Collection of Legal and Regulatory Texts Governing Banking and Financial Activity in the Republic of Guinea

CENTRAL BANK OF THE REPUBLIC OF GUINEA

BCRG COLLECTION OF LEGAL AND REGULATORY TEXTS GOVERNING BANKING AND FINANCIAL ACTIVITY IN THE REPUBLIC OF GUINEA BCRG: BP 692 – Conakry – Tel.: (+224) 664 67 77 77 – E-mail: secretariat.gouv@bcrg-guinee.org Fax: (+224) 669 08 88 88 – Website: www.bcrg-guinee.org / 6 Boulevard du Commerce Commune de Kaloum

Central Bank of the Republic of Guinea Collection of legal and regulatory texts governing banking and financial activity 1 COLLECTION OF LEGAL AND REGULATORY TEXTS GOVERNING BANKING AND FINANCIAL ACTIVITY IN THE REPUBLIC OF GUINEA December 2017 Edition CENTRAL BANK OF THE REPUBLIC OF GUINEA (BCRG)

Central Bank of the Republic of Guinea Collection of legal and regulatory texts governing banking and financial activity 2 TABLE OF CONTENTS INTRODUCTION.................................................................................................................... 6 I. THE LEGAL FRAMEWORK FOR BANKING AND FINANCIAL ACTIVITY IN THE REPUBLIC OF GUINEA.................................................................................................. 7

1. Law L/2013/060/CNT on banking regulation.......................................................... 8
2. Law L/2012/005/CNT on credit – lease or leasing in the Republic of Guinea ....... 29
3. Law L/2006/010/AN on the fight against money laundering in the Republic of Guinea................................................................................................................................... 40
4. Law L/2000/006/AN adopting and promulgating the law on the regulation of financial relations relating to transactions between the Republic of Guinea and abroad............ 58 II. THE INSTITUTIONAL FRAMEWORK FOR BANKING AND FINANCIAL ACTIVITY IN THE REPUBLIC OF GUINEA.......................................................................................... 62
5. Decision N°243/09 of July 31, 2009 on the attribution and organization of the Directorate of Banks ................................................................................................................ 63
6. Decision D/2015/001/CAM of March 27, 2015 on the code of ethics for members of the Approvals Committee .......................................................................................................... 65
7. Decision D/2014/084/CAM of December 18, 2014 on the modalities of contribution of banks and financial institutions to the operating costs of banking supervision in the Republic of Guinea ...................................................................................................... 67 III. THE CONDITIONS FOR EXERCISING BANKING AND FINANCIAL ACTIVITY IN THE REPUBLIC OF GUINEA ............................................................... 68
8. Decision N° D/2013/050/CAM of 19/03/2013 on setting the minimum amount of share capital for credit institutions in the bank category ..................................... 69
9. Instruction N° 001/2013 on the modalities for implementing decision n°d/2013/050/CAM of 19/03/2013 on setting the minimum amount of share capital for credit institutions in the bank category ............................................................................ 70
10. Instruction N° I/2002/136/DGI/DB of 26/11/2002 on the representation of minimum capital ............................................................................................................................... 71
11. Decision N° D/2015/008/CAM of June 3, 2015 on setting the minimum amount of share capital for electronic money institutions in the Republic of Guinea......... 72
12. Instruction N° 032/DGSIF/DSB of November 12, 2014 on the list of constituent documents for the application for approval of credit institutions in the “bank” or “financial institution” category, of managers and statutory auditors of credit institutions approved in the “bank” or “financial institution” category............................................................................................................................. 73
13. Instruction N° 021/DGSIF/DSB of May 13, 2014 on reference shareholding ..... 86
14. Instruction N° 072/DGSIF/DSB of February 16, 2017 on prior notification of taking up a position as administrator, of any change affecting the composition of administrative bodies and on the declaration of the list of administrators as well as members of the General Management of Credit Institutions............................................................ 87
15. Decision D/2015/003/CAM of March 31, 2015 on the issuance of electronic money and electronic money institutions (EME) in the Republic of Guinea ........................... 98

