Regulatory Alerts2024-10-01
Circular No. 11/M/19 on the Sanctions Matrix for Microfinance Institutions, Umbrella Structures, and Financial Bodies under Regulation No. 001/2018
The Bank of the Republic of Burundi issued Circular No. 11/M/19 to establish a comprehensive sanctions matrix for microfinance institutions, umbrella structures, financial bodies, and community financial groups. The regulation mandates strict compliance with legal and operational standards, categorizing infractions into eight distinct areas and prescribing graduated enforcement procedures ranging from corrective letters to immediate monetary and administrative penalties. It details specific financial fines, disciplinary actions, operational suspensions, and revocations for violations such as capital shortfalls, reporting delays, unauthorized activities, and governance failures, with penalties automatically deducted from Central Bank accounts.