Regulatory Alerts2024-09-01
Circular No. 01/2020 on the Sanctions Matrix Applicable to Financial Products and Services Providers, Issued Pursuant to Regulation No. 001/2019 on Consumer Protection for Financial Products and Services
The Banque de la République du Burundi (BRB) issued Circular No. 01/2020 to establish a comprehensive sanctions matrix for approved financial products and services providers under Regulation No. 001/2019 on consumer protection. The circular categorizes thirteen types of non-compliances—ranging from unfair treatment and digital service failures to marketing flaws and complaint handling errors—and prescribes corresponding disciplinary measures or monetary penalties calculated as percentages of mandatory minimum capital or fixed amounts in Burundian Francs. It mandates a progressive enforcement procedure involving explanation requests and injunctions, while allowing direct sanctions for serious cases and ensuring immediate restitution to consumers where applicable.