Regulatory Alerts2005-09-29
Law No. 2005-016 of September 29, 2005 on the Activity and Supervision of Microfinance Institutions
The Presidency of the Republic, through Law No. 2005-016, classifies microfinance institutions into three levels based on authorized operations and risk profiles, mandating either a licence or agrément from the Banking and Financial Supervision Commission. The legislation establishes core mutualism principles—including free membership, one-vote-one-member equality, and restricted profit distribution—while defining distinct operational, governance, and prudential standards for each classification tier. It further mandates permanent structural compliance, clear authorization procedures, and specific grouping mechanisms for unions and federations to ensure financial stability and depositor protection across the microfinance sector.
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