Regulatory Alerts2024-10-01
Circular No. 04M18 on the Governance of Microfinance Institutions, Special Structures, Financial Bodies and Community Financial Groupings
The Banque de la République du Burundi issued Circular No. 04M18 to establish minimum governance rules and risk management frameworks for microfinance institutions, Special Structures, Financial Bodies, and Community Financial Groupings. The regulation mandates the appointment of qualified directors, independent oversight committees, strict voting rights for shareholders, and clear codes of conduct to prevent governance failures such as mission drift and conflicts of interest. It further enforces compliance through specific sanctions, including the suspension or withdrawal of voting and board participation rights for non-compliant shareholders and directors.
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