KYC in Burkina Faso: Compliance Overview

For banks, fintech companies, payment service providers, and other regulated entities dealing with customers linked to Burkina Faso, understanding local Know Your Customer (KYC) obligations is a critical part of maintaining an effective AML/CFT framework. While national legislation plays a role, KYC requirements in Burkina Faso are primarily shaped by a harmonised regional framework applicable across the West African Economic and Monetary Union.

This article outlines how KYC works in Burkina Faso, where regulators tend to focus during inspections, and what compliance teams should prioritise in practice, drawing on regional supervisory expectations and practical implementation challenges addressed by solutions such as VOVE ID.

Regulatory framework and competent authorities

Burkina Faso is a member of the West African Economic and Monetary Union (WAEMU). As a result, AML/CFT rules are largely harmonised at the regional level and directly applicable to domestic institutions.

Key authorities include:

• BCEAO, acting as the regional central bank and supervisor
• The WAEMU Banking Commission, responsible for prudential and AML/CFT supervision
• CENTIF Burkina, the national Financial Intelligence Unit receiving and analysing suspicious transaction reports

The regulatory framework is aligned with FATF standards and implemented through WAEMU regulations, complemented by national legislation and supervisory guidance.

Scope of KYC obligations

KYC requirements apply to a wide range of obligated entities, including:

• Banks and microfinance institutions
• Payment institutions and electronic money issuers
• Insurance companies and intermediaries
• Foreign exchange bureaus
• Designated non-financial businesses and professions (DNFBPs), such as notaries, real estate agents, casinos, and dealers in precious metals or stones

Foreign fintechs providing cross-border services may also fall within scope, particularly when partnering with locally regulated entities.

Customer due diligence requirements

Individuals

Before establishing a business relationship, institutions must identify and verify customers by collecting:

• Full legal name
• Date and place of birth
• Nationality
• Residential address
• A valid government-issued identity document

In practice, accepted documents include national identity cards and passports issued by WAEMU member states, as well as other ECOWAS passports subject to additional verification. Copies of identification documents must be retained in line with record-keeping requirements.

Legal entities

For corporate customers, KYC files typically include:

• Legal name, registration number, and legal form
• Date of incorporation and registered address
• Constitutive documents (such as articles of association)
• Identification of directors and authorised signatories
• Extract from the commercial register (RCCM) and, where applicable, a tax identification number

Institutions are expected to clearly understand the ownership and control structure of each legal entity.

Beneficial ownership and control

Burkina Faso follows a FATF-aligned approach to beneficial ownership. Regulated entities must:

• Identify the natural persons who ultimately own or control a legal entity
• Apply ownership thresholds commonly set at 25 percent, unless risk factors require deeper analysis
• Assess control through means other than ownership where relevant

Insufficient beneficial ownership analysis remains a recurring issue identified during supervisory reviews across the WAEMU region.

Risk-based approach and enhanced due diligence

A risk-based approach is mandatory. Customer risk assessments should take into account:

• Customer type and business activity
• Delivery channels, including non-face-to-face onboarding
• Geographic exposure
• Expected transaction behaviour

Enhanced due diligence (EDD) is required for higher-risk customers, including politically exposed persons (PEPs), customers operating in high-risk sectors, and certain cross-border relationships. EDD measures may include senior management approval, additional documentation, and increased monitoring.

Simplified and tiered KYC measures

In line with the risk-based approach promoted by the BCEAO, simplified customer due diligence measures may be applied to low-risk customers and low-value products, particularly in the context of mobile money and financial inclusion initiatives.

Tiered KYC models allow institutions to adjust identification and verification requirements based on transaction limits, account functionality, and assessed ML/TF risk, while ensuring that enhanced controls apply once predefined thresholds are exceeded.

Ongoing monitoring and reporting

KYC obligations extend beyond onboarding. Regulated entities must:

• Keep customer information accurate and up to date
• Monitor activity for consistency with the customer’s risk profile
• Submit Suspicious Transaction Reports (STRs) to CENTIF Burkina without delay
• Ensure strict prohibition of tipping-off

Customer due diligence and transaction records must generally be retained for at least ten years after the end of the business relationship.

Supervisory focus and enforcement trends

Supervisory authorities increasingly focus on the effectiveness of AML/CFT controls rather than their formal existence. Common inspection findings include:

• Incomplete or outdated customer files
• Weak beneficial ownership documentation
• Inconsistent application of risk scoring methodologies
• Over-reliance on manual KYC processes

This focus is partly driven by Burkina Faso’s transition out of enhanced international monitoring. Following such periods, regulators typically intensify on-site inspections and place greater emphasis on the quality and practical implementation of customer due diligence measures.

Role of technology in strengthening KYC

For many institutions, manual KYC processes are difficult to scale and maintain consistently across multiple jurisdictions. Digital identity verification and structured KYC workflows help improve efficiency, reduce errors, and strengthen audit readiness.

Solutions such as VOVE ID support compliance teams by standardising identity checks, improving documentation quality, and enabling scalable onboarding across WAEMU jurisdictions while remaining aligned with regional AML/CFT requirements.

Final considerations

KYC in Burkina Faso operates within a regional regulatory framework that prioritises a risk-based and proportionate approach. Supervisors increasingly expect institutions to demonstrate not only compliance on paper, but a clear understanding of customer risk, ownership structures, and ongoing activity.

By investing in robust KYC processes and appropriate technology, including platforms such as VOVE ID, institutions are better positioned to meet supervisory expectations and support sustainable growth in Burkina Faso and across West Africa.