In the Name of Allah, the Gracious, the Merciful
Be it hereby passed, by the National Assembly, and signed, by the President of the Republic, in accordance with the provisions of the Constitution of the Republic of the Sudan, 1998, the following Act:
Title and commencement
This Act may be cited as the, “Bank of Sudan Act, 2002”, and shall come into force, as from the date of signature.
The Bank of Sudan Act, 1959 shall be repealed. Nevertheless all the regulations, orders and rules made, or the measures taken thereunder shall remain in force, until revoked, or amended in accordance with the provisions of this Act.
The Bank of Sudan and the employees thereof shall be excluded from the following laws, and any other laws replacing the same, namely:
In this Act, unless the context otherwise requires,:
|“Advances”||mean employment of money, in accordance with Islamic forms;|
|“Approved non-banking bodies”||mean the non-banking bodies, for which a permit has been issued by the Governor to deal in foreign exchange;|
|“Bank”||means the Bank of Sudan, established under the repealed Bank of Sudan Act, 1959;|
|“bank”||means any bank established by law , or registered under the provisions of the Companies Act , 1925, after satisfying the requirements of the Banking Business (Organization) Act, 1991, and practises banking business inside, or outside the Sudan;|
|“Banking business”||means the banking services, investment and advances, advanced by the Bank, in accordance with the provisions of this Act;|
|“Board”||means the Board of Directors of the Bank, established under the provisions of section 7;|
|“Credit bills”||mean the financing instruments issued by the Bank, and circulated in the primary and /or secondary exchange;|
|“Dinar”||means the unit of currency in the Sudan , in accordance with the provisions of section 19;|
|“Governor”||means the Governor of the Bank, appointed under the provisions of section 9(1);|
|“Loan”||means vesting of money, or thing into another; provided that he shall repay its like in amount, type and capacity, to the lender, at the end of the term of loan;|
|“Member”||means the member of the Board;|
|“Minister”||means the Minister of Finance and National Economy;|
|“Sight liabilities”||mean the aggregate liabilities of the Bank, which are repayable on demand;|
|“Time liabilities”||mean any liabilities, other than sight liabilities.|
The Bank shall have an independent corporate personality , perpetual succession and a common seal, and may litigate in its own name.
The headquarters of the Bank shall be in Khartoum, and may establish branches , or agencies inside the Sudan, and appoint correspondents outside the Sudan.
Objects of the Bank
The Bank shall have the following objects, to:
Establishment and constitution of the Board
There shall be established a board for management of the Bank, and constituted as follows:
The Board shall be subject to the supervision of the President of the Republic.
Functions and powers of the Board
The Board shall have the following functions and powers, to:
The Board may delegate any of the powers, or functions thereof to its Chairman, any of his deputies, any of its members or any committee, as to such conditions and safeguards, as they may deem fit.
Appointment of the Governor and his two deputies and their terms of service
Duties of the Governor and both his deputies
The Governor and both his deputies shall dedicate all their professional time to serve the Bank, and shall not, during their occupation of post, occupy any post, or perform any other work, whether for, or without pay. Nevertheless every one of them may, by permission of the Board, work as a:
The Governor shall manage the daily business of the Bank, be responsible therefor, before the Board, and exercise the power of disposal and signature of documents, on the Bank’s behalf. He may delegate such power to any of his deputies, or to others, from the employees of the Bank.
In case of absence of the Governor, the first deputy, and in case of absence of the latter, the second deputy, shall manage the daily affairs of the Bank, and they shall have the same powers and responsibilities of the Governor, provided for in sub-section (2).
The Governor, or any of his both deputies shall not, without the approval of the Board, accept to have a considerable interest in any other bank, or in any of the other financial institutions, save after the expiry of the period of one year, for the Governor, and six months, for both his deputies, of the date of leaving the office at the Bank; provided that every one of them shall enjoy his emoluments in full , during such period.
Other members of the Board
Non-qualification for occupying the post
No person shall be appointed, as a member of the Board, where he is:
Vacation and filling of office
The office of any member of the Board shall fall vacant, in any of the following cases:
The President of the Republic, upon the recommendation of the Board, shall prescribe the realization of disqualification, provided for in section 12, or the case of vacation of office, provided for in sub-section (1).
In case of vacation of the office of the member, another person shall be appointed to fill the vacant office, for the remaining period, in accordance with the procedure of appointment applicable to such office.
