(JUBA) – The Bank of South Sudan has issued a sweeping regulatory notice introducing stricter rules for banks, microfinance institutions and digital financial service providers. The directive, signed by the Director General of Supervision and Financial Stability, covers licensing, lending, risk management, cyber security and consumer protection.
Under the new framework, banks must provide full information to clients before issuing loans, including interest charges and repayment timelines. If clients fail to complete paperwork within twenty four hours, the loan must be cancelled to prevent forced lending or unauthorised debt.
All licensed institutions are also required to improve record keeping. Every customer interaction, both verbal and written, must be logged and stored for at least five years. Staff behaviour is also part of the directive, with strict penalties set for those found mistreating clients.
The Central Bank said digital financial platforms are now under the same requirements as physical banks. Mobile money operators and electronic payment platforms must protect customer data, improve cyber defences and keep proper records of transactions.
In addition, new rules on fees and repayment collection prohibit the use of aggressive tactics. Institutions are told to treat customers with dignity, especially during debt recovery. The Central Bank warned that any sign of harassment or fraudulent deductions from client accounts will result in sanctions, including licence suspension.
The regulator said consumers must be given clear contacts for complaints and dispute resolution. All financial institutions are expected to respond promptly to customer grievances.
Analysts see the move as an attempt to strengthen public confidence in the financial system as digital payments grow across South Sudan. With one United States Dollar currently valued at around 7,100 South Sudan Pounds, small hidden fees or incorrect deductions can cause significant losses to vulnerable customers.
Banks and non banking institutions have been warned that the Central Bank will conduct both physical and online inspections to ensure compliance.
Key Focus Areas of New Regulatory Notice
| Area of Regulation | Key Requirement | Enforcement Action |
|---|---|---|
| Licensing | Institutions must be fully compliant before receiving approvals | Suspension or cancellation of licence |
| Lending Practices | Clear disclosure of repayment terms and interest before loan approval | Loan cancellation if documentation incomplete |
| Staff Conduct | No harassment or disrespect to clients | Disciplinary action or removal of staff |
| Digital Transactions | Strong data protection and cyber security protocols | System audits and penalties for breaches |
| Record Keeping | Customer files to be stored for at least five years | Fines for missing or unclear records |
| Consumer Protection | Customers must have access to complaint channels | Sanctions for unfair deductions or pressure tactics |
