SENEGAL Trends and Developments Contributed by: Franck Olivier Allessie, SCP Houda & Associés
Overview of the New Legal Provisions Set Out in the Uniform Law on Banking Regulations in the WAMU Area Introduction Adoption by the WAMU Council of Ministers of the draft Uniform Law on banking regulation in the WAMU area Faced with global economic and financial changes, the West African Monetary Union (WAMU) has embarked on an in-depth reform of the regulation of its banking sector. On 16 June 2023, the Council of Ministers of WAMU member countries adopted a new uniform law on banking regulation in WAMU (the “Uniform Law”). Each member country is invited to trans - pose this Uniform Law by adopting a national law incorporating the text of the Uniform Law. The Uniform Law adopted by the WAMU Council of Ministers, which was recently unveiled, aims to regulate several aspects relating to finan - cial entities operating on the designated terri - tory, with a view to protecting public savings and guaranteeing the proper functioning of the banking and financial system of the eight WAMU member states. In addition to WAMU, there is also the West African Economic and Monetary Union (WAEMU), a West African organisation created on 10 January 1994 with the mission of achieving the economic integration of member states by strengthening the competitiveness of economic activities within the framework of an open and competitive market and a rationalised and harmonised legal environment. This Uniform Law is a continuation of the banking reforms initiated in the region, in particular those introduced by Act No 2008-26 of 28 July 2008 on banking regulations in Senegal (the “2008 Banking Law”), which had already marked a first step towards more rigorous supervision of finan - cial institutions. The Uniform Law is intended to
replace the Framework law on banking regula - tion adopted in 2007, with the aim of providing the WAMU with a legal framework adapted to the changes that have taken place in the banking sector over the last two decades. It is therefore a continuation of the previous legislation. However, this text has not yet been transposed in Senegal. This means that the 2008 Banking Law in force in Senegal, adopted in 2008, con - tinues to apply until the new law is published. The legal procedures for transposing the Uniform Act into Senegalese law The transposition of uniform legislation follows a specific procedure. For information, the Monetary Union of West African States (UMOA) is characterised by the recognition of a single monetary unit, the Franc de laCommunauté Financière Africaine (FCFA), the issue of which is entrusted to the Central Bank of West AFrican States (BCEAO). WAMU currently comprises Benin, Burkina Faso, Côte d’Ivoire, Guinea Bissau, Mali, Niger, Sen - egal and Togo. WAMU has embarked on a policy of standardis - ing national legislation. Articles 17 and 34 of the WAMU Treaty of 20 January 2007 state that the governments of WAMU member states agree to adopt uniform regulations, the provisions of which are drawn up on its initiative or on that of the Central Bank and adopted by the Council of Ministers, with a view to enabling the full appli - cation of the principles of monetary union. The transposition of a uniform law follows three stages, as set out below.
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