Instruction No. 019 on the Management of Customer Complaints

BANQUE CENTRALE DU CONGO

THE GOVERNOR

INSTRUCTION TO CREDIT INSTITUTIONS AND MICROFINANCE INSTITUTIONS NO. 019 RELATIVE TO THE MANAGEMENT OF CUSTOMER COMPLAINTS

The Central Bank of Congo,

Having regard to Law No. 005/2002 of May 7, 2002 relating to the constitution, organization, and functioning of the Central Bank of Congo, particularly Article 6;

Having regard to Law No. 003/2002 of February 2, 2002 relating to the activity and control of Credit Institutions, particularly Title I;

Having regard to Law No. 002/2002 of February 2, 2002 laying down provisions applicable to Savings and Credit Cooperatives, particularly Article 6;

Having regard to Law No. 11/020 of September 15, 2011 establishing rules relating to the microfinance activity in the Democratic Republic of Congo, Articles 57 to 61;

Considering the need to resolve amicably problems between Credit Institutions and Microfinance Institutions, on the one hand, and their clients, on the other, in order to strengthen the latter's confidence in the financial sector;

Considering the urgency of creating conditions for an inclusive financial sector through better management of disputes between parties;

Hereby adopts the following regulatory provisions relating to the management of customer complaints.

Chapter 1: Scope of Application

Article 1:

This Instruction applies to Credit Institutions and Microfinance Institutions, hereinafter referred to as "subject institutions".

Chapter 2: Establishment of an Internal Mechanism

Article 2:

Subject institutions are required to put in place an internal control mechanism dedicated to complaint management, managed at a sufficiently high level of governance to enable client claims to be resolved as fully as possible in a simple and rapid manner.

563, Boulevard Colonel Tshatshi - Kinshasa - Gombe Email: sgouverneur@bcc.cd / svicegouve@bcc.cd / cabgouv@bcc.cd - Website: http://www.bcc.cd

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This mechanism must be subject to permanent and periodic controls as well as an evaluation, at least annually, by the audit committee.

Article 3:

The mechanism put in place by the subject institution must include:

• A Central Unit responsible for processing and monitoring complaints and/or claims;
• Secondary units responsible for receiving complaints at all operational points of the institution;
• Well-defined processing procedures and circuits;
• An IT system allowing for the centralization and monitoring of complaint processing;
• Procedures for informing clients about the internal and external complaint mechanisms;
• A committee specifically tasked with ensuring the efficiency of the complaint processing process and improving the underlying procedures. This task may be carried out by the audit committee, compliance, or Internal Audit for Microfinance Institutions;
• Training and awareness policies for staff directly or indirectly concerned with complaint processing.

Chapter 3: Complaint Management Modalities

Article 4:

The client has the choice to address themselves directly to the Central Unit and/or to the units responsible for receiving complaints at the operational points of the subject institution.

Article 5:

Any person dissatisfied with a service provided by a subject institution may lodge a complaint with it, which is required to provide a response to this claim within a timeframe established in its own texts, not exceeding forty-five (45) calendar days.

If dissatisfied with the response provided by the subject institution, the interested party may seize the Central Bank of Congo pending the establishment of a Financial Services Observatory.

The Central Bank of Congo also has a maximum deadline of forty-five (45) calendar days to respond to the complaint of the concerned client.

Article 6:

Subject institutions are required to permanently inform clients about the internal and external complaint processing mechanisms and the processing process in terms of timeframe and procedure.

563, Boulevard Colonel Tshatshi - Kinshasa - Gombe Email: sgouverneur@bcc.cd / svicegouve@bcc.cd / cabgouv@bcc.cd - Website: http://www.bcc.cd

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To this end, subject institutions may notably use brochures, posters, advertising, and the press.

Article 7:

The subject institution is required to assign a unique reference number to each complaint regardless of the mode of submission used, which number will be transmitted to the client to allow them to track the progress of the processing.

Article 8:

Subject institutions must ensure that their personnel, directly or indirectly, concerned with complaint processing, receives adequate training on an ongoing basis regarding the tools and procedures provided for this purpose.

Article 9:

Subject institutions are required to include in the internal control report addressed to the Central Bank of Congo at the close of each accounting year, a chapter dedicated to describing their complaint processing mechanism, including the IT tool used to centralize and monitor complaints and the activities performed in this regard.

Article 10:

The client must, before resorting to the external complaint mechanism, seize the subject institution by:

• a personal declaration at any branch or headquarters;
• a letter;
• a fax;
• an email;
• an online complaint form available on its website;
• telephone;
• any other available channel.

In the event that the complaint is introduced by telephone, the employee of the subject institution must inform the client that the call may be recorded and that they must provide a written account of the complaint.

Seizing the complaint processing services by the client is free of charge.

Article 11:

The complaint introduced to the external body must respect the provisions of Article 10 and must notably mention the unique reference number assigned by the subject institution and the response provided to said complaint.

563, Boulevard Colonel Tshatshi - Kinshasa - Gombe Email: sgouverneur@bcc.cd / svicegouve@bcc.cd / cabgouv@bcc.cd - Website: http://www.bcc.cd

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Article 12:

The Central Bank of Congo may hear the subject institution and the client whenever necessary.

Article 13:

The Central Bank of Congo informs simultaneously, in writing, the subject institution and the client of its opinion.

Article 14:

The subject institution and the client must, within ten working days from this information, communicate to the Central Bank of Congo their acceptance or refusal of this opinion.

Both parties retain the right to bring the matter, at any time during the dispute, before the courts.

Article 15:

In the event that the subject institution considers the client's complaint justified, it is required to immediately repair this damage by restoring the client to their rights.

However, the repair of damage suffered in the context of operations with external parties must be completed within forty-five (45) working days.

Article 16:

The subject institution must ensure that all complaints are treated fairly, objectively, and promptly.

Article 17:

The subject institution must retain files related to each client complaint, including the file on how the complaint was resolved, for at least ten years.

Article 18:

In the event of client refusal, the subject institution cannot induce them to waive their right in order to benefit from certain advantages.

Chapter 4: Transmission of Statistics

Article 19:

Subject institutions are required to transmit quarterly to the Central Bank of Congo/Direction of Supervision of Financial Intermediaries an activity report containing the following information:

563, Boulevard Colonel Tshatshi - Kinshasa - Gombe Email: sgouverneur@bcc.cd / svicegouve@bcc.cd / cabgouv@bcc.cd - Website: http://www.bcc.cd

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• the mechanism put in place for complaint management;
• the number of complaints received and the dates of their occurrence;
• the origin of the complaint (headquarters, branch, counter, etc.);
• the channels and means used by clients for complaints as defined in Article 11 above;
• the nature of transactions linked to complaints (deposit, withdrawal, credit, account management, etc....);
• the responses provided to complaints.

Chapter 5: Sanctions

Article 20:

Any failure to comply with the mechanism of this Instruction entails the application of sanctions provided for by legal and regulatory texts.

Chapter 6: Transitional and Final Provisions

Article 21:

All contrary provisions in this matter are repealed, effective upon the entry into force of this Instruction.

Article 22:

This Instruction enters into force after a transitional period of three (3) months from its publication.

Made in Kinshasa, on January 3, 2019

Déogratias MUTOMBO MWANA NYEMBO Governor

563, Boulevard Colonel Tshatshi - Kinshasa - Gombe Email: sgouverneur@bcc.cd / svicegouve@bcc.cd / cabgouv@bcc.cd - Website: http://www.bcc.cd