On-shore VASP in South Sudan

Central Bank Warnings/Prohibitions (Primary Enforcement): The Central Bank of South Sudan (CBSS) has repeatedly issued warnings and effectively prohibited the use and trading of cryptocurrencies within the country.

2021/2022 Circulars/Statements: The CBSS has advised the public against dealing in cryptocurrencies, citing risks such as lack of regulation, volatility, potential for illicit finance (money laundering, terrorism financing), consumer protection issues, and potential disruption to financial stability. These statements generally declare that cryptocurrencies are not legal tender in South Sudan and that activities related to them are not authorized or regulated.

No Specific Regime: There are no specific registration or exemption requirements tailored for cryptocurrency token issuers.

General Financial Licensing: Any entity that seeks to issue financial products, raise capital from the public, or engage in activities that could be construed as banking, investment banking, or offering financial services, would fall under the existing licensing requirements of the Central Bank of South Sudan (CBSS) or other relevant financial regulators.

The Central Bank of South Sudan Act, 2011: This Act establishes the powers and responsibilities of the CBSS, including its mandate to regulate the financial sector, issue currency, and maintain financial stability. This is the primary legal basis for any CBSS pronouncements on financial activities.

Financial Institutions Act (if applicable): While South Sudan has a developing legal framework, broader financial sector laws would define "financial institutions," "financial products," and licensing requirements. These would be the instruments through which the CBSS could interpret certain crypto activities. Specific acts are not readily available online through stable government portals, but they exist within the legal framework.

Implied Prohibition: As there are no licensed exchanges or platforms for trading cryptocurrencies in South Sudan, any secondary trading would occur either peer-to-peer or on foreign exchanges. This lack of a regulated local framework means that any local platform facilitating secondary trading of tokens (especially if deemed securities) would likely be considered an unauthorized financial institution or an illegal exchange operation.

No Specific Rules: There are no specific rules governing the secondary trading of cryptocurrency tokens, whether security tokens or otherwise.

Practical Reality: Given the CBSS's current stance (see Enforcement Examples below), issuing tokens that could be deemed securities without explicit regulatory approval would likely be seen as an unauthorized financial activity, potentially leading to immediate prohibition rather than a licensing process.

Anti-Money Laundering and Combating the Financing of Terrorism Act, 2012 (often referred to as the AML/CFT Act, 2012).

Identification and Verification:

For individuals: Obtaining and verifying identity using reliable, independent source documents, data, or information (e.g., full name, address, date of birth, nationality, unique identification number from a national ID card, passport, or driving license).

For legal entities/arrangements: Obtaining and verifying the name, legal form, proof of existence, powers that regulate and bind the entity, and the names of relevant persons holding senior management positions.

Beneficial Ownership: Identifying and taking reasonable measures to verify the identity of the beneficial owner(s) of customers, including understanding the ownership and control structure of legal persons and arrangements.

Purpose and Nature of Business Relationship: Understanding the purpose and intended nature of the business relationship.

Ongoing Monitoring: Conducting ongoing due diligence on the business relationship and scrutiny of transactions undertaken throughout the course of that relationship to ensure that the transactions are consistent with the VASP's knowledge of the customer, their business, and risk profile.

Enhanced Due Diligence (EDD): Applying EDD measures for higher-risk categories, such as politically exposed persons (PEPs), cross-border correspondent relationships, or transactions with complex or opaque structures, or those involving high-risk jurisdictions.

Obligation: If a VASP knows, suspects, or has reasonable grounds to suspect that funds are the proceeds of a criminal activity, or are related to terrorist financing, they must promptly report their suspicions to the Financial Intelligence Unit.

Content: Reports must include all available information concerning the customer, the transaction(s), and the grounds for suspicion.

No Tipping-Off: VASPs and their employees are prohibited from disclosing to the customer or any third party that a suspicious transaction report has been or will be submitted, or that an AML/CFT investigation is being conducted.

Duration: Records must typically be maintained for a period of at least five (5) years after the business relationship is ended, or after the date of the occasional transaction.

Records of all transactions, domestic and international.

Records of CDD information (identification data, account files, business correspondence).

Records of suspicious transaction reports filed.

Records of risk assessments and their updates.

Financial Intelligence Unit of South Sudan (FIUSS):

Bank of South Sudan (BSS):

Legal Uncertainty: The lack of specific VASP legislation creates significant legal uncertainty. While a VASP is expected to comply with general AML/CFT laws, the exact scope of "financial institution" or "DNFBP" and direct supervisory authority can be ambiguous.

Evolving Landscape: The global regulatory environment for virtual assets is rapidly evolving. South Sudan, as an ESAAMLG member, is under increasing pressure to align its framework with FATF Recommendation 15 on virtual assets and VASPs. This means future specific regulations are highly likely.

No, not specifically. South Sudan does not appear to have specific legislation or regulations governing Virtual Asset Service Providers (VASPs) or the implementation of the FATF Travel Rule.

N/A. Without specific VASP regulation or Travel Rule implementation, no threshold amounts for crypto transactions have been established.

Regulator Name: Bank of South Sudan (BSS)

Action Type: Public Warnings and Prohibitions on Financial Institutions

Outcome: Cryptocurrencies are not recognized as legal tender, and the public is warned against using them. Financial institutions are expected to avoid dealing with crypto.

Entity Targeted: General public and financial institutions. Violation Type: Engaging with or facilitating the use of unregulated, high-risk assets that are not legal tender. (Implicit: regulatory non-compliance for financial institutions). Penalty Amount: No specific penalty amount against any entity.