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Yaoundé - 29 March 2024 -
Finance

CEMAC : Credit institutions accused of voluntarily lengthening the execution of client’s foreign-exchange transaction requests

CEMAC : Credit institutions accused of voluntarily lengthening the execution of client’s foreign-exchange transaction requests
  • Comments   -   Wednesday, 22 January 2020 11:35

(Business in Cameroon) - It has come to my attention that excessive and sometimes unrelated documentation is required from your customers for the settlement of foreign exchange transactions.” This is the main observation made by Abbas Mahamat Tolli (photo), the Governor of the Central Bank (BEAC) in a circular signed last December 9, for the attention of the CEOs of banks operating within the CEMAC region.  

According to the governor, this practice lengthens the execution time of bank customers' operations and consequently deteriorates indicators assessing the zone’s business climate.  

With regard to the specific cases of the settlement of imports of goods and services, Abbas Mahamat Tolli indicates that the documents of discharge must be required afterward, in accordance with Instruction No 007/GR/2019 specifying the conditions and procedures for the declaration, domiciliation and settlement of imports of goods and services.

Moreover, Article 6 of Regulation 02/Cemac/Umac/CM of 21 December 2018 on the regulation of foreign exchange in CEMAC provides for the freedom of transfers, payments, and settlements of current transactions abroad, subject to the justification of the origin of funds and the presentation of documents required by the foreign exchange regulations,” the governor said.

Consequently, the official concludes, with the exception of current transactions for which foreign exchange regulations require a prior declaration (in the case of the transfer of factor income, section of the aforementioned Regulations) to be made to the Central Bank, no prior authorization for the transfer of funds should be sought from the minister in charge of currency and credit for the execution of a payment order.

Sylvain Andzongo

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