Regulatory Alerts2019-08-27
Instruction No. 003-07-2019 on the Recognition of External Credit Assessment Institutions for Prudential Purposes
The Governor of the Central Bank of West African States (BCEAO) issues Instruction No. 003-07-2019 to establish the eligibility criteria, application procedures, and supervisory framework for recognizing External Credit Assessment Institutions (ECAIs) for prudential purposes within the West African Monetary Union. The regulation mandates that recognized ECAIs demonstrate rigorous and objective rating methodologies, strict independence, transparent information disclosure, adequate resources, and market credibility, while applications must be submitted to the BCEAO headquarters for a 120-day review. Upon recognition, which lasts three years and may be renewed or revoked, ECAIs remain subject to ongoing supervision by their home competent authority and the BCEAO, with non-compliance triggering injunctions, temporary suspension, or permanent withdrawal of recognition.