Financial Crime World

Banking Sector in Senegal: Complying with International Standards

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Senegal’s banking sector has made significant strides in recent years, attracting foreign entrants keen to use Dakar as an anchor for regional expansion. With 26 registered banks operating in the country, Senegalese banking system is governed by the Central Bank of West African States (BCEAO), which is common to eight member states of the West African Economic and Monetary Union (WAEMU).

Supervision and Regulation

The country’s banking system is supervised by the “Commission Bancaire”, a supranational entity created in April 1990 to control financial institutions. The French Treasury guarantees the conversion rate to the Euro, which has led to a significant increase in foreign exchange reserves held in the French Treasury.

Major Banks and Foreign Investment

Senegal’s largest commercial banks are still predominantly French, although their dominant position is being threatened by new arrivals such as Ecobank and United Bank of Africa (UBA). U.S. banks such as Citibank and Vista Bank have also established operations in Senegal, offering corporate finance solutions and consumer banking services respectively.

  • Moroccan banks, including Attijari Bank and Bank of Africa, are also very active in Senegal.
  • The International Finance Corporation (IFC), the private sector lending arm of the World Bank, has a regional office in Dakar.

Foreign Exchange Controls

Senegal lifted all restrictions on foreign exchange controls in 1998, allowing for free convertibility of the CFA franc via the banking system for commercial transactions. Travelers can also exchange foreign currency for CFA francs without limit at commercial banks.

International Trade Finance Options

The country’s banking sector has a number of local and international banks that maintain correspondent relationships with U.S. banks, making it easier for businesses to access international trade finance options.

For more information on the banking system in Senegal, readers are referred to the section on Capital Markets and Portfolio Investment in the Investment Climate Statement.