C.B.S. eases foreign exchange control policies

By Sialai Sarafina Sanerivi • 29 July 2023, 11:20AM

The Central Bank of Samoa has eased its foreign exchange control policies which include increasing the delegations of authority to authorised foreign exchange dealers in Samoa.

The changes by the CBS are to go into effect from Tuesday 1 August 2023. The new changes were the outcome of the review of foreign exchange control policies and general reminders on foreign exchange control.

The C.B.S. issued a statement on Friday to inform commercial banks and money transfer operators of the procedural changes.

"The easing of exchange control policies reflects the prevailing economic environment whilst ensuring the country’s foreign exchange reserves remain at sustainable levels and all foreign exchange transactions out of Samoa are consistent with a safe and sound financial system," the statement from C.B.S. reads.

1. Transfer Overseas of local Investments funds (e.g. with the Unit Trust of Samoa and Samoa National Provident Fund Contributions)	Currently, the Delegation to Commercial Banks and MTOs to process amounts up to SAT$30,000.00 per applicant.	The new changes: Delegated amount to authorized banks and MTOS is to increase to SAT$50,000.00. Any amount in excess of SAT$50,000 is referred to CBS.
2. Emigration from Samoa (i.e. emigration allowance)	Current: No delegation limit	New Changes: Delegation to authorized banks and MTOs for amounts up to SAT$50,000.00. Any amount in excess of SAT$50,000.00 is referred to CBS.

These increased or new delegations of authority to the authorised commercial banks and money transfer operators are subject to the availability of relevant supporting documents.

"As such, the general public is kindly reminded to cooperate and ensure that proper and related supporting documentation for these types of foreign payments is submitted to the authorized commercial banks and money transfer operators when processing payments overseas.

"Approval of overseas payments may not be granted unless appropriate requested documents are submitted at the time of processing."

The outcome of the review also included changes to the exchange control procedures for payments abroad for all types of professional services, and outward remittance of proceeds from the sale of property in Samoa.

It also included procedures for remittance abroad for purchasing a property in Samoa where the vendor or transferor permanently resides abroad.

Nevertheless, the changes also included export procedures.

"Any export of goods (valued in excess of SAT$500.00) requires an export permit from the Central Bank. Notwithstanding this minimum value for a permit, any export of domestically produced goods from Samoa must be reported to and cleared by the Ministry of Customs and Revenue (MCR) Customs Division.

"All exporters are to provide valid business licenses to CBS at the start of each year or at their first consignment at any time of the year.

"Exporters of agricultural products (such as taro) are kindly reminded to submit to CBS the relevant clearance from the Ministry of Agriculture and Fisheries (MAF)’s Quarantine Division for their shipments.

"For any export shipment of Fish, the CBS Provisional Export Entry form must be completed and submitted with the endorsement by the MAF’s Fisheries Division, by the Resident or Business Entity to the Central Bank before processing at MCR’s Customs Division."

The statement also noted that "only licensed commercial banks and foreign exchange dealers" authorised by C.B.S. are allowed to buy or sell foreign currency exchange for Samoan Tala within Samoa.

"All capital payment transfers overseas continue to require prior CBS approval except where delegated by CBS. These foreign exchange payments may include (but are not limited to these) funds for investments overseas, dividend repatriations, proceeds from the sale of local property, overseas borrowings etc.

"Most current payment transactions have been delegated to the authorized commercial banks and money transfer operators, subject to the availability of relevant supporting documents.

"As such, the general public is kindly reminded to cooperate and ensure that proper supporting documents are submitted to these financial institutions at the time of processing any payments overseas.

"For all importers, we strongly advise that proper and valid invoices are submitted to these financial institutions at the time of your request for payments abroad.

"Approval of overseas payments may not be granted unless appropriate requested documents are submitted. These exchange control documentary requirements are in line with international standards for the prevention of anti-money laundering practices and to counter terrorist financing activities to safeguard Samoa’s financial system."

Special exemptions to any exchange control requirements may be granted by the Central Bank but only on a case-by-case basis and where appropriate, but also subject to other prevailing legislations.