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.
RESPONSIBILITIES OF THE NATIONAL FINANCIAL INVESTIGATION AGENCY (ANIF) IN CAMEROON
The ANIF's mission is to receive, analyse, and disseminate information concerning underlying and associated offenses, and to transmit information, with a view to combating money laundering and the financing of terrorism and proliferation.
In this capacity, it:
1) Is responsible, in particular, for collecting, analysing, enhancing, and utilizing any information relevant to establishing the origin or destination of funds or the nature of transactions that have been the subject of a suspicious transaction report or a referral by the public prosecutor's office, pursuant to the provisions of Article 72, last paragraph, of the Regulations;
2) Also receives all other useful information necessary for the performance of its mission, including information provided by the Supervisory Authorities and judicial police officers;
3) May request that reporting entities, as well as any natural or legal person, provide information held by them that could enhance suspicious transaction reports;
4) Conducts or commissions periodic studies on the evolution of techniques used for money laundering and terrorist financing within the national territory;
5) may, as needed, lead and coordinate, at the national and international levels, the investigative resources available to the administrations or services under the Ministry of Finance, the Ministry responsible for the Justice, the Ministry responsible for Security, and its affiliated agencies, for the investigation of offenses triggering reporting obligations;
6) participates in the study of measures to be implemented to combat clandestine financial circuits, money laundering, and the financing of terrorism;
7) develops, in conjunction with the relevant departments of the Ministry of Finance, the Ministry of Justice, and the Ministry responsible for Security, international action to combat clandestine financial circuits, money laundering, and the financing of terrorism.
The ANIF is also responsible for ensuring, within the respective jurisdictions of each national authority, effective cooperation and consultation among those directly or indirectly involved in the fight against money laundering and the financing of terrorism.
It issues opinions on the implementation of government policy regarding the fight against money laundering and the financing of terrorism and proliferation.
In this capacity, it proposes any reforms necessary to strengthen the effectiveness of the fight against these phenomena.
The ANIF prepares periodic reports (at least quarterly) and one annual report, which analyse the progress of anti-money laundering activities at the national and international levels, and evaluates the declarations collected. These reports are submitted to the Minister of Finance, the Minister of Justice, the Minister of Security, the Permanent Secretary of the GABAC, the reporting entities, and the Governor of the BEAC.