Financial Crime World

Chad’s Banking Regulations Compliance Under Scrutiny as Investors Seek Clarity on Legal Framework

N’DJAMENA, Central African Republic

As Chad seeks to attract foreign investment and boost its economy, concerns are mounting over the country’s banking regulations compliance. The legal framework governing financial transactions in Chad has been criticized for being weak and vulnerable to executive interference.

Judicial System Concerns

According to experts, the judiciary system in Chad is plagued by a lack of independence, with the executive power often exerting significant influence over court decisions. This has led to concerns that foreign investors may not receive equal treatment under the law, despite assurances from the US Bureau of Economic and Business Affairs that the court system does not generally subject foreign investors to executive interference.

Language Barrier

Another issue facing businesses in Chad is the language barrier. French is one of the official languages, but many Chadians also speak Arabic and local dialects. This can create challenges for foreigners seeking to navigate the country’s legal system, particularly when it comes to accessing justice and resolving disputes.

Chad’s mixed legal system, which combines elements of civil law with customary law, has been criticized for being unclear and inconsistent. The main sources of law in Chad include:

  • The Constitution
  • International treaties
  • Acts of Parliament
  • Rules and regulations of the executive branch
  • Ordinances of the government
  • Customary law

However, the lack of a centralized online platform for accessing national laws has made it difficult for investors to get clear information on compliance requirements.

Recommendations for Improvement

As Chad looks to attract more foreign investment and stimulate economic growth, improving banking regulations compliance will be crucial. The Chadian government must take steps to:

  • Strengthen its legal framework
  • Ensure greater independence for the judiciary
  • Provide clearer guidance on compliance requirements for foreign investors

Sources:

  • Freedom House
  • US Bureau of Economic and Business Affairs
  • Library of the U.S. Congress
  • Droit Afrique - Chad