The Bank of the Republic of Burundi, together with the Ministry of the Interior, Community Development and Public Security, convened provincial governors, municipal administrators and regional police commissioners to strengthen on-the-ground supervision of community financial groups and ensure their activities comply with the law. The central bank reported a rise in illicit practices by some of these groups, including opening service counters, taking deposits from the public while offering attractive returns, and extending credit above the BIF 5 million ceiling set for certain activities under Circular No. 14/M/2023. It reiterated the permitted and prohibited activities across microfinance categories and noted it can withdraw a licence or registration where an institution exceeds its authorised scope, highlighting cases in the fourth category where groups have been removed from the list of entities recognised by the central bank. The meeting also addressed proliferating Ponzi-style schemes and cryptocurrencies, which the central bank said are not recognised, and referenced a public warning it has issued urging vigilance. Participants requested practical tools to support monitoring, including brochures setting out applicable limits and a single standard form for administrators to use in identifying groups operating in their areas, while police leadership proposed requiring a guarantee to be paid to the central bank as a condition of registration. The Bank of the Republic of Burundi said it had taken note of the recommendations and would examine them and take the necessary steps.

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