SENEGAL Trends and Developments Contributed by: Franck Olivier Allessie, SCP Houda & Associés
of their legal status, the location of their regis - tered office or principal place of business in the WAMU and the nationality of the owners of their share capital or their directors”. Unlike the 2008 Banking Law, which was essen - tially limited to credit institutions, the new legis - lation aims to regulate a wider range of finan - cial entities. In addition to banks and credit institutions, the Uniform Law now also covers specialised institutions such as payment insti - tutions and electronic money institutions. The latter are playing a growing role with the rise of digital transactions and dematerialised payment systems in the WAMU zone. This reinforces the objective of financial inclusion in the WAEMU region and in Senegal. This opening up reflects the evolution of the financial sector, which is undergoing increased diversification in terms of the players involved and the services offered. The Uniform Law takes account of technological innovations and new forms of financial institutions, ensuring that reg - ulation is more inclusive and adapted to the cur - rent reality of the market. In addition, the exten - sion of the scope of application to these entities, regardless of their legal status, their location within the WAMU or the nationality of their direc - tors, is intended to strengthen the supervision and transparency of the regional financial sector. In addition, the entities mentioned in Article 2 of the Uniform Law are designated as authorised institutions, which implies more rigorous super - vision of their operations. This reform reflects a clear desire to modern - ise the legislative framework in order to bet - ter respond to current economic and financial challenges. Whereas the 2008 Banking Law presented a more limited and less structured
framework, the new regulations are intended to be more comprehensive, taking account of developments in the sector while strengthening the stability of the financial system within the WAMU. Legal clarification of Islamic banking and factoring activities The Uniform Law provides a clearer and bet - ter defined legal framework for certain specific financial activities, in particular Islamic banking and factoring, which are expanding within the WAMU. Islamic banking is defined as an activity consist - ing of carrying out one or more Islamic banking operations as a regular occupation. In accordance with Article 66 of the Uniform Law, banks, financial institutions and payment institutions are authorised to carry out Islamic banking activities, either exclusively or through a dedicated window. In addition, Islamic banking activities are carried out in compliance with the conditions and limits defined by the authorisa - tion, as well as the opinions and certificates of compliance issued by the compliance authorities referred to in Articles 69 and 70 of the Uniform Law. However, the BCEAO may also authorise other entities to carry out Islamic banking activi - ties. Article 67 of the Uniform Law does not fail to specify the use of the term “Islamic” by financial institutions. Exclusively Islamic banks, financial institutions and payment institutions may use this term in their name, advertising or any other activity. On the other hand, institutions that sim - ply have an Islamic window may not use this term in their corporate or commercial name. However, they may use it in their contractual and
534 CHAMBERS.COM
Powered by FlippingBook