BANQUE CENTRALE DU CONGO

LE GOUVERNEUR

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INSTRUCTION N° 23 AUX ETABLISSEMENTS DE CREDIT ET SOCIETES FINANCIERES RELATIVE A L’EXERCICE DU POUVOIR DISCIPLINAIRE DE LA BANQUE CENTRALE DU CONGO

(Modification n° 2)

The Central Bank of Congo,

Having regard to Law No. 18/027 of 13 December 2018 on the organization and functioning of the Central Bank of Congo, particularly Articles 10 and 11;

Having regard to Law No. 22/069 of 27 December 2022 on the activity and supervision of Credit Institutions, particularly Article 170;

Having regard to Law No. 15/003 of 12 February 2015 on leasing;

Having regard to Law No. 22/068 of 27 December 2022 on the fight against money laundering and the financing of terrorism and the proliferation of weapons of mass destruction;

Having regard to Law No. 18/019 of 09 July 2018 on payment and securities settlement systems, particularly Article 115;

Having regard to Instruction No. 001 bis on payment operations in the COMESA regional payment and settlement system;

Having regard to Instruction No. 5 on the Risk Central;

Having regard to Instruction No. 9 on the Accounting Guide for Credit Institutions;

Having regard to Instruction No. 13 on blacklisting;

Having regard to Instruction No. 14 on prudential management standards;

Having regard to Instruction No. 15 on standards relating to the fight against money laundering and the financing of terrorism and the proliferation of weapons of mass destruction;

Having regard to Instruction No. 15 bis on derogation from legal provisions prohibiting any cash or bearer instrument payment of an amount equal to or greater than USD 10,000;

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Having regard to Instruction No. 16 on rules relating to the classification and provisioning of loans;

Having regard to Instruction No. 17 on prudential rules on internal control;

Having regard to Instruction No. 18 on the conditions for the approval of credit institutions, their directors and statutory auditors as well as the modification of their statutory situations;

Having regard to Instruction No. 19 on the exercise of the functions of statutory auditors in Credit Institutions and financial companies;

Having regard to Instruction No. 21 on corporate governance of credit institutions;

Having regard to Instruction No. 22 on risk management;

Having regard to Instruction No. 24 on the issuance of electronic money and electronic money institutions;

Having regard to Instruction No. 25 on the standardization of checks;

Having regard to Instruction No. 26 on the standardization of bills of exchange;

Having regard to Instruction No. 27 on the standardization of promissory notes;

Having regard to Instruction No. 28 on the standardization of banking coordinates;

Having regard to Instruction No. 29 on the activity of Banking Agents;

Having regard to Instruction No. 33 on the functioning of the automated transfer system (ATS);

Having regard to Instruction No. 35 on the leasing activity;

Having regard to Instruction No. 36 on business continuity;

Having regard to Instruction No. 37 on Banking services offered free of charge;

Having regard to Instruction No. 37 bis on the system for the custody, settlement and delivery of securities managed by the Central Bank of Congo;

Having regard to Instruction No. 38 on the fixing of the effective global rate, abbreviated as "TEG";

Having regard to Instruction No. 39 on the management of customer complaints;

Having regard to Instruction No. 40 on the publication of banking conditions;

Having regard to Instruction No. 42 on the rules applicable to card payments in the DRC;

MCM

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Having regard to Instruction No. 43 on the promotion of electronic money and the easing of operations in the ATS system to mitigate the harmful effects of the COVID-19 pandemic on the financial sector;

Having regard to Instruction No. 48 on the rules of operation of the card payment network: "MOSOLO"

Having regard to Instruction No. 52 on the prevention, centralization and dissemination of information on payment incidents;

Having regard to Instruction No. 53 on the conditions for the approval of financial companies, their directors and the modification of their statutory situations;

Having regard to Instruction No. 54 on the corporate governance of financial companies;

Having regard to Instruction No. 55 on market discipline;

Having regard to Instruction No. 58 on the interoperability of electronic payment systems and participation in the National Electronic Switch;

Enacts the following provisions on the exercise of its disciplinary power:

CHAPTER I: OBJECT AND SCOPE OF APPLICATION

Article 1:

This Instruction sets out the administrative sanctions that the Central Bank of Congo may impose against the institutions subject to it listed in Article 2 and their statutory auditors.

