Regulatory Alerts2018-03-21
BCEAO Instruction 002-03-2018 on Particular Provisions for Credit Institutions Exercising Islamic Finance Activities
The Central Bank of West African States (BCEAO) issued Instruction 002-03-2018 to establish the regulatory framework for credit institutions exercising Islamic finance activities within the West African Monetary Union (UMOA). The Instruction classifies these institutions into exclusive or partial Islamic finance operators, mandates the establishment of internal and central Sharia compliance boards, and requires specific risk management reserves alongside detailed approval documentation. It further standardizes operational conditions, audit obligations, and transitional compliance procedures to ensure alignment with Islamic financial principles while maintaining prudential oversight.
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