Central Bank of Tunisia Circular No. 2017-06 to Banks and Financial Institutions dated July 31, 2017

Tunis, July 31, 2017
CIRCULAR TO BANKS AND FINANCIAL INSTITUTIONS
No. 2017-06
Subject: Accounting, Prudential and Statistical Reporting to the Central Bank of Tunisia

The Governor of the Central Bank of Tunisia,
Having regard to Law No. 2016-35 of April 25, 2016 establishing the status of the Central Bank of Tunisia; Having regard to Law No. 2016-48 of July 11, 2016 concerning banks and financial institutions; Having regard to Law No. 96-112 of December 30, 1996 concerning the accounting system for enterprises; Having regard to the Minister of Finance Order of March 25, 1999 approving accounting standards, particularly Accounting Standard No. 21 concerning the presentation of financial statements for banking institutions; Having regard to Circular No. 91-24 of December 17, 1991 to credit institutions concerning risk division, coverage and monitoring of commitments, as amended by subsequent texts; Having regard to Circular No. 97-08 of May 9, 1997 to approved intermediaries concerning rules for monitoring foreign exchange positions; Having regard to Circular No. 2006-06 of July 24, 2006 to credit institutions concerning the implementation of a compliance control system in credit institutions; Having regard to Circular No. 2006-19 of November 28, 2006 to credit institutions concerning internal control; Having regard to Circular No. 2008-06 of March 10, 2008 to the Central Bank of Tunisia concerning the information center; Having regard to Circular No. 2008-07 of March 13, 2008 to credit institutions and approved intermediaries concerning the use of the "SED" data exchange system; Having regard to Circular No. 2011-06 of May 20, 2011 to credit institutions concerning the strengthening of good governance rules in credit institutions; Having regard to Circular No. 2012-05 of April 17, 2012 to credit institutions concerning the submission of a quarterly statement of income; Having regard to Circular No. 2013-15 of November 7, 2013 to credit institutions concerning the implementation of internal control rules for managing money laundering and terrorist financing risk; Having regard to Circular No. 2014-14 of November 10, 2014 to banks concerning the liquidity ratio; Having regard to Note No. 93-23 of July 30, 1993 to banks and financial institutions concerning the terms of reference for account audits; Having regard to Opinion No. 2017-06 of the Compliance Control Committee dated July 24, 2017, as provided for by Article 42 of Law No. 2016-35 of April 25, 2016 establishing the statutes of the Central Bank of Tunisia; Decides:

Chapter 1: Subject Matter and Scope of Application Article 1: This circular applies to banks and financial institutions as defined by Law No. 2016-48 of July 11, 2016 concerning banks and financial institutions, hereinafter referred to as "subject establishments". Article 2: This circular aims to define a reference framework for information to be declared by subject establishments to the Central Bank of Tunisia, and the obligations to be observed regarding the preparation, presentation, control, and declaration of this information, hereinafter referred to as "Reporting". Article 3: The reference framework cited in Article 2 above comprises:

1. The obligations incumbent upon subject establishments regarding Reporting to the Central Bank of Tunisia.
2. All information to be declared to the Central Bank of Tunisia by subject establishments and the periodicity of their declaration.
3. The sanctions in case of non-compliance with the provisions of this circular.

Chapter 2: Obligations Incumbent upon Subject Establishments regarding "Reporting" Article 4: Subject establishments are required to implement a specific Reporting device, in accordance with the internal control system as provided for by Circular No. 2006-19 on internal control. This device must essentially comprise:

