Instruction No. 002-DDI/2021 Amending Certain Provisions of Instruction No. 001-DDI/2016 of November 24, 2016 on the Risk Central

BANKY FOIBEN'I MADAGASIKARA

INSTRUCTION NO. 002-DDI/2021
amending certain provisions of Instruction No. 001-DDI/2016 of November 24, 2016 on the Risk Central

The Governor of Banky Foiben'i Madagasikara,

Having regard to Law No. 2020-011 of September 1, 2020 on banking law,

Having regard to Law No. 2017-018 of December 19, 2017 governing the Integrated Information System of Banky Foiben'i Madagasikara,

Having regard to Law No. 2017-026 of February 8, 2018 on microfinance,

Having regard to Law No. 2016-004 of July 29, 2016, supplemented by Law No. 2016-057 of February 2, 2017 establishing the Statutes of the Central Bank of Madagascar,

Having regard to Law No. 2014-038 of January 9, 2015 on the protection of personal data,

Having regard to Decree No. 2019-2069 of November 6, 2019 repealing the provisions of Decree No. 2014-1684 of October 29, 2014 on the appointment of the Governor of the Central Bank of Madagascar and appointing the Governor of Banky Foiben'i Madagasikara,

Having regard to Instruction No. 001-DDI/2016 of November 24, 2016 on the Risk Central.

DECIDES:

Article 1. – The provisions of the second (2nd) dash of Article 3, paragraph 5.7 of Article 5, paragraph 8.4 of Article 8, and Article 10 of Instruction No. 001-DDI/2016 of November 24, 2016 on the Risk Central are amended as follows:

Article 3: Definitions

– « Reporting Entity(ies) » : Credit institutions defined by banking law authorized as banks, financial institutions, and microfinance institutions.

The remainder remains unchanged.

Article 5: Reporting, Access, Rectification, and Consultation Procedures

5.7 (new). Data transmitted to the Risk Central (CdR) is available for consultation in aggregate by other users. These consultations concern only credits with an amount exceeding twenty million Ariary (20,000,000 Ariary).

The remainder remains unchanged.

Article 8 (new): Obligations of Reporting Entities

8.4. (new) The Reporting Entity is also required to consult the Risk Central before granting any credit exceeding the threshold set in Article 5.7 for any type of loan (new loans, renewals) and must retain a record of the consultation in the credit file.

Article 10 (new): Sanctions

Failure to comply with the provisions of this Instruction is subject to one of the disciplinary sanctions provided for by banking law and microfinance law.

A Reporting Entity may be ordered to comply with the requirements of this Instruction.

Failure to comply with this order within five (5) days will result in the application of disciplinary sanctions provided for in Article 60, as well as penalty payments provided for in Article 61 of banking law for banks, and Articles 172 and 173 of the microfinance law for MFIs. Access to the Risk Central will be suspended until the outstanding penalty payments are settled.

Without prejudice to the aforementioned disciplinary and financial sanctions, anyone who, acting on their own behalf or on behalf of third parties, knowingly transmits inaccurate data and information to the Risk Central shall be subject to criminal prosecution under Article 242 of banking law.

Article 2. –
All other provisions of Instruction No. 001-DDI/2016 of November 24, 2016 on the Risk Central remain fully valid.

Article 3. –
This Instruction shall enter into force upon notification to the relevant Professional Associations.

Done in Antananarivo, on 1 OCT. 2021

THE GOVERNOR
HENRI EDMOND RABARIJOHN