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Burkina Faso’s Financial Institution Security Standards: A Harmonized Approach

The financial framework in Burkina Faso is shaped by legislation from two regional organizations: the West African Economic and Monetary Union (WAEMU) and the Organization for the Harmonization of Business Law in Africa (OHADA). These directives have a significant impact on the legal and regulatory framework governing commercial entities, banks, financial institutions, insurance companies, and the accountancy profession.

Accounting Standards

In January 2017, OHADA adopted the Uniform Act on Accounting and Financial Information (AUDCIF) to update its previous accounting standards. The AUDCIF became effective in Burkina Faso on January 1, 2018, for individual accounts and on January 1, 2019, for consolidated accounts.

  • Listed companies and those seeking financing in public capital markets are required to apply International Financial Reporting Standards (IFRS) in their consolidated statements.

Auditing Framework

OHADA’s Uniform Act Relating to Commercial Companies and Economic Interest Groups stipulates that statutory audits are mandatory for all public companies, limited liability companies, and partnerships exceeding certain thresholds. Banking and insurance legislations also require mandatory audits of banks, financial institutions, and insurance companies. Audit standard-setting is determined by WAEMU Regulation No. 01/2009/CM/UEMOA, which established the Council of the Chartered Accountants Profession.

Regional Harmonization

The OHADA Uniform Act Relating to Commercial Companies and Economic Interest Groups (revised January 2014) requires that all audits be conducted in accordance with International Standards on Auditing (ISA) issued by the International Auditing and Assurance Standards Board. This harmonization with international best practice is aimed at improving financial institution security standards in Burkina Faso.

Key Takeaways

  • OHADA’s Uniform Act on Accounting and Financial Information became effective in Burkina Faso on January 1, 2018, for individual accounts and on January 1, 2019, for consolidated accounts.
  • Listed companies and those seeking financing in public capital markets are required to apply IFRS in their consolidated statements.
  • Statutory audits are mandatory for all public companies, limited liability companies, and partnerships exceeding certain thresholds.
  • All audits must be conducted in accordance with International Standards on Auditing (ISA) issued by the International Auditing and Assurance Standards Board.