Regulatory Alerts2000-11-10
Instruction No. 006/2000-CSBF on the Internal Control of Credit Institutions
The Banking and Financial Supervision Commission (CSBF) of Madagascar issued Instruction No. 006/2000-CSBF to mandate credit institutions operating in the country to establish a comprehensive internal control system comprising first- and second-level controls, permanent monitoring, and independent internal audit. The regulation requires these institutions to implement risk prevention mechanisms, clear functional separation, documented procedures, and robust counterparty, liquidity, price, operational, technical, and legal risk management frameworks tailored to their size and activities. Furthermore, it mandates the establishment of dedicated organizational structures, delegated decision-making powers, quarterly risk quality assessments, and an independent audit function with unlimited examination rights to ensure regulatory compliance, financial stability, and operational continuity.