Regulatory Alerts2018-01-01
Central Bank of Djibouti Instruction No. 2018-02 on Movable Securities Registration
The Central Bank of Djibouti issued Instruction No. 2018-02 to establish the online registration procedures and management framework for movable securities through its General Registrar. The directive mandates secured creditors or authorized representatives to submit applications via a dedicated digital platform, providing debtor details, collateral descriptions, and required identification documents. It further outlines fee structures (waived for financial institutions in 2018), rules for transferring and terminating securities, and the process for deregistering encumbered assets upon request.
Instruction No. 2018-02 The Governor of the Central Bank of Djibouti, Having regard to Law No. 118/AN/11/6ème L of January 22, 2011, establishing the Statutes of the Central Bank of Djibouti; Having regard to Law No. 119/AN/15/7ème L of July 16, 2016, establishing a credit information system; Having regard to Law No. 119/AN/11/6ème L of January 22, 2011, concerning the establishment and supervision of credit institutions and financial auxiliaries; Having regard to Law No. 110/AN/11/6ème L of May 25, 2011, concerning the fight against terrorist financing; Having regard to Law No. 116/AN/11/6ème L of January 22, 2011, concerning the establishment of Islamic Banks in Djibouti; Having regard to Law No. 112/AN/11/6ème L of May 25, 2011, supplementing Law No. 196/AN/02/4ème L on money laundering, asset confiscation, and international cooperation regarding proceeds of crime; Having regard to the Commercial Code Law No. 001/AN/18/8ème L, amending and supplementing the Commercial Code; Having regard to Decree No. 2013-009/PRE of January 29, 2013, appointing the Acting Governor of the Central Bank of Djibouti. Decrees:
Article 1: Objective These instructions determine the procedures for registering movable securities at the office of the General Registrar at the Central Bank of Djibouti, as well as the procedures for managing the movable securities register.
Article 2: Application for Registration of a Movable Security The registration of a movable security is carried out by the secured creditor or their duly authorized representative through the computer application maintained by the Central Bank of Djibouti.
Article 3: Form of the Registration Application Form The registration form is accessible online for financial institutions and other secured creditors. The registration form contains at least the following information:
- Names of the debtor;
- Address of the debtor;
- A general or specific description of the collateral and its value.
Article 4: Documents to be Attached to a Registration Application A registration application submitted by natural persons must be accompanied by the following documents:
- A copy of the identity card;
- A receipt for payment of registration fees, when required.
Article 5: Registration Registration is performed directly online and a registration number is issued instantly, with the option to print a registration certificate if necessary.
Article 6: Registration Fees For financial institutions, registration and cancellation fees are free during the first year of implementation, 2018. For subsequent years, the Central Bank will estimate the annual fee to be paid by each Financial Institution to cover the maintenance and operational costs of the register.
Article 7: Transfer of Movable Security In case of agreement between the parties, the secured creditor may assign their rights in the encumbered asset to a third party. The assignee immediately acquires the rights and obligations of the original assigning creditor from the date of their entry in the movable securities register.
Article 8: Termination of Movable Security A movable security terminates upon one of the following causes:
- Cessation of the reasons for which the security was created;
- Exemption from payment of the credit or release of the collateral;
- Enforcement of the security in case of debtor's payment default.
Article 9: Cancellation of Movable Security A security may be cancelled from the register for one of the following reasons:
- Termination of the security as provided in Article 8 of these instructions;
- Failure to fulfill the obligations for which the security was registered. Cancellation of the security from the register is carried out upon request by any interested party, accompanied by documents proving that the movable asset in question is no longer encumbered.
Article 10: Repeal Provision All prior provisions contrary to these instructions are hereby repealed.