Instruction N°001-01-2024 on Payment Services: Modernization, Integration and Security at the Core of the New West Africa Central Bank Regulations
Instruction N°001-01-2024 on Payment Services: Modernization, Integration and Security at the Core of the New West Africa Central Bank Regulations
In recent years the regional banking environment has been undergoing major transformations, marked by the rise of innovative new actors, such as Financial Technologies Companies, and the development of brand-new operations, especially those linked to Electronic Money. Faced with these changes, the Central Bank of West African States (BCEAO) has launched structural reforms, thoroughly redefining the regulatory and operational framework of the banking sector in the West African Monetary Union (UMOA).
Instruction N°001-01-2024, which came into force on January 23, 2024, focuses on modernizing the financial sector and strengthening consumer protection in the West African Monetary Union (WAMU). It applies to a wide range of actors, including banks, payment institutions, microfinance institutions, Fintech, and Islamic banks. The objective is to ensure a fair and accessible payment environment, while integrating technological innovations such as mobile and online payment services. It expands authorized banking operations, which now include practices such as the sale and repurchase of movable and immovable property, as well as account aggregation services to provide a consolidated view of customer's finances. It also enhances transparency and security in the management of funds, while promoting financial inclusion using digital platforms. Similarly, payment institutions can now offer document storage and data processing services, expanding their role in the financial sector.
Finally, the regulations introduce measures to strengthen cooperation between financial sector actors, particularly by integrating institutions into specific professional associations. It also provides for dispute prevention and resolution mechanisms, as well as dissuasive sanctions in the event of non-compliance. These measures are designed to ensure the stability of the financial system, protect consumers and strengthen confidence in payment services within WAMU.
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