• A written internal procedure clearly defining the Reporting process, the functional and hierarchical links between organizational structures involved in this process, and the delineation of responsibilities at each structure level.
• An adequate periodic control mechanism enabling, in particular, the evaluation of the effectiveness of the aforementioned internal procedure and its compliance with the provisions of this circular.
• An adequate data production system ensuring compliance with regulatory deadlines and technical declaration modalities.
  The organization of the accounting system and information processing device of subject establishments must enable the identification of declared information as well as the preparation of the relevant statements or annexes. Article 5: Each subject establishment must designate a "Reporting Manager" and a deputy, responsible in particular for:
• Submitting information declarations to the Central Bank of Tunisia;
• Acting as the correspondent for the Central Bank of Tunisia regarding compliance with declaration obligations, responding to inquiries and requests for information, clarifications, and justifications on all aspects that may affect compliance with said obligations;
• Coordinating among all structures of the subject establishment concerned by Reporting;
• Informing the internal audit structure of any element that may affect the subject establishment's capacity to comply with its Reporting obligations; and
• Electronically signing all declarations transmitted to the Central Bank of Tunisia.
  The governing body must equip the "Reporting Manager" and their deputy with the necessary powers and means to fulfill their missions.
  Each subject establishment must communicate to the Central Bank of Tunisia, no later than one month from the publication of this circular, the identity and contact details of the "Reporting Manager" as well as those of their deputy, and must inform the Central Bank of Tunisia without delay of any change to the "Reporting Manager" or their deputy. Article 6: Subject establishments declare to the Central Bank of Tunisia data finalized as of the reference date, according to the periodicity and maximum declaration deadlines fixed by this circular. By "reference date" is meant the data finalization date corresponding to:
• The end of the day for daily declarations.
• The last day of the month for monthly declarations.
• The last day of the quarter for quarterly declarations.
• The last day of the semester for semi-annual declarations.
• The last day of the year for annual declarations.
  By "maximum declaration deadline" is meant:
• The day following the reference date for daily declarations.
• The 10th day following the reference date for the liquidity ratio declaration provided by Circular No. 2014-14.
• The 15th calendar day following the reference date for monthly declarations, unless otherwise specified in this circular.
• The 30th calendar day following the reference date for quarterly declarations, unless otherwise specified in this circular.
• Two months after the end of the first semester for the declaration regarding the auditors' report on interim financial statements finalized as of June 30 (i.e., end of August).
• The 45th calendar day following the reference date for annual declarations, unless otherwise specified in this circular.
• One month prior to the holding of the ordinary general meeting for consolidated reporting under domain 4 and for annual reporting reviewed by auditors under domain 7, as provided in Annex 1 to this circular.
  When the maximum declaration deadline does not fall on a working day, information is transmitted on the following working day.
  Shorter declaration deadlines may be required from banks and financial institutions subject to close supervision by the Central Bank of Tunisia.
  The subject establishment must declare data according to the deadlines set above, independently of their verification by auditors during the quarterly review provided for in Article 7 of this circular, as well as during the audit work on semi-annual and annual financial statements. Corrections to already submitted declarations, following their review by auditors, must be transmitted to the BCT no later than two months after the finalization date for quarterly and semi-annual declarations, and one month prior to the holding of the Ordinary General Meeting for all declarations finalized as of December 31. In case of declaration errors, the subject establishment is required to promptly rectify already submitted declarations. Significant corrections made to already submitted declarations must be supported by an explanatory note duly signed by the "Reporting Manager". The corrected declaration and the explanatory note must be transmitted without delay by the "Reporting Manager" to the Central Bank of Tunisia via the Data Exchange System (SED). Article 7: Subject establishments are required to declare to the Central Bank of Tunisia reports concerning the breakdown of commitments by risk class and compliance with prudential standards, finalized as of March, June, and September. These reports must be validated by the Board of Directors, reviewed by auditors, and declared to the Central Bank of Tunisia no later than two months after the finalization date. These reports must include the following annexes as referenced in Annex 1 to this circular under domain 3 "Prudential Reporting":
• The nominal statement of asset evaluation and risk coverage (sub-domain 1: credit risk).
• The breakdown of commitments by risk class and their coverage (sub-domain 1: credit risk).
• The elements for calculating the solvency ratio (sub-domain 5: compliance with legal and prudential standards).
• The summary statement of compliance with concentration, risk division, and related-party exposure norms (sub-domain 5: compliance with legal and prudential standards).
  Article 8: Reporting to the Central Bank of Tunisia must bear the electronic signature of the "Reporting Manager" or their deputy.
  This Reporting must be mandatorily performed via the Data Exchange System (SED). Unsigned Reporting is considered not received.
  In case of unavailability of the Data Exchange System preventing declaration, subject establishments may use backup terminals made available to them at the headquarters of the Central Bank of Tunisia for data declaration.

