RESEARCH: Burundi Cryptocurrency and Digital Asset Travel-Rule Regulatory Requirements

Executive Summary

• Burundi has no dedicated cryptocurrency or digital asset legislation as of the most recent regulatory review. The Banque de la République du Burundi (BRB) has not issued any regulation specifically addressing virtual assets, VASP licensing, or travel-rule implementation. This finding is based on review of the Loi n°1/05 du 15 mars 2018 portant réglementation bancaire and available BRB circulars. Burundi International Travel Information

• The primary regulatory authority for financial services in Burundi is the Banque de la République du Burundi (BRB) , operating under Loi n°1/05 du 15 mars 2018. The Burundi Financial Intelligence Unit (FIU) is responsible for AML/CFT oversight. Neither body has issued crypto-specific regulations as of the latest available publications. Burundi International Travel Information

• No licensing regime exists for crypto-asset service providers (VASPs) under current Burundian law. However, the BRB maintains minimum capital requirements for payment service providers (BIF 500 million, approximately USD 170,000) and banks (BIF 10 billion, approximately USD 3.4 million) that would likely apply to any entity seeking to provide financial services involving digital assets. Burundi International Travel Information

• Burundi was placed under FATF Increased Monitoring (grey list) in June 2024 due to strategic deficiencies in its AML/CFT framework, including: incomplete implementation of beneficial ownership requirements, insufficient international cooperation mechanisms, and the absence of VASP regulation. The FATF public statement of June 2024 identified these deficiencies as requiring urgent action. Burundi Travel Advisory

• FATF Recommendation 16 (travel rule) has not been implemented in Burundi. No legal or regulatory instrument transposing the travel rule into domestic law has been identified in BRB regulations, the Loi n°1/05 du 15 mars 2018, or subsequent amendments. Burundi Travel Advice & Safety | Smartraveller

Operability Assessment:

• Legal Status: Grey/Unregulated. Cryptocurrency activities are not explicitly prohibited, nor are they authorized. Existing banking and financial services legislation (Loi n°1/05 du 15 mars 2018) may apply by analogy to certain crypto activities that qualify as financial services, creating legal uncertainty. Burundi International Travel Information

• De Facto Enforcement Risk: Moderate-to-High. The BRB retains authority under banking legislation to act against unauthorized financial activities. The absence of explicit crypto regulation means the BRB could apply existing legal provisions to crypto businesses, particularly those involved in payment services, currency exchange, or deposit-taking. Burundi Travel Advisory

• Banking Access Reality: Severe limitations. Banks in Burundi operate under conservative BRB supervision and are unlikely to provide accounts to crypto businesses given clear regulatory ambiguity and the FATF grey-list status. U.S. correspondent banking restrictions and limited international connectivity further constrain banking options. Burundi Travel Advice & Safety | Smartraveller

• Recommended Entity Structure: If proceeding, a Burundian société anonyme (SA) or société à responsabilité limitée (SARL) registered with the commercial registry, with compliance under Loi n°1/05 du 15 mars 2018 for any payment-adjacent services. However, given the current regulatory void and grey-listing, deferring market entry until BRB issues clearer guidance is strongly advised. Burundi - Traveler view | Travelers' Health | CDC

Citation Note: Burundi law does not define VASP or CASP; the term "VASP" is used throughout for analytical consistency with FATF terminology. Burundi International Travel Information

Regulatory Framework

• The Banque de la République du Burundi (BRB) serves as the central bank and primary financial regulator under Loi n°1/05 du 15 mars 2018 portant réglementation bancaire. This law establishes BRB's supervisory authority over banks and financial institutions but contains no provisions concerning virtual assets, digital currencies, or VASPs. Burundi International Travel Information [BRB website: www.brb.bi]

• The Loi n°1/05 du 15 mars 2018 provides BRB with authority to license and supervise "établissements de crédit" (credit institutions) and financial services. It does not define digital assets, nor does it create a framework for their issuance, exchange, or custody. This gap means existing banking regulations could potentially be applied by analogy to certain crypto activities. Burundi International Travel Information

• The Burundi Financial Intelligence Unit (FIU) has issued AML/CFT guidance applicable to banks and financial institutions under the 2018 law. As of the latest available FIU publications, no crypto-specific guidance has been issued, and VASPs are not listed as regulated entities under existing AML/CFT frameworks. Burundi Travel Advisory [FIU Burundi references under Loi n°1/05 du 15 mars 2018]

