The regularization of foreign currency accounts involves bringing non-compliant or unauthorized foreign currency holdings into alignment with central bank regulations. In the CEMAC region (including Cameroon), residents and extractive companies must adhere to strict guidelines.
CEMAC Regulatory Framework for Foreign Currency Accounts
Resident Accounts: The opening of a foreign currency account for a resident in CEMAC is generally not permitted in accordance with article 43 of Regulation No. 02/18/CEMAC/UMAC/CM. However a corporation may be authorized by the Bank of Central African States (BEAC).
Extractive Companies: Under BEAC directives instruction 003/GR/2022, extractive sector companies maintaining unauthorized accounts are legally required to undergo a formal regularization procedure.
Validity: Once authorized, accounts remain valid for specified periods of not more than 2 years, after which a renewal application must be submitted at least 45 days before expiry.
Non-Resident Accounts: Can be opened freely subject to the Central Bank being informed a posteriori and the provision of supporting documents.
Procedure for Regularization
If your account falls out of compliance, you must submit a complete regularisation file to the BEAC's central services.
Required Documentation:
A formal request for regularisation.
Full history of the account since it was opened.
The required information and documents normally used for opening a foreign currency account.
Review Period: While the BEAC examines the regularisation file, the account is deemed authorized except any decision to the contrary.
Closing and Conversion: On expiry of authorization (if not renewed), the credit institution has 30 days to close the account, and the balance is converted into CFA Francs.
Situation of Extractive Industries in Cameroon and CEMAC
Exceptionally, the regularisation of foreign currency accounts of companies in the extractive sector opened inside or outside CEMAC, without prior authorisation from the Central Bank, is authorised before the entry into force of the Instruction for regularisation.
Within the meaning of the Instruction, regularisation consists in sending to the Central Bank's Central Services, no later than 31 January 2022, a complete file including, in addition to the request for regularisation and the history of the account to be regularised since it was opened or over the last twelve (12) months when the account was opened the information and documents required for the opening of the foreign currency account.