CENTRAL BANK OF THE GAMBIA ACT, 2018

ISSN 0796 - 028X

REPUBLIC OF THE GAMBIA

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ARRANGEMENT OF SECTIONS

Section

PART I – PRELIMINARY

1. Short title
2. Interpretation

PART II – ESTABLISHMENT, OBJECTIVES AND FUNCTIONS OF THE BANK

3. Establishment of the Central Bank
4. Head office and branches of the Bank
5. Objects of the Bank
6. Functions of the Bank

PART III – ADMINISTRATION OF THE BANK

Sub-Part 1 – BOARD OF DIRECTORS 7. Board of Directors
8. Duties and powers of the Board
9. Terms and conditions of service of members
10. Removal from the Board
11. Vacancy on the Board
12. Meetings of the Board
13. Conducting business with the Bank
14. Audit Committee
15. Financial Stability Committee
16. Committees of the Board

Sub-Part 2 – GOVERNOR, DEPUTY GOVERNORS AND OTHER STAFF OF THE BANK 17. Executive Board
18. Appointment and vacation of office of Governor and Deputy Governors
19. Duties and powers of the Governor
20. Emergency powers of the Governor
21. Functions of the Deputy Governors
22. Secretary to the Board
23. Internal Auditor
24. Other officers and employees of the Bank

Sub-Part 3 – MISCELLANEOUS

25. Prohibition on third party instructions
26. Signing of documents
27. Oath of secrecy
28. Liability for loss
29. Monetary Policy Committee

PART IV – CAPITAL, RESERVES AND PROFIT

30. Authorised share capital
31. Reserve accounts
32. Profits, losses and distributable earnings
33. Allocation of distributable earnings
34. Coverage of shortfall in capital

PART V – ESTIMATES, ACCOUNTS AND AUDIT

35. Estimates, accounts and audit
36. General reports
37. Financial year of the Bank

PART VI – THE BANK AS BANKER AND FISCAL AGENT OF GOVERNMENT AND STATE INSTITUTION

38. Custodian of State funds
39. The Banker for Government
40. Compensation for services
41. Temporary advance
42. Management of domestic debt
43. Adviser to Government on fiscal matters
44. Sharing of information

PART VII – CREDIT CONTROL

45. Report on unusual movement in supply of money
46. Managing the monetary and banking system
47. Sole right to issue and redeem currency notes and coins
48. Cover for notes and coins
49. Unit, denomination and form of currency
50. Collaboration with other banks
51. Currency cover assets of the Bank
52. Liabilities for issue
53. Legal tender
54. Exchange of imperfect or mutilated currency notes and coins
55. Evidence of imitation of a currency note

PART VIII – OPERATIONS

56. Exemption from stamp duty on currency notes
57. Exchange of currency notes

PART IX – FOREIGN EXCHANGE REGIME, EXCHANGE RATE POLICY AND INTERNATIONAL RESERVES

58. Business transactions
59. Lender of last resort
60. Transactions in securities
61. Payment system
62. Clearing and payment agreement
63. Businesses the Bank may not engage in
64. Foreign exchange regime
65. Exchange rate policy
66. Additional responsibilities of the Bank
67. External reserves
68. Reporting of foreign exchange transactions
69. Transactions in assets of international value
70. Power to borrow and lend

PART X – BANKING SUPERVISION AND RESEARCH

71. Supervisory function
72. Resolution function
73. Required reserves
74. Statistical data and publication of bulletins and reports
75. Request for research information

PART XI – GENERAL, SUPPLEMENTARY AND TRANSITIONAL PROVISIONS

76. Training of employees of the Bank and bankers
77. Exemption from tax and stamp duty
78. Liquidation
79. By-laws by the Board
80. Offences and penalties
81. Offences by bodies of persons
82. Regulations
83. 30-year Government consolidated bond
84. Disbursements under International Monetary Fund facilities
85. Inconsistency with other laws
86. Repeal and savings

SCHEDULE

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Central Bank of The Gambia Act, 2018

