Bank of Sierra Leone Act, 2019: Strengthening Financial Transparency and Accountability
The Bank of Sierra Leone Act, 2019 has been enacted to strengthen financial transparency and accountability in the country’s central bank. This new law aims to promote good governance, ensure effective management of public funds, and protect the interests of customers.
Fiduciary Duty
The Act emphasizes that members of the Board and staff have a fiduciary duty to place the interests of the Bank and its customers before their own pecuniary interest. This means that they must:
- Act in good faith
- Exercise due diligence
- Make decisions that are in the best interests of the Bank and its customers
Financial Statements and Reports
The Act requires the Bank to maintain accounts and records in accordance with International Financial Reporting Standards (IFRS). The financial year of the Bank shall begin on January 1st and end on December 31st of each year. The Bank shall submit:
- Annual financial statements
- Reports to the Minister and Parliament within three months after the end of each financial year
Information Disclosure
The Act requires the Bank to disclose information on:
- Its monetary policy
- Achievements of its objectives
- Vision for the real variables of the economy
This disclosure shall be done at least twice a year. The Governor of the Bank shall appear before Parliament at least twice a year to explain the Bank’s monetary policy decisions and provide an assessment of the policy outlook.
Internal Audit
The Act establishes the position of Chief Internal Auditor, who shall be responsible for:
- Performing periodic audits of the Bank’s administration and operations
- Reviewing financial statements and related documents of the Bank
- Preparing reports on the efficiency and cost-effectiveness of the Bank’s operations
- Liaising with external auditors
External Audit
The Act requires the Bank’s accounts, records, and financial statements to be audited annually by an independent external auditor appointed by the Auditor-General. The external auditor shall report any material weaknesses in internal control in relation to the financial reporting process.
Currency of Sierra Leone
The Act confirms that the currency of Sierra Leone is the Leone (Le), which shall continue to be issued in banknotes and coins prefixed by the sign “Le”. Prices for all transactions in Sierra Leone shall be indicated in Leones, except as otherwise provided in this Act.
Conclusion
The Bank of Sierra Leone Act, 2019 represents a significant step towards enhancing financial transparency and accountability in Sierra Leone. It is expected to promote good governance, ensure effective management of public funds, and protect the interests of customers.