Article 40: Removal of Restrictions on Movement of Capital and Current Transactions

  1. The Member States shall, in order to ensure the proper functioning of the CSME, remove among themselves:

(a)        restrictions on the movement of capital payments;

(b)        restrictions on all current payments including payments for goods and services and other current transfers.

  1. COFAP, subject to the approval of the Conference, shall establish in collaboration with the Committee of Central Bank Governors a programme for the removal of the restrictions mentioned in paragraph 1 of this Article.
  2. For the purpose of this Article, capital and related payments and transfers include: (a) equity and portfolio investments;

(b)        short-term bank and credit transactions;

(c)        payment of interest on loans and amortization;

(d)        dividends and other income on investments after taxes;

(e)        repatriation of proceeds from the sale of assets; and

(f)         other transfers and payments relating to investment flows.