Central African Credit Information Offices (BICs) are now facing tough monetary sanctions for duly noted violations, APA learned on Thursday after an instruction signed by the Governor of the Central Bank (BEAC), Abbas Mahamat Tolli.
Classified in two categories, these violations will now be punished with fines ranging from one to 25 million CFA francs, and from 25 to 50 million CFA francs. In the event of multiple infringements, the cumulative amount of those sanctions may not, however, exceed 100 million CFA francs, BEAC says.
It could be recalled that it was in May 2019 that BEAC set up a regulation setting the conditions for the exercise, control and supervision of BIC activities, with the stated motivation of fighting bad loans, in the provision of which, BICs, in charge of collecting, compiling, storing and processing data and information could be accused of wrongdoing, or complicity.
Also responsible for providing users with credit reports and value-added services, these bodies are responsible for verifying compliance with the rules relating to credit data, the quality and reliability of the information provided to users.
BICs are, in the spirit of the Central Bank, an effective tool for analyzing, evaluating and managing credit risks, making it possible to anticipate the over-indebtedness of borrowers, to reduce the asymmetry of information between lenders and borrowers, to increase the volume of bank financing, but also to improve the quality of funding institutions’ portfolio.
FCEB/te/fss/abj/APA