Regulatory Alerts2019-01-01
Instruction No. 2019-02 on Relations between Credit Institutions and Related Parties
The Central Bank of Djibouti issued Instruction No. 2019-02 to define related parties and regulate credit institutions' exposures to them, mandating the deduction of shareholder and senior management exposures from Common Equity Tier 1 capital. The regulation caps exposures to other related parties at 15% of net capital, prohibits exposures to statutory auditors, and requires prior board authorization, strict internal controls, and transparent reporting to auditors and the central bank. Compliance is enforced through disciplinary and criminal sanctions, with the central bank retaining discretion to grant temporary exemptions or impose additional risk-based limitations.
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