COBAC Regulation R-98/02 on the Accounting of Attached Receivables and Payables

COMMISSION BANCAIRE OF CENTRAL AFRICA COBAC REGULATION R-98/02 ON THE ACCOUNTING OF ATTACHED RECEIVABLES AND PAYABLES

The Commission Bancaire of Central Africa meeting on May 22, 1998, Having regard to the Convention of October 16, 1990 establishing a Commission Bancaire of Central Africa; Having regard to Articles 1 and 9 of the Annex to the Convention of October 16, 1990; Having regard to the Convention of January 17, 1992 on harmonizing banking regulation in the States of Central Africa; Having regard to Articles 32 and 38 of the Annex to the Convention of January 17, 1992; DECIDES

Article 1 Credit institutions must identify, for each class of operations in the chart of accounts for credit institutions, accrued interest receivable or payable, accrued lease payments on hire-purchase or leasing with purchase option operations, and other income receivable or expenses payable.

Article 2 At each accounting closing, accrued interest relating to banking operating expenses and income must be recorded in the attached receivables and payables accounts provided for this purpose, parallel to their recording in the income statement accounts. They are transferred to the account to which they relate when due.

Article 3 Accrued but not yet due interest relating to non-performing receivables must not be recorded in the attached receivables accounts.

Article 4 Income receivable and expenses payable that do not relate to banking operating income and expenses, as well as prepaid income and expenses, are recorded in the deferral accounts.

Article 5 In case of non-compliance with the principles set forth in this regulation, the Commission Bancaire may, pursuant to Article 12 of the Annex to the Convention of October 16, 1990, issue an injunction requiring, inter alia, the concerned institution to take within a specified timeframe all measures necessary to bring it into compliance with these principles. If a credit institution fails to comply with an injunction or ignores a warning, or seriously breaches the regulation, it is subject to one or more of the disciplinary sanctions provided for in Article 13 of the Annex to the Convention of October 16, 1990.

Article 6 All provisions contrary to this regulation are hereby repealed.

Article 7 This regulation shall be notified to the Ministers responsible for Finance and Credit, as well as to all subject credit institutions and their professional associations.

Article 8 The Secretary General of the Commission Bancaire of Central Africa is responsible for executing this regulation, which enters into force on July 1, 1999, for subject institutions established in the Republic of Cameroon, and on January 1, 2000, for subject institutions established in the Central African Republic, the Republic of Congo, the Gabonese Republic, the Republic of Equatorial Guinea, and the Republic of Chad.

For the Commission Bancaire of Central Africa, The President, Jean-Félix MAMALEPOT