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Fine for Non-Compliance with the Directives of the National Bank of Ethiopia (Directive No.102/2020)

National Bank Of Ethiopia102/2020

Summary

This directive establishes fines for insurance companies that fail to comply with directives from the National Bank of Ethiopia, including daily penalties for outstanding fines and grants the National Bank the authority to take further measures or waive penalties.

Who's affected

Insurance companies operating in Ethiopia.

Action required

Insurance companies must ensure compliance with all directives from the National Bank of Ethiopia to avoid fines.

Key points

3
  • Fines are imposed for non-compliance with National Bank of Ethiopia directives.
  • Specific fine amounts are detailed for violations and delayed payments.
  • The National Bank of Ethiopia has discretionary powers regarding penalties.

Requirements

2
  • Insurance companies must comply with all directives issued by the National Bank of Ethiopia.
  • Fines must be paid within 5 working days of notification.

Rights and permissions

1
  • The National Bank of Ethiopia may waive penalties on justified grounds.

Restrictions

2
  • Insurance companies are subject to fines for non-compliance.
  • Daily penalties apply for delayed fine payments.

Penalties

2
  • A fine of birr 10,000 for each violation of directives.
  • An additional penalty of birr 200 for each day a fine remains outstanding after 5 working days.

Objectives

4
  • To establish penalties for non-compliance with National Bank of Ethiopia directives.
  • To set a fine of birr 10,000 for each violation.
  • To impose an additional daily penalty of birr 200 for outstanding fines.
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    • To grant the National Bank of Ethiopia the discretion to impose other necessary measures or waive penalties.

Organizations

1
  • National Bank of Ethiopia

Legal references

3
  • Monetary and Banking Proclamation No. 83/1994, Article 41
  • Licensing and Supervision of Insurance Business Proclamation No. 86/1994, Article 26(4) (d)
  • Directive No. SIB/14/96
Original sourcehttps://justice.gov.et/en/directives/fine-for-non-compliance-with-the-directives-of-the-national-bank-of-ethiopiadirective-no-102-2020/
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