Senegal, in 2024, is positioned as a flagship destination for investment in Africa thanks to its robust economic growth, driven by key sectors such as energy, infrastructure and agriculture. The country benefits from recognized political stability and an attractive business climate, supported by investor-friendly reforms. Thanks to modern infrastructure (port, airport, TER) and a strategic location, Senegal is a gateway to the markets of ECOWAS and the African Continental Free Trade Area (AFCFTA). Special Economic Zones and tax incentives make it more attractive to businesses. Finally, with a young population and an ambitious energy transition, Senegal offers unique opportunities for sustainable and innovative investments. Investing in Senegal means investing in a booming economy and a promising future.
1. Legal framework
1.1. What laws and regulations govern exchange control regime in your jurisdiction?
In Senegal, exchange control regime is regulated by
- Regulation 06/2024/CM/UEMOA of 20 December 2024 on the financial relations of the Member States of the West African Economic and Monetary Union (UEMOA) of 20 December 2024 which repeals and replaces Regulation 09/2010/CM/UEMO of 10/10/2010 which was previously applicable
- Act No. 2014-10 of 28 February 2014 establishing the Senegalese Customs Code
- Uniform Act No. 2014/12 of 28 February 2014 on the litigation of offenses against the regulations governing the external financial relations of the member States of the West African Economic and Monetary Union (WAEMU).
1.2. Which bilateral and multilateral exchange control instruments have an effect in your jurisdiction? How is regulatory cooperation and consolidated supervision ensured?
These are:
- Regulation N°06/2024/CM/UEMOA of 20 December 2024
- Uniform Act No. 2014/12 of 28 February 2014 on the litigation of offences against the regulations governing the external financial relations of the member States of the West African Economic and Monetary Union (WAEMU).
1.3. What are the current priorities of regulators and how do they work with the banking industry?
Anti-money laundering is a central priority for regulators, with a focus on prevention, detection and cooperation. This is reflected in the strengthening of regulatory and legislative frameworks, the promotion of transparency and due diligence in the monitoring of transactions, as well as close collaboration and enhanced information exchange.
2. Exchange control regime
2.1. Can a subsidiary or affiliate repatriate money to a non-resident parent company?
Yes, a subsidiary or affiliated capital may repatriate money to a non-resident parent company subject to compliance with foreign exchange regulations.
2.2. Is there limitation of transfer of foreign currency to procure goods or payment for services to non-resident person?
Yes, in principle the transfer of foreign currency is limited to the acquisition of goods or payment for services to non-residents. For other operations, authorization from the Minister of Finance may be required.
2.3. Can a subsidiary easily make payments for intra-group transactions?
Yes, a subsidiary may make payments for intra-group transactions, but these transactions must be made through authorized foreign exchange intermediaries and may require supporting documentation depending on the nature of the transactions.
2.4. Are there rules against intercompany netting off?
We are not aware of any specific rules prohibiting inter-company compensation, but for cross-border transactions, the customs authority requires proof of the repatriation of currency to be produced, as appropriate.
2.5. Are permits required to transfer money to a third party or non-resident entity for procurement of goods or services?
Yes, an authorization is required to transfer money to a third party or non-resident entity for the acquisition of goods or services.
2.6. What requirements or documentation must be in place before banks authorize requests for international transfers?
Before banks authorize requests for international transfers, authorized intermediaries must verify, among other requirements, the identity of the applicant and the beneficiary, the availability, and request all relevant documentation on the transaction, etc.
2.7. Have there been recent directives issued by your Central Bank on Exchange Control?
Yes, the Central Bank of West African States (BCEAO) has issued guidelines on exchange control regime. This is for example the case of Instruction No 025-11- 2016 on the accounting of foreign exchange transactions and assimilated securities.
3. Exchange control contraventions
Enforcement
3.1. Which entities are responsible for enforcing the relevant laws and regulations? What powers do they have?
The BCEAO, the WAEMU Banking Commission, the Authorized Intermediaries, the Customs Administration and the Ministry of Finance are the main bodies responsible for enforcing the laws and regulations relating to the external financial relations of WAEMU member States, each with specific powers of control, supervision, sanction and collection of information.
Sanctions
3.2. What sanctions are applicable in the event of a violation of the exchange control regime?
Sanctions may include fines, default interest, withdrawal of authorization, and other punitive measures depending on the gravity of the offense and the entity involved. These sanctions are applied by BCEAO, the WAEMU Banking Commission, and the finance ministries of the Member States.
4. Trends and forecasts
4.1. How would you describe the current exchange control regime and trends in your jurisdiction? Are there any plans for further developments in the next 12 months, including proposals for legislative reforms?
The current exchange control regime in WAEMU is characterized by various measures and regulations aimed at regulating international financial transactions, including:
- the limitation of manual exchange activities;
- strengthening the conditions for authorization;
- the obligations to place transactions at the place of business;
- monitoring and reporting of operations;
- the regulation of foreign exchange exports and imports.
4.2. Does your jurisdiction regulate cryptocurrencies? Are there any legislative developments with regard to cryptocurrencies or financial technologies in general?
We do not have specific regulations on cryptocurrency, except for Instruction No. 008-05-2015, which regulates the conditions and procedures for the exercise of the activities of electronic money issuers in the UMOA Member States.