2. Interpretation

In this Act, unless the context otherwise requires —
"bank" has the meaning given to it in the Banking Act;
[Cap. 79:02]
"Bank" means the Central Bank of The Gambia;
"Board" means Board of Directors established under section 7;
"Constitution" means the Constitution of the Republic of The Gambia, 1997;
"Dalasi" means the Gambian Dalasi;
"financial institution" includes a deposit-taking financial institution such as a commercial bank, savings and loans company, mutual savings company, credit union or a non-deposit-taking financial institution such as a brokerage firm, insurance company, pension fund, investment company, which carries on the business of or part of whose business is any of the following activities —
(a) taking of deposits of money from the public repayable on demand and withdrawals by cheques, draft, orders or by other means,
(b) financing of any activity by way of creating financial assets such as loans and advances, securities, bank deposits or otherwise, other than its own,
(c) dealing in shares, stocks, bonds or other securities,
(d) leasing, letting or delivering goods to a hirer under a hire purchase agreement,
(e) carrying on by insurance companies of any business other than insurance, and
(f) collecting of money or accepting employer contributions and paying it out for legitimate claims or for retirement benefits;
"financial system" means a network of deposit-taking and non-deposit taking financial institutions and entities providing financial services to the public;
"foreign exchange" includes —
(a) currency notes, bank notes or coins other than the currency or coin of The Gambia, which is legal tender in any other country and are convertible into currency which is legal tender in any other country, and
(b) bills of exchange, travellers' cheques, convertible currency, foreign government treasury bills, securities and bonds, promissory notes and balances other than in the currency of The Gambia;
"foreign institution" means a banking or financial institution of a foreign government or agency or a financial institution acting on behalf of a foreign government;
"Government" means the Government of The Gambia;
"Governor" means the Governor appointed by the President under section 18 (2);
"liquid assets" means the cash in till, vault cash, balances deposited with the Bank and such other assets as the Bank may determine;
"member" means a Director of the Board;

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Central Bank of The Gambia Act, 2018

Supplement "C" to The Gambia Gazette No. 22 of 5th September, 2018
ISSN 0796 - 0298
Central Bank of The Gambia Act, 2018

THE GAMBIA
No. 8 OF 2018
Assented to by The President,
this 30th day of August, 2018

Adama Barrow.
President

AN ACT to amend and consolidate the law relating to the Central Bank of The Gambia, and for connected matters.

ENACTED by the President and the National Assembly.

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PART I – PRELIMINARY

1. Short title

This Act may be cited as the Central Bank of The Gambia Act, 2018.

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Central Bank of The Gambia Act, 2018

"Minister" means the Minister responsible for finance and economic affairs, and "Ministry" shall be construed accordingly;
"monetary liability" means currency in circulation and financial claims against the Bank, except the Bank's liabilities to the Government and international financial organisations;
"non-banking financial Institution" means a financial institution other than a bank;
"Resolution Authority" means the Resolution Authority of The Gambia;
"settlement system" means an arrangement by which action is taken to discharge an obligation in respect of funds or security transfers between two or more parties; and
"30-year consolidated Government bond" means the 30-year consolidated Government Bond with principal amount of eleven billion, seven hundred and fifty million Dalasis.

PART II – ESTABLISHMENT, OBJECTIVES AND FUNCTIONS OF THE BANK

3. Establishment of the Central Bank

(1) There is established by this Act, the Central Bank of The Gambia.

(2) The Bank —
(a) is a body corporate, with perpetual succession and a common seal;
(b) may sue and be sued in its corporate name; and
(c) may enter into contracts and acquire, hold, and dispose of property, whether movable or immovable.

(3) The application of the common seal of the Bank shall be authenticated —
(a) by the Governor; and
(b) in the absence of the Governor, by a Deputy Governor and two directors of the Bank.

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# Central Bank of The Gambia Act, 2018

## 4. Head office and branches of the Bank

(1) The head office of the Bank shall be in Banjul.

