CONDITIONS FOR OUTSOURCING BY PAYMENT INSTITUTIONS FROM THE BANKING COMMISSION IN CAMEROON
The following activities, linked or related to the provision or management of payment methods as defined in Article 12 of Regulation No. 03/16/CEMAC/UMAC/CM, are considered payment services such as:
- Credit institutions as defined by the Convention of January 17, 1992, on the harmonization of banking regulations in the Central African States;
- Microfinance institutions as defined by Regulation No. 01/02/CEMAC/UMAC/COBAC/CM of April 13, 2002, concerning the conditions for carrying out and monitoring microfinance activities in the CEMAC region;
- The Public Treasury and postal check services, subject to the specificities related to their status;
- Other approved institutions.
The Banking Commission specifies by regulation the conditions for outsourcing of activities and recourse to technical assistance.
The outsourcing of an essential operational function consists, for a payment service provider, in entrusting to a third party, a natural person who is not a member of its staff or a legal entity other than the said establishment, on a permanent and regular basis, the provision of services relating to the said function by subcontracting, mandate or delegation.
Payment service providers shall transmit to the Banking Commission, under the conditions laid down by COBAC regulation, information relating to the performance of outsourced essential operational functions and technical assistance.
Conditions for Distributors in Cameroon
The distributor markets payment contracts and services under the following conditions:
- For opening a payment account: the distributor collects the documents and information relating to the obligations set out in Article 57, establishes a contract in accordance with the provisions of Article 38 of these regulations, and then transmits these documents and information to the payment service provider for the creation of the account;
- For the services referred to in paragraphs 1 and 5 of Article 3 of these regulations: the distributor carries out the transactions through an account held by the distributor with the payment service provider;
- For the services referred to in paragraphs 2, 3, and 6 of Article 3 of these regulations: the distributor receives the payment order, collects the documents and information relating to the obligations set out in Article 57 of these regulations, and then transmits them to the payment service provider for the execution of the payment transaction, etc.
Conditions for Sub-Distributors
- Services enabling the deposit and withdrawal of cash into and from a bank or payment account and related management operations;
- Fund transfer services that do not involve an account belonging to either the payer, the payee, or both.
The COBAC may oppose or order the suspension or cessation of outsourcing or technical assistance from a technical partner when:
- It considers that the activity of this technical partner jeopardises the continued existence of the payment service provider,
- It considers that the technical partner does not offer sufficient guarantees compliance with the operating conditions laid down in these regulations, in particular with regard to the protection of customers' interests, internal control and risk management, traceability of transactions, the fight against money laundering and the financing of terrorism;
- It finds that the technical partner or its responsible managers fall under the incompatibilities provided for in Article 51 of Regulation no. 02/15/CEMAC/UMAC.