On the Approval of Microfinance Institutions

CENTRAL BANK OF DJIBOUTI

INSTRUCTION NO. 2022-02/IMF
ON THE APPROVAL OF MICROFINANCE INSTITUTIONS

The Governor of the Central Bank of Djibouti,

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

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

Having regard to Law No. 117/AN/11/6th L of 25 May 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 22 January 2011 concerning the establishment and supervision of credit institutions and financial auxiliaries;

Having regard to Decree No. 2018-171/PRE of 08 May 2018 appointing the Governor of the Central Bank of Djibouti.

Orders:

Article 1: The application for approval of a microfinance institution (IMF) shall be submitted to the Central Bank and must be signed by a manager authorized under the IMF's statutes.

Article 2: The written application must specify the requested category, the mission, the nature of planned activities, the corporate name, and the registered office address of the microfinance institution. The complete application file must include the documents and information detailed in the annex to this instruction.

Article 3: Significant changes to the operating conditions of an IMF, branch, or agency, such as its location, the nature of activities it conducts, and the appointment of a person responsible for its management or administration, are subject to prior approval by the Central Bank.

Article 4: This instruction shall enter into force upon its signature.

Done at Djibouti, on 14 March 2022

The Governor

Annex to INSTRUCTION NO. 2022-02/IMF on the Approval of Microfinance Institutions

Documents required for an approval application:

1. The administrative act (for associative-type organizations), the document attesting to the status of a capital company authorized or not to collect public savings, notably including registration in the commercial register and the business license. It is understood that each of these documents must be issued by the competent authority;
2. The statutes and internal regulations. For financial cooperatives, the statutes and internal regulations must comply with internationally recognized cooperative and mutualist principles;
3. The minutes of the Constituent General Assembly;
4. A copy or scanned version of a valid identity document for the managers;
5. Extracts from the criminal record (No. 3) for the managers;
6. The names, addresses, and professions of persons responsible for the administration, management, and main governing bodies of the institution, as well as their curricula vitae;
7. The list of names comprising each governing body of the Institution;
8. Proof of residence for the managers;
9. Documents attesting to payments made for capital subscription;
10. The three-year strategic planning document (business plan);
11. Descriptive and functional organizational chart of the Institution;
12. The organization manual (organizational chart and descriptions of positions and tasks);
13. The manual of operational, administrative, accounting, and financial procedures;
14. The savings and credit policy manual.

The Central Bank may, if necessary, request promoters to provide any other documents or information enabling it to rule on the approval decision (such as internal control, IT, and security procedure manuals).