.TheAuditorGeneralshallhaveaccess,uponrequest,toallaccounts,books,minutes,recordsandotherdocuments,informationanddataoftheBank.

76.TransmittalandPublicationofStatementsandReports

(1)TheBankshall,withinfourmonthsafterthecloseofeachofitsfinancialyears,submittotheMinisterfortransmissiontothePresidentacopyofitsfinancialstatementscertifiedbytheAuditorGeneralandtheBanksexternalauditors.

(2)TheBankshallonceayearsubmittotheAssembly:

(a)areportonitsoperationsandaffairsduringthatyear,reviewingthatyearsperformanceagainstitsplansandsettingoutitsobjectivesforthecomingyearand,

(b)areportonthestateoftheeconomy.

(3)TheBankshall,within15workingdaysoftheendofeachmonth,prepareandsubmittotheMinisterproformabalancesheets.Theproformareportswillincludethenetchangeintheforeignreservepositionoverthecourseofthemonth.

(4)Ifamonthlyproformabalancesheetreferredtoinsubsection(3)above,showsthatthevalueoftheBanksassetsislessthanthesumofitsliabilitiesandrequiredcapital,theMinistershall,within10workingdaysofreceiptofsuchstatementfromtheBank,notifythePresidentandAssemblyinwritingandcarryouttherequirementsofsection38ofthisAct.

(5)Upontheirsubmission,theBankshallpublishthefinancialstatementsandreportsreferredtoinsubsections(1)and(2)aboveitmaypublishsuchotherreportsandstudiesonfinancialandeconomic



issuesasitmaydeemappropriate.

CHAPTERXII

COLLECTIONOFSTATISTICALINFORMATION

77.CollectionofStatisticalInformation

(1)TheBankshallcollectthestatisticalinformationrequiredfortheachievementofitsobjectivesandthecarryingoutofitstasks,fromthecompetentauthoritiesofSouthSudanordirectlyfromeconomicagents.Tothatend,itshallcooperatewiththecompetentauthoritiesinotherstatesandwithinternationalorganizations.

(2)TheBankshallseektoharmonizetherulesandpracticesgoverningthecollection,compilationanddistributionofstatisticswithinitsfieldsofcompetence.

(3)TheBankshalldefinebyregulationthestatisticalinformationandtheforminwhichsuchinformationistobeprovidedtotheBank,thepersonsthataretoprovidesuchinformationtotheBank,andtheconfidentialityregimethatshallapplytostatisticalinformationprovidedtotheBank.

(4)TheBankmayrequireallbanksandotherregulatedentitiesoperatingwithintheterritoryofSouthSudantoprovidetotheBankannual,quarterly,ormorefrequentreportscoveringmonetarystatistics,incomeandexpensereports,nonperformingloansandloanlossesandprovisioning,foreigncurrencypositions,interestrates,andotherreportsofactivities.TheBankshallbeobligedtocompilestatisticsinaccordancewithinternationalstandardsandpractices.

(5)TheBankmaycompileandaggregatestatisticalinformationreceivedfrombanksandotherfinancialinstitutionsasneededtomeetitspolicyneeds,toinformthepublic,andfulfilobligationstointernationalorganizations.

(6)TheBankmayrequirethatbanksandotherfinancialinstitutionsandagentsprovidetotheBankinformationonspecifictransactions,individuals,orfirmsasareneededtocarryoutitssupervisory,policy,andstatisticalfunctions.



(7)TheBankshallnotdisseminatetothepublicstatisticalinformationrevealingbusinessrelationsofindividualsorundertakingsunlessithasobtainedthepriorwrittenpermissionbytheindividualsortheundertakingsconcernedtodoso.

(8)TheBankmayprovideinformationonconfidentialbankmonetaryrecordsrelatedtospecifictransactions,individuals,orfirmstosupervisorsorotherdueauthoritiesfortheexecutionoftheirofficialduties.

(9)TheBankmayimposesanctionsonbanks,monetaryinstitutionsandagents,andtheirmanagementintheeventofincompleteinformationorlatereporting,nonreporting,orinaccuratereporting.

(10)EachpersonfromwhomtheBankmaycollectstatisticalinformationpursuanttothissectionshallprovidetosuchinformationinaccordancewiththerelevantregulations.TheBankmayapplyanyenforcementmeasuresauthorizedbytheapplicablelawtoanypersonwhoviolatesthisrequirement.

CHAPTERXIII

MISCELLANEOUSPROVISIONS78.PreferentialRight

TheBankshallhaveanunconditionalpreferentialrighttosatisfyanyclaimagainstanydebtoroftheBankatthetimesuchclaimbecomesdueandpayable.Suchclaimmaybesatisfied:

(a)fromanycashbalancesandotherassetsthattheBankholdsforitsownaccountorfortheaccountofthedebtorconcerned,whetherascollateraltosecuresuchclaimorotherwise

(b)bytheBankkeepingsuchcashbalances,and/orsellingsuchassetsatareasonablepriceandretainingtheproceedsofsuchsaleafterdeductingtheassociatedcosts

(c)withoutactionorapprovalofanycourtand

(d)notwithstandinganycompetingclaimofownershiporotherpreviouslyacquiredrights,unlessthereisclearandconvincingevidencethatstaffoftheBankkneworshouldbeconsideredtohaveknownatthetimesuchassetscameintothepossessionoftheBankthatsuchassetsdidnotbelo

Bank of South Sudan Act, 2011 _ Bank of South Sudan

Documents

Transcript of Bank of South Sudan Act, 2011 _ Bank of South Sudan