Standard on the Transmission of Financial Statements, CEC Activity Reports, and General Statistics

[Logo: BRH] Bank of the Republic of Haiti Circular No. 7-1

TO SAVINGS AND CREDIT COOPERATIVES (CECs) AND TO FEDERATIONS OF SAVINGS AND CREDIT COOPERATIVES (FCECs)

In application of Articles 76, 77, 78, and 83 of the Law of June 26, 2002 on Savings and Credit Cooperatives (CECs) and Federations of Savings and Credit Cooperatives (FCECs), CECs and FCECs are required to comply with the provisions of this circular regarding the procedures for transmitting financial statements and interim reports.

1. Definitions

The following definitions apply to this circular:

a) Chart of Accounts: a list of accounts and their descriptions, developed by the BRH for CECs and FCECs. It provides a list of codified accounts to classify, group, and process financial data for the purpose of presenting financial statements to users.

b) Consolidated Report: a report reflecting the financial position of the CEC or FCEC based on aggregated financial data, i.e., the sum of individual data from the CEC's or FCEC's branches or service points. It allows management to have a global overview of all operations. Consolidated reports include not only consolidated financial statements but also the other statistical reports mentioned in this circular.

c) Interim Report: a report comprising a complete set of financial statements and other statistical reports covering an interim period. For the purposes of this circular, said period corresponds to a quarter, the first of which begins on October 1.

d) Information System: an organized set consisting of technological and hardware resources enabling the recording, storage, organization, and communication of information to internal and external users. The reliability of information depends on the quality of the CEC's or FCEC's information system.

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Corner of Pavée and Quai Streets, Port-au-Prince, Haiti / Telephone: (509) 22.99.12.15

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2. Board of Directors' Responsibility

The board of directors must ensure compliance with legal, regulatory, and statutory provisions. It must oversee the quality of the CEC's or FCEC's information system and the reliability of the generated financial data. Financial statements and other interim reports are prepared under its full responsibility.

3. Accounting Records

CECs and FCECs must maintain their accounts according to the standards established by the BRH. Upon the close of each financial year and at the end of each quarter, CECs and FCECs must produce their financial statements in accordance with the requirements of the chart of accounts issued by the BRH.

CECs with service points are required to transmit consolidated data to the BRH.

4. Transmission of Information

Unless otherwise provided in its regulations, the financial year of a CEC or FCEC ends on September 30 of each year. Financial statements and other interim reports are transmitted on a quarterly and annual basis. They must be signed by the president and secretary of the board of directors of the CEC or FCEC. Financial statements and other interim reports are transmitted electronically to the BRH via the BSA electronic information transmission system.

4.1. Quarterly Data

Financial statements, presented in comparison with those of the previous quarter, as well as other interim reports, are transmitted via the BSA electronic information transmission system to the BRH on a quarterly basis, no later than fifteen (15) business days after the end of each quarter. Additional reports may be requested at any time by the BRH.

Financial statements and other interim reports include the documents listed below:

	For CECs	For FCECs
1.	Balance Sheet:	Balance Sheet:
2.	Income Statement:	Income Statement:
3.	Cash Flow Statement:	Cash Flow Statement:
4.	Information on investment and securities portfolio as well as the report on the provision for investment losses:	Information on investment and securities portfolio as well as the report on the provision for investment losses:

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5.	List of off-balance sheet commitments:	List of off-balance sheet commitments:
6.	Report on credit portfolio outstanding and the number of days past due by category and age bracket:	Report on credit portfolio outstanding and the number of days past due by category and age bracket:
7.	Report on the provision for loan losses:	Report on the provision for loan losses:
8.	Information on loans granted by economic sector:	Balance of written-off or downgraded loans
9.	Report on loans granted to management and related parties and number of days past due:	Comparative report on the CEC's foreign exchange position
10.	Report on loans granted to employees and related parties and number of days past due:	Report on general statistics
11.	Report on restructured loans and provision for doubtful debts of this type of loans:
12.	Balance of written-off or downgraded loans:
13.	List of the 10 largest borrowers and their respective balances:
14.	List of the 20 largest savers and their respective balances:
15.	Comparative report on the CEC's foreign exchange position:
16.	Report on general statistics.

4.2. Annual Data

Annual data include financial statements, reports requested on an annual basis, and other documents. They are presented on a comparative basis with those of the preceding financial year.

4.2.1. Annual Financial Statements

The annual financial statements of any CEC or FCEC must be audited by a licensed audit firm or independent auditor who is in good standing with the tax authorities and a member of the Order of Certified Professional Accountants of Haiti (OCPAH). In the case of federated credit unions, the audit of financial statements is conducted by the federation to which they are affiliated.