Central Bank of the Republic of Guinea Collection of legal and regulatory texts governing banking and financial activity 3 16. Decision D/2015/002/CAM of March 31, 2015 on the classification and legal form of financial institutions in the Republic of Guinea........................................................... 108 17. Instruction N° 070 DGSIF/DSB of February 16, 2017 on the conditions for opening, closing and transferring agencies and counters by approved credit institutions 111 18. Instruction n° 079 DGSIF/DSB/2018 of May 17, 2018 on the conditions for appointing a second statutory auditor by credit institutions .................. 117 IV. THE MANAGEMENT RULES OR PRUDENTIAL FRAMEWORK FOR EXERCISING BANKING AND FINANCIAL ACTIVITY IN THE REPUBLIC OF GUINEA........ 118 19. Instruction N° I/2002/135/DGI/DB OF 26/11/2002 on the composition of net own funds of credit institutions........................................................................... 119 20. Instruction N°I/2002/137/DGI/DB OF 26/11/2002 on the calculation of the solvency ratio ............................................................................................................................................ 122 21. Instruction N°I/2002/138/DGI/DB OF 26/11/2002 on the division and concentration of risks................................................................................................................................. 125 22. Instruction N° I/2006/01/DGI/DB OF 12/01/2006 on the limitation of exchange risk ............................................................................................................................................ 128 23. Instruction N°0008/2008/DGSIF/DSB on loans granted to shareholders, administrators, managers and related parties.......................................................................... 132 24. Circular Note N°0158/DGSIF/DSB/SRS/13 on the financing of petroleum product imports .............................................................................................................. 135 25. Circular Note N°035/DGSIF/DSB/SRS/15 on financing other than petroleum products ............................................................................................................................................ 136 26. Instruction N° 0006/DGSIF/DSB of 05/09/2008 on the liquidity ratio of credit institutions...................................................................................................... 137 27. Instruction N°I/2004/02/DGI/DB on the transformation coefficient over five years for credit institutions...................................................................................... 141 28. Instruction N°002/DGSIF/DSB of December 3, 2013 on internal control ............ 143 29. Decision N° D/2016/004/CAM of December 16, 2016 on the acquisition or holding of participations by credit institutions in existing or newly created companies ............................................................................................................................................ 158 30. Instruction N° 071/DGSIF/ DSB/ of February 16, 2017 on operations subject to prior or subsequent notification............................................................................................ 160 V. THE ACCOUNTING FRAMEWORK FOR BANKING AND FINANCIAL ACTIVITY IN THE REPUBLIC OF GUINEA.............................................................................. 164 31. Instruction N°001/DGSIF/DSB/NPCB of March 23, 2013 on the adoption of the Guinean banking chart of accounts............................................................................... 165 32. Instruction N°002/DGSIF/DSB/NPCB of 02/12/2014 on the obligation for credit institutions to adopt the chart of accounts provided for by the Guinean banking chart of accounts................................................................................................................ 166 33. Instruction N°003/DGSIF/DSB/NPCB of 02/12/2014 on the definition of attributes ............................................................................................................................................ 167

