Members Code of Conduct

Transcription

1 RWANDA BANKERS ASSOCIATION Together for a better banking environment February

2 Table of contents Preamble Chapter 1: General provisions Objective Revisions Dissemination Entry into force 4 Chapter 2: General principles Business Ethics True and accurate communications Impartiality Transparency Loyalty Social Responsibility and Respect for the Environment Reliability Money-laundering, corruption and terrorism 6 Chapter 3: Relations between member banks Exchange of Information Personnel related actions Competition Anti-competitive practices Advertisements, Sponsorship and Announcements 7 Chapter 4: Banks Relations with Public Organizations and Institutions 9 Chapter 5: Customer relations Informing customers Confidentiality of customer information Service quality Customer complaints 10 Chapter 6: Employee relations General employee qualities Employment and career development Representation and working environment Relations of employees with customers Employees rights Compliance with professional rules and ethical principles Breach of bond agreement 12 Preamble This voluntary members code of conduct has been compiled to complement individual member bank s code of conduct and other regulations within the Rwanda banking industry. The code thus will not be treated in isolation. Where provisions of this code of conduct contradict the provision in the individual member s code of conduct, the provisions in the individual member s code of conduct take precedence The members code of conduct has been compiled with the overall objectives of: (i) further developing Rwanda s banking system; (ii) enhancing the quality of banking services in Rwanda; (iii) preventing unfair competition between Banks in Rwanda; and (iv) applying Bank resources in the most appropriate manner WE, the members of Rwanda Bankers Association ( RBA ), hereby establish and formulate, as our commitment, this (the Code ), comprising fair and ethical business practices and behavior amongst ourselves, to be applied in line with sound ethical principles. For the purposes of this Code: Banks means those banks which are the members of RBA. Member means those banks which are the members of RBA Member banks includes all members of RBA and their representatives Employees includes staff, managers, employees, officers and members of the Board of Directors of the Banks. Customers means all clients of Banks (whether individuals, legal entities or other legal persons). Chapter 7: Sanctions 13 Appendix 14 Appendix 1: List of reference laws and regulations 14 Appendix 2: Approval and Acceptance of the Code of Conduct

3 Chapter 1: General provisions 1.1 Objective This code is a voluntary members code of conduct which sets standards of good banking practice for us when dealing with each other to promote a professional banking industry in Rwanda. By adopting this Code, the Banks express their commitment to conducting their business and operations in a fair, honest and ethical manner so as to assure that the long-term interests of their stakeholders are served. As part of this commitment, this Code sets out certain policies and principles for such fair, honest and ethical business practices and behavior by which the Banks endeavor to abide, with the aims of improving the reputation of Banks in Rwanda and abroad, better protecting the stability of the Banks and improving trust and confidence in the banking sector in Rwanda. 1.2 Revisions Any member may petition the General Assembly through the RBA Executive Council to amend this Code of Conduct. In a written application, the petitioner will endeavor to specify which clause of this Code of Conduct needs amendment, repealed or new insertion, providing suggestions for amendment. The Executive Secretary will endeavor to circulate this information to all members at least three months prior to the next ordinary or extra-ordinary General Assembly. 1.3 Dissemination Copies of this code endeavor to be available from the Rwanda Bankers Association and banks individually. It will also be published on the RBA website ( and on all Banks websites. Each member bank will ensure that the provisions of this code guide them when dealing with other member banks. 1.4 Entry into force This members Code of Conduct takes effect as of the date it is approved by the RBA Executive Council. February 2016 Chapter 2: General principles Banks are required to adhere to these general principles, as set out in this Code, for the purpose of ensuring sound and efficient operation of the banking system in Rwanda and the objectives set out above. Banks will seek to: a) avoid conduct which could cause loss and/or damage to other members, the public and to the economy in general, b) serve the best interests of the public through protecting the rights and interests of customers (including depositors), c) maintain and enhance trust, confidence and stability in the financial markets, and d) support the economic development of Rwanda. In addition to compliance with all applicable laws and regulations, Banks will endeavor to comply with the moral and ethical standards of society, including but not limited to Rwanda society. 2.1 Business Ethics In all areas of their business and operations, it is the policy of Banks to comply not only with applicable laws and regulations but also with the spirit of such laws and regulations, wherever any such Bank may do business. Banks are expected to conduct themselves in a manner consistent with the highest ethical standards. 2.2 True and accurate communications Banks endeavor to be truthful and honest in all communications with one another and with all stakeholders. Banks endeavor to maintain business and financial records that accurately and fairly reflect their business, operations and financial transactions. ETHICS 2.3 Impartiality Banks will endeavor not to discriminate among, and avoid all forms of bias in their attitudes, approach and services. 4 5

