Instruction No. 16/98 Authorizing UMOA Banks to Act as Account Keepers and Clearing Houses

WEST AFRICAN MONETARY UNION
REGIONAL COUNCIL FOR PUBLIC SAVINGS AND FINANCIAL MARKETS

INSTRUCTION NO. 16/98 AUTHORIZING BANKS OF THE UNION TO PERFORM THE FUNCTIONS OF ACCOUNT KEEPER AND CLEARING HOUSE

Having regard to the Convention of July 3, 1996 establishing the Regional Council for Public Savings and Financial Markets, hereinafter referred to as the Regional Council,

Having regard to Article 14 of the annex to said Convention,

Having regard to Decision No. 001/97 of the Council of Ministers of the West African Monetary Union in its session of November 28, 1997 adopting the General Regulation relating to the Organization, Operation and Control of the regional financial market of the UMOA, hereinafter referred to as the General Regulation,

Having regard to Decision No. 001/03/98 of the Council of Ministers of the West African Monetary Union in its session of March 27, 1998 modifying the provisions of Article 37 of the General Regulation,

Having regard to the deliberations of the Regional Council in its session of September 22, 1998,

THE REGIONAL COUNCIL DECIDES:

Article 1:
The banks of the Union are authorized to carry out activities as account keeper and clearing house on behalf of clients. They are subject, within the framework of these activities, to the control of the Regional Council.

Article 2:
Banks must receive prior approval from the Regional Council before exercising this activity.
To this end, they must submit to the Regional Council a file comprising:
a) the statutes of the bank, which must be constituted in the legal form of a public limited company (société anonyme) and have its registered office in one of the States of the West African Monetary Union, b) a copy of the Internal Regulations, c) the composition of the corporate bodies, d) the list of executives, e) the amount, distribution of capital, as well as the identity and activity of shareholders holding more than 10% of the capital, f) the actual net worth, g) a detailed description of the means implemented for the exercise of the activity, h) for pre-existing companies, the audited accounts and balance sheets for the last three (3) financial years certified by an auditor approved by the Regional Council, i) the identity and qualification of the person designated to ensure the functions of internal controller, j) a legalized copy of the approval from the Central Depository / Settlement Bank, k) the opinion of the Banking Commission regarding their situation, l) any other complementary document that the Regional Council deems necessary.

Article 3:
This instruction shall be published wherever necessary.

Made in Abidjan, on September 22, 1998
For the Regional Council
The President
L. NAKA