Chapter 3: Structure and Content of Reporting Article 9: Reporting covers 7 domains:
Domain 1: Accounting Reporting, to be prepared according to Tunisian accounting standards and specific rules set out in this circular.
Domain 2: "Monetary and Financial Statistics" Reporting Domain 3: Prudential Reporting by reference to current prudential regulation, broken down into 5 sub-domains:
Sub-domain 1: Credit Risk
Sub-domain 2: Liquidity Risk
Sub-domain 3: Interest Rate Risk
Sub-domain 4: Operational Risk
Sub-domain 5: Compliance with legal and prudential standards Domain 4: Consolidated Reporting Domain 5: Reporting on governance, internal control, and risk management devices, broken down into 5 sub-domains:
Sub-domain 1: Governance
Sub-domain 2: Internal Control
Sub-domain 3: Risk Management
Sub-domain 4: Compliance
Sub-domain 5: Money Laundering and Terrorist Financing Prevention Domain 6: General Reporting Domain 7: Reporting reviewed by auditors
Annex 1 to this circular lists the various annexes composing Reporting, distributed by domain and sub-domain, specifying the declaration periodicity, maximum transmission deadline, transmission format, and type of subject establishments, namely:
(BR): Resident Banks
(EL): Leasing Institutions
(EF): Factoring Institutions
(BNR): Non-resident Banks
(BA): Investment Banks
The annex templates will be made available to subject establishments on the Data Exchange System and published on the Central Bank of Tunisia's website. Changes to these templates will be notified by the Central Bank of Tunisia to banks and financial institutions.

Chapter 4: Electronic Signature, Technical Declaration Modalities, and Automatic Consultation of Reporting Article 10: A technical specification document is made available to subject establishments on the Data Exchange System and can be consulted online. This document includes the collection of Reporting items and their definitions, annex identification sheets, technical declaration modalities for data, as well as an electronic signature guide describing the signing process. Subject establishments must declare data in accordance with the aforementioned technical specification document.

Chapter 5: Sanctions for Non-Compliance with Reporting Obligations Article 11: The following are considered infractions subject to sanctions, as applicable, under Articles 170 and 181 of Law No. 2016-48:

• Declaration of information after the maximum deadlines fixed by this circular.
• Declaration transmitted within regulatory deadlines via a declaration channel other than the one specified in this circular (Data Exchange System).
• Declaration that does not comply with the rules established by this circular and has been rejected at the Data Exchange System level.
  Article 12: The following are considered infractions of legal and regulatory provisions concerning the facilitation of supervision procedures for banks and financial institutions under item 3 of Article 169 of Law No. 2016-48, and are subject to disciplinary sanctions as provided by Article 170 of said law:
• Failure to declare data within a deadline exceeding regulatory deadlines by 3 months; and
• Non-compliance with declaration standards established by this circular.
  Article 13: Subject establishments must take necessary measures to comply with the requirements of this circular from its entry into force. They must submit to the Central Bank of Tunisia no later than end of November 2017, a roadmap for implementing their new Reporting system. Article 14: This circular takes effect as of June 30, 2018 and repeals from this date all contrary provisions, particularly Circular No. 93-08 of July 30, 1993 to banks and financial institutions, and Article 18 of Circular No. 91-24 of December 17, 1991 as amended by Circular No. 2012-09 of June 29, 2012. THE GOVERNOR CHEDLY AYARI

Annex I to the Circular on Accounting, Prudential and Statistical Reporting to the Central Bank of Tunisia

