Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) constitutes the regulatory framework applicable in Cameroon for the purpose of preventing criminals from disguising the proceeds of criminal activity as legitimate funds and forestalling the financial support of terrorist organizations. In accordance with Law No. 01 /CEMAC/UMAC/CM of 11th April 2016, the two main concepts of this aspect are as follows:
- Money Laundering: Money laundering is the process by which funds derived from illegal activities such as drug trafficking, corruption, or organized crime are converted into ostensibly legitimate assets. The process typically proceeds through three distinct stages: placement, layering, and integration.
- Terrorist Financing: The raising, movement, and utilization of funds for the purpose of providing financial resources to terrorists or terrorist organizations.
How Anti Money Laundering and Counter Terrorism Financing Works in Cameroon
- Customer Due Diligence (CDD)/KYC: Financial and regulated institutions are required to verify the identity of their customers, assess the associated risk levels, and ascertain the source of funds prior to the provision of any services.
- Transaction Monitoring: Advanced software systems and trained analysts monitor financial transactions for unusual patterns and large-sum transfers in order to detect and flag potential criminal activity.
- Reporting Obligations: COBAC Regulation R-2023/01 demands that reporting entities shall have internal policies and procedures, put together by management and approved by the board of directors, to manage and mitigate the risks of money laundering and terrorist financing in their business.
- Record Keeping: Obliged entities must retain all customer and transactional records for a minimum of 10 years.
Regulatory and Enforcement Bodies in Cameroon
- ANIF (National Financial Investigation Agency): The National Agency for Financial Investigation (ANIF) serves as Cameroon's Financial Intelligence Unit (FIU) and is vested with the responsibility of receiving, investigating, and analysing Suspicious Transaction Reports (STRs). Further details regarding its operational mandates may be accessed on the ANIF website.
- COBAC (Banking Commission of Central Africa): The regional body responsible for the regulation and supervision of credit institutions, with a mandate to enforce compliance with regional Anti-Money Laundering and Counter-Financing of Terrorism (AML/CFT) directives. Further information regarding its prudential requirements may be found on the COBAC Portal.
Criminalization of Money Laundering and the Financing of Terrorism and Proliferation
- Criminalization of Money Laundering
For the purposes of the regulations, money laundering includes any of the following acts, committed intentionally:
(a) The conversion or transfer of property by any person who knows that such property is derived from criminal activity or participation in criminal activity, with the aim of concealing or disguising the illicit origin of such property, or of assisting any person involved in such activity to evade the legal consequences of their actions;
(b) The concealment or disguise of the true nature, origin, location, disposition, movement, or ownership of property or rights relating thereto by any person who knows that such property is derived from criminal activity or participation in criminal activity;
(c) The acquisition, possession, or use of property, knowing at the time of receipt that such property is derived from criminal activity or participation in criminal activity;
(d) Participation in any of the acts referred to in points (a), (b), and (c), conspiring to commit such an act, attempting to commit such an act, aiding or abetting or advising someone to commit such an act, or facilitating the commission of such an act.
Money laundering occurs even if the activities that give rise to the property to be laundered are carried out in the territory of another Member State or a third country, or have not resulted in prosecution or conviction in that State.
Knowledge or intent, as elements of the aforementioned activities, may be inferred from objective factual circumstances. The burden of proof regarding the legality of the origin of the goods in question lies with the person being prosecuted.
- Criminalization of the Financing of Terrorism
For the purposes of this Regulation, the financing of terrorism is defined as any act by any natural or legal person, by any means whatsoever, directly or indirectly, unlawfully and deliberately, of providing or collecting funds with the intention of having them used, or with the knowledge that they will be used in whole or in part, either:
(a) For the commission of one or more terrorist acts as defined in Article 1F, paragraph 2(a) and (b);
(b) For the commission, by a terrorist organization, of one or more terrorist acts;
(c) For the commission of one or more terrorist acts by a terrorist or a group of terrorists;
(d) for the purpose of providing support to a terrorist or a terrorist group. The offense of financing terrorism is established and the criminal penalty incurred even if the planned terrorist acts were neither attempted nor carried out, or if the perpetrators of terrorist financing reside in a territory different from that of the perpetrators of terrorist acts. It is also established even if the funds provided or raised are of lawful origin.
Criminal intent is inferred from objective factual circumstances.
- Criminalization of Proliferation Financing
For the purposes of the Regulation, proliferation financing includes any act intended to provide funds or financial services that are used, in whole or in part, to manufacture, procure, develop, possess, expand, export, tranship, transfer, broker, store, and use nuclear, chemical, or biological weapons and their delivery systems and related components, in violation of national legislation or, where applicable, international obligations.
- Refusal of any justification
No political, philosophical, ideological, racial, ethnic, religious, or any other consideration may be taken into account to justify the commission of any of the offences referred to in Articles 8, 9 and 10 of the Regulation.