Changes likely to significantly affect the situation of the currency exchange offices in Cameroon are authorised in advance by the Central Bank in order to ensure that they are not of such a nature as to jeopardise their sustainability.
The following are considered significant changes in particular:
- The change, extension or restriction of authorized activities;
- The change of company name;
- The merger or demerger;
- The transfer of the business;
- The partial disposal of fixed assets representing at least 30% of the exchange office’s balance sheet total;
- The modification of the amount of the share capital etc.
The currency exchange office in Cameroon which intends to make an amendment within the meaning of Article 41 of the law shall send the Central Bank a request for authorisation accompanied by a file containing the following documents:
- Copy of the approval of the applicant’s exchange office;
- Copy of the minutes of the legislative body of the exchange office that decided on the amendment;
- Place or location plan;
- Any other information relating to the proposed amendment.
From the date of receipt of the complete file, the Central Bank has a period of one (01) month to decide and notify its decision to the applicant, with a copy to the Ministry in charge of currency and credit of Cameroon, as well as to COBAC. The absence of a decision at the end of this period shall constitute prior authorization by the Central Bank.
If the applicant for prior authorization is incomplete, the Central Bank shall inform the applicant in writing and invite him to provide the missing information or documents as soon as possible.
The Central Bank may reject any request for prior authorisation relating to an amendment likely to induce a change of control, when it considers that the control of the exchange office is likely to be hindered by the existence of immunity from jurisdiction for the benefit of the future shareholder(s).
Any modification of the situation of an exchange office, carried out in violation of the provisions of the law exposes the offender and his managers to the sanctions provided for by the exchange regulations.
In the event of cessation of activities at the initiative of the exchange office, the latter shall immediately inform the Ministry in charge of currency and credit, the Central Bank and COBAC.
The cessation of activities automatically leads to the withdrawal of the approval of the exchange office and the manager as well as its liquidation in accordance with the rules of common law.