Article 2:

This Instruction applies to the Credit Institutions and Financial Companies hereinafter referred to as "subject institutions":

• banks;
• savings banks;
• financial companies, with the exception of financial courier services, currency exchange offices and manual money changers who are natural persons as well as micro-credit companies.

It also applies to the statutory auditors of the subject institutions.

MCM

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Article 3:

The Central Bank of Congo may notably impose sanctions when a subject institution or a statutory auditor:
- has infringed a legal or regulatory provision;
- has failed to comply with an injunction or has failed to take into account a warning from the Central Bank of Congo;
- has failed to respect the commitments made during its approval or the obtaining of an authorization.

The Central Bank of Congo may extend sanctions notably to the members of the deliberating and executive bodies as well as to the managers of the control functions and sensitive functions of the subject institution.

**CHAPTER II: DISCIPLINARY SANCTIONS**

Article 4:

The Central Bank of Congo may impose the following disciplinary sanctions against a subject institution or a statutory auditor:
- warning;
- reprimand;
- prohibition to carry out certain operations or activities;
- prohibition to distribute dividends;
- suspension of directors or statutory auditors;
- withdrawal of approval.

**CHAPTER III: PECUNIARY SANCTIONS**

Article 5:

The Central Bank may impose, either in place of or in addition to the disciplinary sanctions, a pecuniary sanction as provided for in the sanctions matrix in the annex, which forms an integral part of this Instruction.

**CHAPTER IV: FINAL PROVISIONS**

Article 6:

The sanctions, the reasons justifying them as well as the deadlines by which they are collected or put into recovery, notably for pecuniary sanctions, are notified to the subject institution or the statutory auditor by letter.

Article 7:

The Central Bank of Congo may decide to publish the sanctions taken under this Instruction at the expense of the sanctioned subject institution or statutory auditor.

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Article 8:

This Instruction enters into force on the date of its signature and repeals all prior provisions contrary hereto.

Done in Kinshasa, on 10 DEC. 2024

MALANGU KABEDI MBUYI
Governor

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Annex to Instruction No. 23, Modification No. 2: Sanctions Matrix for Credit Institutions and Financial Companies

| | Offences relating to the conditions for the approval of credit institutions, their directors and statutory auditors as well as the modification of their statutory situations. | Reference Texts | Sanctions |
|---|---|---|---|
| I | | | |
| I.1 | Non-compliance with minimum capital and/or non-compliance with the deadlines for total release as well as the holding of inadequate own funds for other subject credit institutions. | • Law No. 22/069 of 27 December 2022;<br>• Instruction No. 14;<br>• Instruction No. 24;<br>• Instruction No. 35. | Banks: CDF 1,450,000,000;<br>Savings Banks and financial companies: CDF 500,000,000 for other Credit Institutions and financial companies. |
| I.2 | Non-compliance with provisions relating to approval conditions and prior authorizations. | • Law No. 22/069 of 27 December 2022;<br>• Instruction No. 18;<br>• Instruction No. 24;<br>• Instruction No. 35;<br>• Instruction No. 33. | Banks: CDF 725,000,000 per offence;<br>Savings Banks and financial companies: CDF 500,000,000 per offence. |
| II | Offences relating to the transmission of accounting and prudential information | | |
| II.1 | Late transmission of financial and other information | • Law No. 22/069 of 27 December 2022;<br>• Instruction No. 9;<br>• BSA Directive of 03 January 2019. | Credit Institutions and financial companies: CDF 500,000,000 per information table (DEC) and per day of delay. |
| II.2 | Transmission of incorrect information | • Law No. 22/069 of 27 December 2022;<br>• Instruction No. 9;<br>• BSA Directive of 03 January 2019. | Banks: CDF 725,000,000 per information table (DEC);<br>Savings Banks and financial companies: CDF 500,000,000 per information table (DEC). |
| II.3 | Failure to transmit | • Law No. 22/069 of 27 December 2022;<br>• Instruction No. 9;<br>• BSA Directive of 03 January 2019. | Banks: CDF 1,450,000,000 per information table (DEC);<br>Savings Banks and financial companies: CDF 725,000,000 per information table (DEC). |
| II.4 | Non-declaration of information to the Risk Central. | • Law No. 22/069 of 27 December 2022;<br>• Instruction No. 5 | Credit Institutions and financial companies: CDF 500,000,000 per client for undeclared information. |

