Resident Foreign Currency (RFC) Accounts allow individuals and corporations to hold and transact in foreign currencies without constant conversion. Eligibility and rules depend strictly on Instruction N° 05/GR /2019 of BEAC.
Definition and Purpose
Resident Foreign Currency Account (RFC Account): A Resident Foreign Currency (RFC) Account enables resident individuals to hold and conduct transactions in foreign currencies. Such an account is of particular utility for individuals who receive income from foreign sources including those engaged in employment abroad as well as for those who are required to make payments or undertake investments denominated in foreign currencies.
Purpose: The primary purpose of a Resident Foreign Currency (RFC) Account is to facilitate foreign currency transactions for resident individuals. It provides a convenient mechanism for managing foreign earnings, making international investments, and conducting other foreign currency-related transactions, without the necessity of frequent currency conversion.
Key Features
Currency Holding: RFC Accounts permit the holding of foreign currencies including United States Dollars (USD), Euros (EUR), and Pounds Sterling (GBP), among others thereby enabling account holders to retain their foreign earnings in their original currency and avoid incurring unnecessary currency conversion costs.
Interest Rates: The interest rates applicable to RFC Accounts may vary depending upon the bank with which the account is held and the currency in which it is denominated. Interest accrued on RFC Accounts is ordinarily credited in the same foreign currency as that in which the account is maintained.
Transaction Facilities: Account holders are entitled to utilize RFC Accounts for a range of transactions, including the receipt of foreign income, the execution of international payments, and the making of investments in foreign financial instruments.
Accessibility: RFC Accounts provide both online and offline banking facilities, affording account holders convenient access to account details, transaction history, and the management of funds.
POSITION OF BEAC ON FOREIGN CURRENCY ACCOUNTS IN CAMEROON AND CEMAC
Residents Accounts in Foreign Currency
The opening of an account in foreign currency outside the CEMAC is prohibited to resident legal entities, with the exception of credit institutions.
However, the Central Bank may authorise a resident legal entity to open a foreign currency account outside the CEMAC under the conditions and procedures laid down by the latter's Instruction. The Central Bank shall inform the Ministry in charge of currency and credit accordingly.
The accounts of individuals' resident abroad are reported to the Central Bank.
The opening of a foreign currency account in CEMAC for the benefit of a resident is not permitted.
However, the Central Bank may authorise a resident corporation to open a foreign currency account in the CEMAC under the conditions and procedures laid down by the latter's Instruction.
The foreign currency account opened in CEMAC may not be credited with payments in CFA Franc or by debiting an account in CFA Franc. In addition, it may not have a debit balance.
Withdrawals of foreign Currency from a resident's foreign currency account to cover local needs are prohibited.
Non-Resident Account in Foreign Currency
The opening of non-resident accounts in foreign currency in the books of credit institutions is free in the CEMAC, subject to ex post information from the Central Bank.
The applicant shall send the credit institution a reasoned request to open a non-resident’s account in foreign currency.
Transactions to debit and credit non-resident accounts in foreign currency are free, subject to compliance with the regulations in force.
Non-resident accounts in foreign currency may not be credited with payments in CFA Franc or by debiting an account in CFA Franc.
Non-residents' accounts in foreign currency may not be in debit.
Withdrawals of foreign currency from the accounts of non-residents in foreign currency to cover local needs are prohibited.
The loss of non-resident status automatically results in the closure of the non-resident's account and the credit balance is transferred to a resident's account in CFA Franc.
Non-Resident Account in Franc CFA
The opening of non-resident accounts in CFA francs in the books of credit institutions is free in CEMAC, subject to the presentation of the documents required by exchange regulations.
Credits and debits to non-resident accounts in CFA Franc are free, subject to compliance with the regulations in force.