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.
General prevention provisions concerning cash and bearer negotiable instruments
- Obligation to declare or report cross-border physical transport of cash and bearer negotiable instruments
Any person arriving from a third country, entering the territory of a CEMAC member state, or leaving it for a third country, is required to declare cash equal to or exceeding five million (5,000,000) CFA francs or the equivalent in foreign currency, which they must submit to the competent authority of the country at the point of entry or exit.
The competent authorities of the Member State concerned shall identify the carrier of cash and bearer instruments reaching the amount referred to in paragraph 1 of this Article and shall require, if necessary, further information on the origin of such cash or bearer instruments.
The reporting obligation shall not be deemed fulfilled if the information provided is incorrect or incomplete.
Persons who have made false declarations or communications shall be subject to the penalties provided for by the applicable regulations.
The competent authorities may, where appropriate, seize, for a period not exceeding seventy-two (72) hours, cash or bearer instruments that may be linked to money laundering or terrorist financing.
The competent authority shall seize the full amount of undeclared cash in the event of non-declaration or false declaration, in accordance with the provisions of Articles 130 and 131 of the regulation.
- Prohibition of Payment in Cash or by Bearer Negotiable Instrument for Certain Debts
Without prejudice to the provisions of Article 17, payment of a debt equal to or exceeding five million CFA francs may not be made in cash or by bearer negotiable instrument.
The following payments must be made by bank or postal transfer or by check when they relate to an amount equal to or exceeding the reference amount set by instruction of the BEAC or by Order of the National Monetary Authority of each State:
1) salaries, allowances, and other cash payments owed by the State or its agencies to civil servants, agents, other personnel, whether active or retired, or to their families, as well as to service providers;
2) taxes, duties, and other cash payments owed to the State or its agencies. 3) The provisions of paragraphs 1 and 2 above do not apply:
i. to payments made by persons who are legally incapable of entering into obligations by check or other means of payment, as well as by those who do not have a deposit account;
ii. to payments made between natural persons not acting for professional purposes;
- Prohibition of Cash Payments in Real Estate Transactions
The sale price of real estate exceeding three million CFA francs may only be paid by bank transfer or check.
- Obligation to Report Cash Transactions or Bearer Negotiable Instruments
The persons subject to these regulations, as listed in Articles 6 and 7 of the regulation, are required to report to the ANIF (National Financial Intelligence Agency) cash transactions of an amount equal to or greater than five million (5,000,000) CFA francs, whether it is a single transaction or several transactions that appear to be related.
The provisions of the first paragraph above do not apply to cash deposit transactions by a person or business whose activity necessitates the use of such a method, in particular public transport companies, supermarkets, and service stations.
Notwithstanding the exemption provided for in paragraph 2 above, financial institutions and the EPNFD (Public Establishment for the Financing of Development) shall exercise enhanced vigilance with regard to cash deposits. They shall report to the ANIF (National Financial Intelligence Unit) any deposit whose amount, for a single transaction or for several apparently related transactions, is unusual or unrelated to the activity in question.
- Amendment of Amounts
The amounts indicated in Articles 15 to 18, as well as in Articles 32 and 35, may be amended by decision of the Ministerial Committee upon the proposal of the Governor of the BEAC (Bank of Central African States). This amendment must be published in the Official Journal of the Community and in the Official Journals of the Member States.
- Compliance with Regulations Governing External Financial Relations
Foreign exchange transactions, capital movements, and settlements of any kind between a resident and a non-resident must be carried out in accordance with the provisions of the exchange regulations in force.