Exchange Control Policy


Download: Exchange Control Policy Guidelines for Banks and Authorised Restricted Foreign Exchange Dealers, January 2017 Revision


The Foreign Exchange Control (Amendment) Regulations 2000 assigns the authority to the National Reserve Bank of Tonga over sending money and securities out of Tonga.

The exchange control documentary requirements guideline is issued by the Reserve Bank for use by banks and authorized restricted foreign exchange dealers under the Foreign Exchange Control Act.

These guidelines were introduced by the Reserve Bank to provide a level playing field in the foreign exchange market, improve the consistency of the exchange control process in the financial system, improve the accuracy of balance of payments statistics and assist with the protection of the country’s foreign reserves.

The exchange control documentary requirements list the type of supporting documents that banks and authorized restricted foreign exchange dealers are required to sight for all foreign exchange outward payments. Banks and
authorized restricted foreign exchange dealers have been delegated to approve:

1. All payments of amounts up to T$100,000 per transaction except for gifts payments which are limited for amounts up to T$50,000 per applicant per beneficiary per annum, and the payments under the ‘Other EC
Requirements’ which has to be in line with the FEC Regulations.
2. Travel allowance payments are limited for amounts up to T$20,000 per application.
3. The banks and authorized restricted foreign exchange dealers have been delegated to approve all payments of amounts up to T$5,000 per transaction per applicant without supporting documents, except for those under the ‘Other EC Requirements’ which has to be in line with the FEC Regulations. The Reserve Bank reserves the right to ask for any other information.
4. All payments above the delegated limit require the prior approval of the Reserve Bank.

In accordance with Regulation 11 of the Foreign Exchange Control (Amendment) Regulations 2009, a person who commits an offence against these regulations shall be liable on conviction (i) in the case of an individual to a fine not
exceeding $20,000 or imprisonment for a term not exceeding 3 years (ii) in the case of a body corporate to a fine not exceeding $200,000.

The Reserve Bank reserves the right to conduct due diligence checks on applicants, require further information, and may not approve any application that does not comply with its Anti-Money Laundering and Counter Terrorist Financing requirements.

National Reserve Bank of Tonga
January 2017

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