Tanzania Shuts Forex Outlets

The Tanzania Revenue Authority has reportedly raided some privately-owned forex shops this week, with the majority in Dar es Salaam remaining closed.

The move comes as the central bank seeks to tackle illegal currency trading following an investigation into fraud in the industry last year. After the investigation the central bank suspended all applications for licensing of forex bureaus and moved to revokes the licenses of those in violation of rules and regulations.

Rwanda has also taken steps recently to tackle the black market in forex trading, with the National Bank of Rwanda, the police and Local Government ministry working together to uncover and arrest unlicensed traders.

In Kenya the penalty for operating as an online forex broker without the proper licenses is a fine of up to Ksh5 million and imprisonment for up to two years according to the Capital Markets Regulations of 2017.