(2) The Bank may, where it considers it necessary for the performance of its functions, open branches and have agencies or agents in and outside The Gambia, with the prior approval of the Minister.

## 5. Objects of the Bank

(1) The primary objects of the Bank are to –

(a) achieve and maintain domestic price stability;

(b) promote and maintain the stability of the currency of The Gambia;

(c) direct and regulate the financial, insurance, banking and currency system, in the interest of the economic development of The Gambia; and

(d) encourage and promote economic development and the efficient utilisation of the resources of The Gambia through the effective and efficient operation of a financial system.

(2) Without prejudice to sub-section (1), the Bank shall –

(a) support the general economic policy of the Government; and

(b) promote economic growth and the effective and efficient operation of a financial system in The Gambia.

## 6. Functions of the Bank

(1) The Bank shall –

(a) formulate and implement monetary policies aimed at achieving the objects of the Bank;

(b) promote by monetary measures, the stabilisation of the value of the Gambian currency within and outside The Gambia;

(c) institute measures which are likely to have a favourable effect on the balance of payments, the state of public finances and the general development of the national economy;

(d) licence, regulate, supervise and direct the financial system and ensure its smooth operation;

(e) promote, regulate and supervise payment and settlement systems;

(f) issue and redeem the currency notes and coins of The Gambia;

(g) own, hold, and manage its external reserves and use its best endeavour to maintain the reserves at a level which shall be adequate to execute its monetary and exchange rate policies and for the prompt settlement of The Gambia's international transactions;

(h) ensure effective maintenance and management of The Gambia's external reserves;

(i) license, regulate, and supervise non-banking financial institutions;

(j) act as banker and financial adviser to the Government;

(k) promote and maintain relations with international banking and financial institutions and implement international monetary agreements to which The Gambia is a party;

(l) promote the safe and sound development of the financial system, including safe-guarding the interest of depositors;

(m) act as Resolution Authority and as such resolve disputes among deposit-taking financial institutions;

(n) collect, analyse and publish statistical data; and

(o) do all other things that are incidental and conducive to the efficient performance of its functions under this Act.

(2) The Board may by instrument published in the Gazette, authorise any person to exercise the power of the Bank to regulate and supervise non-banking financial institutions.

(3) An instrument issued under sub-section (2) –

(a) shall be signed the Governor; and

(b) may include provisions relating to –

(i) inspection,

(ii) management audit, and

(iii) any other aspect of the operation of non-banking financial institutions.

## PART III – ADMINISTRATION OF THE BANK

### Sub-Part 1 – BOARD OF DIRECTORS

## 7. Board of Directors

(1) The Bank shall be governed by a Board which shall comprise –

(a) a Chairperson, who shall be the Governor of the Bank; and

(b) four other Directors.

(2) The President shall appoint the members of the Board, after consultation with the Public Service Commission, from amongst persons with extensive professional or academic experience in the field of economics, finance, banking, or law.

(3) A person shall not be qualified to be appointed as a member of the Board if he or she –

(a) is a member of the National Assembly;

(b) is an employee, owner, shareholder or board director of a financial institution;

(c) is a holder of a political office or an officer of a political party;

(d) has been convicted of an offence involving dishonesty or fraud; or

(e) has been declared bankrupt.

## 8. Duties and powers of the Board

(1) The Board shall –

(a) formulate the policies of the Bank;

(b) supervise the implementation of those policies; and

(c) supervise the administration and operations of the Bank.

(2) In discharging its duties under sub-section (1), the Board has the power to –

(a) supervise the functions of the functions and the implementation of the policies of the Bank;

(b) approve the annual reports and financial statements to be submitted to the Minister under section 36 (1);

(c) adopt by-laws, internal rules and directives for the administration and operations of the Bank;

(d) approve the budget;

(e) determine the internal organisation of the Bank;

(f) adopt its own rules and procedure; and

(g) perform any other function or exercise any other power under this Act of any other enactment of the National Assembly.

(3) The Board may give directions to the Governor on any matter relating to the functions, duties and powers of the Bank under this Act or any other enactment of the National Assembly.

