The Nationwide Company for the Surveillance of Decentralized Monetary Techniques (SFD), a regulation and supervision physique of the microfinance sector in Benin, has made conscious of the officers of microfinance establishments (IMF) on the challenges and implications of the brand new uniform regulation adopted in 2023 and which will likely be promulgated quickly in Benin. The exchanges, held on Thursday April 03, 2025 in Cotonou, are a part of a sequence of consciousness -raising to organize the MFIs to adapt to new necessities.
By choice n ° 019/CM/UMOA of December 21, 2023, the Council of Ministers of the West African Financial Union (UMOA) adopted the uniform invoice regulating microfinance within the member states of UMOA. The brand new uniform regulation reorganization of the texts governing the microfinance sector within the UMOA.
The eligible authorized kinds have been rationalized to retain solely these which can be tailored to monetary intermediation exercise and new governance necessities. Thus, two authorized kinds had been chosen: the cooperative firm and the general public restricted firm. They’re ruled by OHADA rules.
The brand new uniform regulation reveals the idea of minimal share capital. The thresholds will likely be fastened by the Central Financial institution of West African States (BCEAO) within the context of directions that may give the regulation.
Microfinance establishments are actually required to have a board of administrators.
Likewise, the uniform regulation devotes provisions derogating from strange regulation in issues of governance with a view to governing the group and functioning of microfinance establishments.
To do that, it reaffirms: that the supervision of microfinance establishments continues to be ensured by the Minister answerable for finance, specifying that it’s exercised with out prejudice to the provisions governing the prerogatives of the opposite competent authorities; that along with the gathering of deposits, mortgage operations, dedication by signature, the operations approved on a principal foundation additionally relate to Islamic finance topic to regulatory provisions which supervise this exercise. As well as, the operations approved to microfinance establishments are additionally prolonged, as an incidental foundation, to the supply of cost companies, the problem and distribution of digital foreign money, leasing and factoring topic to compliance with the rules relevant to those new actions and limits set by the BCEAO; the institution of minimal share capital; utility of the precept of proportionality; The incompatibility of train of supervisor features with any ministerial or assimilated perform inside the authorities of a State and with any elective mandate. The scope of the derogation of the situation of nationality is restricted to these approached as a member of the board of administrators, the supervisory board or the manager physique; The strengthening of the governance of microfinance establishments by, specifically the requirement of particular expertise for members of the governance our bodies and the prohibition of cumulation of sure features.
Additionally, it defines the scope {of professional} secrecy, consolidates accounting and prudential necessities, prescribes a system for the safety of cooperators or clients and a mechanism for systematic administration of microfinance establishments in problem.
Below the provisions of the uniform regulation regarding the regulation of the microfinance sector, the “approval” of the MFIs which won’t be complied with inside twelve from the promulgation is “deemed to be withdrawn”.
Marc menah
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April 4, 2025 by Ignace B. Fanou, Marc Mensah