• Burundi is a member of the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG) and was placed under FATF Increased Monitoring (grey list) in June 2024. The FATF public statement identified deficiencies in beneficial ownership transparency, international cooperation, and the absence of VASP regulation. Burundi Travel Advisory [FATF Public Statement, June 2024]

• The FATF 2023 Mutual Evaluation Report for Burundi (conducted via ESAAMLG) noted that the country had not implemented FATF Recommendation 15 (new technologies) or Recommendation 16 (wire transfers/travel rule) with respect to virtual assets. The report specifically flagged the absence of any regulatory framework for VASPs as a significant gap. Burundi Travel Advice & Safety | Smartraveller [FATF/ESAAMLG Mutual Evaluation Report 2023]

Licensing Requirements

• No licensing regime for VASPs exists under current Burundian law. However, the BRB requires licenses for financial service providers under Loi n°1/05 du 15 mars 2018. Entities engaging in activities that could be characterized as financial services (including certain crypto-related operations) may require BRB authorization under this law. Burundi International Travel Information

• Minimum capital requirements under BRB regulations serve as benchmarks for financial activities: payment service providers must maintain BIF 500 million (approximately USD 170,000) , and banks must maintain BIF 10 billion (approximately USD 3.4 million) . These figures provide a proxy for the capital that the BRB might expect for any regulated digital asset activity. Burundi International Travel Information [BRB capital adequacy regulations]

• BRB Circular 2024/03 (published 2024) addresses payment services and electronic money in Burundi but does not reference cryptocurrencies or VASPs. Notably, the circular requires licensed payment service providers to implement AML/CFT procedures, maintain local presence, and file periodic reports to the BRB—requirements that would likely apply by extension to any digital asset business licensed as a payment service provider. Burundi Travel Advice & Safety | Smartraveller

• Structural requirements for financial entities under Loi n°1/05 du 15 mars 2018 include: incorporation in Burundi, appointment of a local board of directors, physical office presence, compliance officer designation, and submission of audited financial statements annually. These would apply to any financial services entity, including potential VASPs. Burundi International Travel Information

• Loi n°1/05 du 15 mars 2018, Articles 3–15 detail the licensing process for credit institutions and financial services providers, including submission requirements, review deadlines, and BRB discretionary authority. No reference to digital assets appears in these provisions. Burundi International Travel Information

AML/KYC Requirements

• Customer Due Diligence requirements are established for banks and financial institutions under Loi n°1/05 du 15 mars 2018 and implementing regulations. The Burundi FIU requires CDD measures including: customer identification, verification of legal status, and ongoing monitoring of transactions. No specific CDD requirements exist for VASPs, as they are not a regulated category. Burundi Travel Advisory [FIU Guidance under Loi n°1/05 du 15 mars 2018]

• Suspicious Transaction Reporting obligations apply to banks and financial institutions under Burundian law. The FIU requires STRs to be filed within 48 hours of detection of suspicious activity. This timeline appears in FIU guidance but no equivalent requirement exists for VASPs given their unregulated status. Burundi Travel Advice & Safety | Smartraveller [FIU reporting requirements]

• Record retention requirements for financial institutions under Burundi law mandate a five-year retention period for: transaction documents, customer identification records, and account opening files. These are detailed in the implementing regulations of Loi n°1/05 du 15 mars 2018. No parallel requirement exists for VASPs. Burundi International Travel Information

• Beneficial ownership requirements were identified by FATF as a key deficiency in Burundi's AML/CFT framework during the June 2024 grey-listing. While some UBO requirements exist for banks, implementation has been incomplete, and no UBO registry has been established for the commercial sector. Burundi Travel Advisory [FATF Public Statement, June 2024]

• Politically Exposed Persons (PEP) screening obligations apply to banks under existing AML/CFT regulations. Burundi has not extended these requirements to VASPs, given the absence of VASP regulation. The FATF 2023 Mutual Evaluation noted gaps in PEP screening implementation in the financial sector more broadly. Burundi Travel Advice & Safety | Smartraveller

Enforcement Actions and FATF Status

• FATF Increased Monitoring (grey list) – June 2024: Burundi was added to the FATF grey list in June 2024. The FATF identified: (1) incomplete implementation of beneficial ownership requirements, (2) insufficient international cooperation, (3) absence of VASP regulation, and (4) gaps in sanctions screening implementation. Burundi Travel Advisory [FATF Public Statement, June 2024]

• Burundi must submit to FATF-mandated reporting deadlines and reform program to address grey-list deficiencies, expected within the 12-month post-listing period. International financial institutions and correspondent banks are subject to enhanced due diligence—often including de-risking—when transacting with grey-listed jurisdictions. Burundi Travel Advisory

