Regulatory Alerts2024-10-01
Circular No. 12/M/18 on Internal Control Applicable to Microfinance Institutions, Umbrella Structures and Financial Bodies issued pursuant to Regulation No. 001/2018 on Microfinance Activities
The Bank of the Republic of Burundi issued Circular No. 12/M/18 to mandate microfinance institutions, umbrella structures, and financial bodies to establish effective internal control systems tailored to their size, risk profiles, and operational volumes. The regulation defines precise roles for management and the board of directors, establishes a three-tier control framework (operational, permanent, and periodic), and requires dedicated risk management systems, audit departments for larger institutions, and comprehensive business continuity plans. It further standardizes reporting obligations, including annual internal control reports due by March 31 and quarterly audit committee meetings, while replacing the previous 2010 circular upon publication.