The Banking Commission of the West African Monetary Union (UMOA) has sanctioned three banks operating in Côte d’Ivoire, Niger and Togo for breaches of prudential regulations, citing weaknesses in governance, risk management and anti-money laundering controls.
In a statement published on Friday, February 6, 2026, the regional banking regulator said the decisions were adopted during its session held on December 16–17, 2025. Each of the banks received a formal disciplinary reprimand in addition to financial penalties.
The bank operating in Côte d’Ivoire was fined CFA151 million ($174,300), while the banks in Niger and Togo were each fined CFA300 million, the Commission said.
The sanctions were imposed in accordance with Instruction No. 006-05-2018 of May 16, 2018, which defines the procedures for applying financial penalties to credit institutions within the eight-member UMOA zone.
Governance and compliance shortcomings
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According to the Banking Commission, the supervisory reviews revealed varying degrees of non-compliance across the three institutions. In Côte d’Ivoire, inspectors identified deficiencies in the bank’s anti-money laundering and counter-terrorism financing (AML/CFT) framework, including weaknesses in monitoring systems and internal controls.
In Niger and Togo, the shortcomings were broader and more structural, the Commission said. These included weaknesses in internal governance arrangements, risk management frameworks, as well as failures to adequately implement AML/CFT requirements in line with regional regulations.
The regulator did not disclose the names of the banks involved, a practice consistent with previous disciplinary communications, but said the measures reflected serious breaches of obligations applicable to licensed credit institutions.
The Banking Commission noted that effective governance and risk management systems are essential to ensuring the soundness and stability of the banking sector, particularly in an environment of heightened macroeconomic and security risks across parts of West Africa.
Implications for the banking sector
Analysts say the sanctions highlight persistent challenges faced by some banks in meeting regulatory and compliance standards within the region. Weak governance and insufficient risk management can undermine operational resilience, while gaps in AML/CFT frameworks expose institutions to reputational damage and regulatory scrutiny from international partners.
“Inadequate compliance systems often translate into higher funding costs, as correspondent banks and foreign investors factor in elevated risk,” said a regional banking analyst. “In extreme cases, it can also restrict access to international financial markets.”
International financial institutions and development partners have repeatedly stressed the importance of robust AML/CFT regimes in West Africa, particularly as global regulators tighten oversight of cross-border financial flows.
Regulatory enforcement steps up
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The latest measures underscore the Banking Commission’s increasingly assertive supervisory stance, as it seeks to strengthen financial stability and align the regional banking system with international best practices, including standards set by the Financial Action Task Force (FATF).
Over the past few years, the regulator has intensified on-site inspections and off-site monitoring of banks, focusing on capital adequacy, liquidity management, governance structures and compliance systems.
The Commission said the sanctions were intended not only to penalise past breaches but also to compel the affected institutions to urgently address identified shortcomings and strengthen internal controls.
The regulator added that it would continue to monitor the banks’ remediation efforts and could impose additional measures if corrective actions are not implemented within prescribed timelines.
Regional oversight
The UMOA Banking Commission supervises banks and financial institutions across the West African Monetary Union, which comprises Benin, Burkina Faso, Côte d’Ivoire, Guinea-Bissau, Mali, Niger, Senegal and Togo. The union shares a common currency, the CFA franc, and a central bank, the BCEAO.
The Commission plays a central role in safeguarding the stability of the regional financial system, particularly as governments seek to deepen financial inclusion and attract foreign investment.
The latest disciplinary actions serve as a reminder to banks operating in the region of the growing regulatory expectations and the costs of failing to comply with prudential and compliance rules.
