Monrovia – The Central Financial institution of Liberia (CBL) has moved to make clear particulars surrounding a brand new regulatory directive on insurance-backed court docket bonds, pushing again in opposition to public hypothesis that the measure is politically motivated or aimed toward focusing on former Home Speaker J. Fonati Koffa and different people.
By Selma Lomax [email protected]
In a press release issued Monday, the Financial institution emphasised that the directive, formally labeled Directive No. CBL/ID/DIR/001/2025, is the results of a two-year reform course of supposed to strengthen monetary transparency, improve institutional integrity, and shield the credibility of Liberia’s monetary and judicial programs.
In accordance with the CBL, the directive introduces compliance necessities for establishments issuing insurance coverage bonds for court docket proceedings and doesn’t droop or prohibit the issuance of such bonds.
The Financial institution stated its major goal is to make sure that solely financially sound establishments are permitted to supply insurance-backed court docket bonds, aligning Liberia’s practices with worldwide regulatory requirements.
In accordance with the CBL, the method resulting in the issuance of the directive started in October 2022, when the Supreme Courtroom of Liberia raised considerations concerning the monetary reliability of a number of insurance coverage corporations concerned in issuing appellate bonds.
The Courtroom, the Financial institution stated, warned that these corporations lacked the fiscal capability to honor bond obligations, creating dangers for judicial operations and the rule of regulation. Following that request, the Central Financial institution stated it initiated a radical session course of involving a number of stakeholders, together with the judiciary, insurance coverage corporations, and authorized practitioners.
As a part of this course of, the Financial institution convened a serious stakeholder engagement session on December 23, 2024, the place key actors inside the insurance coverage sector acknowledged the necessity for tighter controls. Additional conferences adopted in early 2025, together with a second formal invitation from the Supreme Courtroom on March 4 and the submission of a draft directive on March 7. Further critiques have been held with the Full Bench of the Supreme Courtroom on March 20, and additional dialogue happened with insurance coverage brokers and firms on March 25. The ultimate model of the directive was accomplished on Might 2 and formally circulated to stakeholders on Might 16, 2025.
The directive introduces a pre-approval course of requiring establishments to submit licensed audited monetary statements and clear all excellent bond obligations earlier than receiving permission to problem new bonds.
In accordance with the Central Financial institution, these measures are designed to stop bond fraud, guarantee correct oversight, and keep away from systemic threat to the monetary sector.
In mild of current media reviews alleging that the regulation was crafted to hinder the authorized defenses of sure people dealing with court docket proceedings, the CBL issued a robust denial.
The Financial institution clarified that the directive doesn’t infringe on constitutional rights, together with the precise to bail, and doesn’t retroactively apply to beforehand issued bonds. It careworn that the directive is a forward-looking coverage aimed toward creating a strong and accountable framework for judicial bonding.
“This reform is about defending the rule of regulation and reinforcing public confidence in monetary establishments,” the Financial institution acknowledged in its launch. “There isn’t a provision on this directive that targets any particular person or political determine. The Central Financial institution’s actions are guided strictly by its mandate to advertise monetary stability and guarantee efficient supervision of Liberia’s monetary system.”
The Financial institution additionally reaffirmed its dedication to continued dialogue with key actors within the justice system, monetary establishments, and civil society. It stated these ongoing engagements are vital to making sure that the brand new regulatory necessities are understood and carried out with out disrupting entry to justice or undermining due course of.
In addressing the political undertones which have emerged across the directive, the Financial institution urged media establishments and the general public to depend on verified data and to keep away from mischaracterizing technical coverage selections as political maneuvers.
The CBL reiterated that its core mission stays centered on sustaining the integrity of the monetary system, not collaborating in partisan debates.
“As a central financial institution, our focus will not be politics. It’s monetary stability, institutional integrity, and the safety of public curiosity,” the assertion learn.