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| | Offences related to other accounting obligations | Reference Texts | Sanctions |
|---|---|---|---|
| III. | | | |
| III.1 | Non-publication of annual accounts in the Official Journal and in at least one of the main press organs | • Law No. 22/069 of December 2022;<br>• Instruction No. 9. | Banks: CDF 2,000,000,000;<br>Savings Banks and financial companies: CDF 1,000,000,000. |
| III.2 | Non-application of the specific accounting plan for Credit Institutions and financial companies | • Law No. 22/069 of December 2022;<br>• Instruction No. 9. | Credit Institutions and financial companies: CDF 1,450,000,000 |
| III.3 | Poor accounting management | • Law No. 22/069 of December 2022;<br>• Instruction No. 9. | Banks: CDF 1,450,000,000;<br>Savings Banks and financial companies: CDF 500,000,000. |

| | Offences related to prudential standards | Reference Texts | Sanctions |
|---|---|---|---|
| IV | | | |
| IV.1 | Non-compliance with provisions relating to prudential management ratios | • Law No. 22/069 of December 2022;<br>• Instruction No. 14;<br>• Instruction 24;<br>• Instruction 35. | Banks: CDF 2,000,000,000 per offence for the exchange position standard and CDF 725,000,000 per offence for other standards;<br>Savings Banks and financial companies: CDF 500,000,000 per offence. |
| IV.2 | Non-compliance with provisions relating to rules on the classification and provisioning of loans; | • Law No. 22/069 of December 2022;<br>• Instruction No. 16. | Banks: CDF 725,000,000 per offence. |
| IV.3 | Non-compliance with provisions relating to prudential rules on internal control | • Law No. 22/069 of December 2022;<br>• Instruction No. 17. | Banks: CDF 725,000,000 per offence;<br>Savings Banks and financial companies: CDF 500,000,000 per offence. |
| IV.4 | Interruption of mandates for reasons other than death, gross misconduct, sick leave, proven incapacity attested by probative elements in the achievement of assignments contained in the performance contract as well as access to the status of politically exposed person (PEP) within the meaning of Law No. 22/068 of 27 December 2022 on the fight against money laundering and the financing of terrorism and the proliferation of weapons of mass destruction, with the exception of assimilates to PEPs. | • Law No. 22/069 of December 2022;<br>• Instruction No. 21;<br>• Instruction No. 54. | Banks: CDF 2,000,000,000 per director;<br>Savings Banks and financial companies: CDF 1,000,000,000 per director. |

