: Cameroon is part of the Central African Economic and Monetary Union (CEMAC), which shares a common Central Bank, the Bank of Central African States, as well as three regional supervisory authorities. Following the 2001 terrorist attacks in the United States and subsequent United Nations (UN) resolutions, as stated in a 2005 U.S. Department of State (DoS) report, the CEMAC countries formed the Central African Action Group Against Money Laundering to draft a common anti-money laundering law. In 2006, the International Monetary Fund published a Report on the Observance of Standards and Codes (ROSC) on the implementation of the Financial Action Task Force (FATF) recommendations in the CEMAC region. According to the report, a CEMAC Regulation was adopted in 2003, prior to the revision of the FATF methodology in 2004. According to the same report, overall, the CEMAC Regulation criminalizes money laundering and terrorist financing in line with international standards. However, the report also states that, with regards to preventive measure for financial institutions, although the CEMAC Regulation contains numerous provisions reflecting the FATF recommendations, it should be amended and updated to incorporate enhanced due diligence obligations and preventive measures for all financial professions. The CEMAC Regulation provides for the establishment by each member state of a financial intelligence unit. Cameroon established its unit in 2005. Despite the availability of the 2006 ROSC and other reports pertaining to the CEMAC countries' implementation of FATF recommendations, there is little information publicly available addressing Cameroon's actual implementation of the FATF 40+9 Recommendations.

General Overview

Cameroon is part of the Central African Economic and Monetary Union (Communauté Economique et Monétaire de Afrique Centrale, or CEMAC), which has a common Banking Supervisory Authority (COBAC) and Central Bank (Bank of Central African States (Banque des Etats de l'Afrique Centrale, or BEAC). The CEMAC countries further share three regional supervisory authorities. The Central African Banking Commission (Commission Bancaire de l'Afrique Centrale, or COBAC) is the regional banking sector supervisor. The Central African Market Surveillance Commission (Commission de Surveillance du Marché Financier de l'Afrique Central, or COSUMAF) is the regional securities market supervisor. The Inter African Conference for the Insurance Market (Conférence Inter-Africaine des Marchés d'Assurance, or CIMA) is the regional insurance supervisor.

According to a 2005 U.S. Department of State (DoS) report, CEMAC countries formed the Central African Action Group Against Money Laundering (Groupe d'Action contre le Blanchiment d'Argent en Afrique Centrale, or GABAC) to draft a common anti-money laundering (AML) law. The law - CEMAC Regulation No. 01/03 - came into force on April 2003. According to a 2006 Report on the Observance of Standards and Codes (ROSC) by the International Monetary Fund (IMF), the law established a regional framework for AML and combating the financing of terrorism (CFT) within CEMAC countries. The law notably criminalizes money laundering and the financing of terrorism, establishes criminal sanctions, and lists financial institutions. Although CEMAC Regulation 01/03 was adopted in 2003, prior to the revision of the Financial Action Task Force (FATF) methodology in 2004, it also includes the FATF-designated non-financial businesses and professions (DNFBPs) in the AML/CFT framework. The 2006 ROSC further notes that the law defines the related preventive obligations for financial and non-financial businesses, and provides for the establishment by each member state of a financial intelligence unit (National Agency for Financial Investigation, or ANIF). According to the 2006 IMF report, three CEMAC countries, including Cameroon, have established an ANIF, but Cameroon was the only one to have appointed members to its ANIF by 2005.

Under CEMAC Regulation 01/03, COBAC has the legal power to act on AML/CFT issues, including the authority to "investigate complaints, seize assets, prosecute individuals, and revoke banking licenses," as noted in the 2005 U.S. DoS report. However, the IMF ROSC stated that although the Regulation contains numerous provisions reflecting the FATF recommendations, it should be amended and updated, and the GABAC should officially recognize the FATF 40 + 9 recommendations as the international standard. Regulations for credit institutions were also enacted by the COBAC in April 2005.

