Banque Centrale de Mauritanie (BCM)

Overview

Confidence: 92%

Currency: Mauritanian Ouguiya (MRU)

Legal Status: Independent Public Establishment

Financial Inclusion Focus: Mobile Payment Regulations Development

The Banque Centrale de Mauritanie (BCM) is the monetary authority and chief financial regulator of the Islamic Republic of Mauritania, a Northwest African nation spanning the Sahara Desert with significant natural resources and emerging financial services sector. Established as an independent institution and national public establishment endowed with legal, administrative, and financial autonomy, the BCM operates under a mandate to maintain monetary stability, ensure financial system stability, and contribute to Mauritania's economic development.

The BCM operates as an independent public establishment with three primary missions: maintaining monetary stability, ensuring the stability of the financial system, and promoting economic development. The Bank's governance structure includes a Board of Directors and professional management ensuring institutional autonomy and technical competence in monetary policy and financial regulation.

Basic Identity

Classification

Inclusion Justification

What This Entity Oversees

The BCM exercises comprehensive supervisory authority over the banking sector, including deposit-taking institutions, development banks, and specialized financial institutions. Supervision operates under a risk-based framework emphasizing capital adequacy, asset quality, management effectiveness, earnings, and liquidity.

Supervisory Functions:

• Licensing and Authorization — Approval of new bank establishment, branch operations, and service expansion
• Capital Adequacy Review — Monitoring compliance with minimum capital requirements and prudential capital ratios
• Prudential Standards Enforcement — Regulations governing loan classification, provisioning, large exposures, and connected lending
• Risk-Based Supervision — Assessment of capital, asset quality, management, earnings, and liquidity (CAMEL framework)
• Onsite Inspections — Periodic examinations of banking institutions for compliance and soundness
• Offsite Surveillance — Continuous monitoring through regulatory reporting and financial analysis
• Enforcement Actions — Remedial directives, administrative fines, and license suspension/revocation authority

Current Supervisory Priorities:

• Bank capital adequacy and risk management standards
• Asset quality monitoring and loan provisioning
• Digital banking and payment services supervision
• Cybersecurity and operational resilience
• AML/CFT compliance and sanctions screening
• Macroprudential risk assessment

The BCM supervises a banking sector encompassing commercial banks, development banks, and specialized financial institutions serving urban and emerging rural markets.

The BCM enforces a comprehensive anti-money laundering and counter-terrorist financing framework under applicable AML/CFT legislation, aligned with Financial Action Task Force (FATF) standards and international best practices.

AML/CFT Requirements:

• Customer Due Diligence (CDD) — Mandatory KYC procedures at account opening; identity verification and beneficial ownership documentation
• Enhanced Due Diligence (EDD) — Intensified scrutiny for high-risk customers, politically exposed persons (PEPs), and high-risk jurisdictions
• Suspicious Activity Reporting (SAR) — Mandatory reporting of suspected money laundering, terrorist financing, or other illicit activity
• Sanctions Compliance — Integration with UN Security Council and national sanctions lists; customer and transaction screening
• Record Retention — Maintenance of transaction records for minimum of five years
• Staff Training — Regular compliance training on AML/CFT procedures

The BCM cooperates with the Financial Intelligence Unit and law enforcement agencies on AML/CFT investigations and sanctions enforcement.

Regulatory Powers

The BCM possesses comprehensive enforcement authority to ensure compliance with monetary, banking, and financial sector regulations. Enforcement actions escalate from supervisory guidance to formal sanctions and license revocation.

Enforcement Powers:

• Administrative Fines — Monetary penalties for regulatory breaches, proportionate to violation severity and institutional size
• Remedial Directives — Formal instructions requiring corrective actions within specified timeframes
• Cease and Desist Orders — Prohibition of specific activities or service lines
• Capital Injections — Directives to increase capital in response to solvency or stability concerns
• Management Actions — Authority to remove or replace directors and senior officers
• License Suspension/Revocation — Withdrawal of banking or financial services license

The BCM publishes enforcement actions and supervisory updates to maintain transparency and accountability.

Regulatory Role and Function

Legal Foundation

The Banque Centrale de Mauritanie operates under the Law Organizing the Central Bank of Mauritania (Loi Portant Organisation de la Banque Centrale de Mauritanie), which establishes its legal status, governance structure, operational mandate, and independence from political interference. The Law confers upon the BCM exclusive authority to issue and manage the national currency, formulate and implement monetary policy, and supervise the financial sector.

Supporting legal and regulatory frameworks include:

• Ordinance 2007/004 — Framework governing payment instruments and national payment system oversight; Chapter VI establishes BCM authority over payment system functioning and security
• Banking Regulation Ordinance — Licensing, regulation, and supervision of deposit-taking institutions
• Prudential Standards Regulations — Capital adequacy, asset quality, provisioning, and risk management requirements
• AML/CFT Law — Anti-money laundering and counter-terrorist financing requirements and financial intelligence authority
• Financial Services Licensing Framework — Regulation of non-bank financial services including money transfer operators

Recent Legislative Development:

The BCM is modernizing its regulatory framework to address emerging payment modalities and fintech services, including development of comprehensive mobile payment regulations and updated guidelines for digital financial services providers.

