Regulatory Alerts2005-01-14
Law No. 2004-045 of January 14, 2005 on the Prevention and Repression of Check-Related Offenses
The Central Bank of Madagascar issued Law No. 2004-045 to strengthen the prevention and repression of check-related offenses by mandating automatic banking prohibitions for unpaid checks, establishing a one-year suspension period, and introducing accelerated recovery procedures for beneficiaries. The legislation imposes criminal penalties of up to five years imprisonment or fines ranging from 1,000,000 to 10,000,000 Ariary on drawers, agents, and banks that issue or accept checks without sufficient funds, forge instruments, or disregard payment prohibitions. It further centralizes transaction data through a mandatory Central Check File, requires advance notification of automatic debits and overdraft suspensions, and standardizes payment card definitions while repealing conflicting 1972 regulations.