With regard to Cameroon, the 2005 U.S. DoS report notes that there is a lack of laws dealing with cross-border currency transactions and international money transfers, which are of particular concern to the country. Therefore, the U.S. DoS report urged Cameroon to collaborate more closely with COBAC to fully implement applicable regulations, and to establish an effective AML/CFT regime, including the enactment of cross-border currency reporting requirements. Cameroon is a party to the 1988 United Nations (UN) Drug Convention, and has signed, but had not yet ratified the 2000 UN Convention against Transnational Organized Crime, according to the 2005 U.S DoS report. On the other hand, Cameroon has not signed the 1999 UN International Convention for the Suppression of the Financing of Terrorism.

The Principles

1. Legal Systems and Related Institutional Measures

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The 2005 U.S. DoS report stated that the CEMAC countries formed the GABAC, a FATF-style regional body region, and established a common AML law, which came into force in April 2003 The IMF's 2006 ROSC reported that this common AML law, CEMAC Regulation 01/03 came into force prior to the revision of the FATF methodology and established a regional AML/CFT framework within CEMAC countries. Despite the availability of the 2006 ROSC, however, there is little information addressing Cameroon's compliance with this Principle. The ROSC does state that, "overall, the two criminal charges of money laundering and of terrorism financing and the penalties associated therewith, as defined by CEMAC Regulation 01/03, are consistent with international standards" (pp. 6-7). However, a 2007 IMF report on "Selected Issues" added that the implementation of the CEMAC Regulation is "hampered by unclear assignment of responsibilities between regional agencies and national authorities" (p. 36), and investigations and prosecutions are still conducted at the national level. Moreover, although the Regulation contains numerous provisions reflecting the 2003 FATF recommendations, the 2006 IMF ROSC, suggested that it be amended and updated, and that the GABAC should officially recognize the FATF 40 + 9 recommendations as the international standard.

According to the 2006 IMF report, CEMAC Regulation 01/03 establishes a mechanism for the freezing of assets, which is in line with the requirements of the Security Council resolutions. However, member states of the CEMAC region lack a national legal framework for the freezing assets. Furthermore, the CEMAC Regulation 01/03 often fails to "distinguish between the lists of persons and entities identified by the United Nations under Resolution 1267 (Sanctions Committee list) and those to be adopted by member states pursuant to Resolution 1373" (p. 7). The IMF report recommends amending the regulation to clearly identify the processes and decisions applicable to each of the two obligations.

CEMAC Regulation 01/03 provides that each member state establish a financial intelligence unit (known by the acronym ANIF). To date, according to the 2006 ROSC, three countries of the CEMAC, including Cameroon, have established an ANIF. However, Cameroon is the only one to have appointed members to its ANIF. The IMF report recommends establishing ANIFs in all countries of the CEMAC region and improving their capacities, independence, and access to confidential information. National authorities should also ensure an adequate law enforcement and judiciary framework for suspicious transaction reporting (STR).

The 2006 IMF ROSC notes that neither regional nor national authorities have introduced basic statistical tools, such as data collection, analysis, and dissemination, on major offenses or money laundering and the financing of terrorism in the area of prevention, detection, suppression, or international cooperation. With regard to Cameroon, the 2005 U.S. DoS report noted that there is a lack of laws dealing with cross-border currency transactions and international money transfers, which are of particular concern to the country. The U.S. DoS report urges Cameroon to collaborate more closely with the COBAC to fully implement applicable regulations and to establish an effective AML/CFT regime, including the enactment of cross-border currency reporting requirements.

