TRANSFER
A transfer is the operation by which an account holder in Cameroon, on the instructions of their client, transfers funds to a designated third-party beneficiary by crediting their account and debiting the account of the originator.
The transfer order contains:
- The mandate given to the account holder by their client to transfer funds, the amount of which is determined:
- The account to be debited:
- The account to be credited and its holder:
- The execution date:
- The signature of the originator.
The transfer order is irrevocable once the originator's account is debited.
The transfer is final once the beneficiary's account is credited.
The acceptance date of the transfer is the date on which all the conditions required for the execution of a transfer order are met.
These conditions relate to the existence of sufficient and available prior financial coverage and the information necessary for the execution of the order, including the verifications required by applicable regulations.
Subject institutions must inform their clients in writing beforehand of the conditions under which transfers are made. This information may be provided, where applicable, within the framework of the bank's general terms and conditions or in the account agreement.
This information must specifically include the following:
- For outgoing transfers, the maximum time between, on the one hand, the date of acceptance of the transfer and, on the other hand, the date on which the beneficiary's bank account is credited;
- For incoming transfers, the maximum time between, on the one hand, the date of receipt of the funds by the beneficiary's bank and, on the other hand, the date on which the beneficiary's account is credited;
- All the methods used to determine the fees and charges levied on the client;
The applicable complaint procedures and appeal processes;
Where applicable, the conditions under which the exchange rate(s) used for executing the transfer order are set.
Subsidized institutions must provide their clients with the following information in writing after each transfer transaction:
- The transaction amount as shown on the transfer order issued by the client;
- The amount of all fees and commissions charged by the institution, as well as any other form of remuneration, if applicable;
- For the originator, the date on which the client's account was debited;
- For the beneficiary, the date on which the client's account was credited;
- Where applicable, the exchange rate used.
This information may be provided or made available by means of a specific transaction notification or when sending an account statement. This information must be clearly broken down and linked to each relevant transfer transaction. It must be provided no later than one month after the transaction was executed.
The institutions subject to this requirement shall distinguish in the communication of the information mentioned in Articles 181 and 182 of the regulations, those which concern transfers made within the same CEMAC State, those which concern cross-border transfers made within CEMAC and those relating to transfers made with foreign countries outside CEMAC.
The information transmitted to the client in accordance with Article 181 is binding on the institution that provided it.
Subject institutions must execute the transfer orders they have accepted, for their full amount, unless the originator has specified that the transfer fees should be charged in whole or in part to the beneficiary.
Any delay in the execution of transfers made where the amount is equal to or less than 100,000,000 CFA francs will result in the payment of a penalty, without prejudice to any other legal remedies.
The penalty for late payment stipulated in the preceding paragraph is calculated by applying the BEAC Positive Tender Interest Rate (TIAO) to the amount of the transfer, for the delay period defined as follows:
- For the originator, the delay giving rise to the penalty is defined as the period, expressed in days, elapsed between, on the one hand, the expiry of the maximum period stipulated in Article 181 for outgoing transfers, and, on the other hand, the date on which the funds are credited to the beneficiary's institution's account;
- For the beneficiary, the delay giving rise to the penalty is defined as the period, expressed in days, elapsed between, on the one hand, the expiry of the maximum period stipulated in Article 181 of the regulations for incoming transfers, and, on the other hand, the date on which the funds are credited to the beneficiary's account.
Transfers referred to in Article 186, paragraph 1 of the regulations, that are not completed shall, within fourteen (14) business days of receipt of a request, result in the return of the funds in question to the originator.
Without prejudice to any legal remedies for liability, the return mentioned in paragraph 1 shall be borne by the institution of the beneficiary of the transfer if the non-execution is due to its own fault or that of an intermediary institution chosen by it.
The refund due, mentioned in Article 187 of the regulations, consists of the amount of the unexecuted transfer, plus, on the one hand, the amount of the fees relating to this operation and, on the other hand, the application of the interest rate of the BIAC's positive tender offers to the amount of the transfer for the period between the date of acceptance of the transfer order and the date of payment of this amount.
The restriction provided for in Article 187 shall not be borne by the establishment subject to it if the non-performance results either from an error or omission by the principal in the instructions given, or from the fact of an intermediate establishment chosen by the principal.
DIRECT DEBIT
A direct debit authorization is the act by which a debtor, holding a direct debit mandate, authorizes their creditor to debit their account on a specific date to settle their debt by means of a direct debit notice, and instructs the account-holding institution to transfer said sums to the creditor's account.
The direct debit authorization issued by the customer and presented to the account holder by the beneficiary's direct debit notice is executed by bank transfer.
The creditor requesting authorization for a direct debit must provide proof of a direct debit notice issuer number issued by the Central Bank.
The direct debit authorization must include, under penalty of inadmissibility by the institution holding the direct debit mandate:
- The name and bank details of the issuer of the direct debit notice, as well as their issuer number issued by the Central Bank;
- The name and bank details of the debtor initiating the transaction;
- The unconditional order to transfer funds;
- The amount of the transfer;
- The frequency of the direct debit;
- The signature of the debtor initiating the transaction.
The debiting of the originating debtor's account automatically transfers the funds covered by the direct debit order to the creditor issuing the direct debit notice.