Collection of Legal and Regulatory Texts Governing Banking and Financial Activity in the Republic of Guinea

CENTRAL BANK OF THE REPUBLIC OF GUINEA

BCRG
COLLECTION OF LEGAL AND REGULATORY TEXTS
GOVERNING BANKING AND FINANCIAL ACTIVITY IN
THE REPUBLIC OF GUINEE
BCRG: P.O. Box 692 – Conakry – Tel.: (+224) 664 67 77 77 – E-mail: secretariat.gouv@bcrg-guinee.org Fax: (+224) 669 08 88 88 – Website: www.bcrg-guinee.org / 6 Boulevard du Commerce, Kaloum Commune

Central Bank of the Republic of Guinea
Collection of Legal and Regulatory Texts Governing Banking and Financial Activity 1 COLLECTION OF LEGAL AND REGULATORY TEXTS GOVERNING BANKING AND FINANCIAL ACTIVITY IN THE REPUBLIC OF GUINEE Edition December, 2017 CENTRAL BANK OF THE REPUBLIC OF GUINEE (BCRG)

Central Bank of the Republic of Guinea
Collection of Legal and Regulatory Texts Governing Banking and Financial Activity 2
TABLE OF CONTENTS
INTRODUCTION ................................................................................................................6
I. THE LEGAL FRAMEWORK FOR BANKING AND FINANCIAL ACTIVITY IN
THE REPUBLIC OF GUINEE...............................................................................................7

1. Law L/2013/060/CNT on Banking Regulation ........................................................8
2. Law L/2012/005/CNT on Credit-Lease or Leasing in the Republic of Guinea .......29
3. Law L/2006/010/AN on Combating Money Laundering in the Republic of
   Guinea..............................................................................................................................40
4. Law L/2000/006/AN Adopting and Promulgating the Law Regulating Financial Relations
   Related to Transactions Between the Republic of Guinea and Abroad............58
   II. THE INSTITUTIONAL FRAMEWORK FOR BANKING AND FINANCIAL ACTIVITY
   IN THE REPUBLIC OF GUINEE.......................................................................................62
5. Decision No. 243/09 of July 31, 2009 on the Assignment and Organization of the
   Banking Directorate............................................................................................63
6. Decision D/2015/001/CAM of March 27, 2015 on the Code of Ethics for Members of the
   Licensing Committee.......................................................................................................65
7. Decision D/2014/084/CAM of December 18, 2014 on Procedures for the Contribution of
   Banks and Financial Institutions to the Operating Costs of Banking Supervision
   in the Republic of Guinea ..................................................................................................67
   III. CONDITIONS FOR EXERCISING BANKING AND FINANCIAL ACTIVITY IN
   THE REPUBLIC OF GUINEE .............................................................68
8. Decision No. D/2013/050/CAM of March 19, 2013 on Fixing the Minimum Share Capital
   Amount for Credit Institutions in the Bank Category.....................................69
9. Instruction No. 001/2013 on Procedures for Implementing Decision
   No. D/2013/050/CAM of March 19, 2013 on Fixing the Minimum Share Capital
   Amount for Credit Institutions in the Bank Category ..........................................................70
10. Instruction No. I/2002/136/DGI/DB of November 26, 2002 on Minimum Capital Representation...........................................................................................71
11. Decision No. D/2015/008/CAM of June 3, 2015 on Fixing the Minimum Share Capital
    Amount for Electronic Money Institutions in the Republic of Guinea.........72
12. Instruction No. 032/DGSIF/DSB of November 12, 2014 on the List of Documents
    Constituting the Application File for Licensing Credit Institutions in the "Bank" or "Financial Institution" Category, as well as for Directors and Statutory Auditors of Licensed Credit Institutions in the "Bank" or "Financial Institution" Category ........................................................................................................................73
13. Instruction No. 021/DGSIF/DSB of May 13, 2014 on Reference Shareholding ......86
14. Instruction No. 072/DGSIF/DSB of February 16, 2017 on Prior Notification for
    Assuming the Office of Administrator, Any Changes Affecting the Composition of Governing Bodies, and Declaration of the List of Administrators as well as Members of the General Management of Credit Institutions..........................................................87
15. Decision D/2015/003/CAM of March 31, 2015 on the Issuance of Electronic Money and
    Establishment of Electronic Money Institutions (EMI) in the Republic of Guinea...........................98

