SENEGAL Law and Practice Contributed by: Franck Olivier Allessie, SCP Houda & Associés
amount exceeding a percentage of their effec - tive own funds, to be determined by an instruc - tion of the Central Bank. This prohibition applies to shareholders or partners who each directly or indirectly hold 10% or more of the voting rights in the bank. The same prohibition applies to loans granted to private companies in which the persons referred to above exercise manage - ment, administrative or executive functions or hold more than 25% of the share capital. Common Ancillary Activities of Banks and Additional Authorisation/Requirements (MiFID II, MiCAR) As stated above, banks may carry out the classic banking operations, namely the receipt of funds from the public, credit operations, the provision to customers and the management of payment methods. Regarding financial institutions, they are allowed to carry out only the activities for which they are classified and may not carry out activities from another category without a pre - liminary 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). On the regional financial market, discretionary management activities, in particular private man -
agement and collective management carried out by credit institutions, are subject to special authorisation issued by the West African Eco - nomic and Monetary Union (WAEMU) Financial Markets Authority (AMF-UEMOA). WAMU banks are also authorised to operate as account keepers and securities clearing hous - es ( teneur de compte et de compensateur ) on behalf of their customers. These activities are subject to authorisation and supervision by the AMF-UEMOA. However, cryptocurrency activities are not yet explicitly authorised in Senegal, and banks are not authorised to carry them out. Nor is there currently any legislation governing cryptocur - rency activities in Senegal. Obtaining a European Passport (Branches, Cross-Border Services) The Law of 2008 does not mention obtaining a European passport to provide cross-border ser - vices, to open branches or generally exercise banking activities in Senegal. When a foreign entity wishes to carry out bank - ing or auxiliary activities, particularly on the regional financial market, it must obtain authori - sation to do so. However, no person may direct, administer or manage a credit institution or one of its branch - es if they do not have Senegalese nationality or that of a WAMU member state, unless they enjoy assimilation to Senegalese nationals by virtue of an establishment agreement. The Minister of Finance may grant individual exemptions, with the approval of the Banking Commission. Exec - utives for whom a waiver is sought must hold at least a Master’s degree or an equivalent diploma and have at least five years’ professional expe -
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