SENEGAL Law and Practice Contributed by: Franck Olivier Allessie, SCP Houda & Associés
1. Legal Framework 1.1 Key Laws and Regulations The principal laws and regulations governing the banking sector are: • the Framework law on banking regulation (BCEAO) ( Loi cadre portant réglementation bancaire (BCEAO)); • Law 2008-26 of 28 July 2008 on banking regulation ( Loi 2008-26 du 28 juillet 2008 por- tant réglementation bancaire , hereinafter the “Law of 2008”); and • the Collective Agreement on Banks and Financial Institutions in Senegal ( Convention collective des banques et établissements financiers au Sénégal ). The regulator responsible for supervising banks in Senegal is the Banque Centrale des Etats d’Afrique de l’Ouest (the Main Agency of the Central Bank of West African States) (hereinafter the “Central Bank” or the BCEAO). All these texts are currently being revised to pro - duce a new banking law for the West African Monetary Union (WAMU). 2. Authorisation 2.1 Licences and Application Process The Authorisation Requirement and the Process for Applying for Authorisation In Senegal, the banking authorisation regime is regulated by the Law of 2008. According to this Law, credit institutions can apply for a bank licence or a financial institution licence, which differ slightly in the activities they allow institutions to carry out. Financial institu -
tions are categorised in five different categories, namely: • Category 1: financial lending institutions; • Category 2: financial institutions for leasing or rental with call option; • Category 3: financial factoring institutions; • Category 4: financial institutions providing guarantees; and • Category 5: financial payment institutions. In general, banks may carry out the classic bank - ing operations, namely the receipt of funds from the public, credit operations, the provision to customers and the management of payment methods. Financial institutions are allowed to carry out only the activities for which they are classified and may not carry out activities from another category without a preliminary approval (Article 17, Law of 2008). In addition, credit institutions are authorised to carry out the following activities and services: • transactions in gold and precious metals; • manual or scriptural exchange operations; • investment transactions; • advisory and assistance transactions in financial management, asset management, management and investment of securities and financial products, financial engineering transactions, simple leasing of movable or immovable property by financial institutions; and • intermediary operations as commission agents and brokers (Article 9, Law of 2008). Regarding the approval process, applications for authorisation are submitted to the Minister of Finance and the Central Bank, which examine them with regard to the conditions and obliga - tions provided for by the Law of 2008 (Article
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