BCEAO Instruction No. 005-06-2016 Setting Monetary Sanctions for Credit Information Bureaux

The Governor of the Central Bank of West African States (BCEAO), Having regard to the Treaty of the West African Monetary Union (UMOA) dated 20 January 2007, particularly Article 34 thereof; Having regard to the Statutes of the Central Bank of West African States, annexed to the UMOA Treaty dated 20 January 2007, particularly Articles 30 and 59 thereof; Having regard to the Uniform Act regulating Credit Information Bureaux in the member States of the UMOA, particularly Articles 15, 20, 21, 23, 24, 26, 27, 28, 30, 33, 35, 39, 40, 41, 51 and 64 thereof, HAS DECIDED

Article 1: Subject Matter This Instruction sets the amount of monetary sanctions that the BCEAO may impose on Credit Information Bureaux, without prejudice to disciplinary sanctions.

Article 2: Maximum Amount of Monetary Sanctions The amount of the monetary sanctions referred to in Article 1 above shall not exceed fifty million CFA francs.

Article 3: Classification of Infractions to the Regulation of Credit Information Bureaux The classification of infractions to the regulation of Credit Information Bureaux depends on their nature and degree of severity. These infractions are grouped, as follows, into two categories according to the underlying risk scale:

Avenue Abdoulaye FADIGA P.O. Box 3108 – Dakar - Senegal Tel.: (221) 33 839 05 00 / Fax: (221) 33 823 93 35 www.bceao.int INSTRUCTION NO. 005-06-2016 SETTING THE AMOUNT OF MONETARY SANCTIONS APPLICABLE TO CREDIT INFORMATION BUREAUX BY THE CENTRAL BANK OF WEST AFRICAN STATES

2 – first category infractions relate to breaches inducing administrative risks and/or those related to accounting, information, and internal control; – second category infractions concern the non-compliance with current provisions regarding the exercise of a Credit Information Bureau's activities as well as its integrity. The classification of these infractions is attached to this Instruction.

Article 4: Amount of Monetary Sanctions The quantum of monetary sanctions, by infraction category, is set as follows: – first category infractions: one million CFA francs to twenty-five million CFA francs; – second category infractions: twenty-five million and one CFA francs to fifty million CFA francs. In the case of multiple infractions requiring the application of several monetary sanctions, the cumulative amount of said sanctions may not exceed the ceiling amount set in Article 2 above.

Article 5: Recovery of Monetary Sanction Proceeds The amounts corresponding to the monetary sanctions imposed by the BCEAO are recovered for the benefit of the Public Treasury, in accordance with the current regulations on debt recovery in force in the State where the infraction was identified.

Article 6: Entry into Force This Instruction, including its annex which forms an integral part thereof, enters into force on the date of its signature. It shall be published wherever necessary. Done at Dakar, 09 June 2016 Tiémoko Meyliet KONE

3 ANNEX: INFRACTION CLASSIFICATION GRID BY CATEGORY No. First Category Infractions (breaches of the regulatory provisions on Credit Information Bureaux inducing administrative risks and/or those related notably to accounting, organization, and internal control) Monetary sanctions: one million (1,000,000) to twenty-five million (25,000,000) CFA francs

Second Category Infractions (infractions to the regulation on Credit Information Bureaux resulting from non-compliance with current provisions regarding the exercise of a Credit Information Bureau's activities as well as its integrity) Monetary sanctions: twenty-five million and one (25,000,001) to fifty million (50,000,000) CFA francs

1 Non-compliance with rules regarding the establishment of special reserves (Article 20) Non-compliance with professional secrecy or violation of the prohibition on using confidential information to conduct operations for its own account or to benefit other persons (Article 15)

2 Non-compliance with obligations regarding the certification of annual accounts and their submission to the BCEAO within prescribed timeframes and conditions (Article 23) Conduct of operations in the absence of required prior authorizations (Article 21)

3 Non-compliance with service quality standards (Article 27) Non-compliance with decisions taken by the Union Authorities (Article 26)

4 Non-compliance with obligations regarding the provision to the BCEAO of information, clarifications, justifications, reports, and other documents deemed useful (Articles 24 and 41) Actions aimed at obstructing inspections conducted by the Central Bank or by designated Authorities (Articles 28 and 30)

5 Non-compliance with timeframes for retaining and archiving client information (Article 41) Non-compliance with authorized activities (Article 33)

6 Non-compliance with obligations regarding the conduct of a compliance audit (Article 41) Violation of the prohibition on relocating, retaining, or maintaining databases and backup sites outside the UMOA (Article 35)

7 Non-compliance with obligations regarding the establishment of an internal control mechanism (Article 41) Non-compliance with rules regarding the pricing of offered services (Articles 39 and 40)

8 -- Non-compliance with obligations regarding the security, reliability, and confidentiality of information (Article 41)

9 -- Non-compliance with obligations regarding client access to their information and the handling of their complaints (Articles 41 and 51)