Regarding External Controls

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CENTRAL BANK OF DJIBOUTI

INSTRUCTION NO. 2022-13/IMF

REGARDING EXTERNAL CONTROLS

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 on 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, on 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: All Microfinance Institutions must be subject, each year, to an external audit by at least one licensed Statutory Auditor.

Article 2: The audit report on the annual financial statements by the statutory auditors must be submitted to the Central Bank.

It must include, in addition to the opinion, the verified financial statements and all notes and annexes, which form an integral part thereof.

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Article 3: The Central Bank is tasked with supervising microfinance institutions.

It is vested with the following responsibilities:

• Ensuring compliance with regulatory provisions, prudential standards, the professional code of ethics, as well as its own decisions;
• Ensuring the financial equilibrium of the institutions and the safeguarding of the interests of depositors and other creditors.

No Microfinance Institution may oppose a control by the Central Bank under penalty of sanctions.

In the exercise of this mission, it may:

• Conduct document-based and/or on-site inspections at a Microfinance Institution;
• Dispatch inspectors to institutions to carry out any verification it deems necessary;
• Require a distressed institution to submit a recovery plan aimed at restoring its financial equilibrium;
• Issue injunctions or warnings to covered institutions;
• Place it under provisional administration.

Article 4: The Central Bank's inspectors have the right to access all documents and information necessary for the performance of their mission, without professional secrecy being invoked against them.

Article 5: This instruction shall enter into force as of its signature.

Done in Djibouti, on March 14, 2022

The Governor

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