Instruction No. 2022-17/IMF Regarding Sanctions

CENTRAL BANK OF DJIBOUTI

INSTRUCTION NO. 2022-17/IMF
REGARDING SANCTIONS

The Governor of the Central Bank of Djibouti,

Having regard to Law No. 118/AN/11/6th L of January 22, 2011, amending the statutes of the Central Bank of Djibouti;

Having regard to Law No. 179/AN/07/5th L of May 16, 2007, regulating microfinance activities within the territory of the Republic of Djibouti;

Having regard to Law No. 117/AN/11/6th L of May 25, 2011, regulating financial cooperatives;

Having regard to the Commercial Code, Book 3 on Company Law;

Having regard to Law No. 119/AN/11/6th L of January 22, 2011, concerning the establishment and supervision of credit institutions and financial auxiliaries;

Having regard to Decree No. 2018-171/PRE of May 8, 2018, appointing the Governor of the Central Bank of Djibouti.

Orders:

Article 1: The Central Bank shall ensure that Microfinance Institutions (MFIs) comply with the legal and regulatory texts it has issued.

Article 2: The Central Bank may withdraw its approval from a manager or director who violates the provisions of these instructions or in cases of mismanagement, and may request their replacement in accordance with applicable rules.

Article 3: When a microfinance institution violates a legal or regulatory provision or is found guilty of obstructing the Central Bank's inspections, it is subject to the following disciplinary sanctions:

• Injunction;
• Admonition;
• Warning;
• Reprimand;
• Suspension or prohibition of all or part of operations;
• Suspension or removal of managers;
• Dismissal of the statutory auditor;
• Appointment of a provisional administrator;
• Withdrawal of approval.

Disciplinary sanctions are imposed without prejudice to common law criminal penalties.

Article 4: Without prejudice to the provisions of Article 3 of this instruction, the Central Bank may grant an institution a deadline in order to:

• Comply with certain provisions;
• Implement necessary adaptations to its organization and operations.

An institution that fails to meet these obligations within the stipulated deadline is subject to a fine of up to 5% of its own funds.

Article 5: This instruction enters into force upon its signature.

Done in Djibouti, on March 14, 2022

The Governor