Regulatory Alerts2007-12-07
Instruction No. 007/2007-CSBF of December 7, 2007 Establishing the Operating and Control Structures of Microfinance Institutions
The Banking and Financial Supervision Commission (CSBF) issued this instruction to establish mandatory minimum operating and control structures for all microfinance institutions, requiring them to implement defined governance bodies including general assemblies, boards of directors, executive management, credit committees, internal audit functions, and statutory auditors. The regulation specifies distinct eligibility criteria for board members and executives, mandates tiered compliance timelines based on MFI classification (Level 1, 2, and 3), and enforces strict internal control, risk prevention, and reporting obligations aligned with anti-money laundering and counter-terrorist financing standards. All existing institutions must achieve full structural compliance within one year of receiving their official classification, ensuring robust governance and operational transparency across the sector.