Central Bank of the Republic of Guinea Collection of legal and regulatory texts governing banking and financial activity 4 34. Annex to instruction n° 003/DGSIF/DSB/NPCB of 02/12/2014 on the definition of attributes............................................................................................................................... 167 35. Instruction N°004/DGSIF/DSB/NPCB/2014 of 02/12/2014 on the accounting registration of foreign currency operations.................................................................... 177 36. Instruction N°005/DGSIF/DSB/NPCB/ of 02/12/2014 on the accounting of asset disposal operations............................................................................................ 180 37. Instruction N°006/DGSIF/DSB/NPCB/ of 02/12/2014 on the principle of non-compensation ...................................................................................................................... 182 38. Instruction N°007/DGSIF/DSB/NPCB/ of 02/12/2014 on the accounting of attached receivables and payables .............................................................................................. 183 39. Instruction N°008/DGSIF/DSB/NPCB/ of 02/12/2014 on the accounting and provisioning of non-performing commitments............................................................... 184 40. Instruction N°009/DGSIF/DSB/NPCB/ of 02/12/2014 on the accounting of consortium operations....................................................................................................... 187 41. Instruction N°010/DGSIF/DSB/NPCB/ of 02/12/2014 on the accounting and valuation of securities belonging to credit institutions....................................... 189 42. Instruction N°011/DGSIF/DSB/NPCB/ of 02/12/2014 on the accounting of leasing, hire-purchase and rental-purchase operations................................ 192 43. Instruction N°012/DGSIF/DSB/NPCB/ of 02/12/2014 on the establishment and publication by credit institutions of consolidated accounts......................... 193 44. Instruction N°013/DGSIF/DSB/NPCB/ of 02/12/2014 on the accounting of collection operations.................................................................................................. 197 45. Instruction N°014/DGSIF/DSB/NPCB/ of 02/12/2014 on the accounting of collection operations.................................................................................................. 198 VI. THE REGULATORY FRAMEWORK FOR COMBATING MONEY LAUNDERING AND TERRORIST FINANCING IN THE REPUBLIC OF GUINEA................................................................................................................................ 199 46. Decision N°028/DGSIF/DSB/2014 of August 13, 2014 on the organization of the anti-money laundering and terrorist financing system at the Central Bank of the Republic of Guinea................................................................................................ 200 VII. THE REGULATORY FRAMEWORK FOR CREDIT INSTITUTION / CLIENT RELATIONSHIP: CLIENT PROTECTION .......................................... 203 47. Instruction N°033/DGSIF/DSB/2014 of 02/12/2014 on the modalities by which credit institutions must inform the public of the conditions they apply to their operations............................................................................................. 204 48. Instruction N°040/DGSIF/DSB/2012 of 10/09/2012 on the gratuitousness of certain minimum banking services offered to clients .......................................................... 205 49. Instruction N° 078 DGSIF/DSB/2018 of May 17, 2018 defining the conditions for clients of credit institutions to exercise the right to open an account .............. 206 VIII. THE REGULATORY FRAMEWORK FOR PECUNIARY SANCTIONS APPLICABLE TO CREDIT INSTITUTIONS.............................................. 207

Central Bank of the Republic of Guinea Collection of legal and regulatory texts governing banking and financial activity 5 50. Instruction N°025/DGSIF/DSB/2014 of 30/07/2014 on late penalties for the transmission of documents and information to the Central Bank of the Republic of Guinea (BCRG)................................................................................................. 208 51. Instruction N°052/DGSIF/DSB/2015 of 08/07/2015 on the modalities for applying complementary pecuniary sanctions to disciplinary sanctions pronounced by the Central Bank of the Republic of Guinea (BCRG)...................................................... 209 52. Instruction N°011/DGSIF/DSB/2009 of 04/08/2009 on the conditions for exercising the activities of statutory auditors of credit institutions approved in the “bank or financial institutions” category.............................................................................. 211 53. Instruction N°0007/DGSIF/DSB/2009 of 05/09/2009 on the limitation of non-banking activities of credit institutions ................................................................................ 215

Central Bank of the Republic of Guinea Collection of legal and regulatory texts governing banking and financial activity 6 INTRODUCTION This collection brings together the legal and regulatory texts (Laws, Decisions, Instructions, Circulars, Letters and Circular Notes) issued by the Central Bank of the Republic of Guinea (BCRG) and governing the activity of Credit Institutions in the “Bank” and “Financial Institution” categories in the Republic of Guinea. It is organized around:

