Key Benefits:
Law n ° 2014-01 of 6 January 2014 on the treatment of dormant accounts in the books of the financial institutions of the member states of the African Monetary Union (UMOA)
EXPOSE REASONS These assets consist, inter alia, of the credit balances of accounts opened in the books of credit institutions, Decentralized Financial Systems, postal financial services or National Savings Banks, which, during a Have not been the subject of any movement or transaction at the initiative of their owners; the latter no longer manifesting themselves, even after an attempt at contact by the depositary institution, at the address indicated in their Documentation. In view of the legal vacuum in this area in most UEMOA member states, a differentiated approach to the treatment of such assets by depository institutions is observed. In some institutions, no action is taken for transparent management of such assets, which is liable to prejudice the interests of depositors. Other establishments tend to assert the rules of common law relating to the requirement in commercial or civil matters. In view of the differing interpretations of the limitation periods in commercial or civil matters, the depositary institutions are exposed to the risk of disputes which may be against the holders of the assets concerned or their Entitled. These accounts could also give rise to internal fraud or malpractice, which would expose the financial bodies concerned to reputational risks. To measure the phenomenon, the Central Bank of West African States (BCEAO) has carried out a census of dormant assets with the banking system, microfinance institutions and the financial services of the postal service. Confirms the high number of accounts concerned and the importance of the accounts payable in the accounts. In this way, there is a need to regulate the treatment of dormant assets within the Union, with a view to preserving the legal certainty of depository organisations and safeguarding the interests of savers. In a participatory approach, the preliminary guidelines, inspired by the foreign experience in this field and taking account of the specific characteristics of the Union, were shared with all the stakeholders concerned, during the organised consultations, In 2011, in the Member States of the Union. By Decision No. CM/UMOA/005/05/2012, on 10 May 2012, the Council of Ministers of UMOA approved these guidelines and requested that a draft specific legal framework for the treatment of dormant accounts in the books of financial institutions Of the member states of the UMOA. I. OBJECTIVES OF THE UNIFORM LAW II. EXPECTED RESULTS III. STRUCTURE AND CONTENT OF THE UNIFORM LAW The first Title relating to the General Provisions (Articles 2 and 3) defines the subject matter and scope of the text, in particular the accounts concerned and bodies subject to the law. Title II, 'Treatment of dormant accounts' ' (Articles 4 to 15), specifies in particular the research obligations of the holders of dormant accounts at the expense of the depositary bodies and the arrangements for the conservation of dormant assets by The BCEAO. It also deals with the procedure for claiming dormant assets by the holders or their successors in title, as well as the requirement and the devolution of such assets. Title III deals with "Sanctions" (sections 16 to 20) against violators of the provisions of this Act. PRELIMINARY TITLE: DEFINITIONS Article 1 TITLE I. -GENERAL PROVISIONS Art. 2. -The purpose of this Law is to lay down the rules applicable to dormant accounts held in the books of the financial institutions of the member States of the UMOA, as defined in Article 1 above. Not covered by this Act: Article 3. -Any financial organization operating in the territory of the Republic of Senegal, irrespective of its legal status, the place of its head office or principal place of business in the UMOA, shall be subject to the provisions of this Law. TITLE II. -TREATMENT OF DORMANT ACCOUNTS Chapter I. -Research obligations Art. 4. -Depositary agencies are required to search for holders or beneficiaries of accounts which have not been the subject of any intervention for at least eight (8) years. At the end of the second year of continuous research and failing to find the owners or their successors in title, the accounts concerned shall be considered dormant. The depositary institution shall, in this case, be required to follow the procedures referred to in Articles 6 and 7 of this Law. The terms and conditions of search of the holders of the accounts referred to in the first paragraph of this Article shall be specified by a BCEAO instruction. Chapter 2. -Evidence of intervention Art. 5. -The evidence of the intervention of the holder or successors in title shall be borne by the depositary institution. It is established by all means. Chapter 3. -Arrangements for the conservation of dormant accounts Article 6. - If, in spite of the research referred to in Article 4 of this Law, the account concerned is not the subject of intervention by the holder or his successors in title, the depositary body shall be required to close it at the end of the tenth following year The last intervention. Decommissioning of the dormant account shall result in the withdrawal of the costs of management and of any remuneration and of the associated tax charges. Art. 7. -The assets held in the closed account shall be transferred to the BCEAO, thirty (30) days by the closing date. Section 2. -Role of the BCEAO Article 8. -The assets transferred to the BCEAO shall be retained by the BCEAO on behalf of the holder or his successors in title up to the expiration of twenty (20) years, from the date of transfer by the depositary institution. Chapter 