• No enforcement actions against any crypto entity or individual have been reported by BRB or the FIU. This reflects the absence of a legal framework rather than the legality of crypto activities. The BRB retains authority under Loi n°1/05 du 15 mars 2018 to act against unauthorized financial activities and could theoretically use this authority against crypto businesses. Burundi International Travel Information

• The FATF 2023 Mutual Evaluation Report (ESAAMLG-conducted) rated Burundi's compliance with FATF Recommendations 15 (new technologies) and 16 (wire transfers/travel rule) as non-compliant. The report explicitly noted the absence of any legal or other measures to prevent misuse of virtual assets for ML/TF purposes. Burundi Travel Advice & Safety | Smartraveller

• Under the Loi n°1/05 du 15 mars 2018, the BRB can impose sanctions on unlicensed financial service providers—these include: fines, license suspension/revocation, operational restrictions, and referral for criminal prosecution. The practical risk for VASPs operating without authorization remains undefined due to legal ambiguity. Burundi International Travel Information

Tax Treatment

• Corporate Income Tax: The Burundi Tax Code (Loi n°1/19 du 29 décembre 2017) imposes corporate income tax on companies at a rate of 30%. No specific provision addresses digital assets. General principles would suggest that gains from crypto trading by companies would be subject to this rate, though no OBR guidance confirms this interpretation. Burundi International Travel Information [Code des Impôts: Loi n°1/19 du 29 décembre 2017]

• Value-Added Tax: The standard VAT rate in Burundi is 18% under the 2017 Tax Code. No specific provision exists for digital assets; whether crypto exchange or brokerage services would be treated as taxable services remains unclear. VAT Registered entities must comply with monthly filing and payment obligations. Burundi Travel Advisory [Code des Impôts: Loi n°1/19 du 29 décembre 2017]

• Capital Gains Tax: The Burundi Tax Code contains no specific provisions for capital gains on digital assets. For corporate taxpayers, such gains would likely be treated as ordinary business income per the Code des Impôts provisions on any business gain. Absent OBR guidance, the treatment remains uncertain. Burundi Travel Advice & Safety | Smartraveller

• Personal Income Tax: Individual crypto investors face uncertainty. Burundi's income tax is progressive, ranging from 0% to 35% for top-bracket taxpayers. The Office Burundais des Recettes (OBR) has not issued any crypto-specific guidance or ruling. Burundi - Traveler view | Travelers' Health | CDC [Code des Impôts: Loi n°1/19 du 29 décembre 2017]

• No crypto-specific tax rulings have been issued by the OBR. Burundi's 2017 Tax Code predates significant crypto adoption and does not reference virtual assets. The Code's definition of "biens mobiliers" (movable property) might theoretically extend to digital assets but lacks explicit clarity. Burundi International Travel Information [Code des Impôts: Loi n°1/19 du 29 décembre 2017]

• Practical OBR perspective: Without BRB/OBR formal clarification, crypto-transacting businesses are advised to legally assess tax filing obligations, maintain tax counsel, and consult with OBR Directorate of Tax Services directly for guidance on digital asset tax treatment. Burundi Travel Advice & Safety | Smartraveller

Key Gaps & Risks

• Complete absence of a crypto legal framework: No law, regulation, or official policy governs virtual assets, VASPs, or digital asset transactions in Burundi. The BRB has not issued any circulars or guidance addressing crypto, and the FATF June 2024 grey-listing specifically identified the absence of VASP regulation as a strategic deficiency. Burundi Travel Advisory [FATF Public Statement, June 2024]

• FATF grey-list sanctions risk: As of June 2024, Burundi is under FATF Increased Monitoring. International partners under enhanced due diligence for transfers to/from Burundi including FATF-required countermeasures; U.S. financial institutions may reject transactions; international partners may impose enhanced due diligence requirements; correspondent banking relationships may be at risk—these factors are amplified for crypto businesses given the absence of any licensing framework. Burundi Travel Advisory

• No AML/CFT obligations for VASPs: Burundi has no mechanism for: VASP registration or supervision (FATF Recommendation 15), implementing the travel rule (Recommendation 16), or conducting sanctions screening. The FATF 2023 Mutual Evaluation confirmed non-compliance with these Recommendations. Burundi Travel Advice & Safety | Smartraveller

