Financial Crime World

Compliance with Regional Regulations for Financial Advisors in Burkina Faso

As a member of the West African Economic and Monetary Union (WAEMU) and the Organization for the Harmonization of Business Law in Africa (OHADA), financial advisors in Burkina Faso must adhere to regulations issued by these regional organizations. These regulations have a significant impact on the legal and regulatory framework for commercial entities, banks, financial institutions, and insurance companies in Burkina Faso, as well as on the accountancy profession.

The OHADA Uniform Act on Accounting and Financial Information (AUDCIF)

In January 2017, the OHADA Uniform Act on Accounting and Financial Information (AUDCIF) was adopted to update the previous OHADA Uniform Act on Organizing and Harmonizing Company Accounting Systems. The AUDCIF revised the OHADA general accounting plan, consolidated and combined accounting rules, and became effective:

  • January 1, 2018, for individual accounts
  • January 1, 2019, for consolidated accounts

Statutory Audits and Mandatory Requirements

According to the OHADA Uniform Act Relating to Commercial Companies and Economic Interest Groups:

  • Statutory audits are mandatory for all public companies, limited liability companies (LLCs), and partnerships that exceed certain thresholds.
  • Banking and insurance legislations require mandatory audits of banks, financial institutions, and insurance companies.

The Council of the Chartered Accountants Profession (CPPC)

Established by WAEMU Regulation No. 01/2009/CM/UEMOA in 2009, the Council of the Chartered Accountants Profession (CPPC) is responsible for defining:

  • Auditing standards
  • Ethics standards
  • Quality control standards for the WAEMU member states

Harmonization with International Best Practice

In June 2017, OHADA issued Regulation No. 01/2017/CM/OHADA to harmonize regional auditing standards with international best practice.

As a result, all audits must be conducted in accordance with:

  • The International Standards on Auditing (ISA) as issued by the International Auditing and Assurance Standards Board (IAASB)
  • Effective in Burkina Faso as of the date of assessment

Conclusion

To maintain their licenses and operate within the country’s financial sector, financial advisors in Burkina Faso must ensure compliance with these regulations. This includes adhering to international auditing standards and best practices, as well as maintaining high-quality audits that meet regional and international requirements.