4 2.4 Transparency Banks endeavor to inform, and keep informed, their customers in an open, readily-understandable and clear manner with regard to their rights and responsibilities, and the benefits and risks attached to, or otherwise associated with, the products and services offered to them. 2.5 Loyalty Dealings between Banks and third parties will be conducted in a manner so as to avoid impropriety or violation of any applicable law, regulation or of this Code. Banks will endeavor not to offer, ask for, provide or accept anything of value either for themselves or for others in return for favorable treatment from any other third party.ode OF BANKING ETHICS 2.6 Social Responsibility and Respect for the Environment Banks will endeavor to seek to support social, environmental and cultural activities with a view to demonstrating social responsibility and respect for the environment. 2.7 Reliability Banks will endeavor to, during all interactions with customers, offer clear, comprehensible, accurate and timely information. 2.8 Money-laundering, corruption and terrorism Banks endeavor to be committed to the fight against corruption, the laundering of crime-originated assets and the financing of terrorist acts in each case as stipulated by international norms and the provisions of national laws and regulations. In this regard, Banks endeavor to do their utmost to cooperate with each other, with other organizations and institutions, including any competent authorities, whether domestic or international. Chapter 3: Relations between member banks Banks endeavor to comply with the following principles in their relations with each other: 3.1 Exchange of Information Subject to applicable national and international laws and regulations, Banks endeavor to exchange information, including industry relevant non competitive information and information used in lobbying for changes in legislation, amongst themselves in a comprehensive and accurate manner and in the spirit of good faith. 3.2 Personnel related actions Although Rwanda Labor Law, and other related laws and regulations, allow for freedom in concluding employment contracts, as a good practice, Banks will endeavor to behave objectively and honestly in answering information requests from other Banks regarding former employees. In addition, the hiring bank s Human Resources Department will be required to carry out a due diligence before concluding its recruitment process. 3.3 Competition Banks will endeavor to consider competition in compliance with applicable laws and regulations as a mechanism which assists customers to make independent economic decisions. During the conduct of banking activities, Banks endeavor to avoid malicious statements and behaviors. 3.4 Anti-competitive practices Banks will endeavor to behave objectively and honestly in order to avoid anticompetitive practices within the free market economy. Such practices endeavor to be decided and agreed upon by the IT & Operations Sub Committee of RBA. 3.5 Advertisements, Sponsorship and Announcements Banks will endeavor to act prudently and in good faith, and in compliance with applicable laws and regulations, with regard to public announcements, sponsorship activities, advertisements, notices and similar publicity-focused 6 7

5 exercises regarding their banking products and services as well as their own financial and governance structures; Banks endeavor to seek to avoid all acts and behavior that may damage or harm the reputation of banking as a profession or the banking industry in Rwanda. Banks endeavor to ensure that their public announcements, sponsorship activities, advertisements, notices and similar publicity-focused exercises do not contain any statements or expressions degrading other banks or the products and services of other banks. Chapter 4: Banks Relations with Public Organizations and Institutions Banks, while conducting any relations with any public organizations or institutions, endeavor to strive to act in accordance with the principles of honesty, accountability and transparency, and endeavor to show the utmost care for correct, complete and timely communication of information, documentation and records that may be requested by any such public organization or institution for the legitimate purposes of supervision and control in accordance with applicable laws and regulations. Banks endeavor to observe laws and regulations, as well as principles of transparency, while providing support (whether financial or otherwise) to political movements, parties or similar organizations. 8 9

6 Chapter 5: Customer relations Banks endeavor to observe the following principles in their relations with their customers 5.1 Informing customers Banks will endeavor to provide accurate, complete and timely information to their customers regarding products and services at all phases of their relationship and comply in this regard with applicable laws and regulations. 5.2 Confidentiality of customer information Banks will endeavor to keep confidential, and maintain with all due diligence, all customer information and documentation, and not reveal any such information or documentation to persons other than those persons and those authorised by law including Police, Ombudsman, Rwanda Revenue Authority, Public Accounts Committee, Courts of law as well as National Bank of Rwanda (the regulator) and those authorised by the regulator including the Credit Reference Bureau (CRB). 5.3 Service quality Banks will endeavor to comply with law No 36/2012 of 21/09/2012 relating to competition and consumer protection while dealing with customers and other banks. 5.4 Customer complaints Each bank will inform its Customers of the availability of procedures for handling complaints. If a Customer wishes to make a complaint, the bank will provide information on how this may be done and the means of recourse if the Customer is not pleased with the outcome. Each bank will resolve and/or respond to a customer complaint within the shortest reasonable period. Chapter 6: Employee relations 6.1 General employee qualities Banks will endeavor to exercise all diligence to ensure that their employees possess the knowledge, skills background and appropriate sense of responsibility and discretion required by their assigned roles within the Bank. 6.2 Employment and career development Banks will endeavor to offer equal opportunities to employees without discrimination during recruitment and career development following recruitment. Banks endeavor to offer ongoing training, courses, seminars and similar opportunities to their employees in order to ensure that they continue to increase the level of service they may offer to customers and to ensure the integrity of the banking profession in Rwanda. Banks endeavor to take into consideration commitment to banking ethics and diligence shown in implementation of the principles enshrined in this Code, as well as the knowledge, skill and individual achievements of employees when considering recruitment and promotion decisions. 6.3 Representation and working environment Banks will endeavor to introduce internal regulations requiring their employees to present themselves in a neat and professional manner in the workplace and when representing their Bank employer so as to maintain trust and confidence in the banking profession in Rwanda and to maintain the professional reputation of the banking profession and the Bank. Banks will endeavor to implement such measures as they see fit to improve the motivation of all employees and ensure a healthy and comfortable working environment. 6.4 Relations of employees with customers Banks will endeavor to introduce internal regulations providing sanctions and measures for preventing their employees from deriving personal benefits from their status as employees of the Bank (such as through business opportunities), inconsistent with best ethical principles

