IFC Board Decision on CAO Cases Relating to Financial Consumer Protection in Microfinance

The IFC Board of Executive Directors has directed CAO to suspend processing of the ongoing CAO cases relating to Financial Consumer Protection in microfinance. Pending discussion on the policy issues, CAO will not take on any cases relating to Financial Consumer Protection in microfinance. 

The Board’s decision follow its June 24, 2026 statement on IFC’s Management Report in relation to the CAO Compliance Investigation Report on ACLEDA, AMRET, HTB, PRASAC, LOLC and SATHAPANA - Cambodia - East Asia and the Pacific (Project Nos. 21856, 27827, 31467, 34748, 38609, 39167, 41294, 42480, 44211, 44231, 44742, 44882, 45535). Full details of the Board’s decisions are as follows:

1. IFC will address the harm through a “Special Management Action Plan”, on an exceptional basis notwithstanding that there has been no policy non-compliance under the Sustainability Framework. IFC will update the Management Report to make reference to the “Special Management Action Plan”.

2. CAO will monitor the implementation of the “Special Management Action Plan” in respect of the 18 complainants.

3. CAO will follow up with the 11 complainants in Cambodia to inquire whether they would like to receive the same support from IFC as defined in the “Special Management Action Plan” thus addressing their needs immediately without pursuing an investigation and inform the Board and IFC if these 11 complainants agree.

4. CAO will suspend processing of the ongoing CAO cases relating to Financial Consumer Protection in microfinance.

5. Pending the discussion on the policy issues, CAO will not take any cases relating to Financial Consumer Protection in microfinance.

6. CAO Investigation Report, IFC Management Report, which includes details of the “Special Management Action Plan” in Section IX, will be published jointly.

7. Whether any part of Financial Consumer Protection should be covered or not under the Sustainability Framework will be considered at the time of the Sustainability Framework update.