1. the Legal Framework for banking and financial activity in the Republic of Guinea (I),
2. the Institutional Framework for banking and financial activity in the Republic of Guinea (II),
3. the Conditions for exercising banking and financial activity in the Republic of Guinea (III),
4. the Management Rules or Prudential Framework for exercising banking and financial activity (IV),
5. the Accounting Framework for banking and financial activity in the Republic of Guinea (V),
6. the Regulatory Framework for combating Money Laundering and Terrorist Financing in the Republic of Guinea (VI),
7. the Regulatory Framework for the Credit Institution / Client Relationship (VII),
8. the Regulatory Framework for the Organization of common services (VIII),
9. and the Regulatory Framework for pecuniary sanctions applicable to Credit Institutions in the Republic of Guinea (IX). This new edition integrates seven (07) new texts, namely: • Decision N°243/09 of July 31, 2009 on the attribution and organization of the Directorate of Banks; • Instruction N° 070 DGSIF/DSB of February 16, 2017 on the conditions for opening, closing and transferring agencies and counters by approved credit institutions; • Instruction N° 071/DGSIF/ DSB/ of February 16, 2017 on operations subject to prior or subsequent notification; • Instruction N° 072/DGSIF/DSB of February 16, 2017 on prior notification of taking up a position as administrator, of any change affecting the composition of administrative bodies and on the declaration of the list of administrators as well as members of the General Management of Credit Institutions; • Instruction n° 079 DGSIF/DSB/2018 of May 17, 2018 on the conditions for appointing a second statutory auditor by credit institutions; • Decision N° D/2016/004/CAM of December 16, 2016 on the acquisition or holding of participations by credit institutions in existing or newly created companies; and • Instruction N° 078 DGSIF/DSB/2018 of May 17, 2018 defining the conditions for clients of credit institutions to exercise the right to open an account.

Central Bank of the Republic of Guinea Collection of legal and regulatory texts governing banking and financial activity 7 I. THE LEGAL FRAMEWORK FOR BANKING AND FINANCIAL ACTIVITY IN THE REPUBLIC OF GUINEA

Central Bank of the Republic of Guinea Collection of legal and regulatory texts governing banking and financial activity 8 Law L/2013/060/CNT on Banking Regulation

THE NATIONAL TRANSITIONAL COUNCIL Having regard to the Constitution, particularly Articles 72 and 157 thereof; Having deliberated, adopts; The President of the Republic promulgates by Decree No. D/2013/158/PRG/SGG of November 28, 2013, the Law whose content is as follows: TITLE I: DEFINITION OF CREDIT INSTITUTIONS AND CONDITIONS FOR EXERCISING THEIR ACTIVITY CHAPTER I: DEFINITION OF CREDIT INSTITUTIONS AND BANKING OPERATIONS Article 1: This Law sets out the rules relating to the exercise of activities and the control of credit institutions in the Republic of Guinea, regardless of their legal status and the nationality of the owners of their capital or their managers. Article 2: Credit institutions are legal entities that habitually carry out at least one of the following banking operations:

1. receiving funds from the public, and/or;
2. granting credit, and/or;
3. making available to customers and managing any means of payment. Article 3: Funds received from the public are considered to be funds that a person collects from a third party, particularly in the form of deposits, with the right to dispose of them for their own account, but with the obligation to return them with or without interest. Funds from the issuance of treasury bills are considered public fund deposits. The following are not considered as received from the public:
4. funds constituting the capital of credit institutions;
5. funds received from the managers of credit institutions as well as from partners holding at least ten percent (10%) of the share capital;
6. funds received in consideration for debt or equity securities issued or placed with the public;
7. funds received from credit institutions in connection with credit operations;
8. funds that a company receives from its personnel, provided that their total amount remains less than ten percent (10%) of the company's equity;
9. any other category of funds defined by instruction of the Central Bank. Article 4: For the application of this Law, a credit operation constitutes any act by which a person acting for consideration makes or promises to make funds available to another person with an obligation to repay, or undertakes, in the interest of the latter, a commitment by signature such as an endorsement or a guarantee or any other security. Also considered as credit operations are:
10. movable or immovable leasing operations and, in general, any rental operation with a purchase option;