Rwanda
Regulation Administrative and Pecuniary Sanctions Applicable to Central Security Depository (CSD) Participants
Regulation 5 of 2017
- Published in Official Gazette 16 bis on 17 April 2017
- Assented to on 2 March 2017
- Commenced on 17 April 2017
- [This is the version of this document from 17 April 2017.]
Chapter One
General provisions
Article one – Purpose
The objective of this regulation is to provide for administrative and pecuniary sanctions for CSD participants that violates the provisions of the governing holding and circulation of securities and their implementing regulations, and any directive given under them.Article 2 – Scope
For the purpose of this Regulation, administrative and pecuniary sanctions shall be applicable to participants in CSD.Article 3 – Power to impose administrative and pecuniary sanctions
The Central Bank shall have powers to impose administrative sanctions for—(a)failure to comply with the law and regulations governing the holding and circulation of securities;(b)non-compliance with any condition or directive of the central bank;(c)non-compliance with the operations procedures of the Central Bank in relation to holding and circulation of securities;(d)any other matter in relation to holding and circulation of securities.The sanctions prescribed shall be imposed in circumstances where the Central Bank has sufficient evidence of breach or violation or the law or regulation governing the holding and circulation of securities.Chapter II
Pecuniary sanctions
Article 4 – Determination of pecuniary sanctions
The Central Bank may impose pecuniary sanctions either in lieu or cumulatively with the administrative sanctions prescribed in this Regulation.The Central Bank shall impose pecuniary sanctions for various offences as prescribed in Annex I of this regulation.Article 5 – Recovery of the sums related to the penalties imposed
The sums related to the penalties imposed shall be recovered in the favor of the Central Bank upon a notification of Central Bank account on which the infringer shall deposit those sums through automatic debiting of the concerned CSD participant’s bank account or, failing that, through a garnishment upon simple summons notified by a bailiff in accordance with the banking law.The infringer shall pay the sums mentioned in paragraph one of this article within ten days of imposition of that sanction.Article 6 – Liability for claims
In addition to the penalties prescribed in appendix I of this regulation, a person shall be liable for any claims arising from civil suits instituted in relation to such violation.Chapter III
Administrative sanctions
Article 7 – Determination of administrative sanctions
The Central Bank may impose the following sanctions depending upon the seriousness of the violation:a)written warning;b)suspension or revocation of the license to participate in the CSD;c)suspension or removal of the managers of CSD partisans;d)suspension or termination of the access to CSD computer system.Article 8 – Warning
Notwithstanding any other powers conferred on the Central Bank in relation to CSD activities, it may, subject to the gravity of the offence, issue a written warning to any CSD participant, issuer, account holder or any other person for breach of any of the provisions of the law or regulation governing the holding and circulation of securities.Article 9 – Administrative sanctions applicable to directors and managers
The Central Bank, may, in consultation with the Authority, suspend or order for removal of directors or senior managers of the CSD participant if it determines that the infringement of the Law or the regulation has been committed with the consent or connivance of these persons.Article 10 – Suspension or termination of access to CSD computer system
The Central Bank may—(a)suspend access to a CSD computer system where—(i)where a CSD participant’s license is suspended;(ii)a CSD participant or any other person granted access is found to be in breach of any of the conditions or requirements for granting access;(iii)pending an investigation of activities or transactions related to the CSD.(b)terminate access to the CSD computer system—(c)where a CSD participant’s license is revoked;(d)where a CSD participant or any other person granted access fails to comply with the requirements, terms and conditions for granting access.The Central Bank shall inform the stock exchange and the Authority on any suspension or termination of access to the CSD.Article 11 – Suspension or revocation of CSD participation license
The Central Bank, may, in consultation with the Authority, suspend or revoke the CSD Participant license:(a)for violation, whether directly or indirectly, of any provisions of the law and regulations governing the holding and circulation of securities;(b)for failure of participant to meet licensing criteria;(c)for breach by the participant of any licensing or other conditions prescribed by the Central Bank;(d)following suspension or revocation of license by the Authority;(e)following suspension or termination of membership of the stock exchange;(f)for failure to pay any money due and owing to the Central Bank or the stock exchange on any account;(g)for failure by the participant to comply with any directions of the Central Bank;(h)for failure to take measures to prevent and address settlement fails;(i)following an act or omission by the participant which in the view of the Central Bank is likely to threaten the stability, soundness or safety of the CSD system;(j)where commencement of insolvency proceedings against the participant;(k)where the CSD participant otherwise acts in a manner prejudicial to the interests of the CSD account holders or the Central Depository.Article 12 – Record of penalties and sanctions
The Central Bank shall keep a record of penalties and sanctions imposed under this regulation.Chapter IV
Final provisions
Article 13 – Repealing provision
All prior regulatory provisions inconsistent with this Regulation are hereby repealed.Article 14 – Commencement
This regulation shall come into force on the date of its publication in the Official Gazette of the Republic of Rwanda.History of this document
17 April 2017 this version
Commenced
02 March 2017
Assented to