The West African Economic and Monetary Union has adopted a new framework governing foreign exchange operations across its eight member states. The WAEMU Council of Ministers approved Regulation No. 06/2024/CM/UEMOA on 20 December 2024, replacing the union's previous foreign exchange rules dating from 2010.
The new regulation introduces what its drafters describe as a liberalised framework for investment flows: direct investments and portfolio investments will henceforth benefit from greater freedom of movement than was permitted under the 2010 rules. However, that freedom is paired with reporting requirements. All transactions must be reported to and domiciled with a locally approved bank.
BCEAO OVERSIGHT
The liberalisation measures in Regulation No. 06/2024 are paired with provisions that strengthen the BCEAO's authority over cross-border capital movements. The central bank gains greater powers to monitor, record, and in certain circumstances restrict transactions flowing through the regional financial system, with the stated aim of adapting the framework to recent changes in the global economic environment. The regulation also introduces enhanced anti-money laundering and counter-terrorist financing measures.
The regulation applies across the union's member states: Benin, Burkina Faso, Côte d'Ivoire, Guinea-Bissau, Mali, Niger, Senegal, and Togo.
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