Regulatory Alerts1992-12-22
COBAC Regulation R-92/02 of 22 December 1992 on the Approval of Statutory Auditors for Credit Institutions
The Central African Banking Commission (COBAC) issued Regulation R-92/02 on 22 December 1992 to mandate prior approval for statutory auditors operating in Central African credit institutions. The regulation establishes a one-month review period for applications submitted by national monetary authorities, grants the Commission President emergency ruling powers, and requires institutions to submit complete audit files directly pending final convention ratification. It further stipulates that existing auditors remain active until their terms expire, mandates dual audits for institutions with balance sheets exceeding 50 billion, and outlines appeal procedures to the BEAC Board of Directors.
COBAC REGULATION R-92/02 OF 22 DECEMBER 1992 ON THE APPROVAL OF STATUTORY AUDITORS FOR CREDIT INSTITUTIONS
The Central African Banking Commission convened on 22 December 1992, Having regard to the Convention of 16 October 1990 establishing the Central African Banking Commission; Having regard to the Annex to the Convention of 16 October 1990, particularly Article 8 concerning the appointment of statutory auditors for credit institutions; Considering the provisions of the Annex to the Convention of 17 January 1992 on harmonisation of banking regulation in the States of Central Africa, particularly Articles 19, 20 and 21 thereof; HAS DECIDED:
Article 1.- The exercise of the functions of statutory auditor in a credit institution subject to the Central African Banking Commission under Article 2 of the Annex to the Convention of 16 October 1990 is subject to prior approval by COBAC. This approval takes the form of a conforming opinion issued in accordance with the conditions set out in this Regulation.
Article 2.- Pursuant to Article 21 of the Annex to the Convention of 17 January 1992 on harmonisation of banking regulation in the States of Central Africa, the Central African Banking Commission is seized by the competent National Monetary Authority to grant approval for statutory auditors as required by Article 19 of said Annex. COBAC rules within one month from the receipt by its General Secretariat of all documents prescribed by Article 21. Failure to decide within this period shall constitute a conforming opinion.
Article 3.- In cases of urgency, the President of the Commission is authorized to rule on applications on behalf of the Commission.
Article 4.- In the event of a refusal to issue a conforming opinion, the concerned credit institution may not proceed otherwise. Unless exercising its right of appeal before the Board of Directors of BEAC under Article 18 of the Annex to the Convention of 16 October 1990, it shall submit a new candidate for approval by the Monetary Authority and the opinion of the Commission.
Article 5.- Pending the final ratification of the Convention of 17 January 1992, credit institutions shall apply directly to the General Secretariat of the Commission. To be admissible, the application file must include all documents listed in Article 21 of the aforementioned Annex, the provisions of which are attached to this Regulation.
Article 6.- Pursuant to Article 19 of the Annex to the Convention of 17 January 1992, credit institution operations are audited by at least two statutory auditors; the intervention of a single auditor is required when the total balance sheet amount is below a threshold fixed by decree. For the application of these provisions, the status quo may be maintained until the promulgation of said decree. If such promulgation does not occur within one year from the date of this Regulation, any credit institution with a total balance sheet exceeding 50 billion shall be audited by at least two statutory auditors.
Article 7.- Statutory auditors currently serving in credit institutions on the date of this Regulation shall be subject to these provisions upon expiration of their current term. Until that time, they may continue to operate without explicit authorization from COBAC. However, credit institutions shall notify the Central African Banking Commission within three months of the notification of this Regulation of the names of their serving statutory auditors, a complete file regarding them as defined in Article 5 of this Regulation, and the expiration date of their term.
Article 8.- This Regulation shall be notified to the Ministers responsible for Currency and Credit of the six member States of BEAC, as well as to professional associations of credit institutions and statutory auditors, which shall be responsible for informing their members.
Article 9.- The General Secretary of the Central African Banking Commission is responsible for the implementation of this Regulation.
For the Central African Banking Commission, The President: Jean-Félix MAMALEPOT