CSBF Instruction n° 002/2017 relative à l'agrément des établissements de monnaie électronique (Instruction on the Licensing of Electronic Money Establishments)

CSBF Instruction No. 002/2017 is an implementing instruction issued by Madagascar's Commission de Supervision Bancaire et Financière (CSBF) under Law No. 2016-056 on Electronic Money and Electronic Money Establishments. It operationalises the licensing (agrément) regime for electronic money establishments (établissements de monnaie électronique, EME), setting out the content of the authorisation application file and the conditions an applicant must satisfy to be permitted to issue electronic money in Madagascar. Scope and applicability: the Instruction applies to any entity seeking CSBF authorisation to operate as an electronic money establishment, whether a dedicated EME or a credit institution intending to conduct e-money operations. It specifies the documentation and information the applicant must submit, corporate and ownership structure, fit-and-proper credentials of directors and shareholders, the proposed e-money operations and technical systems, internal-control and risk-management procedures, security and business-continuity arrangements, and measures for consumer protection and AML/CFT compliance. Core obligations: applicants must demonstrate adequate financial resources and capital, sound governance, and the operational and technical capacity to safeguard customer funds and ensure the integrity and security of e-money transactions. The Instruction sets the procedure for submission and review of the application file, the payment of non-reimbursable file fees to Banky Foiben'i Madagasikara, and the criteria against which the CSBF assesses applications. It works together with CSBF Instruction No. 003/2017 on the operation of trust accounts, which secures the backing of e-money in circulation. Supervision and enforcement: once authorised, an EME is entered in the CSBF register published on the BFM website and becomes subject to ongoing CSBF supervision, reporting and audit. The CSBF may refuse an application that does not meet the prescribed conditions and may attach conditions to an authorisation. As subsidiary guidance under Law No. 2016-056, this Instruction is central to market entry for Madagascar's mobile money and e-money providers.

1. 1Specifies the content of the authorisation (agrément) application file for electronic money establishments
2. 2Requires disclosure of corporate/ownership structure, fit-and-proper directors and shareholders, and proposed e-money operations and systems
3. 3Mandates internal-control, risk-management, security, business-continuity, consumer-protection and AML/CFT documentation
4. 4Requires evidence of adequate capital/financial resources and capacity to safeguard customer funds
5. 5Sets application procedure, non-reimbursable file fees payable to BFM, and CSBF assessment criteria
6. 6Authorised EMEs entered in the CSBF public register and subject to ongoing supervision; CSBF may refuse or condition authorisation