UMOA commission fines three banks and liquidates LOCAFRIQUE

The UMOA Banking Commission reprimanded three unnamed banks and fined each CFAfr300 million at its 154th supervisory session on 1 July 2026. In a separate decision from the same session, it withdrew the approval of Senegal-based Compagnie Ouest Africaine de Crédit-Bail, known as LOCAFRIQUE; the withdrawal resulted in liquidation and removal from the list of approved institutions.

The BCEAO published the four outcomes on 6 August. For each of the three bank sanctions, the notice records that the Commission heard the relevant directors before reaching its decision.

Three banks receive matching fines

The first sanctioned bank is described only as an institution established in Niger. The Commission issued a reprimand after citing breaches of the legal and regulatory texts governing credit institutions. It highlighted weaknesses in prudential standards, governance, risk management and controls against money laundering, terrorist financing and proliferation financing. The bank also received a CFAfr300 million financial penalty.

The second bank, identified only as an institution established in Côte d’Ivoire, received the same two outcomes: a reprimand and a CFAfr300 million penalty. The Commission again cited weaknesses in prudential standards, governance, risk management and the framework for combating money laundering, terrorist financing and proliferation financing.

The third bank is described only as an institution established in Burkina Faso. It was reprimanded and fined CFAfr300 million after the Commission identified weaknesses in governance, risk management and the same financial-crime control framework.

For all three banks, the Commission classified the cited infringements within the second and third categories under Instruction No. 006-05-2018. That instruction sets the rules for financial penalties imposed by the UMOA Banking Commission on credit institutions. The public notice applies the same penalty amount to each bank while recording the disciplinary decision separately for each institution.

LOCAFRIQUE loses its approval

LOCAFRIQUE’s decision is different in legal effect. The Commission closed the disciplinary procedure against the financial institution by withdrawing its approval. It attributed that outcome to a persistent condition that included failure to produce a required recovery plan, widespread non-compliance with prudential rules, almost non-existent lending activity and no viable short- or medium-term recovery prospect.

The Commission also cited irregular and late regulatory reporting since the 2024 financial year, cessation of payments and negative net assets at the end of December 2024. As a consequence of the approval withdrawal, LOCAFRIQUE was placed into liquidation. The institution was also removed from the list of approved institutions.

The notice therefore records two types of outcome from the same supervisory session. Three banks received reprimands and matching CFAfr300 million penalties. LOCAFRIQUE lost the regulatory approval under which it operated and entered liquidation.

The BCEAO publication does not specify a next procedural event after those decisions. The disclosed record ends with the three sanctions and the withdrawal, liquidation and removal of LOCAFRIQUE. Any later procedural step would require a further official publication rather than an inference from the 6 August notice.