FINANCIAL AND CAPITAL TRANSACTIONS – FOREIGN EXCHANGE IN CAMEROON AND CEMAC
Financial and capital transactions between CEMAC and the outside world are free, subject to compliance with the provisions of the Regulations and subsequent texts.
When carrying out financial and capital transactions, credit institutions are responsible for verifying the origin of funds, their nature and destination and for collecting information for the Ministry of Currency and Credit and for the Central Bank (BEAC).
The transfer of foreign securities and all other capital transactions between CEMAC residents are not subject to authorisation.
- FOREIGN SECURITIES
The funds collected in CEMAC on the occasion of an issue of securities in foreign currency or CFA Franc by a non-resident are intended to finance investments in the sub-region as a matter of priority.
For amounts of less than CFAF 50 million, the issue, advertisement, sale or transfer of foreign securities shall be declared to the Central Bank and the Central African Financial Market Regulator prior to the operation.
beyond CFAF 50 million, the issuance, advertising and sale or transfer of foreign securities in CEMAC, under foreign exchange regulations, are subject to prior authorization by BEAC, which informs the Ministry in charge of currency and credit, without prejudice to the assent of the Central African Financial Market Regulator.
The transfer abroad of the proceeds of an issue of foreign securities issued in CEMAC is subject to the authorisation of the Central Bank, which informs the Ministry in charge of currency and credit.
- BORROWINGS-LOANS-REPAYMENTS
- Loan and Repayments
CEMAC residents are free to borrow from non-resident entities. Issues of securities outside CEMAC by resident entities are considered as loans.
All loans contracted with non-residents, either by an individual or a legal entity whose habitual residence or registered office is in CEMAC, or by branches or subsidiaries in CEMAC of corporate bodies whose registered office is abroad, must, 30 days before their implementation, be declared by the borrower or his representative to the Ministry in charge of currency and credit and the Central Bank.
The loan declaration is accompanied by a file containing in particular:
- The contract relating to the loan;
- The repayment schedule of the loan;
- The company accounts of the applicant party;
- The act authorizing the person in charge to bind the entity in connection with the loan, if applicable.
Thirty days after the completion of the operation, the borrower or his representative shall send to the Ministry in charge of currency and credit and to the Central Bank the documents certifying the effectiveness of the borrowing operation, in particular the documents proving the repatriation of the loan or the acquisitions made.
Credit institutions are free to execute, on behalf of customers, international transfers in respect of the repayment due dates of their borrowings, subject to the provision of the following supporting documents:
- Proof of prior declaration of the loan to the Ministry in charge of currency and credit and to the BEAC;
- The repayment schedule or amortization schedule for the loan;
- The document establishing the repatriation of the loan or the effectiveness of the acquisitions made;
- The loan or borrowing contract.
Loans contracted abroad by the states as well as loans guaranteed by them are reported to the Central Bank by the Ministry in charge of currency and credit.
The statement must include, at a minimum, information on the amount of the loan, the currency and the repayment schedule.
The Central Bank's performance of international transfers as part of the settlement of the repayment due dates of loans contracted abroad by States is subject to the provision by the States of documents proving the repayment of the loan or the acquisitions made.
Credit institutions are free to borrow from non-residents, subject to reporting to the Ministry of currency and Credit and BEAC, no later than 30 days after their completion.
Repayments of loans referred to in Article 105 of these Regulations shall be declared by the credit institutions to the Ministry responsible for currency and credit and to the Central Bank within 30 days of their completion.
- Loans and Refunds
Loans granted to non-residents by resident legal entities are subject to prior authorisation by BEAC.
The application for authorisation shall be accompanied by u file containing in particular:
- The loan agreement;
- The certified financial statements of the lending company over the last three financial years;
- The loan repayment schedule;
- The act authorizing the person in charge to bind the entity, if necessary;
- The certified financial statements of the borrowing company over the last three financial years;
- The commitment to repatriate the income from the loan and principal at the end of the operation;
- The status of external transactions over the last three financial years.
Credit institutions are free to execute international transfers in respect of loans granted to non-residents, subject to the provision of the following supporting documents:
- The authorization of the Central Bank;
- The loan agreement;
- The loan repayment schedule;
- The commitment to repatriate the income from the loan and principal at the end of the operation;
Loans granted to non-residents by credit institutions and related repayments are reported to the Ministry of currency and Credit and the Central Bank within 30 days of their completion.
CEMAC residents shall declare to the Ministry in charge of currency and credit and the Central Bank, no later than 30 days later, the repayments received in respect of loans previously granted to non-residents.
Repayments received on loans must be repatriated and retroceded to the Central Bank.
Non-receipt of loan maturities is reported to the Ministry of currency and Credit and the Central Bank.