(Business in Cameroon) - In its August 2017 report on the "the new means of payment", the Action Group against money laundering in Central Africa (Groupe d’Action contre le Blanchiment d’Argent en Afrique Centrale - GABAC), has raised the alarm on the risks linked to prepaid cards in the CEMAC zone (Cameroon, Central Africa, Congo, Gabon, Equatorial Guinea, Chad).

The first of these risks, according to GABAC, is linked to the anonymity of the bearers. "These prepaid cards can be registered or anonymous depending on the options. (...) However without formal identification, the reporting institution or distributor is unable to determine the identity of the bearer and the origin of the funds used for the purchase of the card and its top up", writes the Action Group. 

The second risk, concerns the non-respect of the Central Bank statutory limits. Because, top-up limits, withdrawal, payment, transfer or by transaction, suggests that the availability of prepaid cards has been diverted from its objective of financial inclusion and can lead to all sorts of abuses. "Absence of a mechanism of centralisation of information on the transactions of prepaid cards, a client whether a bank account holder or not can, while respecting the regulatory limits defined by each of the banks, gets around the limits and proceeds with repeating recharges in as many banks of choice in the country of residence and in the sub-region", we read in the report. 

The last challenge, still according to GABAC, is linked to the laundering of tax and customs products. And with reason, like debit cards, prepaid cards allow economic operators to not only get around Community regulations in exchange matters, but also, to proceed in the reduction of values declared at customs and thus the associated duties and taxes. The profits fraudulently acquired are then invested "in various sectors (real estate, large scale agricultural projects, distribution of petroleum products...)", reveals GABAC.

Sylvain Andzongo