Regulatory Alerts2020-02-18
Instruction No. 005-12-2019 on the Procedures for Establishing Mandatory Reserves at the West African Central Bank
The Governor of the Central Bank of West African States (BCEAO) issued Instruction No. 005-12-2019 to establish the procedures, calculation methods, and compliance requirements for mandatory reserves held by credit institutions and banking financial entities within the WAEMU region. The directive mandates that reserves be calculated based on periodic accounting statements, maintained as average balances in designated BCEAO accounts, and declared within thirty days of each reporting cutoff. It further outlines the monitoring process, specifies a penalty formula for reserve shortfalls, and imposes sanctions for late or inaccurate submissions while repealing prior reserve regulations.
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