• List of annexes composing Reporting

Domain	Declaration Code	Declaration Title	EA (Establishments)	Periodicity	Max Transmission Deadline	Format/Transmission
1- Accounting Reporting	RCM00	Monthly Accounting Statement (Balance Sheet)	BR+BNR+EL+EF+BA	Monthly	DR+15j	XML
1- Accounting Reporting	RCM01	Monthly Accounting Statement (Off-Balance Sheet)	BR+BNR+EL+EF+BA	Monthly	DR+15j	XML
1- Accounting Reporting	RCM02	Monthly Accounting Statement (Financial Intermediation)	BR+BNR+EL+EF+BA	Monthly	DR+15j	XML
1- Accounting Reporting	RCT51	Income Statement (Circular 2012-05)	BR+BNR+EL+EF+BA	Quarterly	DR+30j	XML
2- "Monetary and Financial Statistics" Reporting	RSM620	Summary Statement of Securities Portfolio (excluding State securities)	BR+BNR+EL+EF	Monthly	DR+15j	XML
2- "Monetary and Financial Statistics" Reporting	RSM630	Breakdown of Collected Resources by Institutional Sector	BR+BNR+EL+EF	Monthly	DR+15j	XML
2- "Monetary and Financial Statistics" Reporting	RSM640	Breakdown of Claims on Customers by Institutional Sector	BR+BNR+EL+EF	Monthly	DR+15j	XML
3- Prudential Reporting<br>SD1-Credit Risk	RPCT480	Nominal Statement of Asset Evaluation and Risk Coverage	BR+BNR+EL+EF	Quarterly	DR+30j	XML
3- Prudential Reporting<br>SD1-Credit Risk	RPCT481	Breakdown of Commitments by Risk Class and Coverage	BR+BNR+EL+EF	Quarterly	DR+30j	XML
3- Prudential Reporting<br>SD1-Credit Risk	RPCT482	Breakdown of Commitments by Risk Class and Activity Sector	BR+BNR+EL+EF	Quarterly	DR+30j	XML
3- Prudential Reporting<br>SD1-Credit Risk	RPCA483	Coverage of Assets with Maturity in Class 4 ≥ 3 years (Annex IV to Circular 91-24)	BR+BNR+EL+EF	Annual	DR+45j	XML
3- Prudential Reporting<br>SD1-Credit Risk	RPCA484	Collective Provision Determination Statement	BR+BNR+EL+EF	Annual	DR+45j	XML
3- Prudential Reporting<br>SD1-Credit Risk	RPCA485	Commitment Migration Statement by Risk Class	BR+BNR+EL+EF	Annual	DR+45j	XML
3- Prudential Reporting<br>SD1-Credit Risk	RPCA486	Information on Transfers and Write-offs	BR+BNR+EL+EF	Annual	DR+45j	XML
3- Prudential Reporting<br>SD2-Liquidity Risk	RPLM47	Liquidity Ratio (Circular 2014-14)	BR	Monthly	DR+10j	XML
3- Prudential Reporting<br>SD2-Liquidity Risk	RPLA510	Breakdown of Assets and Liabilities in Dinars by Residual Maturity	BR	Annual	DR+45j	XML
3- Prudential Reporting<br>SD2-Liquidity Risk	RPLA520	Breakdown of Assets and Liabilities in US Dollars by Residual Maturity	BR+BNR	Annual	DR+45j	XML
3- Prudential Reporting<br>SD2-Liquidity Risk	RPLA530	Breakdown of Assets and Liabilities in Euros by Residual Maturity	BR+BNR	Annual	DR+45j	XML
3- Prudential Reporting<br>SD2-Liquidity Risk	RPLT540	Concentration on Top 50 Depositors in Dinars	BR	Quarterly	DR+30j	XML
3- Prudential Reporting<br>SD2-Liquidity Risk	RPLT550	Concentration on Top 50 Depositors in All Currencies Combined	BR+BNR	Quarterly	DR+30j	XML
3- Prudential Reporting<br>SD3-Interest Rate Risk	RPTA910	Breakdown of Assets and Liabilities in Dinars by Rate and Residual Maturity	BR+EL	Annual	DR+45j	XML
3- Prudential Reporting<br>SD4-Operational Risk	RPOA360	Statistics on Incidents and Losses Related to Operational Risk	BR+BNR+EL+EF	Annual	DR+45j	XML