Licensing and Authorization Relevance

The Banque Centrale de Mauritanie (BCM) is a key licensing authority in Mauritania's financial system:

The licensing process typically involves assessment of capital adequacy, fitness and propriety of management, business plan viability, AML/CFT compliance frameworks, and IT systems readiness.

Payments and Money Movement Relevance

The BCM formulates and implements monetary policy targeting price stability and support for sustainable economic development. The Mauritanian ouguiya (MRU, formerly UM) is managed under a floating exchange rate regime with the BCM employing multiple policy instruments to influence inflation and financial conditions.

Monetary Policy Framework:

• Price Stability Objective: Primary mandate is maintaining price stability conducive to economic growth
• Policy Rate: BCM's Official Policy Rate as primary instrument for guiding short-term interest rates
• Operational Target: Reserve money/monetary base management through liquidity operations
• Transmission Mechanisms: Interest rate channel, credit channel, exchange rate channel

Monetary Policy Instruments:

• Open Market Operations (OMOs) — Primary tool for liquidity management and policy rate influence
• Standing Facilities — Lending and deposit facilities for overnight liquidity provision
• Reserve Requirements — Minimum reserve ratios on deposits to influence money creation
• Policy Guidance — Forward guidance and supervisory expectations on credit conditions

Monetary Policy Committee:

The BCM's Monetary Policy Committee, chaired by the Governor, meets regularly to assess economic conditions, inflation trends, employment, external accounts, and financial stability. The Committee directs open market operations and provides guidance on monetary policy stance to market participants.

The BCM operates and oversees the national payment system, exercising authority under Ordinance 2007/004 Chapter VI to ensure the proper functioning, security, and efficiency of payment and settlement infrastructure. The BCM's mission encompasses promoting the stability, security, and efficiency of the Mauritanian payment system.

Payment Infrastructure:

• Real-Time Gross Settlement (RTGS) System — High-value, systemically important payments between banks
• Automated Clearing House (ACH) — Check clearing and electronic fund transfers
• Bank Settlement Accounts — Central bank accounts for banks and government entities
• Payment Card Networks — Debit and credit card schemes
• Money Transfer Services — Regulation of domestic and international money transfer operators
• Mobile Money Services — CBG-licensed mobile payment operators

Regulatory Development:

The BCM is actively developing regulatory frameworks for mobile payments as part of its financial inclusion strategy. Recent regulatory initiatives include:

• Guidelines for mobile money operator licensing and operational standards
• Cybersecurity and data protection requirements for payment service providers
• Anti-money laundering compliance standards for payment operators
• Consumer protection and dispute resolution frameworks

Payment Infrastructure:

GIMTEL (Groupement d'Intérêt Économique de Télécommunications et de Moyens de Paiement Électroniques), established in May 2005 under BCM sponsorship, comprises ten banks and Mauripost with the objective of promoting development and use of payment cards in Mauritania.

Mauritania's foreign exchange regime permits management float of the ouguiya (MRU) with the BCM intervening to maintain orderly market conditions and prevent excessive volatility. The BCM maintains official foreign exchange reserves in USD, EUR, SDR, and other major currencies to support balance of payments solvency and international liquidity.

FX Management Functions:

• Official Reserve Custodianship — Holdings managed to support external stability and international liquidity adequacy
• Authorized Dealer Licensing — Oversight of banks and authorized dealers conducting FX transactions
• Interbank Market Surveillance — Monitoring of FX trading; prevention of illicit market operations
• Import/Export Financing — Issuance of FX allocation licenses for trade finance and current account transactions
• Cross-Border Payment Administration — Regulation of international transfers and remittances

Correspondent banking relationships with major central banks and international commercial banks facilitate cross-border settlement. The BCM participates in West African central bank cooperation frameworks and regional payment system initiatives.

Payment Systems Governed or Overseen

The BCM operates and/or oversees the national payment and settlement infrastructure of Mauritania. Specific systems include:

[Further detail on specific system names requires verification from official sources]

Relationship to Other Regulators

The BCM actively participates in regional financial stability frameworks and international regulatory coordination:

Regional Engagement:

• West African Monetary Institute (WAMI) — Cooperation on monetary policy and central banking standards
• ECOWAS Central Banks Cooperation — Regional framework for financial stability coordination
• Francophone Central Banks Network — Cooperation with other French-speaking central banks

International Participation:

• IMF Article IV Consultations and periodic technical assessments
• World Bank and African Development Bank cooperation on financial sector development
• BIS participation in central bank peer networks and standard-setting forums
• FATF Mutual Evaluation Reviews and AML/CFT compliance assessments

The BCM is advancing regulatory modernization through technical assistance from international financial institutions and peer central banks.

Geography and Jurisdiction Notes

Important Departments and Divisions

Key Public Resources

Head Office:

• Banque Centrale de Mauritanie
• Nouakchott, Mauritania

Telephone: +222 4525-5700

Email: [email protected]

Website: www.bcm.mr

Key Departments:

• Banking Supervision Division
• Monetary Policy Department
• Payment Systems Division
• Financial Intelligence and Compliance Unit

Governor: Dr. Abdelwahab Ould Dahi (2020–present)

Notes on Naming and Language