Regulatory Alerts2024-09-01
On the Consolidation of Accounts of Banks and Financial Institutions
The Bank of the Republic of Burundi issued Circular No. 14/06 to authorize banks and financial institutions to consolidate their accounts under specified conditions. The regulation defines exclusive control as a capital stake granting majority voting rights and governing body appointment powers, requiring certified consolidated balance sheets and income statements by the parent company’s auditors. This circular supersedes Circular No. 14/03 of February 2003 and establishes the legal framework for consolidated financial reporting under Law No. 1/017 of October 23, 2003.
BANK OF THE REPUBLIC
OF BURUNDI
THE DIRECTORATE
Circular No. 14/06 on the consolidation of accounts of banks and financial institutions issued pursuant to Law No. 1/017 of October 23, 2003 regulating banks and financial institutions.
Article 1st: Banks and financial institutions are authorized to consolidate their accounts under the conditions required by this circular.
Article 2: The consolidation of accounts is authorized for a group consisting of a parent financial institution and other enterprises with a financial character, as defined in Articles 3 to 7 of the banking law, that this institution exclusively controls.
Article 3: Exclusive control is established when the parent company holds a capital stake conferring the majority of voting rights and the power to appoint governing bodies.
Article 4: Consolidated accounts (balance sheet, income statement...) must be certified by the auditor(s) of the parent company under the conditions provided for in Article 64 of the banking law.
Article 5: This circular annuls and replaces Circular No. 14/03 of February 10, 2003.
Issued in Bujumbura on November 24, 2006
BANK OF THE REPUBLIC OF BURUNDI
Mrs. S. BIBARA
1st Vice-Governor.
G. NTISEZERANA
Governor.