The following in particular shall constitute breaches of the provisions of the regulation;
Failure to provide the borrower with a written indication of the overall effective rate.
The indication of an erroneous overall effective rate to the borrower.
Failure to display the bank’s conditions.
Failure to comply with the time limits for transmitting to the National Economic and Financial Committee the effective global rate, the bank conditions and the information necessary for calculating the price index of financial services.
In the event of non-compliance with the deadlines for the periodic transmission of the overall effective rate, the banking conditions and the information requested by the CNEF for the calculation of the financial services price index, the reporting institution shall incur penalty payments, the calculation methods of which are specified in the BEAC instruction.
In the event of failure to comply with the obligation to indicate in writing an effective global rate to the borrower or to indicate an erroneous effective global rate to the borrower, or failure to display the bank’s conditions, the institution subject to the law shall incur a financial penalty of three million CFA Francs.
PENALTIES FOR NON-DECLARATION
METHODS FOR CALCULATING THE PENALTIES APPLICABLE TO INSTITUTIONS SUBJECT TO THE ACT IN THE EVENT OF FAILURE TO COMPLY WITH THE DEADLINES FOR DECLARING THE OVERALL EFFECTIVE RATE, THE BANKING CONDITIONS AND THE PRICES OF FINANCIAL SERVICES
The information relating to the overall effective rate, banking conditions and prices of financial services declared by the reporting institutions must be reliable and exhaustive.
Failing this, the declaration shall be rejected by the Secretary General of the National Economic and Finance Committee, without prejudice to the sanctions provided for in Article 25 of Regulation No. 04/19/CEMAC/UMAC/CM.
Any reporting institution that does not transmit reliable and exhaustive declarations on the overall effective rate, the banking conditions and the prices of financial services within the deadlines set by articles 7 and 11 of the present instruction No. 003/2021 shall incur a penalty of:
Two hundred and fifty thousand (250,000) CFA per day of delay, for the first fifteen days of delay; and
Five hundred thousand (500,000) CFA per day of delay, for more than fifteen days of delay.
The penalty shall be recovered in accordance with the provisions of article 26 of Regulation No. 04/19/CEMAC/UMAC/CM.