INVESTIGATIONS AND PROFESSIONAL SECRECY – ANTI MONEY LAUNDERING AND TERRORISM FINANCING IN CAMEROON AND CEMAC
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.
INVESTIGATIONS
- Investigative Techniques
For the purposes of obtaining evidence of money laundering and the financing of terrorism and proliferation, and of locating the proceeds of crime, the competent judicial authority may, in accordance with the regulations, order various measures for a specified period, without being subject to professional secrecy, including:
1) The monitoring of bank accounts and accounts similar to bank accounts, when there are serious indications that they are being used or are likely to be used for transactions related to the underlying offense or the offenses provided for in these Regulations;
2) Access to computer systems, networks, and servers used or likely to be used by persons against whom there are serious indications of involvement in the underlying offense or the offenses provided for in these Regulations;
3) The communication or seizure of authentic or private documents, banking, financial, and commercial documents;
4) The surveillance or interception of communications;
5) The audio or video recording or photography of actions, behaviour, or conversations;
6) The interception and seizure of mail.
The techniques referred to in the first paragraph above may only be used when there are serious indications that the aforementioned accounts, telephone lines, computer systems and networks, or documents are or may be used by persons suspected of participating in money laundering or the financing of terrorism and proliferation. The decision of the competent judicial authority is based on these criteria.
- Infiltration and Controlled Delivery
No sanctions may be applied to officials competent to investigate money laundering and the financing of terrorism and proliferation who, for the purpose of obtaining evidence related to these offenses or locating the proceeds of crime, commit acts during an infiltration operation or a controlled delivery that could be interpreted as elements of money laundering or terrorist financing. The designated official may not induce the suspect to commit offenses.
Authorization from the competent judicial authority handling the case is required prior to any operation described in the first paragraph above.
- Anonymous Testimony and Witness Protection
The prosecuting authorities may, on their own initiative or at the request of a witness or an injured private party, decide that:
1) certain identifying information will not be recorded in the transcript of the hearing if there is reasonable grounds to believe that the witness could suffer serious harm as a result of the disclosure of certain information;
2) the identity of a witness will remain confidential if the competent authority concludes that the witness, a member of their family, or an associate of the witness could likely be endangered by the testimony. The witness's identity will only be kept confidential if the investigation of the offense so requires and if other investigative techniques appear insufficient to uncover the truth. A witness whose identity is being kept confidential will not be summoned to appear at a hearing without their consent. An anonymous testimony cannot serve as the sole basis nor as a determining factor in any indictment.
PROFESSIONAL SECRECY
- Lifting Professional Secrecy
Notwithstanding any contrary legislative or regulatory provisions, professional secrecy may not be invoked by the persons referred to in Articles 6 and 7 to refuse to provide information to the supervisory authorities and to the ANIF (National Financial Intelligence Unit) or to make the declarations required by this Regulation. The same applies to information required in the context of an investigation into money laundering and the financing of terrorism and proliferation, ordered by the judicial authority or carried out under its control, by State agents responsible for detecting and prosecuting such offenses.
- Exemption from liability in case of breach of professional secrecy
No legal action for breach of professional secrecy may be brought against the persons referred to in Articles 6 and 7 or their managers, agents, or employees who, in good faith, have transmitted information or made reports of suspicions as provided for in Article 83 of these Regulations, under the conditions prescribed by applicable laws and regulations, or when they have communicated information to ANIF pursuant to Article 66.
- ANIF staff may not be called to testify in legal proceedings
ANIF staff may not be called to testify in legal proceedings concerning matters of money laundering or the financing of terrorism and proliferation of which they became aware in the course of their duties.