Meetings of the Board
Appointment and discipline of employees
The Governor shall appoint the employees of the Bank, discipline them and terminate the service thereof, in accordance with the provisions of the regulations; provided that they shall not be appointed, save in the posts created by a decision of the Board.
The Bank shall not connect, between any salary, costs, wages, or any benefit or other increment, as may be payable to employees, and the net profits thereof.
Capital, Reserve and Profits
The licensed capital of the Bank is three hundred million, one hundred and fifty thousand Dinars. The Government has paid it in full, and may increase the same, whenever need requires that.
Net profits determined
The Bank shall determine the net profits thereof for every financial year, after allowing for the value of expenses of operation of such year, including the value of bad and doubtful debts, depreciation and renewal of assets, or its obligations towards termination of service gratuities, or any other schemes of social interdependence.
Reserve allocated and remainder of net profits distributed
The unit of currency, in the Sudan, shall be the Sudanese Dinar.
The Sudanese Dinar shall be divided into 100 equal units, each of which shall be called a Piastre .
The Board, upon the recommendation of the Governor, in consultation with the Minister, shall determine the policies of the par value of the Dinar.
Sole right to issue currency
The Bank shall have the sole right to issue currency, and no person shall issue currency notes, bank notes or coins, or any documents, which are , in the opinion of the Bank, likely to pass as legal tender.
The business of the Bank concerning currency
The Bank shall:
Denominations, forms and composition of currency notes and coins
The Bank shall issue currency notes and coins, as to such denominations, forms and designs, as may be approved by the Council of Ministers, upon the recommendation of the Governor, and the same shall be notified in the Gazette.
Standard weight of coins
The standard weight and composition of coins, and the amount of remedy and variation from standard weight, shall be as the Council of Ministers may approve, upon the recommendation of the Governor, and the same shall be notified in the Gazette.
Coins illegally dealt with
Recovery of lost, mutilated or imperfect coins
No person shall be entitled to recover, from the Bank, any lost, stolen , mutilated or imperfect coins . The Bank shall have the absolute right to prescribe such circumstances, as under which the value of the imperfect, or mutilated currency notes may be recovered, as to such conditions, and within such limits, as may be prescribed in the regulations.
Reserve of gold and external assets
The Bank may maintain a reserve of gold and external assets , expressed in such currencies, as may be determined by the Board, from time to time, and consisting of all, or any of the following types:
The Bank shall maintain such reserve, as the Board may determine, from time to time, in accordance with the provisions of sub-section (1).
Foreign Exchange Operations
Dealing in gold, bullion and foreign exchange
The Bank may:
Foreign exchange operations limited
Saving the arising of special circumstances, the Bank shall not practise the operations, set out in section 30 , save with banks, approved non-banking bodies and licensed persons, working in the Sudan, and with the Government and the institutions thereof and central and commercial banks, and foreign banks and governments, and the institutions of the same, and international institutions.
Power to grant and receive foreign loans
The Bank shall have the right to grant advances to any of the institutions provided for in section 31, or obtain advances therefrom ; provided that such advances shall be consistent with the nature of the work of the Bank.
Functions of the Bank with respect to exchange control
The Bank shall carry out the functions and duties, relating to control of foreign exchange transactions, as may be authorized by the law; and the Bank shall be the sole body having the power to grant licences in the field of dealing into foreign exchange.
Relations with Banks
Accounts opened for banks
The Bank may open accounts for banks and other credit institutions, working in the Republic of the Sudan, and may likewise accept deposits therefrom .
The Bank may:
Profit rates fixed
The Bank may fix and announce, to the banks and the non-banking bodies approved thereby, from to time, the rate and share of profits, in the various transactions and forms, and the rate of subscription, of the partner, to the capital of partnerships, and all such as may control and serve the public interest in this respect.
Reserve requirements for banks determined
Bank financing restricted
The Governor, whenever he deems the same necessary, may :
Every bank, which exceeds any of the ceilings prescribed by the Governor, under the provisions of sub-section (1), shall be subject such administrative and financial sanctions, as the regulations may specify.
Information required from banks
The Governor, or whoever he may authorize, may require banks to submit thereto:
The Governor, or whoever he may authorize, may require any bank to prepare its books for inspection, and submit such documents and evidence, as may prove that it has executed the directions, issued thereto under the provisions of this Act.
