The withdrawal of authorization is decreed by order of the Monetary Authority, after approval by the COBAC (Central African Banking Commission), either at the request of the banking intermediary concerned or on the initiative of the COBAC or the Monetary Authority.
The withdrawal of authorization may be ordered on the initiative of the Monetary Authority or at the request of the COBAC in one of the following cases:
- When it is found that the intermediary has not been active for at least one (1) year;
- When it is found that the intermediary has not held any mandate as a credit institution for at least one (1) year;
- When it is found that the intermediary is subject to one of the prohibitions or incompatibilities provided for in Chapter 3 of these regulations;
- In the event of non-renewal or insufficiency of said bank guarantee or of the civil liability insurance policy;
- When the intermediary has failed to comply with an order from COBAC;
- When the intermediary no longer provides sufficient guarantees to operate in compliance with the provisions of this regulation, particularly with regard to customer protection, internal control and risk management, traceability of transactions, and the fight against money laundering and the financing of terrorism.
The COBAC (Central African Banking Commission) first invites the intermediary to provide an explanation before referring the matter to the Monetary Authority for the withdrawal of its authorization.
The withdrawal of the intermediary's authorization, at its request, is subject to the approval of the COBAC.
The request for withdrawal of authorization is submitted to the Monetary Authority against a receipt. A copy of the request, along with the receipt, is filed by the applicant with the COBAC for information purposes.
The request for withdrawal of authorization initiated by the intermediary is forwarded to the COBAC by the Monetary Authority for its approval.
From the date of receipt of the withdrawal request, the Banking Commission has one month to issue a ruling and notify the Monetary Authority of its decision. The absence of a decision within this period constitutes approval.
The Monetary Authority shall issue its decision to withdraw authorization within one month of:
- Notification to the Monetary Authority of the COBAC's favourable opinion, when the withdrawal of authorization is at the request of the intermediary in banking operations or at the initiative of the Monetary Authority;
- Receipt of the COBAC's request by the Monetary Authority, when the withdrawal of authorization is requested by the COBAC.