Regulatory Alerts2018-05-02
Instruction No. 004-05-2018 on the Technical Characteristics of Islamic Finance Operations Carried Out by Credit Institutions in the West African Monetary Union (WAMU)
The Governor of the Central Bank of West African States (BCEAO) issued Instruction No. 004-05-2018 to define and regulate the technical characteristics, contractual frameworks, and compliance requirements for Islamic finance operations conducted by credit institutions in the West African Monetary Union (UMOA). The Instruction mandates that all such operations obtain prior certification from an Internal Compliance Council, ensures financing contracts comply with Sharia principles through specific mechanisms like Mourabaha, Ijara, and Moudaraba, and establishes clear rules for guarantees, remuneration, risk allocation, and the treatment of deposits. It further standardizes non-participatory and participatory financing models while permitting uncategorized products to qualify upon internal compliance certification.