Decision No. 2026-05 of May 5, 2026 amending Decision No. 2020-01 of January 1, 2020 on the sanction procedure for failure to comply with certain obligations of monetary policy counterparties

Decision No. 2026-05 of May 5, 2026 amending Decision No. 2020-01 of January 1, 2020 relative to the sanction procedure in case of failure to comply with certain obligations of monetary policy counterparties

THE GOVERNOR OF THE BANK OF FRANCE

Having regard to:

• the Treaty on the Functioning of the European Union, and in particular Article 127, paragraph 1 and paragraph 2, first indent,
• the Statutes of the European System of Central Banks and of the European Central Bank (ECB), and in particular Articles 3.1, first indent, 12.1, 14.3 and 18.2 thereof,
• Council Regulation (EC) No 2532/98 of 23 November 1998 concerning the powers of the European Central Bank to impose sanctions, as amended,
• ECB Regulation (EC) No 2157/1999 of 23 September 1999 on the powers of the ECB to impose sanctions (ECB/1999/4), as amended,
• ECB Guideline (EU) 2015/510 of 19 December 2014 on the implementation of the Eurosystem monetary policy framework (ECB/2014/60), as amended,
• ECB Guideline (EU) 2014/528 of 9 July 2014 on additional temporary measures concerning Eurosystem refinancing operations and the eligibility of collateral and amending Guideline ECB/2007/9 (ECB/2014/31), as amended,
• the Monetary and Financial Code, and in particular Article L. 142-8 thereof,
• the decision of the Governor of the Bank of France No. 2015-01 of April 22, 2015 on the implementation of the monetary policy and intraday credit of the Bank of France, as amended,
• the decision of the Governor of the Bank of France No. 2020-01 of January 1, 2020 on the sanction procedure in case of failure to comply with certain obligations of monetary policy counterparties, as amended,
• the decision of the Governor of the Bank of France No. 2020-02 of April 20, 2020 on additional temporary measures concerning the refinancing operations of the Bank of France and the eligibility of collateral, as amended.

DECIDES

Article 1
Modifications

The decision of the Governor of the Bank of France No. 2020-01 of January 1, 2020 on the sanction procedure in case of failure to comply with certain obligations of monetary policy counterparties (hereinafter "the decision") is amended as follows:

1. Paragraph 3 of Article 3 is deleted;
2. Article 4 is amended as follows:
   a) Paragraph 1 is replaced by the following text:
   "When the General Director of the DGSO considers that the facts identified by the results of document checks or, in the case of on-site inspections, by the final report or by any other means, justify the initiation of a sanction procedure, he notifies the grievances held against the counterparty in writing. This notification constitutes the initiation of the sanction procedure against the counterparty concerned." b) Paragraph 2 is replaced by the following text:
   "The notification of grievances contains a statement of the facts underlying the alleged breach(es) and indicates the sanction incurred in this regard. Where applicable, it demands the cessation of the alleged breach(es). It specifies that the counterparty has the right to contest the notified grievances and the corresponding sanction within a period of thirty working days from its receipt. It further specifies that the counterparty has the right to remain silent."
3. Article 6 is replaced by the following text:
   "If the counterparty contests the notified grievances or the corresponding sanction proposal before the expiration of the thirty-day period set out in paragraph 2 of Article 4, the procedure provided for in Articles 7 to 10 shall apply."
4. Article 10 is amended as follows:
   a) Paragraph 3 is replaced by the following text:
   "When the General Director of the DGSO establishes, on the basis of a complete file, one or more breach(es), he adopts a reasoned decision specifying the sanction imposed and notifies it to the counterparty. The sanction imposed may be based solely on the grievances for which the counterparty was able to present its observations. The decision is also notified to the competent authorities empowered to exercise prudential supervision over the counterparty." b) Paragraph 6 is replaced by the following text:
   "When the General Director of the DGSO establishes, on the basis of a complete file, a breach, he adopts a reasoned decision specifying the sanction imposed and notifies it to the counterparty. This notification mentions the right to contest this decision before the administrative judge. The sanction imposed may be based solely on the grievances for which the counterparty was able to present its observations. The decision is also notified to the competent authorities empowered to exercise prudential supervision over the counterparty."
5. Article 11 is deleted;
6. Article 12 is amended as follows:
   a) Paragraph 1 is replaced by the following text:
   "The sanction decision becomes enforceable against the counterparty thirty working days after the General Director of the DGSO has notified his decision to the counterparty in writing. The notification must inform the counterparty of his right to appeal." b) Paragraph 2 is replaced by the following text:
   "Once the sanction decision has become enforceable, the General Director of the DGSO may decide to publish the decision or any information concerning it on the Internet site of the Bank of France. In deciding whether to publish the final decision, the General Director of the DGSO takes into account the legitimate interest of the concerned company in protecting its commercial interests and any other particular interest."
7. Paragraph 1 b) of Article 13 is replaced by the following text:
   "in the case of document checks, one year from the date of notification of grievances."

Article 2
Entry into force and implementation

1. This decision is published in the Official Publication Register of the Bank of France.
2. It enters into force on May 13, 2026.

Done in Paris, on May 5, 2026

The Governor of the Bank of France
François VILLEROY de GALHAU