2023-10-23 10:29:39
By Magaye Gaye, International Economist.
Bank staff are stressed
As a result of multiple pressures exerted by the monetary authorities, which respond to the imperatives of combating money laundering and terrorism, more and more banking establishments, particularly in Africa, are sometimes excessively tightening the conditions applied to customers.
An operation that must be carried out within 48 hours in the West African Economic and Monetary Union (UEMOA) can easily take 5 days.
I have been informed of worrying cases:
The first concerns a businessman who obtains a loan from a bank. This assistance was supposed to be disbursed within 15 days (including implementation of guarantees). Finally, compliance requirements from the Bank (KYC request, etc.) caused the credit to drag on, which was not disbursed following 45 days.
The second case concerns an economic operator who received an intra-UEMOA transfer and whose bank asks him to justify the origin of the funds. I questioned a few bankers on these subjects and the explanation given to me is that the banking commission is asking to strengthen vigilance procedures.
Our opinion
This tightening of compliance procedures certainly falls within the framework of monetary policy, the objective of which is to encourage banks to strengthen their governance and their prudential ratios. The ultimate goal sought is undoubtedly to preserve the fundamental balances of the CFA Franc without even worrying regarding financing the economy. These “tough” procedures are likely to undermine the productivity of stakeholders and, beyond that, the competitiveness of economies.
Bank staff are stressed
While being rigorous in the fight once morest global scourges, Africa must negotiate these agendas well, avoiding anything that might upset its economy. Why not establish a single check on the justification of a transfer, at the level of the originator’s bank?
Furthermore, the definition of international standards should take into account the specificity of developing economies. A drastic strengthening of compliance procedures presents the risk of leading players to seek solutions such as mobile banking and hoarding.
The agenda that the Western world has succeeded in imposing on humanity concerns the fight once morest money laundering and terrorism, the fight once morest illegal emigration, etc.
As part of forward-looking thinking, African strategists should in turn circumscribe the threats weighing on the Continent: the corruption of African elites, political interference, imposed currencies and scuttled integration processes. Without forgetting the threats of territorial and geopolitical partition (DRC, white Africa/black Africa, Nigeria/West Africa etc.)
Magaye Gaye
International Economist
1698058663
#Tribune #Banks #compliance #killed #economy