3- Prudential Reporting<br>SD5-Compliance with Legal & Prudential Standards	RNLPQ810	Foreign Exchange Position (Circular 97-08)	BR	Daily	DR+1j	XML
3- Prudential Reporting<br>SD5-Compliance with Legal & Prudential Standards	RNLPT13	Elements for Calculating Risk Coverage Ratio (Circular 91-24)	BR+BNR+EL+EF	Quarterly	DR+30j	XML
3- Prudential Reporting<br>SD5-Compliance with Legal & Prudential Standards	RNLPT820	Summary Statement of Compliance with Concentration, Risk Division, and Related-Party Exposure Norms	BR+BNR+EL+EF	Quarterly	DR+30j	XML
3- Prudential Reporting<br>SD5-Compliance with Legal & Prudential Standards	RNLPT830	List of Beneficiaries Whose Incurred Risks Exceed 25% of Net Equity	BR+BNR+EL+EF	Quarterly	DR+30j	XML
3- Prudential Reporting<br>SD5-Compliance with Legal & Prudential Standards	RNLPT840	List of Beneficiaries Whose Incurred Risks are ≥ 5% of Net Equity Each	BR+BNR+EL+EF	Quarterly	DR+30j	XML
3- Prudential Reporting<br>SD5-Compliance with Legal & Prudential Standards	RNLPT850	List of Beneficiaries Whose Incurred Risks are ≥ 15% of Net Equity Each	BR+BNR+EL+EF	Quarterly	DR+30j	XML
3- Prudential Reporting<br>SD5-Compliance with Legal & Prudential Standards	RNLPT860	Statement of Risks Incurred on Persons with Links to the Establishment per Article 43 of Law No. 2016-48	BR+BNR+EL+EF	Quarterly	DR+30j	XML
3- Prudential Reporting<br>SD5-Compliance with Legal & Prudential Standards	RNLPA870	Nominal Statement of Direct and Indirect Participations by the Establishment	BR+BNR+EL+EF	Annual	DR+45j	XML
3- Prudential Reporting<br>SD5-Compliance with Legal & Prudential Standards	RNLPA880	Summary Statement of Compliance with Legal Participation Norms	BR+BNR+EL+EF	Annual	DR+45j	XML
4- Consolidated Reporting	RBCA100	Intra-group Exposures	BR+BNR+EL+EF	Annual	1 month before AGO date2	XML
4- Consolidated Reporting	RBCA110	Consolidation Scope	BR+BNR+EL+EF	Annual	1 month before AGO date2	XML
4- Consolidated Reporting	RBCA120	Consolidated Financial Statements	BR+BNR+EL+EF	Annual	1 month before AGO date2	PDF
5- Reporting on Governance, Internal Control & Risk Management Devices<br>SD1: Governance	RGA210	Capital Structure	BR+BNR+EL+EF+BA	Annual	DR+45j	XML
5- Reporting on Governance, Internal Control & Risk Management Devices<br>SD1: Governance	RGA220	Information on Governance Structures	BR+BNR+EL+EF+BA	Annual	DR+45j	XML
5- Reporting on Governance, Internal Control & Risk Management Devices<br>SD1: Governance	RGA230	Information on Control Structures	BR+BNR+EL+EF	Annual	DR+45j	XML
5- Reporting on Governance, Internal Control & Risk Management Devices<br>SD1: Governance	RGA240010	Updated Strategy Note (5-year period)	BR+BNR+EL+EF+BA	Annual	DR+45j	PDF
5- Reporting on Governance, Internal Control & Risk Management Devices<br>SD1: Governance	RGA240020	Annual Report	BR+BNR+EL+EF+BA	Annual	DR+45j	PDF
5- Reporting on Governance, Internal Control & Risk Management Devices<br>SD1: Governance	RGA240030	Statutes	BR+BNR+EL+EF+BA	Annual	DR+45j	PDF
5- Reporting on Governance, Internal Control & Risk Management Devices<br>SD1: Governance	RGA240040	Code of Ethics	BR+BNR+EL+EF+BA	Annual	DR+45j	PDF