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| | | | | |
|---|---|---|---|---|
| IV.5 | Non-compliance with provisions on governance | • Law No. 22/069 of December 2022;<br>• Instruction No. 21;<br>• Instruction No. 54. | 27 | Banks: CDF 1,100,000,000 per offence;<br>Savings Banks and financial companies: CDF 500,000,000 per offence. |
| IV.6 | Non-compliance with provisions relating to risk management | • Law No. 22/069 of December 2022;<br>• Instruction No. 22 No. 1 of 14 May 2019. | 27 | Banks: CDF 1,100,000,000 per offence;<br>Savings Banks and financial companies: CDF 500,000,000 per offence. |
| V. | Offences related to the protection of consumers of financial services | Reference Texts | | Sanctions |
| V.1 | Non-compliance with provisions relating to banking services offered free of charge | • Law No. 22/069 of December 2022;<br>• Instruction No. 37 | 27 | Credit Institutions and financial companies: CDF 500,000,000 per offence |
| V.2 | Non-compliance with provisions relating to the fixing of the effective global rate | • Law No. 22/069 of December 2022;<br>• Instruction No. 38. | 27 | Credit Institutions and financial companies: CDF 500,000,000 per offence |
| V.3 | Non-compliance with provisions relating to the management of customer complaints | • Law No. 22/069 of December 2022;<br>• Instruction No. 39. | 27 | Credit Institutions and financial companies: CDF 500,000,000 per offence |
| V.4 | Non-compliance with provisions relating to the publication of banking conditions | • Law No. 22/069 of December 2022;<br>• Instruction No. 40 of 03 January 2019. | 27 | Credit Institutions and financial companies: CDF 500,000,000 per offence |
| VI. | Offences related to non-compliance with anti-money laundering and counter-terrorist financing standards | Reference Texts | | Sanctions |
| VI.1 | Non-compliance with provisions relating to the fight against money laundering and the financing of terrorism. | • Law No. 22/068 of December 2022;<br>• Instruction No. 15. | 27 | Banks: CDF 2,000,000,000 per offence;<br>Savings Banks and financial companies: CDF 750,000,000 per offence. |
| VI.2 | Non-compliance with provisions relating to cash payments. | • Law No. 22/068 of December 2022;<br>• Instruction No. 15 Bis. | 27 | Banks: CDF 2,000,000,000 per offence;<br>Savings Banks and financial companies: CDF 750,000,000 per offence. |

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| VII. | Offences related to non-compliance with other regulatory provisions | Reference Texts | Sanctions |
|------|------------------------------------------------------------------------|---------------------|-----------|
| VII.1 | Non-compliance with provisions relating to the exercise of the functions of statutory auditor | • Law No. 22/069 of 27 December 2022;<br>• Instruction No. 19. | Banks: CDF 725,000,000 per offence;<br>Savings Banks, financial companies and Statutory Auditors: CDF 500,000,000 per offence. |
| VII.2 | Non-compliance with provisions relating to leasing | • Law No. 15/003 of 12 February 2015;<br>• Instruction No. 35 | Banks: CDF 1,100,000,000 per offence;<br>Savings Banks and financial companies: CDF 500,000,000 per offence. |
| VII.3 | Granting financial assistance to a natural or legal person blacklisted by the Central Bank of Congo. | • Law No. 22/069 of 27 December 2022;<br>• Instruction No. 13. | Credit Institutions and financial companies: CDF 750,000,000 per client and per assistance. |
| VII.4 | Non-compliance with provisions on Banking Agents. | • Law No. 22/069 of 27 December 2022;<br>• Instruction No. 29. | Banks: CDF 1,100,000,000 per offence;<br>Savings Banks and financial companies: CDF 500,000,000 per offence. |
| VII.5 | Non-compliance with provisions on business continuity | • Law No. 22/069 of 27 December 2022;<br>• Instruction No. 36. | Banks: CDF 1,100,000,000 per offence;<br>Savings Banks and financial companies: CDF 500,000,000 per offence. |
| VII.7 | Non-compliance with provisions of other regulatory texts not listed in this matrix | • Law No. 22/069 of 27 December 2022<br>• Law No. 18/019 of 09 July 2019;<br>• Instruction No. 001 bis;<br>• Instruction No. 25;<br>• Instruction No. 26;<br>• Instruction No. 27;<br>• Instruction No. 28;<br>• Instruction No. 33;<br>• Instruction No. 37 bis;<br>• Instruction No. 42;<br>• Instruction No. 43;<br>• Instruction No. 48;<br>• Instruction No. 52;<br>• Instruction No. 58. | Credit Institutions and financial companies: CDF 500,000,000 per offence |
| VII.8 | Offences related to non-compliance with legal and regulatory provisions relating to payment and securities settlement systems | | |

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