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16. Decision D/2015/002/CAM of March 31, 2015 on Classification and Legal Form of
Financial Institutions in the Republic of Guinea.........................................................108
17. Instruction No. 070 DGSIF/DSB of February 16, 2017 on Conditions for Opening,
Closing, and Transferring Branches and Counters by Licensed Credit Institutions.111
18. Instruction No. 079 DGSIF/DSB/2018 of May 17, 2018 on Conditions for Appointing a
Second Full-Term Statutory Auditor by Credit Institutions ..................117
IV. MANAGEMENT RULES OR PRUDENTIAL FRAMEWORK FOR EXERCISING
BANKING AND FINANCIAL ACTIVITY IN THE REPUBLIC OF GUINEE........118
19. Instruction No. I/2002/135/DGI/DB of November 26, 2002 on the Composition of Net
Own Funds of Credit Institutions ........................................................................119
20. Instruction No. I/2002/137/DGI/DB of November 26, 2002 on the Calculation of the Solvency Ratio.......................................................................................................................................122
21. Instruction No. I/2002/138/DGI/DB of November 26, 2002 on the Division and Concentration of Risks............................................................................................125
22. Instruction No. I/2006/01/DGI/DB of January 12, 2006 on Limiting Exchange Rate Risk.......................................................................................................................................128
23. Instruction No. 0008/2008/DGSIF/DSB on Loans Granted to Shareholders,
Administrators, Executives, and Affiliates........................................................................132
24. Circular Note No. 0158/DGSIF/DSB/SRS/13 on Financing the Importation of
Petroleum Products ..........................................................................................................135
25. Circular Note No. 035/DGSIF/DSB/SRS/15 on Financing Outside Petroleum Products.......................................................................................................................................136
26. Instruction No. 0006/DGSIF/DSB of September 5, 2008 on the Liquidity Ratio of
Credit Institutions ..................................................................................................137
27. Instruction No. I/2004/02/DGI/DB on the Transformation Ratio for Over Five Years for Credit Institutions ..................................................................................................141
28. Instruction No. 002/DGSIF/DSB of December 3, 2013 on Internal Control ............143
29. Decision No. D/2016/004/CAM of December 16, 2016 on Acquiring or Holding
Participations by Credit Institutions in Existing or Newly Created Enterprises.......................................................................................................................................158
30. Instruction No. 071/DGSIF/ DSB/ of February 16, 2017 on Operations Subject to
Prior or Posterior Notification.................................................................................160
V. THE ACCOUNTING FRAMEWORK FOR BANKING AND FINANCIAL ACTIVITY IN
THE REPUBLIC OF GUINEE...........................................................................................164
31. Instruction No. 001/DGSIF/DSB/NPCB of March 23, 2013 on the Adoption of the Guinean Banking Accounting Plan ...........................................................................................165
32. Instruction No. 002/DGSIF/DSB/NPCB of December 2, 2014 on the Obligation for
Credit Institutions to Adopt the Chart of Accounts Provided by the Guinean Banking Accounting Plan...........................................................................................................................166
33. Instruction No. 003/DGSIF/DSB/NPCB of December 2, 2014 on the Definition of Attributes.......................................................................................................................................167