7 6.5 Employees rights Banks will endeavor to ensure due respect for employee rights in accordance with applicable law and regulation. 6.6 Compliance with professional rules and ethical principles Banks will ensure that their employees, during the performance of their duties, familiarize themselves and comply with the individual bank s code of ethics and all applicable laws and regulations 6.7 Breach of bond agreement In accordance with the principles articulated under Article 3.2, in the event that an employee commits to a Bond Agreement that requires him/her to be in service for a defined period, the employer bank will have a duty to disclose this fact to the hiring member Bank. All member banks will cooperate to ensure that new staff members who had been on a bond agreement with a previous member bank, have fulfilled their contractual obligation. Chapter 7: Sanctions Complaints on breach of members code of conduct by member banks will be made in writing and addressed to the Executive Council. Each member bank hereby agrees that the following sanctions endeavor to apply to them in case of a breach of any of the clauses in this code of conduct: a) A first warning in form of notice to the member from RBA Executive Council; b) In case of recurrence, a Second written warning from RBA Executive Council stating appropriate sanction to be applied in case of further recidivism; c) In case of defiance and depending on the level and type of misconduct, the RBA Executive Council endeavor to consider taking the following actions: (i) Suspend membership of the offending bank; (ii) Suspend any benefits and demand return of any benefits which had been previously accorded to the offending bank; and (iii) Inform the National Bank of Rwanda in writing giving reasons for suspension 12 13

8 Appendix Appendix 1: List of reference laws and regulations a) Banking Law 2008 and other relevant regulations implementing the law Appendix 2: Approval and Acceptance of the Code of Conduct Jean Claude Karayenzi Arah Sadava Access Bank Rwanda Ltd AB Bank Ltd b) Anti Money Laundering and Combating Financial Terrorism 2008 c) BNR Guidelines to Banks on Anti-Money Laundering and Combating Financing Terrorism, June 2014 d) Law No of Governing Credit Information System in Rwanda e) Law Nº 18/2010 of 12/05/2010 Relating to Electronic Messages, Electronic Signatures and Electronic Transactions f) Directive no 001/FIU/2015 of 30/12/2015 of the financial investigation unit relating to identification of customers, suspicious transactions reporting and record keeping requirements for reporting entities g) Regulation no 006/2015 of 16/9/2015 relating to bouncing cheques h) Directive No on Customer Service Delivery in Financial Institutions i) Appendix on Directive No on Customer Service Delivery in Financial Institutions j) Regulation No on Pecuniary Sanctions Applicable To Banks k) Regulation No on Business Continuity Management l) Regulation No on Opening and Closing A Place of Business m) Regulation No on the Publication of Tariff of Interest Rates and Fees Applied By Banks n) Regulation on Insider Lending of Banks o) Regulation No on Licensing Conditions of Banks p) Regulation No on Corporate Governance of Banks q) Law No 36/2012 of 21/09/2012 relating to competition and consumer protection Beata Habyarimana Bank Of Africa Ltd Sanjeev Anand Banque Populaire du Rwanda Ltd Rachid Muremangingo, a.i. Cogebanque Ltd Mareme Mbaye Ndiaye Ecobank Rwanda Ltd Bayo Veracruz GT Bank Maurice Toroitich KCB Rwanda Ltd Tineyi Mawocha Emmanuel Urwego Opportunity Bank Ltd Dr. Diane Karusisi Bank of Kigali Ltd Alex Kanyankore Development Bank of Rwanda edigold Monday Crane Bank Rwanda Ltd hannington Namara equity Bank Ltd Robin C. Bairstow i & M Bank faustin Byakunda unguka Bank Ltd Brig Gen Albert Murasira zigama CSS 14 15

9 Guaranty Trust Bank (Rwanda) Ltd Supported by 16