Regulatory Alerts2023-04-25
Added · Updated
Directive MFI/14/2002: Penalty for Failure to Comply with Proclamation No. 40/1996 and National Bank of Ethiopia Directives
Micro-finance institutions licensed under Proclamation No. 40/1996 are liable to a penalty of Birr 3,000 for failing to comply with the proclamation or National Bank directives. Unpaid penalties incur interest at twice the institution's maximum annual lending rate, calculated from one week after notification until payment. Specific penalties apply if an external audit report is not submitted within six months of the financial year-end or if a business license is not renewed within one month of expiry. After three penalizations under the general provision, the National Bank orders the removal and replacement of the Chief Executive Officer.
Topics
Share