Loi n° 2016-056 du 02 février 2017 sur la Monnaie Électronique et les Établissements de Monnaie Électronique (Law No. 2016-056 on Electronic Money and Electronic Money Establishments)

Law No. 2016-056 on Electronic Money and Electronic Money Establishments, adopted by Madagascar's Parliament on 16 December 2016 and promulgated on 2 February 2017, is the primary statute governing electronic money (e-money) and mobile money in Madagascar. Madagascar's mobile money market (notably MVola, Orange Money and Airtel Money) had grown rapidly, and the Law created a dedicated legal framework to formalise and supervise it, promote financial inclusion, and bring previously informal activity within the regulatory perimeter of the Commission de Supervision Bancaire et Financière (CSBF), the supervisory body operating within the central bank, Banky Foiben'i Madagasikara (BFM). Scope and applicability: the Law defines electronic money and regulates electronic money establishments (établissements de monnaie électronique, EME), the entities authorised to issue it. Issuing e-money requires prior authorisation from the CSBF; credit institutions governed by banking law may conduct e-money operations with the CSBF's prior authorisation, while dedicated EMEs must be specifically licensed. Applicants must submit detailed descriptions of the proposed e-money operations, the systems deployed, internal-control procedures, and measures ensuring transaction security and consumer protection. The CSBF determines, by instruction, the content of the authorisation application file. Core obligations: e-money establishments must adopt sound and prudent administrative, accounting and financial management and adequate internal-control procedures; safeguard customer funds; ensure that e-money issued is fully backed; and comply with anti-money-laundering and counter-terrorist-financing obligations, including internal prevention mechanisms set by CSBF instruction. The Law provides for consumer protection, transaction security and the integrity of the e-money float. The CSBF maintains and publishes on the BFM website an up-to-date register of authorised electronic money establishments. Supervision and enforcement: the CSBF supervises EMEs, may conduct audits of the e-money system, and may impose sanctions or withdraw authorisation for non-compliance. The Law is supplemented by CSBF implementing instructions, notably Instruction No. 002/2017 on the licensing of electronic money establishments and Instruction No. 003/2017 on the operation of trust accounts, which give effect to its requirements. Together they form the legal backbone of Madagascar's regulated mobile money and e-money sector.

1. 1Requires prior CSBF authorisation to issue electronic money; dedicated electronic money establishments (EME) must be licensed
2. 2Credit institutions may conduct e-money operations with CSBF prior authorisation
3. 3Applicants must detail operations, systems, internal controls, transaction security and consumer-protection measures
4. 4EMEs must adopt sound administrative/accounting/financial management and adequate internal controls, and safeguard/back customer funds
5. 5Mandatory AML/CFT compliance with internal prevention mechanisms set by CSBF instruction
6. 6CSBF maintains and publishes a public register of authorised EMEs and supervises, audits and may withdraw authorisation