SENEGAL Law and Practice Contributed by: Franck Olivier Allessie, SCP Houda & Associés
15). The Central Bank examines, in particular, the firm’s programme of activities, the financial and technical resources, the plan of develop - ment of the network of branches, agencies and counters, as well as the firm’s capacity to realise its development goals. The Central Bank also receives all the information on the status of the persons who have provided the capital, as well as on the fitness and experience of the persons responsible for managing and directing the firm. The approval is issued by order of the Minister of Finance, after approval by the Banking Commis - sion of the WAMU. If, after a period of six months from the application to the Central Bank, it has not taken a position on the request, the approval is deemed to have been refused (Article 16, Law of 2008). If given, the approval is registered on the list of banks and financial institutions, which was established and is updated by the Banking Commission and published in the Journal Offi- ciel de la République du Sénégal . Activities and Services Covered, and Restrictions on Licensed Banks’ Activities Credit institutions are authorised to carry out banking transactions on a regular basis, ie, receive funds from the public, carry out credit transactions, and provide and manage means of payment for customers. Alongside the general restriction on banking approval, in order for a credit institution author - ised in a WAMU member state to open branches or subsidiaries in other member states, it must comply with certain restrictions. Prior to any opening, the institution must notify its inten - tion by means of a declaration addressed to the Banking Commission and deposited with the Central Bank. This declaration is then sent for information to the finance ministers of the
home and host countries. (Article 18 of the Law of 2008). The Central Bank determines the information to be included in the declaration, in particular a detailed presentation of the proposed estab - lishment, which must include information on the planned activities, management, organisational structure, internal control and, if necessary, the constitution of the minimum capital required before commencing activities. Credit institutions are obliged to comply with a ratio between the various components of their resources and uses of funds, or comply with ceilings or minimums for the amount of certain of their uses of funds, including the conditions under which credit institutions may acquire hold - ings. Credit institutions must also comply with man - agement standards in order to guarantee their liquidity, solvency, risk spreading and the bal - ance of their financial structure. Credit institutions are required to comply with the decisions taken by the WAMU Council of Ministers, the Central Bank and the Banking Commission in the exercise of the powers con - ferred on them by the Treaty of the West African Monetary Union, the Articles of Association of the Central Bank, the Convention governing the Banking Commission and the Law of 2008. Subject to individual and temporary deroga - tions granted by the Minister of Finance, banks are prohibited from acquiring their own shares or granting loans against the pledging of their own shares. Banks are prohibited from grant - ing loans directly or indirectly to persons par - ticipating in their management, administration, management, control or operation, for an overall
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