The South Sudan Central Bank has announced new cash withdrawal limits aimed at curbing inflation and enhancing the country’s financial management practices. Effective September 16, 2024, individuals and businesses will only be able to withdraw up to SSP 10,000,000 across all banking channels. Withdrawals exceeding this amount must either be deposited through existing bank accounts or settled via interbank transactions, including mobile money platforms. This decision aligns with the bank's commitment to enforcing stringent regulations around anti-money laundering and countering the financing of terrorism (AML/CTF).
Governor James Alic Garang emphasized the importance of these regulations, stating, “The bank will continue to enforce compliance with ex-ante AML/CTF regulations relating to KYC [Know Your Client] and customer due diligence.” The Central Bank is encouraging clients to utilize authorized channels for their banking needs, promoting technological advancements in financial services and pushing for digital transformation within the banking sector.
The Bank of South Sudan’s objectives come amid worsening inflation and skyrocketing consumer prices, which are largely the result of product shortages and inefficiencies within the marketplace. “All employees in public and private sectors are encouraged to open bank accounts,” the Central Bank added, highlighting the need for increased financial transparency and accountability.
Meanwhile, the Philippines is grappling with its own financial institution concerns. Senator Sherwin Gatchalian has called for an investigation following reports of local banks failing to flag suspicious transactions tied to Philippine Offshore Gaming Operators (POGOs). Transactions related to the businesses associated with former mayor Alice Guo have raised alarms, particularly since they involve vast sums of money compared to what was previously indicated on financial statements.
Gatchalian's proposed Senate Resolution 1193 draws attention to transactions amounting to hundreds of millions of pesos, stating they enable the operation of the POGO hub at Bamban, Tarlac. “These circumstances raise questions on the adequacy of existing anti-money laundering and counter-terrorism financing regulations,” Gatchalian said, emphasizing the banks’ role in identifying and addressing potentially illicit financial activities.
He expressed concern over the Philippines’ position on the Financial Action Task Force (FATF) grey list, which places the country under increased scrutiny due to its perceived shortcomings in managing financial regulations around money laundering. The resolution notes the need for enhanced compliance with AML/CTF obligations and the importance of public-private collaboration to strengthen regulatory frameworks and practices to combat financial crimes.
“The effectiveness of their internal controls and procedures for identifying and reporting suspicious transactions is now under the spotlight,” Gatchalian stated. Amid the COVID-19 pandemic and its accompanying economic fallout, the scrutiny of banks has intensified, highlighting the need for institutions to not only follow compliance but also actively monitor and report unusual financial patterns.
Both South Sudan and the Philippines are at pivotal points, as the financial landscapes of these nations are closely monitored to facilitate economic stability and growth. With increased cash withdrawal limits and more stringent regulations, these countries aim to strike the balance between encouraging financial transactions and preventing illicit activities.
The focus on cash management is particularly salient when considering South Sudan’s inflation crisis and the Philippines’ battle against the inefficacies of banking practices related to POGOs. For every step taken by financial institutions to adapt to new regulations, the overarching goal remains: to maintain the integrity of the banking sector and protect consumers from the repercussions of financial mismanagement.
