Instruction of May 8, 2003 on the Promotion of Book Payment Means and the Determination of Interest Rates Payable in Case of Default

BANQUE CENTRALE
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INSTRUCTION N° 01I.2003JSE... DU ...8..MA1.2o.03..
RELATIVE A LA PROMOTION DES MOYENS DE PAIEMENT SCRIPTURAUX ET A LA DETERMINA TION DES INTERETS EXIGffiLES EN CAS DE DEF AUT DE PAIEMENT

The Governor of the Central Bank of West African States Having regard to Article 22 of the Treaty of 14 November 1973 constituting the West African Monetary Union (U.M.O.A.), Having regard to Articles 24, 26, 27, 34 and 38 of the Statutes of the Central Bank of West African States (B.C.E.A.O.), annexed to the Treaty of 14 November 1973 constituting the West African Monetary Union (U.M.O.A.), Having regard to Articles 3, 8 and 247 of Regulation No. 15/2002/CM/U.E.M.O.A. of 19 September 2002, on payment systems in the member States of the West African Economic and Monetary Union (U.E.M.O.A.), Having regard to Article 11 of Directive No. 08/2002/CM/U.E.M.O.A. of 19 September 2002, on measures to promote banking and the use of book payment means, DECIDES

Article 1 Definitions
For the purposes of this Instruction, the following terms shall mean:
U.E.M.O.A., the West African Economic and Monetary Union; Union, the West African Economic and Monetary Union; Directive, Directive No. 08/2002/CM/U.E.M.O.A. of 19 September 2002, on measures to promote banking and the use of book payment means; Regulation, Regulation No. 15/2002/CM/U.E.M.O.A. of 19 September 2002, on payment systems in the member States of the U.E.M.O.A.

Article 2 Object
In application of Articles 8, 11, 12, 98 and 99 of the Regulation and Articles 3, 4, 5, 7 and 8 of the Directive, this Instruction specifies, as necessary, the implementation procedures for the Regulation and the Directive.

CHAPTER ONE
PROMOTION OF BOOK PAYMENT MEANS

Article 3 Right to an Account - Concept of Regular Income
Any natural or legal person established in one of the member States of the Union, without a bank or postal account and able to demonstrate a regular income as provided for in Article 8 of the Regulation, amounting to fifty thousand (50,000) FCFA or more, has the right to open such an account with the institution of their choice and to have at least one payment instrument made available to them, equipped with necessary security measures. A regular income is considered to be any sum equal to or greater than fifty thousand (50,000) FCFA that can be demonstrated by:
a salaried natural person over a monthly period; an unsalaried natural person or a legal entity, over a monthly, bi-monthly, quarterly, semi-annual, or even annual period. Failure by the account holder to maintain the indicated periodicity may lead to the closure of the account by the bank.

Article 4 Limitation of Cash Operations at Bank Counters and Postal Financial Services
In application of Article 12 of Regulation No. 15/2002/CM/U.E.M.O.A. on payment systems, any cash operation carried out by a customer, in one or several installments, at a bank or the Post Office, within a time interval of one clear day and exceeding the threshold set annually by order of the Minister in charge of Finance, must be declared to the Central Bank by the concerned bank or postal financial services. Furthermore, for any operation exceeding the threshold mentioned in the preceding paragraph, banks and postal financial services are required to inform the customer of an appropriate book payment method. 2 ((L

Article 5 Reference Amount for Book Payment Operations between Private and Public Persons
The reference amount provided for in Article 3 of the Directive is set at one hundred thousand (100,000) FCFA for any financial book payment operation involving private persons (individuals, companies), on the one hand, and public persons (the State and its subdivisions), on the other. Thus, any financial operation involving an amount below the aforementioned reference amount may be carried out in cash, unless a more appropriate payment method exists.

Article 6 Reference Amount for Book Payment of Salaries, Allowances and Other Monetary Benefits Due by the State, Public Administrations, Companies or other Public Persons
In accordance with Article 4 of the Directive, remuneration for civil servants across all member States of the Union is settled by bank or postal transfer or by check, for any remuneration amounting to one hundred thousand (100,000) FCFA or more. The same applies to allowances and other monetary benefits due by the State or its subdivisions to civil servants, active or retired staff, their families, as well as to service providers. Conversely, any financial operation involving an amount below the reference amount indicated in paragraph 1 may be carried out in cash, unless a more appropriate book payment method exists.

Article 7 Reference Amount for Book Payment of Taxes, Duties and Other Monetary Benefits Due to the State, Public Administrations, Companies or other Public Persons
In accordance with Article 5 of the Directive, taxpayers must settle their taxes and duties, amounting to one hundred thousand (100,000) FCFA or more, by check or bank or postal transfer. The other monetary benefits due to the State involving an amount equal to or greater than the reference amount indicated in paragraph 1 must also be paid using book payment instruments. However, for any amount below one hundred thousand (100,000) FCFA, the aforementioned payments may be made in cash, unless another book payment method is more appropriate. (-4:
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CHAPTER TWO
DETERMINATION OF INTEREST PAYABLE IN CASE OF DEFAULT

Article 8 Interest Claimed by the Beneficiary of a Check
In application of Article 98 of the Regulation, the holder of a check issued and/or payable outside the member States of the Union may claim from the party against whom they exercise their recourse, in addition to the unpaid amount of the check and associated fees, interest calculated from the day of its presentation for payment:

• at the legal interest rate in force within the Union, for checks issued and payable within the Union,
• at the legal interest rate in force within the Union, increased by two (02) percentage points for other checks.

Article 9 Interest Payable from Check Guarantors
In application of Article 99 of the Regulation, the party who has discharged the holder of a check issued and/or payable outside the member States of the Union may claim from any one of its guarantors, in addition to the unpaid amount of the check and associated fees, interest calculated from the day they paid this sum:

• at the legal interest rate in force within the Union for checks issued and payable within the Union;
• at the legal interest rate in force within the Union, increased by two (02) percentage points for other checks.

CHAPTER THREE
FINAL PROVISIONS

Article 10 Entry into Force
This Instruction repeals and replaces all prior provisions dealing with the same subject matter and enters into force as of its date of signature.

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