Regulatory Alerts2018-03-05
COBAC Regulation R-2018/02 on Calculation Methods for Penalties Applied to Non-Compliance with Injunctions
The Central African Banking Commission (COBAC) issued Regulation R-2018/02 to establish precise calculation methods for daily penalty fees imposed on financial holding companies, credit institutions, and microfinance entities that fail to comply with regulatory injunctions within prescribed deadlines. The regulation mandates penalty rates of 0.0025% of certified net banking or financial income, subject to strict minimum and maximum thresholds in FCFA that scale according to the institution's type and operational history. It further details the liquidation, recovery mechanisms through automatic account debits by the Bank of Central African States, and the enforcement procedures to ensure timely compliance.
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