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.
OBLIGATIONS OF REGULATORY AND SUPERVISORY AUTHORITIES IN CAMEROON
- Provisions Relating to the Supervisory and Supervisory Authorities of Designated Financial Institutions and Non-Financial Enterprises and Professions in Cameroon
Supervisory and supervisory authorities monitor compliance by designated financial institutions and non-financial enterprises and professions with the requirements set out in Title II of the regulation.
In accordance with applicable regulations, each supervisory and supervisory authority:
1) Takes the necessary steps to define appropriate criteria for ownership, control, or direct or indirect participation in the management, operation, or functioning of a designated non-financial institution or enterprise and profession;
2) Regulates and monitors compliance by designated non-financial enterprises and professions with the obligations set out in Titles II and III of this Regulation, including through on-site examinations;
3) Issues instructions, guidelines, or recommendations to assist financial institutions and designated non-financial businesses and professions in complying with the obligations set out in Titles II and III of this Regulation;
4) Cooperates and exchanges information with other competent authorities and assists in investigations, prosecutions, or proceedings relating to money laundering, underlying offences, and the financing of terrorism and proliferation;
5) Establishes, in consultation with the National Financial Intelligence Units (NFIs), standards or criteria applicable to suspicious transaction reports that take into account other existing or future national and international standards;
6) Ensures that financial institutions and their branches abroad, as well as their subsidiaries abroad in which they hold a majority interest, adopt and implement measures consistent with the provisions of this Regulation, to the extent permitted by local laws and regulations;
7) Communicates, without delay, to the ANIF any information relating to suspicious transactions or suspicious activities that could be linked to money laundering or terrorist financing;
8) Provides prompt and effective cooperation to bodies performing similar functions in other Member States or third countries, including through the exchange of information;
9) Keeps statistics on the measures adopted and the sanctions imposed in the context of the application of this chapter.
- Specific provisions concerning the transfer of funds or securities in Cameroon
In accordance with the specific regulations in force, no one may engage in the professional activity of transferring or transporting funds and securities unless they have obtained authorization from the competent authority of the State in which territory they are required to carry out their activity.
The said authority shall establish, by decree or any other appropriate legal instrument, the operating conditions, particularly with regard to the regular inspection of money and securities transfer services.
The provisions of paragraph 1 above shall also apply to any legal or natural person operating as an agent in a CEMAC member state.
Providers of money and securities transfer services are required to submit a list of their agents to the competent authority of the country in which they operate.
- Registration of Other Designated Non-Financial Businesses and Professions in Cameroon
No one may carry out any activity as a designated non-financial business or profession without prior registration by the competent regulatory or supervisory authority, in accordance with the conditions laid down by the applicable regulations.