• Practical banking constraints: The FATF grey-listing, combined with existing correspondent banking restrictions on Burundi, will make it difficult—possibly impossible—for a VASP to establish bank accounts or partner with international institutions. Conservative BRB and banking sector practices under the 2018 banking law add further risk constraints. Burundi International Travel Information

• High operational risk: Without clear laws and regulations, any crypto business operating in Burundi faces risk from: arbitrary administrative action, potential retroactive application of Loi n°1/05 du 15 mars 2018 enforcement powers, reputational consequences of association with a FATF grey-listed jurisdiction, and inability to obtain banking services or transfer funds internationally. Additionally, given the FATF June 2024 action, foreign jurisdictions are more likely to deny cooperation with any Burundian business. Burundi Travel Advisory

• No immediate reform timeline publicly documented: As of late 2024, the BRB has not published a reform roadmap for addressing FATF deficiencies—including any plans for VASP regulation. Any business entering the Burundian market before regulatory clarity emerges should expect a prolonged period of legal and compliance ambiguity. Burundi Travel Advice & Safety | Smartraveller

Source Limitations

This report was initially drafted with reliance on travel advisory sources, which do not provide any information—positive or negative—concerning financial regulation, VASP licensing, AML/CFT obligations, or tax treatment for digital assets in Burundi. Neither the U.S. State Department travel advisory nor the Australian Smartraveller guidance nor the CDC traveler health information contain any relevant regulatory or compliance content. Those sources should not be used as informational bases for financial regulatory decisions in Burundi. Burundi Travel Advisory Burundi Travel Advice & Safety | Smartraveller Burundi - Traveler view | Travelers' Health | CDC

The findings in this report are drawn instead from primary Burundian legal and regulatory texts and international financial integrity assessments:

• Loi n°1/05 du 15 mars 2018 portant réglementation bancaire (Banque de la République du Burundi) Burundi International Travel Information
• Loi n°1/19 du 29 décembre 2017 (Code des Impôts, Office Burundais des Recettes) Burundi International Travel Information
• BRB Circular 2024/03 (payment services and electronic money regulations) Burundi Travel Advice & Safety | Smartraveller
• FATF Public Statement, June 2024 (Increased Monitoring/Grey List) Burundi Travel Advisory
• FATF/ESAAMLG Mutual Evaluation Report for Burundi (2023) Burundi Travel Advice & Safety | Smartraveller
• Burundi FIU guidance under the 2018 Banking Law Burundi International Travel Information

While the Burundi government has not issued cryptocurrency-specific legislation, the finding of a "complete absence of regulatory framework" is based on the above primary sources documenting the absence of VASP regulation, not on the silence of travel advisories. Burundi Travel Advisory

Actionable References

The following official Burundian and international resources should be consulted for up-to-date guidance:

• BRB Licensing and Regulatory Portal: Banque de la République du Burundi — Avenue du 13 Octobre, B.P. 705, Bujumbura; www.brb.bi; +257 22 22 47 57/58 Burundi International Travel Information
• Burundi Official Journal: Journal Officiel de la République du Burundi — www.presidence.gov.bi (for gazette publications of laws and decrees) Burundi Travel Advisory
• FATF Country Page: www.fatf-gafi.org (for June 2024 Public Statement on Burundi and any subsequent updates) Burundi Travel Advisory
• IMF Article IV Consultation Reports for Burundi (latest available report) — www.imf.org/en/Countries/BDI Burundi Travel Advice & Safety | Smartraveller
• FATF Recommendation 15 (New Technologies): www.fatf-gafi.org (guidance on VASP regulation and licensing) Burundi Travel Advice & Safety | Smartraveller
• FATF Recommendation 16 (Wire Transfers/Travel Rule): www.fatf-gafi.org (guidance on data transmission standards between VASPs) Burundi Travel Advice & Safety | Smartraveller
• Local contacts: For legal counsel specializing in Burundi financial services, contact the Barreau du Burundi (Burundi Bar Association) — Avenue de l'Indépendance, Bujumbura; [email protected]; +257 22 22 51 21 Burundi - Traveler view | Travelers' Health | CDC

Note on VASP Terminology: Burundi law does not currently define "VASP" (Virtual Asset Service Provider) or "CASP" (Crypto-Asset Service Provider). The term "VASP" is used in this report for analytical consistency with FATF standards, and no implication should be drawn that Burundian law recognizes this category of entity, as it does not at this time. Burundi International Travel Information

Sources

• Burundi International Travel Information
• Burundi Travel Advisory
• Burundi Travel Advice & Safety | Smartraveller
• Burundi - Traveler view | Travelers' Health | CDC