Preliminary arrangements for the establishment of a central bank including the drafting of the legislation then commenced. On 27th March 1963, the Bank of Sierra Leone Act became law and the Bank began operation on 4th August 1964, the day Sierra Leone changed to the decimal system of currency.

The Mission of the Bank of Sierra Leone is to formulate and implement monetary and supervisory policies to foster a sound economic and financial environment. To this end, the Bank aims at building and maintaining a strong and efficient organisation with highly motivated professional employees working in the best interest of Sierra Leone. 

The Bank of Sierra Leone is a body corporate and is 100% state-owned. The Bank's affairs (policies and general administration) are administered by the Board of Directors, which comprise the Governor, the Deputy Governor, and 5 non- executive Directors, all of whom are appointed by the Head of State. These are people of recognized standing and experience in professional, academic, finance or business matters. Thus because they have wide outside interests and are in a position of influence, these Directors bring a wealth of knowledge to the everyday work of the Bank. The Governor, by law, is Chairman of the Board. The term of office of the Governor and the Deputy Governor is 5 years and that of the other Directors is 3 years. However, they may be re-appointed.  

Prior to now, the Bank’s structure comprised (9) nine departments namely:

• Board Secretariat Department

• Research Department

• Banking Supervision Department

• International Finance Department

• Banking Department

• General Services Department

• Human Resources Department

• Accounts & Budget Department

• Development Coordination Department
   

A Director heads each of the Department

In addition, there are three Units directly responsible to the Governors namely:

• Internal Audit Unit

• Management Information Systems Unit

• Security Unit

The objectives of the Bank as spelt out in the Bank of Sierra Leone Act 2000 are to achieve and maintain monetary stability.
In line with the above, the functions of the Bank shall be: -

1. to foster the liquidity, solvency and proper functioning of a stable market – based financial system.;

2. to formulate, adopt and execute the monetary policy of Sierra Leone;

3. to formulate, adopt and execute the foreign exchange policy of Sierra Leone;

4. to license and supervise institutions that engage in the business of receiving money deposits on other repayable funds from the public and extending credits for their own account, including bureau of exchange and foreign exchange dealers;

5. to own, hold and manage its official international reserves;

6. to act as banker and adviser to and as fiscal agent of the Government;

7. to promote the efficient operation of the payments system; and

8. to promote the safe and sound development of the financial system including safeguard the interests of depositors.

• Parliament enacted the Anti-Money Laundering Act 2005 in June 2005.

• The Other Financial Services Act 2001 empowers the Bank of Sierra Leone to supervise non-bank financial institutions.

• The Banking Regulation 2003 strengthens the supervisory role of the Central bank, spells out the specific requirements/expectations for operations by the commercial banks as enshrined in the provisions of the Banking Act 2000.

• The Banking Act 2000 which provide for the licensing of persons carrying on deposit taking business, the regulation of deposit taking activities, the protection of depositors and to provide for related matters with a view to developing and promoting an efficient banking and financial system in Sierra Leone

• There are currently ten commercial banks and two discount houses operating in the financial system.
• There are four community banks established in the provinces.
• Modalities are in place for the establishment of a Capital Market/Stock Exchange.

• The Other Financial Services Act of 2001, which was enacted in October 2001, empowers the Bank of Sierra Leone to supervise non-bank financial institutions as the Banking Act 2000 governs only the activities of commercial banks. 

• The Other Financial Services (Amendment) Act 2007 allows for the establishment and operation of an interim Stock Exchange