## 9. Terms and conditions of service of members

(1) The members, other than the Chairperson, shall be –

(a) appointed for a term of two years; and

(b) eligible for reappointment for one further term.

(2) The members shall be paid such allowances as may be determined by the Board, in consultation with the Minister.

(3) The allowances of the members shall not be varied to their disadvantage during their tenure of office.

## 10. Removal from the Board

(1) The President may remove a member, other than the Governor, from office, if he or she –

(a) is convicted of an offence involving dishonesty or fraud;

(b) is declared bankrupt;

(c) is unable to perform the functions of his or her office due to infirmity of mind or body or for any other cause;

(d) knowingly engages in any activity detrimental to the interests of the Bank; or

(e) fails to disclose his or her interest in a matter that is being considered by the Board.

(2) A member may resign his or her office by giving at least three months' notice in writing to the President.

## 11. Vacancy on the Board

Where a member dies, resigns or is otherwise removed from office before the completion of his or her term of office, another person shall be appointed, in the case of –

(a) the Governor, for a period of five years; and

(b) any other member, for the unexpired period of that member.

## 12. Meetings of the Board

(1) The Governor shall summon meetings of the Board at least once in every three months.

(2) The Governor shall preside at the meetings of the Board and in his or her absence, the members shall appoint one of their number to preside.

(3) The quorum for a meeting of the Board is three members.

(4) A member who has an interest in a matter that is being considered by the Board shall disclose in writing to the Board the nature of that interest and shall not participate in any discussion or decision of the Board on that matter.

(5) A member who fails to disclose his or her interest in accordance with sub-section (4), may be removed from office.

(6) A decision of the Board shall be determined a simple majority of the members present and voting, and where there is an equality of votes on an issue, the person presiding shall have a casting vote.

(7) The Board may, where it considers it fit, invite a person to assist at its meetings but the person so invited is not entitled to vote on a matter for decision by the Board.

(8) The validity of the proceedings of the Board is not affected by a vacancy among its membership or by a defect in the appointment or qualifications of that member.

(9) Except as otherwise provided in this section, the Board shall regulate its own procedure.

## 13. Conducting business with the Bank

Nothing in this Part shall be construed as prohibiting any member, other than the Governor, from conducting business with the Bank or any other person or authority, provided he or she declares his or her interest in writing to the Board and abstains from participating in any meeting of the Board at which he or she has such an interest is a subject for discussion.

## 14. Audit Committee

(1) The Board shall appoint an Audit Committee consisting of three non-executive members.

(2) The Audit Committee shall –

(a) oversee –

(i) the integrity of the financial statements of the Bank,

(ii) the effectiveness of the internal controls, and

(iii) the performance of the internal audit function;

(b) deliver opinions on any matter submitted to it by the Board or management of the Bank; and

(c) monitor compliance with laws applicable to the Bank and report on them to the Board.

(3) The Audit Committee shall meet at least once every three months.

## 15. Financial Stability Committee

(1) The Board shall appoint a Financial Stability Committee consisting of three non-executive members.

(2) The Financial Stability Committee shall –

(a) establish appropriate supervisory guidelines, policies and other reporting requirements for the financial sector;

(b) monitor compliance with such guidelines, policies and reporting requirements and report on them to the Board;

(c) deliver opinions on any matter submitted to it by the Board or Management of the Bank;

(d) receive and review the examination reports and recommend to the board any appropriate action to be taken; and;

(e) review the work of the Financial Supervision, Microfinance, Foreign Exchange and Insurance Departments of the Bank.

(3) The Financial Stability Committee shall meet at least once every three months.

## 16. Committees of the Board

Subject to sections 14 and 15, the Board may establish such number of committees as are necessary for advising the Board.

### Sub-Part 2 – GOVERNOR, DEPUTY GOVERNORS AND OTHER STAFF OF THE BANK

## 17. Executive Board

(1) There is established for the Bank an Executive Board comprising the Governor and the Deputy Governors.

(2) The Executive Board shall implement the policies adopted by the Board.