Audited annual financial statements are transmitted to the BRH within twenty (20) business days from the date of their receipt from the accounting firm, independent auditor, or federation, and no later than six (6) months following the end of the financial year. The audited financial statements of CECs and FCECs include: the balance sheet, income statement, surplus distribution statement, cash flow statement, related notes, and the list of off-balance sheet items. The report must also contain the auditor's opinion as well as their assessment of the CEC's or FCEC's internal control system.

4.2.2. List of Other Annual Documents to be Transmitted

Other documents and periodic reports include:

1. any document, declaration, statement, or schedule attached to the financial statements requested by the BRH to enable it to assess the financial situation of the CEC;

2. copy of the tax permit issued by the DGI and up-to-date registration certificate with the OCPAH of the audit firm, or copy of the final tax declaration certificate and OCPAH identification card of the independent auditor;

3. name of the independent auditor or accounting firm selected for the audit of the next financial year;

4. copy of the duly signed minutes of the general meeting of the preceding financial year;

5. correspondence attesting to a change of address for the headquarters and/or a branch, if applicable;

6. copy of amended articles of association and/or internal regulations, if applicable;

7. curriculum vitae of management;

8. all reports and information listed in point 4.1, representing data from the last quarter of the CEC's financial year.

Furthermore, the BRH reserves the right, at any time, to request specific information regarding any service point.

4.3. Transmission of Financial Statements and Reports by FCECs

The financial statements of FCECs must be accompanied by the following documents:

1. DGI tax permit and up-to-date OCPAH registration certificate of the firm that audited the financial statements;
2. name of the firm selected for the audit of the next financial year;
3. curriculum vitae of the FCEC's board of directors members;
4. copy of the minutes of the general meeting of the preceding financial year duly signed by the president and secretary of the board of directors as well as the members of the supervisory committee;
5. copy of the minutes of the most recent general meeting;
6. correspondence regarding any address change;
7. report on the consolidated operations of the FCEC's member credit union network as well as general statistics.

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Federations are also required to transmit to the BRH, in accordance with Article 122 of the Law of June 26, 2002, a report on inspections conducted during the last financial year, as well as an electronic version of all inspection reports. This transmission must be made no later than ninety (90) days after the close of their financial year.

5. Sanctions

In the event of non-compliance with the provisions defined in this circular, CECs and FCECs are subject to the following sanctions:

a) Delay or Non-Transmission of Reports

If a CEC or FCEC fails to provide the financial statements and documents listed in this circular within the prescribed deadlines, the BRH reserves the right to apply the following sanctions:

1) Warning Upon expiration of the deadlines set in Section 4 of this circular, the BRH reserves the right to send a warning or censure letter to the board of directors of the CEC or FCEC, while ordering them to submit the missing documents. Penalties may be applied against the concerned CEC or FCEC.

2) Penalties Daily penalties for delay begin to apply five (5) business days after the date of receipt of the BRH's warning. A penalty of two hundred thousand (200,000) gourdes is imposed on the offending institution per day of delay.

3) Suspension Starting from ten (10) business days of delay, the BRH temporarily suspends the functions of the president and secretary of the board of directors. The suspension cannot exceed six (6) months.

b) Reliability and Completeness of Information

At all times, financial statements and amounts declared in the required reports must match those appearing in the CEC's or FCEC's records. If, upon verification, discrepancies exist between declared amounts and those in the records, or if transmitted data prove unreliable, the BRH will order the CEC or FCEC to correct them within eight (8) business days from the date of receipt of the notification letter.

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1) Penalty After the fixed eight (8) day period following the BRH's notification to the CEC or FCEC, a penalty of one hundred thousand (100,000) gourdes is imposed on the offending institution and must be paid within seven (7) days thereafter. Beyond this period, the penalty amount will increase by 2/100 of the discrepancies per day of delay.

2) Suspension If discrepancies are not corrected within 30 business days from the date of notification, the BRH will temporarily suspend the functions of the president and secretary of the board of directors. The suspension cannot exceed six (6) months.

The BRH will send, via notice with acknowledgment of receipt, the penalty amount to the concerned CEC or FCEC. For non-federated CECs, penalties must be settled by management check or wire transfer to the order of the BRH within the prescribed deadlines. Penalties for federated CECs or FCECs will be automatically deducted from the federation's account held at the BRH.

The board of directors of any CEC or FCEC is required to inform the general meeting of the various sanctions that have been imposed on the financial institution.

6. Repeal and Entry into Force

This circular repeals Circular # 7 of September 2, 2008, and enters into force on January 5, 2026.

Port-au-Prince, September 29, 2025

[Signature] Ronald Gabriel Governor