08/05/2025
Formal Response to the Directive Issued by the Financial Intelligence Unit, Bank of South Sudan
By Ajing Deng Ayuel Jr.
The recent directive issued by the Financial Intelligence Unit (FIU) of the Bank of South Sudan, requiring all traders to deposit bulk cash into licensed banks by Friday or face penalties including criminal prosecution and asset confiscation, highlights the government’s renewed effort to enhance financial transparency, curb money laundering, and improve tax compliance. While the objective is commendable, the implementation raises significant concerns that merit urgent review and constructive dialogue.
South Sudan’s financial sector remains in a nascent stage, characterized by limited banking infrastructure, low public confidence in financial institutions, and persistent liquidity challenges. For many traders and businesses, especially in remote areas, access to reliable banking services is minimal or non-existent. Enforcing such a directive without first addressing these systemic limitations risks penalizing compliance-minded citizens who are simply constrained by structural deficiencies.
Moreover, the concern raised by business leaders, including Mr. Robert Pitia, Chairperson of the Central Equatoria State Chamber of Commerce, regarding the unavailability of hard currency, is both valid and pressing. In the current economic climate, many traders resort to holding or saving capital in hard currency—often offshore—not as an act of non-compliance, but as a rational response to currency instability, high inflation, and an unreliable banking system. Unless the central bank can guarantee foreign currency availability, currency stability, and improved banking services, businesses will continue to operate outside the formal system out of necessity rather than intent.
Therefore, while the Bank of South Sudan’s commitment to financial accountability is appreciated, we respectfully urge the following:
1. Strengthen Banking Infrastructure: Ensure the availability and reliability of licensed banks across the country, including digital financial services, to enable compliance.
2. Stabilize Monetary Policy: Implement reforms to reduce inflation, strengthen the South Sudanese Pound, and ensure timely access to hard currency for legitimate business needs.
3. Engage Stakeholders: Work collaboratively with the private sector to build trust, communicate expectations clearly, and provide transition mechanisms for compliance.
4. Defer Penalties: Suspend punitive measures until sufficient reforms have been enacted to make compliance practical and accessible for all traders.
It is in the shared interest of both the public and the government to ensure that financial reforms are inclusive, transparent, and anchored in the realities of our current economic environment. We remain committed to supporting the government’s efforts in building a stable and prosperous financial system—but urge for a pragmatic, consultative, and phased approach to enforcement.
