Regulatory Alerts2020-08-13
BCEAO Advisory No. 010-08-2020 on the Modification of the Prudential Framework for Credit Institutions and Financial Companies in UMOA
The Central Bank of West African States (BCEAO) issued Advisory No. 010-08-2020 to extend by one year the implementation schedule for transitional prudential requirements applicable to credit institutions and financial companies in the UMOA. This extension maintains Title X (paragraphs 495–504) of the June 2016 prudential framework for 2020 and shifts all subsequent compliance deadlines by twelve months to support regional economies amid the Covid-19 pandemic. The advisory formally notifies all affected institutions of these regulatory adjustments and mandates their publication throughout the union.
[IMAGE]
BCEAO CENTRAL BANK OF WEST AFRICAN STATES
ADVISORY NO. 010-08-2020 ON THE MODIFICATION OF THE PRUDENTIAL FRAMEWORK APPLICABLE TO CREDIT INSTITUTIONS AND FINANCIAL COMPANIES OF THE WEST AFRICAN MONETARY UNION (UMOA)
During its ordinary session held on June 26, 2020, the Union's Council of Ministers extended by one year the implementation schedule for the transitional provisions of the prudential framework applicable to credit institutions and financial companies in the UMOA, via Decision No. 019 dated June 26, 2020/CM/UMOA.
Accordingly, the transitional provisions set forth in Title X, paragraphs 495 to 504, for the year 2019, by the prudential framework applicable to credit institutions and financial companies in the UMOA, adopted by Council of Ministers Decision No. 013/24/2016/CM/UMOA on June 24, 2016 and effective since January 1, 2018, are maintained for 2020.
The effective dates of the requirements set for subsequent years, starting from 2020, are shifted by one year.
This regulatory easing measure falls within the ongoing actions undertaken by the Union's Authorities to support economies in light of the Covid-19 pandemic.
This advisory is notified to credit institutions as well as financial companies and published wherever necessary.
Done in Dakar, on August 10, 2020
[SIGNATURE]
Tiémoko Meyliet KONE