Financial Crime World

Chad’s Banks Face Tough Compliance Requirements

The business environment in Chad is governed by a set of strict accounting rules that banks operating in the country must adhere to. These regulations are designed to ensure transparency, accountability, and compliance with international standards.

Accounting Standards

  • The tax year in Chad runs from January to December.
  • All financial statements must be prepared according to International Financial Reporting Standards (IFRS).
  • Companies with more than 100 shareholders are required to use IFRS standards, even if their securities do not trade in a public market. However, Chad does not apply IFRS for Small and Medium-sized Enterprises (SMEs) standards.

Accounting Regulation Body

The Organisation for the Harmonisation of Business Law in Africa (OHADA) is the accounting regulation body in Chad. OHADA has issued the Accounting Act that outlines the requirements for financial reporting.

  • Companies must publish a balance sheet, profit and loss account, statement of cash flows, and notes to the financial statements.
  • Annual financial statements must be adopted no later than four months following the closing of the fiscal year.

Auditing and Certification

The Ordre National des Professionnels Comptables du Tchad (ONPCT) is the professional accountancy body in Chad that sets standards for auditing and certification.

  • According to OHADA’s Uniform Act on Commercial Companies, private limited companies with a balance sheet total greater than XAF 125 million, annual turnover greater than XAF 250 million, or more than 50 permanent staff must appoint at least one auditor.
  • In public limited companies, supervision is exercised by one or more auditors. The appointment of an auditor may also be requested in court by one or more members holding at least one-tenth of the stated capital.

Compliance Requirements for Banks

Banks operating in Chad must ensure that they comply with these strict accounting rules to avoid any legal and financial consequences. Failure to comply can result in fines, penalties, and even revocation of their banking license.

By understanding and adhering to these compliance requirements, banks in Chad can operate successfully and maintain the trust of their customers and stakeholders.