4. -Procedure for claiming dormant assets Art. 9. -Until the expiry of the twenty (20) year period referred to in Article 8 of this Law, any person who believes that he or she is the holder or a person entitled to the dormant assets transferred to the BCEAO may claim them by sending a written request to the Bank Central, with amdescent to the original depositary body. Art. 10. -The claim made by a natural person must be accompanied by supporting documents relating to the identity of the author and to the right he claims to hold on the dormant assets. The identity of the author of the claim shall be justified by the presentation of a national identity card or any original official document, taking place, in the course of validity, and containing a photograph. In the case of an estate, the persons concerned must produce, in addition to the documents required by the preceding paragraph, any authentic document attesting to their status as successors in title. Art; 11 . Where the claim is made in the name of a legal person, including the cases of indivision, the person's representative must submit the documents attesting to the powers conferred on him or her. In addition, it must provide documentary evidence of its identity by presenting a national identity card or any original official document, taking place, in the process of being valid, and containing a photograph. Proof of the professional or residential address of the representative shall be furnished by the presentation of any document of a nature to be established. Also required, on the one hand, the original, the shipment or the certified copy of the articles, the extract from the Register of Commerce and of the Crédit Mobilier, the declaration of existence and/or any other act attesting in particular to the Legal form of the legal entity concerned and its registered office and, on the other hand, the document justifying its right to dormant assets. Art. 12. -The arrangements for claiming dormant assets are specified by a BCEAO appraisal. Chapter 5. -Publication of the list of dormant accounts Art. 13. -During the entire period of the conservation of the funds, the BCEAO shall publish, by all appropriate means, the list of holders of dormant accounts whose balance has been transferred to its books. The BCEAO may disclose data to the list of dormant accounts only to persons who establish their right to such accounts, to the judicial and supervisory authorities of the financial system, and to the National Cells of Financial Information Processing (CENTIF), as part of the fight against money laundering and the financing of terrorism. Chapter 6. -Issue and devolution of dormant assets Art. 14. -The limitation period for dormant assets shall be thirty (30) years from the date of the last intervention of the holder of the account or his successors in title. Art. 15 . At the end of the term referred to in Article 14 of this Law, the BCEAO shall transfer the unclaimed dormant assets to the State Treasury of the State of establishment of the initial depositary institution, within a maximum period of three (3) months. This transfer shall extinguished all rights in the relevant assets which are definitively acquired by the public treasury. TITLE III. -SANCTIONS Art. 16. -Non-compliance with the provisions of this Law by a Credit institution shall be found and sanctioned by the BCEAO or the Banking Commission, in accordance with the provisions of the Banking Regulation Act. Article 17. - The failure to comply with the provisions of this Law by an SFD shall be found and punished, as the case may be, by the Banking Commission, the BCEAO or the Ministry of Finance, in accordance with the provisions of the framework law regulating SFD. Art. 18. -The failure to comply with the provisions of this Law by a financial service of the Post or a Caisse Nationale d' Epargne is recognized and sanctioned by the Minister for Finance. Art. 19. -shall be subject to a financial penalty, the amount of which shall be equal to one-quarter of the amount of the credit balance of the dormant account concerned, any depositary body which contravening the provisions of this Law. Monetary penalties against a Credit Facility or SFD are taken, as the case may be, by the Banking Commission, the BCEAO or the Minister for Finance. Monetary penalties against a financial service of the Post or a Caisse Nationale d' Epargne are taken by the Minister for Finance. The corresponding sums are recovered on behalf of the public treasury from the place of holding of the dormant account, as the case may be, by the Central Bank or by the Ministry of Finance. Article 20. -In addition to the monetary penalties provided for in Article 19 of this Law: TITLE IV. -TRANSITIONAL PROVISIONS Art. . Within three (3) months of the entry into force of this Law, the depositary institutions shall provide the BCEAO with a list of accounts which have not been the subject of any intervention for at least eight (8) years in Their books. Art. . The provisions of Law No. 76-66 of 02 July 1976 on the Code of the State Field shall apply to financial institutions, as defined in Article 1 of this Law, until 31 December 2013. Any claims or disputes concerning the assets used or managed by the State under the Act No. 76-66 of 02 July 1976 on the Code du Domaine de l' Etatare the responsibility of the Republic of Senegal. All the necessary measures are taken by the State of Senegal, for the management of dormant accounts of which it has received the resources. TITLE V. - FINAL PROVISIONS Article 23. -This Law shall enter into force on 1 January 2014. By the President of the Republic: Macky SALL. The Prime Minister,
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