5- Reporting on Governance, Internal Control & Risk Management Devices<br>SD1: Governance	RGA240050	Organizational Chart	BR+BNR+EL+EF+BA	Annual	DR+45j	PDF
5- Reporting on Governance, Internal Control & Risk Management Devices<br>SD1: Governance	RGA240060	Governance Code	BR+BNR+EL+EF+BA	Annual	DR+45j	PDF
5- Reporting on Governance, Internal Control & Risk Management Devices<br>SD1: Governance	RGA240070	Internal Audit Permanent Committee Charter	BR+BNR+EL+EF+BA	Annual	DR+45j	PDF
5- Reporting on Governance, Internal Control & Risk Management Devices<br>SD1: Governance	RGA240080	Risk Committee Charter	BR+BNR+EL+EF+BA	Annual	DR+45j	PDF
5- Reporting on Governance, Internal Control & Risk Management Devices<br>SD1: Governance	RGA240090	Remuneration and Appointment Committee Charter	BR+BNR	Annual	DR+45j	PDF
5- Reporting on Governance, Internal Control & Risk Management Devices<br>SD1: Governance	RGA240100	Islamic Banking Standards Compliance Control Committee Charter	BEFI	Annual	DR+45j	PDF
5- Reporting on Governance, Internal Control & Risk Management Devices<br>SD1: Governance	RGA240110	Conflict of Interest Management Policy	BR+BNR+EL+EF	Annual	DR+45j	PDF
5- Reporting on Governance, Internal Control & Risk Management Devices<br>SD1: Governance	RGA240120	Appointment and Remuneration Policy	BR+BNR+EL+EF	Annual	DR+45j	PDF
5- Reporting on Governance, Internal Control & Risk Management Devices<br>SD1: Governance	RGA240130	Succession Plan	BR+BNR+EL+EF	Annual	DR+45j	PDF
5- Reporting on Governance, Internal Control & Risk Management Devices<br>SD1: Governance	RGT240140	Minutes of Board of Directors Meetings held during the past quarter	BR+BNR+EL+EF+BA	Quarterly	DR+30j	PDF
5- Reporting on Governance, Internal Control & Risk Management Devices<br>SD1: Governance	RGT240150	Minutes of Internal Audit Permanent Committee Meetings held during the past quarter	BR+BNR+EL+EF+BA	Quarterly	DR+30j	PDF
5- Reporting on Governance, Internal Control & Risk Management Devices<br>SD1: Governance	RGT240160	Minutes of Risk Committee Meetings held during the past quarter	BR+BNR+EL+EF+BA	Quarterly	DR+30j	PDF
5- Reporting on Governance, Internal Control & Risk Management Devices<br>SD1: Governance	RGT240170	Minutes of Islamic Banking Standards Compliance Control Committee Meetings held during the past quarter	BEFI	Quarterly	DR+30j	PDF
5- Reporting on Governance, Internal Control & Risk Management Devices<br>SD1: Governance	RGA240180	Minutes of the Board of Directors Meeting for Finalizing Financial Statements of the Relevant Fiscal Year	BR+BNR+EL+EF+BA	Annual	1 month before AGO date2	PDF
5- Reporting on Governance, Internal Control & Risk Management Devices<br>SD1: Governance	RGA240190	Draft Resolutions of the AGO for the Relevant Fiscal Year	BR+BNR+EL+EF+BA	Annual	1 month before AGO date2	PDF

DR: Reference Date
EA: Subject Establishment
AGO: Ordinary General Meeting
BR: Resident Banks; BNR: Non-resident Banks; EL: Leasing Institutions; EF: Factoring Institutions; BA: Investment Banks; BEFI: Banks or financial institutions conducting Islamic banking operations. 2: Without exceeding March 31.