(3) In discharging its duties under sub-section (1), the Executive Board shall –

(a) be responsible for the current business and manage the operations of the Bank;

(b) report to the Board the implementation of the policies and the exercise of the functions, duties and powers of the Bank;

(c) adopt its own rules of procedure;

(d) take enforcement measures, including instructing supervised financial institutions to take remedial actions;

(e) impose administrative penalties, as provided by this Act, or by any other law;

(f) appoint the staff and agents of the Bank;

(g) perform any other functions relating to a decision of the Board or under this Act or any other enactment of the National Assembly;

(h) prepare for meetings of the Board; and

(i) perform any other task not explicitly allocated to the Governor.

## 18. Appointment and vacation of office of Governor and Deputy Governors

(1) The Bank shall be headed by a Governor and two Deputy Governors.

(2) The President shall appoint the Governor, a First and a Second Deputy Governor, after consultation with the Public Service Commission, from amongst persons with extensive professional or academic experience in the field of economics, finance, banking or law.

(3) The Governor and the Deputy Governors shall be appointed for a term of five years and shall each be eligible for reappointment for one further term only.

(4) The Governor and the Deputy Governors shall be appointed on terms and conditions determined by the President, which shall not be varied to their disadvantage during their tenure of office.

# Central Bank of The Gambia Act, 2018

(5) A person shall not be appointed or remain as Governor or Deputy Governor if he or she –  
(a) is not a citizen of The Gambia;  
(b) becomes a member of the National Assembly;  
(c) is an employee, an owner, a shareholder or a board member of a financial institution; or  
(d) is a holder of political office or an officer of a political party.

(6) The Governor or a Deputy Governor shall not hold any other office of profit or emolument or occupy any other position carrying the right to remuneration for the rendering of service.

(7) The Governor or a Deputy Governor may resign from office upon giving three months’ notice in writing to the President.

(8) The President may only remove the Governor or a Deputy Governor after appointing an independent tribunal, the chairperson of which shall be a person with judicial experience, to investigate him or her and report to the President.

(9) If the independent tribunal finds that the Governor or a Deputy Governor has –  
(a) become permanently incapable of carrying out the duties of the office;  
(b) been declared bankrupt by a court order;  
(c) been convicted of a felony or of any offence involving dishonesty;  
(d) been found guilty of serious misconduct in relation to the duties; or  
(e) been disqualified or suspended from practicing his or her profession, the President shall terminate the appointment of the Governor or Deputy Governor, as the case may be.

## 19. Duties and powers of the Governor

(1) The Governor shall be the Chief Executive Officer of the Bank.

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# Central Bank of The Gambia Act, 2018

(2) The Governor shall –  
(a) be responsible for the day-to-day administration of the Bank; and  
(b) represent the Bank and enter into contracts on behalf of the Bank.

## 20. Emergency powers of the Governor

(1) Where there is an internal disorder, external exigencies, national disaster or critical financial or economic crisis or other exigencies requiring immediate action and there is insufficient time to call a meeting of the Board or there is no Board in place, the Governor may, after giving notice to the Minister, exercise the powers of the Board and take necessary action.

(2) The Governor shall, within seven working days after taking the action under sub-section (1), call a meeting of the Board and report the action for ratification or review by the Board.

## 21. Functions of the Deputy Governors

(1) The Deputy Governors shall assist the Governor in the performance of his or her functions under this Act in such manner as the Governor may, in consultation with the Board, determine.

(2) In the absence of the Governor, the First Deputy Governor shall perform the functions of the Governor under this Act and in the absence of both the Governor and the First Deputy Governor, the Second Deputy Governor shall perform the functions of the Governor.

## 22. Secretary to the Board

(1) The Board shall appoint as Secretary to the Board, a senior official of the Bank with proven ability in administration.

(2) The Secretary shall –  
(a) prepare and attend meetings of the Board;  
(b) maintain a secretariat for the Board and ensure accurate recording of proceedings and decisions of the Board; and  
(c) perform such other functions as the Governor or the