Former CBOS Official: New Banking Agency Regulation Benefits Economy

Sudanhorizon – Hala Hamza

The Central Bank of Sudan has issued the 2026 Regulation for Licensing the Practice of Banking Agency Services, directing banks wishing to deal with agents to submit applications to the Central Bank for approval. The regulation stipulates that applicants must have no record of credit default in their credit report during the 12 months preceding the signing of the agency contract.

Former Assistant to the Central Bank Governor, Abdullah Al-Hassan, described the new banking agency regulation issued by the Central Bank as providing numerous important benefits to the national economy, banks, and citizens alike.

In an exclusive statement to Sudanhorizon, he said the regulation contributes to expanding the scope of financial services and enables banks to reach remote or isolated areas of the country where opening branches may not be feasible due to high costs or geographical barriers.

He explained that through local agents, banks can provide services such as cash deposits, withdrawals, and bill payments, thereby improving access to financial services for citizens across the country. He added that the regulation strengthens local economies by enabling small and medium-sized enterprises in remote areas to obtain banking finance and other financial services.

Al-Hassan noted that assistant banking agents can facilitate access to loans, encourage domestic investment, and broaden financial inclusion. This contributes to raising the proportion of people with access to financial services and strengthening financial discipline nationwide. Easier access to banking services encourages citizens to invest, save, and benefit from additional financial services such as insurance.

He added that the regulation benefits banks by reducing the costs of establishing new branches in various regions, eliminating major expenses such as construction, operations, and associated overhead. By relying on banking agents, banks can deliver services at lower cost without constructing new facilities or hiring large numbers of employees in every region.

He further said the regulation helps expand banks’ customer bases and allows them to reach new client segments that may not use traditional banking services due to the absence of nearby branches or difficulty accessing them. Banking agents can also serve as intermediaries, attracting new customers from individuals and local businesses.

Al-Hassan pointed out that banking agents can also act as guides for citizens in using financial services, helping them understand how to operate bank accounts, financial security practices, and how to benefit from banking services more professionally.

However, the new regulation reviewed by Sudanhorizon prohibits banks from allowing banking agents to open accounts, grant financing, provide cash advances, conduct evaluations related to account opening or financing approvals, engage in foreign currency transactions, deposit or cash cheques, provide services for personal interest, or continue operating if their criminal record includes fraud, dishonesty, lack of integrity, or other financial offenses.

The Central Bank also instructed banks to pay close attention to operational risks, liquidity risks, strategic risks, compliance risks, and risks related to money laundering and terrorist financing.

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