Regulatory Alerts2023-08-24
Instruction No. 16/98 Authorizing Union Banks to Exercise the Functions of Account Keeper and Clearing Agent
The West African Monetary Union's Regional Council issued Instruction No. 16/98 to authorize member banks to operate as account keepers and clearing agents for clients. The regulation requires these institutions to secure prior approval by submitting a detailed file covering their legal status, capital structure, governance, internal controls, and financial statements. It further subjects these activities to ongoing Regional Council supervision and mandates publication to ensure uniform application across the union.
WEST AFRICAN MONETARY UNION REGIONAL COUNCIL FOR PUBLIC SAVINGS AND FINANCIAL MARKETS
INSTRUCTION NO. 16/98 AUTHORIZING UNION BANKS TO EXERCISE THE FUNCTIONS OF ACCOUNT KEEPER AND CLEARING AGENT
Whereas the Convention of July 3, 1996 establishing the Regional Council for Public Savings and Financial Markets, hereinafter referred to as the Regional Council,
Whereas Article 14 of the annex to said Convention,
Whereas Decision No. 001/97 of the Council of Ministers of the West African Monetary Union in its session of November 28, 1997, adopting the General Regulations on the Organization, Operation and Supervision of the Regional Financial Market of the UMOA, hereinafter referred to as the General Regulations,
Whereas Decision No. 001/03/98 of the Council of Ministers of the West African Monetary Union in its session of March 27, 1998, amending the provisions of Article 37 of the General Regulations,
Whereas the deliberations of the Regional Council in its session of September 22, 1998,
THE REGIONAL COUNCIL HAS ADOPTED:
Article 1: The banks of the Union are authorized to exercise the activities of account keeper and clearing agent on behalf of clients. They are subject, within the framework of these activities, to the supervision of the Regional Council.
Article 2: The banks must obtain prior approval from the Regional Council before exercising this activity. They must submit, to this end, a file comprising: a) the statutes of the bank, which must be established under the legal form of a public limited company and have its registered office in one of the States of the West African Monetary Union, b) a copy of the Internal Regulations, c) the composition of the corporate bodies, d) the list of executives, e) the amount and distribution of capital as well as the identity and activity of shareholders holding more than 10% of the capital, f) the actual net worth funds, g) a detailed description of the resources deployed for exercising the activity, h) for pre-existing companies, certified financial statements and balance sheets for the last three (3) fiscal years by an auditor approved by the Regional Council, i) the identity and qualifications of the person designated to perform the functions of internal controller, j) a legalized copy of the approval from the Central Depository / Clearing Bank, k) the opinion of the Banking Commission on their situation, l) any other supplementary document deemed necessary by the Regional Council.
Article 3: This instruction shall be published wherever necessary.
Done at Abidjan, on September 22, 1998 For the Regional Council The President L. NAKA 2