Circular No. 002/99-CSBF Establishing Implementation Modalities for Article 52 of Law No. 95.030 on Penalty Payments

CIRCULAR NO. 002/99-CSBF
Establishing the Implementation Modalities for Article 52 of Law No. 95.030 on Penalty Payments

The Banking and Financial Supervision Commission (CSBF), Having regard to the provisions of Article 52 of Law No. 95-030 dated February 22, 1996 concerning the activity and supervision of credit institutions, hereby establishes as follows the implementation modalities for Article 52 of the aforementioned Law No. 95.030:

1. Pursuant to Article 52, credit institutions that

• fail to comply within the prescribed time limits with the requirements arising from Articles 41 and 42 or with CSBF injunctions,
• do not comply with information requests from the CSBF or its General Secretariat,
• hinder in any manner the exercise of inspections prescribed under Article 44,
• violate instructions issued by the CSBF for the application of the aforementioned law,
• fail to respect the time limits for submitting documents, information and clarifications, explanations and supporting evidence required by the CSBF, the Central Bank, and the Ministry in charge of Finance pursuant to Articles 58 and 59 of the aforementioned law,
  are subject to a penalty payment (astreinte) of two million (2,000,000) francs per day of delay or infringement, calculated from the expiration of the prescribed time limits.

2. The CSBF is seized by the relevant department of the Central Bank regarding the nature of the infringement, the number of days of delay, and the reference to the applicable regulations.

3. The CSBF determines by collegial decision the final amount of the penalty payment. It rules in this capacity as an administrative court.

4. This decision shall be notified to the non-compliant institution by the CSBF Secretary General, accompanied by an order to make payment.

5. In accordance with Article 51 of Law No. 95.030, this decision is subject to an annulment appeal before the Administrative Chamber of the Supreme Court, but such appeal does not have a suspensive effect.

Done in Antananarivo, on November 23, 1999
For the BANKING AND FINANCIAL SUPERVISION COMMISSION THE PRESIDENT,

Gaston E. RAVELOJAONA.