All branches of any bank treated as one bank
All the branches, subordinate to any bank, shall be deemed as one bank, for the purposes provided for in sections 37, 38 and 39.
Clearing houses organized
The Bank, in consultation with other banks, shall establish clearing houses, at any place, as it may deem fit.
New banks established, or to conduct part of banking business
No person shall establish any bank, or conduct banking business, or part thereof, in the Republic of the Sudan, save under a licence from the Bank.
Power to issue directions and instructions to banks
The Governor, or whoever he may authorize, shall have the power of the issue of directions and instructions, to any bank, or any person, conducting banking business, or part thereof, and such bank, or person shall abide by, and execute such directions.
Relation with the Government
The Government banker and fiscal agent
The Bank shall be the Government banker, its advisor and the fiscal agent thereof.
Holding Government accounts
The issue and management of credit bills
There shall be entrusted, to the Bank, the function of the issue and management of the Government credit bills, as to such terms and conditions, as may be agreed upon, between the Government and the Bank.
The Bank carrying out other functions on behalf of the Government
The Bank may act as an agent of the Government, as to such terms and conditions, as may be agreed upon, between the Government and the Bank; provided that the same shall be in accordance with the provisions of this Act.
Government granted advances
The Bank may grant temporary advances to the Government, as to such terms, as it may prescribe; provided that the advances shall not at any time exceed 15% of the estimates of the general revenues of the Government in the financial year, in which the advances are granted; provided further that the whole advances shall be repaid within a period not exceeding the six months subsequent to the end of the financial year, in which the same have been granted.
Where the whole advances, or part thereof are not repaid, within the period provided for in sub-section (1), the same shall be treated as to such manner, as may be agreed upon, between the Bank and the Government.
Securities dealt in
The Bank may purchase and sell securities, issued and publicly offered for sale, by the Government, or form part of an offered issue.
Lending to the Government limited
Save as provided for in sections 46, 47 and 48 , the Bank shall not directly, or indirectly advance loans, or advances, to the Government; provided that the Bank may continue to hold such non-transferable treasury bills, as it may take over from the Sudan Currency Board.
Other Operations of the Bank
Subject to the provisions of section 55, the Bank may perform any type of banking business, as the prohibition of which is not expressly provided for in this Act; on condition that they shall not be inconsistent with the nature of the work of the Bank.
Sight drafts issued
The Bank may issue sight drafts and such other types of remittances, as may be payable at its own offices, or the offices of the agents and correspondents thereof.
Other persons’ accounts opened
The Bank may open accounts for and accept deposits, from public institutions and corporations, states’ governments, localities and the bodies mentioned in sections 30, 31 and 45.
Shares of financial enterprises held
The Bank may subscribe to the shares of any enterprise, purchase, sell or hold such shares, whenever participation to such enterprise, or the initiation thereof, achieves the objectives of the Bank, or the same is generally in the interest of the national economy.
Operations which the Bank shall not undertake
The Bank shall not:
Control of the National Assembly
The Governor shall present, before the National Assembly, at the end of every year, a statement including the general policies, plans and future programmes of the Central Bank, and a report on the general performance for the previous year, as to such procedure, as may be followed in presenting and approval of the statements of ministers, before the National Assembly, subject the privacy of the information of the Central Bank.
The financial year of the Bank shall be the Gregorian year, which commences, on the first of January, and terminates, on the thirty first of December of the same year.
Audit of the Bank’s accounts
Accounts of the Bank shall be audited, in accordance with the General Audit Chambers Act, 1999.
Annual statements of accounts and the annual report
The Bank shall present, to the President of the Republic, within three months, of the end of every financial year, an audited copy of the annual statement of the accounts, and such statement shall be published in the Gazette.
There shall be attached, to the statement provided for in sub-section (1), a report from the Board , on the operations of the Bank, during the ending financial year.
Exemption from taxes and fees
Profits of the Bank, its operations, capital, property and document shall be exempted, from all taxes and fees.
Secrecy of the Bank’s affairs
Every member of the Board and employees of the Bank shall have due regard to secrecy, with respect to the matters connected with the affairs and clients of the Bank, save as performance of the duties thereof may require under the provisions of this Act.
Liquidation of the Bank
The Bank shall not be liquidated, save by law.
Power to make regulations and orders
The Board may make such regulations and orders, as may be necessary, for the implementation of the provisions of this Act.