Gambia’s Central Bank Issues Guidelines for Directors and Shareholders of Banking Institutions
In a move to ensure transparency and accountability in the country’s banking sector, The Gambia’s Central Bank has issued guidelines for directors and shareholders of banking institutions.
Background
The guidelines are designed to assess an individual’s fitness and propriety to hold a position of trust in the banking sector. They aim to enhance transparency and accountability in the country’s banking sector and protect depositors’ interests.
Key Requirements
According to the guidelines, persons proposed to become directors and senior officers of banking institutions are required to:
- Fill out a comprehensive questionnaire that seeks information on:
- Employment history
- Academic and professional qualifications
- Any past issues with regulatory bodies or courts
- Criminal convictions
- Bankruptcies
- Disciplinary actions taken against them
- Provide details of any previous instances where a banking institution in which they were involved had its license revoked by the Central Bank or another regulatory authority
Shareholders who hold significant shareholdings (more than 10%) are also required to provide similar information, including:
- Details of their employment history
- Academic and professional qualifications
- Any past issues with regulatory bodies or courts
- If they have ever been involved in a banking institution that has failed to meet its obligations with creditors
Additional Requirements
Individuals must also disclose if they have ever been:
- Investigated by a government department or agency, professional association, or regulatory body in The Gambia or another jurisdiction
- Dismissed or asked to resign from any employment or position of trust due to questions about their honesty or integrity
Effective Date and Compliance
The guidelines come into effect immediately, and all banking institutions are expected to comply with the new requirements.
Key Takeaways
- Directors and senior officers of banking institutions in The Gambia must fill out a comprehensive questionnaire.
- Shareholders who hold significant shareholdings (more than 10%) are also required to provide similar information.
- Individuals must disclose if they have ever been involved in a banking institution that has failed to meet its obligations with creditors or had its license revoked by the Central Bank or another regulatory authority.
- Directors and senior officers must also disclose any previous instances where they were investigated by a government department or agency, professional association, or regulatory body in The Gambia or another jurisdiction.
By implementing these guidelines, The Gambia’s Central Bank aims to enhance transparency and accountability in the country’s banking sector and protect depositors’ interests.