(Business in Cameroon) - Under the implementation of an online system of a “national property security directory” (RNSM) in Cameroon, the government announces that there are sanctions against financial institutions guilty of concealment or false information on movable property put as security by borrowers.

“Without prejudice to the sanctions provided by the regulations in force, the omission, refusal to report or communication of inaccurate, false and/or erroneous information is punishable by penalty payments,” indicated the article 12 of the decree signed October 9 by the Finance Minister, Louis Paul Motaze. These penalties shall be applied after warning by any means in writing, accompanied with an unfollowed-up injunction to the reporting institution to regularize the situation within eight days.

Article 13 (1) provides that, for credit institutions, after the expiry of eight days, and in the event of non-compliance by the institution in question, the application of periodic penalty payments shall be CFA50,000 per day of delay during the first 10 days. The penalty increases to CFA75,000 per day of delay as of the 11th day. The amount of these penalty payments shall automatically be debited to the account of the credit institution concerned in the books of the Bank of Central African States (Beac).

With regard to microfinance institutions, after the expiry of eight days, and in the event of non-execution of the microfinance in question, the application of the penalty payments is CFA25,000 for the first 10 days. As of the 11th day, it increases to CFA50,000 per day of delay.

S.A.