Regulatory Alerts2018-05-16
BCEAO Instruction 007-2018 on Monetary Sanctions for Decentralized Financial Systems
The Central Bank of West African States (BCEAO) issued Instruction No. 007-2018 to establish the implementation procedures, classification, and maximum quantum of monetary sanctions imposed by the UMOA Banking Commission on Decentralized Financial Systems (SFDs) and Credit Information Bureaus. The Instruction categorizes infractions into three risk-based tiers, sets sanction amounts ranging from 75,000 FCFA to 30 million FCFA (capped at 10% of required capitalization), and mandates recovery through bank transfers or automatic deductions by the BCEAO. It repeals prior conflicting provisions, enters into force on May 28, 2018, and attaches a detailed classification grid outlining specific administrative, accounting, and financial structure breaches.