Transparency of Conditions Applied by Banks and Financial Institutions to Customer Operations

1

BANQUE DE LA REPUBLIQUE DU BURUNDI

CIRCULAR NO. 22/2013 ON TRANSPARENCY OF CONDITIONS APPLIED BY BANKS AND FINANCIAL INSTITUTIONS TO THEIR OPERATIONS WITH CUSTOMERS

Pursuant to Law No. 1/34 of December 2, 2008, establishing the Statutes of the Banque de la République du Burundi, particularly Articles 7 (paragraph 4) and 8;

Pursuant to Law No. 1/017 of October 23, 2003, on the Regulation of Banks and Financial Institutions, particularly Articles 34, 36 (paragraph 6), and 117;

The Banque de la République du Burundi, hereinafter referred to as the "Central Bank", enacts:

Article 1

Banks and financial institutions are required to make available to the public, at their headquarters, agencies, and counters, all information concerning the conditions they apply to their operations.

They may use, for this purpose, usual communication channels, such as display boards, leaflets, bulletins, newspapers, media, websites, etc.

Article 2

In addition to exchange rates, the conditions applicable to basic banking operations must be displayed according to the model in the annex.

Article 3

Information regarding basic banking operations published by display must be legible, and the supports must be placed in locations easily accessible to customers.

./.

2

Article 4

Banks and financial institutions must specify the applicable value dates, the terms for granting crediting interest, collecting debiting interest, and various fees and commissions.

Article 5

Any modification of the conditions applicable to banking operations must be brought to the attention of customers before effective application.

Article 6

In addition to the information regarding basic banking operations provided in the annex to this circular, banks and financial institutions may publish any additional information they wish to bring to the attention of the public.

However, additional information must be published on supports separate from the annex.

Article 7

Banks and financial institutions are required to communicate to the Central Bank, within fifteen days of implementation, the conditions they apply to their basic operations.

Article 8

Failure to comply with the provisions of this circular exposes the bank or financial institution to the sanctions provided for in Article 48 of the banking law.

./.

3

Article 9

This circular enters into force as of July 1, 2013.

Done in Bujumbura, on 26/04/2013

BANQUE DE LA REPUBLIQUE DU BURUNDI

Aimée Laurentine KANYANA 2nd Deputy Governor.-

Jean CIZA Governor.-

P.O. Box 705 BUJUMBURA - Tel. (257) 22 20 40 00/22 22 27 44 - Fax: (257) 22 22 31 28 - E-mail: brb@brb.bi

1

Annex to Circular No. 22/2013.

CONDITIONS APPLICABLE TO OPERATIONS WITH CUSTOMERS (to be displayed)

1. Rates applicable to credits

Type of credits	Maximum rate applied	Applicable value dates
1. Overdraft
2. Credit line
3. Medium-term declining credit
4. Long-term declining credit (more than 5 years)
5. Others (specify if any)

2. Remuneration rates for deposits

Type of deposits	Minimum applicable rate	Applicable value dates
1. Current accounts
2. Demand deposits
3. Medium-term deposits
4. Long-term deposits
5. Treasury bills
6. Savings accounts
7. Others (specify if any)

2

3. Fees and commissions

Type of fees or commissions	Amount in BIF units or maximum applicable percentage
	Individuals
1. Account opening
2. Issuance of checkbook
3. Issuance of electronic card (1st time)
4. Update of electronic card
5. Account maintenance (total annual)
6. Transfer order
7. Standing transfer order
8. Account closure
9. Certificate of non-liability
10. Withdrawal by receipt
11. Withdrawal by electronic card
12. Request for account statement
13. Electronic request for account statement
14. Account history
15. Receipt of funds from abroad
16. Documentary credit:
- Opening commission
- Extension commission
- Notification commission
- Confirmation commission
- Increase commission
- Payment commission
- Cancellation commission
- Documentary credit maturity reminder
- Documentary collection commission
- Resolution of discrepancies in documents, payment authorization
- Return unpaid commission
- Guarantee issuance commission
- Guarantee notification commission
- Others (specify if any)

3

17. Transfer of funds abroad:
- account to account
- Western Union
- MoneyGram
- Other type of transfer (specify if any)
18. Safe deposit box rental
19. Validation of import licenses
20. Validation of export licenses
21. Validation of Model A
22. Credit request:
- Commissions
- Guarantee funds
- Credit insurance
- Other fees (specify if any)

4. Other information

Terms for collecting fees and commissions on credits: [ ] Deducted from the credit amount [ ] Paid separately, [ ] Others to specify: ________________________________________________

Calculation methods: [ ] In a single payment: [ ] at the beginning [ ] at the end, [ ] Pro rata temporis during the loan duration, [ ] Others to specify: ________________________________________________

Frequency of collecting account maintenance fees: [ ] Monthly, [ ] Quarterly, [ ] Annually, [ ] Others to specify: ________________________________________________