2. Preventive Measures - Financial Institutions

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According to the 2006 IMF ROSC, provisions in regulations on credit institutions are in line with international standards. Under the 2003 CEMAC Regulation, it is the responsibility of the COBAC, COSUMAF, and CIMA to "enforce compliance by financial institutions with their AML/CFT obligations" (p. 12) within their areas of competence. The ROSC further noted that COBAC has also made progress towards initiating, and providing training for, on-site and off-site supervision, and other financial supervisors should follow its steps. Although the 2003 CEMAC Regulation establishes due diligence requirements, it should be amended and updated to improve due diligence obligations and preventive measures. Furthermore, regulations do not provide the obligation to identify beneficial owners. Therefore, with regard to recommendation (R.) 5-8 on customer due diligence (CDD), the ROSC recommends implementing and enforcing requirements to identify clients and beneficial owners, as well as the originators of electronic transfers. It also suggests defining due diligence requirements for third parties and introduced businesses (R.9), clarifying the obligations of financial institutions in relation to electronic and fund transfers (SR.VII), determining the threshold for large transactions (R.11), and increasing the non-bank financial institutions' (NBFs) range of transactions subject to enhanced monitoring. Furthermore, financial institutions should exchange information among each other (R.4).

The ROSC also noted that, with regard to R.13, R.14, R.19, R.25 and Special Recommendation (SR.) IV on STRs and other forms of reporting, countries of the CEMAC should enlarge and enforce reporting obligations, and determine the threshold for cash transactions reporting. The CEMAC member states also need to define internal control requirements for NBFs, and enforce existing internal controls for the banking sector. The IMF report further recommended increasing staffing of the financial sector supervisors and fully implementing and enforcing existing requirements in the banking sector (R.17, R.23, R.25, R.29, R.30 and R.32). Finally, requirements related to money value transfer services (SR.VI) should be fully enforced by the COBAC. Despite all the information provided above, there is little information publicly available directly addressing Cameroon's compliance with the FATF recommendations relating to this principle.

3. Preventive Measures - Designated non-Financial Business and Professions

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The 2003 CEMAC Regulation establishes due diligence and STR obligations for the DNFBPs, as noted in the 2006 IMF ROSC. Weaknesses remain however in relation to the implementation of regulations, provisions for beneficial owners, and reporting requirements. Furthermore, only financial institutions are required to implement internal AML/CFT policies and procedures. With regard to R.12 on CDD and record-keeping, the IMF ROSC recommended increasing "awareness raising efforts towards DNFBPs" (p. 18). Concerning R.16 on STR, countries of the CEMAC are urged to enlarge and enforce reporting obligations, determine the threshold for cash transactions reporting, and "clarify the status of the carve-out for privileged information for legal professions" (p. 19). As for R.17, R.24 and R.25 on Regulation, Supervision, Monitoring, and Sanctions, the ROSC recommended improving the supervisory role of DNFBPs' regulatory bodies, and in particular strengthening the supervisory framework for casinos. Nevertheless, there is little information publicly available addressing Cameroon's compliance with the FATF recommendations relating to this principle.

4. Legal Person and Arrangements & Non-Profit Organizations

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The 2006 IMF ROSC noted that although legislation in Cameroon recognizes legal persons and other legal arrangements, it lacks transparency requirements for settlers and beneficiaries. According to the same report, all CEMAC countries are party to the Organization for the Harmonization of Business Law in Africa (Organisation pour l'Harmonisation du Droit des Affaires en Afrique, or OHADA), which establishes Uniform Acts on commercial law and transparency requirements. Furthermore, non-governmental organizations (NGOs) and nonprofit organizations are regulated at the national level. Nevertheless, there is little information publicly available addressing Cameroon's compliance with the FATF recommendations relating to this principle.

5. National and International Co-operation

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The IMF ROSC reported that the 2003 CEMAC Regulation determines "the procedures for mutual legal assistance and supplements existing bilateral agreements between member states and third states" (p. 16). Although the legal framework for extradition is overall satisfactory, extraditions are only dealt with at the national level. With regard to R.31 and R.32 on national cooperation and coordination, the ROSC recommends creating "statistical tools to monitor the effectiveness and impact of the AML-CFT framework" (p. 19). As stated in the 2005 U.S. DoS report, Cameroon is a party to the 1988 United Nations (UN) Drug Convention, and has signed, but not yet ratified the 2000 UN Convention against Transnational Organized Crime. On the other hand, Cameroon has not signed the 1999 UN International Convention for the Suppression of the Financing of Terrorism. However, there is little information publicly available addressing Cameroon's compliance with the FATF recommendations relating to this principle.