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34. Annex to Instruction No. 003/DGSIF/DSB/NPCB of December 2, 2014 on the Definition of Attributes..................................................................................................167
35. Instruction No. 004/DGSIF/DSB/NPCB/2014 of December 2, 2014 on the Accounting Recording of Foreign Currency Operations.................................................................................177
36. Instruction No. 005/DGSIF/DSB/NPCB/ of December 2, 2014 on the Accounting for the Disposal of Asset Elements .........................................................................180
37. Instruction No. 006/DGSIF/DSB/NPCB/ of December 2, 2014 on the Principle of Non-Offsetting..................................................................................................................182
38. Instruction No. 007/DGSIF/DSB/NPCB/ of December 2, 2014 on the Accounting for Related Receivables and Payables...........................................................................................183
39. Instruction No. 008/DGSIF/DSB/NPCB/ of December 2, 2014 on the Accounting and Provisioning for Non-Performing Commitments.....................................................................184
40. Instruction No. 009/DGSIF/DSB/NPCB/ of December 2, 2014 on the Accounting for Syndicated Operations...................................................................................................187
41. Instruction No. 010/DGSIF/DSB/NPCB/ of December 2, 2014 on the Accounting and Valuation of Securities Belonging to Credit Institutions......................................189
42. Instruction No. 011/DGSIF/DSB/NPCB/ of December 2, 2014 on the Accounting for Credit-Lease, Hire-Purchase, and Sale-and-Leaseback Operations................192
43. Instruction No. 012/DGSIF/DSB/NPCB/ of December 2, 2014 on the Preparation and Publication by Credit Institutions of Consolidated Accounts .........................................193
44. Instruction No. 013/DGSIF/DSB/NPCB/ of December 2, 2014 on the Accounting for Collection Operations ..............................................................................................197
45. Instruction No. 014/DGSIF/DSB/NPCB/ of December 2, 2014 on the Accounting for Collection Operations ..............................................................................................198
VI. THE REGULATORY FRAMEWORK FOR COMBATING MONEY LAUNDERING
AND TERRORISM FINANCING IN THE REPUBLIC OF GUINEE....................................................................199
46. Decision No. 028/DGSIF/DSB/2014 of August 13, 2014 on the Organization of the Anti-Money Laundering and Counter-Terrorism Financing Framework at the Central Bank of the Republic of Guinea.............................................................................................200
VII. THE REGULATORY FRAMEWORK FOR THE CREDIT INSTITUTION / CLIENT
RELATIONSHIP: CLIENT PROTECTION .........................................203
47. Instruction No. 033/DGSIF/DSB/2014 of December 2, 2014 on the Procedures by Which Credit Institutions Must Disclose to the Public the Conditions Applied to Their Operations..........................................................................................204
48. Instruction No. 040/DGSIF/DSB/2012 of September 10, 2012 on the Free Provision of Certain Minimum Banking Services Offered to Clients........................................................................205
49. Instruction No. 078 DGSIF/DSB/2018 of May 17, 2018 Defining the Conditions for Exercising by Clients of Credit Institutions the Right to Open an Account ..............206
VIII. THE REGULATORY FRAMEWORK FOR MONETARY SANCTIONS
APPLICABLE TO CREDIT INSTITUTIONS ............................................207

Central Bank of the Republic of Guinea
Collection of Legal and Regulatory Texts Governing Banking and Financial Activity 5
50. Instruction No. 025/DGSIF/DSB/2014 of July 30, 2014 on Late Penalties for the Transmission of Documents and Information to the Central Bank of the Republic of Guinea (BCRG) ..............................................................................................................208
51. Instruction No. 052/DGSIF/DSB/2015 of July 8, 2015 on the Procedures for Applying Supplementary Monetary Sanctions to Disciplinary Sanctions Pronounced by the Central Bank of the Republic of Guinea (BCRG)....................................................209
52. Instruction No. 011/DGSIF/DSB/2009 of August 4, 2009 on the Conditions for Exercising the Activities of Statutory Auditors of Licensed Credit Institutions in the "Bank or Financial Institutions" Category ...........................................................................211
53. Instruction No. 0007/DGSIF/DSB/2009 of September 5, 2009 on the Limitation of Non-Banking Activities of Credit Institutions..............................................................................215

Central Bank of the Republic of Guinea
Collection of Legal and Regulatory Texts Governing Banking and Financial Activity 6 INTRODUCTION This collection gathers the legal and regulatory texts (Laws, Decisions, Instructions, Circulars, Letters, and Circular Notes) issued by the Central Bank of the Republic of Guinea (BCRG) governing the activity of Credit Institutions in the "Bank" and "Financial Institution" categories in the Republic of Guinea. It is organized around:

1. The Legal Framework for Banking and Financial Activity in the Republic of Guinea (I),
2. The Institutional Framework for Banking and Financial Activity in the Republic of Guinea (II),
3. Conditions for Exercising Banking and Financial Activity in the Republic of Guinea (III),
4. Management Rules or Prudential Framework for Exercising Banking and Financial Activity (IV),
5. The Accounting Framework for Banking and Financial Activity in the Republic of Guinea (V),
6. The Regulatory Framework for Combating Money Laundering and Terrorism Financing in the Republic of Guinea (VI),
7. The Regulatory Framework for the Credit Institution / Client Relationship (VII),
8. The Regulatory Framework for the Organization of Common Services (VIII),
9. and the Regulatory Framework for Monetary Sanctions Applicable to Credit Institutions in the Republic of Guinea (IX).
   This new edition integrates seven (07) new texts, namely:

• Decision No. 243/09 of July 31, 2009 on the Assignment and Organization of the Banking Directorate;
• Instruction No. 070 DGSIF/DSB of February 16, 2017 on Conditions for Opening, Closing, and Transferring Branches and Counters by Licensed Credit Institutions;
• Instruction No. 071/DGSIF/DSB/ of February 16, 2017 on Operations Subject to Prior or Posterior Notification;
• Instruction No. 072/DGSIF/DSB of February 16, 2017 on Prior Notification for Assuming the Office of Administrator, Any Changes Affecting the Composition of Governing Bodies, and Declaration of the List of Administrators as well as Members of the General Management of Credit Institutions;
• Instruction No. 079 DGSIF/DSB/2018 of May 17, 2018 on Conditions for Appointing a Second Full-Term Statutory Auditor by Credit Institutions;
• Decision No. D/2016/004/CAM of December 16, 2016 on Acquiring or Holding Participations by Credit Institutions in Existing or Newly Created Enterprises; and
• Instruction No. 078 DGSIF/DSB/2018 of May 17, 2018 Defining the Conditions for Exercising by Clients of Credit Institutions the Right to Open an Account.

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I. THE LEGAL FRAMEWORK FOR BANKING AND FINANCIAL ACTIVITY IN
THE REPUBLIC OF GUINEE

Central Bank of the Republic of Guinea
Collection of Legal and Regulatory Texts Governing Banking and Financial Activity 8 Law L/2013/060/CNT on Banking Regulation

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THE NATIONAL COUNCIL OF THE TRANSITION
Having reviewed the Constitution, particularly Articles 72 and 157; After deliberation, adopts; The President of the Republic promulgates by Decree No. D/2013/158/PRG/SGG of November 28, 2013 the Law whose text follows:
TITLE I: DEFINITION OF
CREDIT INSTITUTIONS AND
CONDITIONS FOR EXERCISING THEIR
ACTIVITY
CHAPTER I: DEFINITION OF
CREDIT INSTITUTIONS AND BANKING
OPERATIONS
Article 1: This Law sets the rules governing the exercise of activities and the supervision of credit institutions in the Republic of Guinea, regardless of their legal status and the nationality of the owners of their capital or their executives.
Article 2: Credit institutions are legal entities that habitually carry out at least one of the following banking operations:
1. receipt of funds from the public, and/or;
2. granting of credit, and/or;
3. making available to clients and managing any means of payment.
Article 3: Funds received from the public are considered to be funds collected by a person from a third party, notably in the form of deposits, with the right to dispose of them for their own account, but under the obligation to repay them with or without interest.
The funds arising from the issuance of treasury bills are considered as public fund deposits.
The following are not considered as received from the public:
1. funds constituting the capital of credit institutions;
2. funds received from the executives of credit institutions as well as partners holding at least ten percent (10%) of the share capital;
3. funds received in exchange for debt or equity securities issued or placed with the public;
4. funds received from credit institutions in the course of credit operations;
5. funds that a company receives from its staff, provided that their total amount remains below ten percent (10%) of the company's equity;
6. any other category of funds defined by instruction of the Central Bank.
Article 4: For the purposes of this Law, a credit operation constitutes any act by which a person acting for valuable consideration makes or promises to make funds available to another person under the obligation of repayment, or takes, in the interest of that person, a commitment by signature such as a guarantee or suretyship, or any other security.
The following are also considered credit operations:
1. movable or immovable credit-lease operations and, in general, any leasing operation accompanied by a purchase option;
2. so-called "factoring" operations, whereby a credit institution collects or mobilizes commercial claims held by clients, either by acquiring said claims or by acting as the creditor's agent with a performance guarantee;
3. sale with repurchase option or sale with redemption of negotiable instruments and securities, and repo operations as provided by current legislation.
The Licensing Committee sets the conditions for the exercise of credit-lease and factoring operations referred to in the preceding paragraph of this article, as well as the conditions for carrying out and accounting for these operations, in compliance with specific laws governing these institutions. The following are not considered credit operations: loans from parent companies to their subsidiaries, as well as loans