Compliance Requirements for Banks in Chad: A Strict Framework

Chad’s banking industry is subject to rigorous compliance requirements, enforced by various organizations to ensure transparency and accountability. In this article, we will delve into the strict standards that banks must adhere to.

International Financial Reporting Standards (IFRS)

According to the Organisation for the Harmonisation of Business Law in Africa (OHADA), all listed companies and those making a public call for capital must use IFRS for their financial statements. Additionally, companies with more than 100 shareholders must adopt IFRS standards, even if their securities do not trade in a public market.

Uniform Act Relating to Commercial Companies and the Economic Interest Group

The OHADA’s Uniform Act requires that annual financial statements include:

• A balance sheet
• Profit and loss account
• Statement of cash flows
• Notes to the financial statements

These reports must be published within four months following the closing of the fiscal year.

Ordre National des Professionnels Comptables du Tchad (ONPCT)

Chad has its own professional accounting body, ONPCT, which plays a crucial role in ensuring compliance with accounting standards. According to OHADA’s Uniform Act on Commercial Companies, private limited companies that meet certain criteria are required to appoint at least one auditor.

Auditors and Supervision

For 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 if a company does not meet the mandatory requirements.

Conclusion

In conclusion, banks in Chad must adhere to strict compliance requirements, including IFRS standards and regular financial reporting. Failure to comply with these regulations can result in serious consequences. It is essential for banks to prioritize compliance to maintain their reputation and avoid legal repercussions.

Key Takeaways:

• All listed companies and those making a public call for capital must use IFRS for their financial statements.
• Companies with more than 100 shareholders must adopt IFRS standards, even if their securities do not trade in a public market.
• Annual financial statements must include a balance sheet, profit and loss account, statement of cash flows, and notes to the financial statements.
• Private limited companies that meet certain criteria are required to appoint at least one auditor.
• Public limited companies are subject to supervision by one or more auditors.