Cameroon Fails to Meet International AML/CFT Standards
Yaoundé, Cameroon - In a recent evaluation report, the CENTIF-Senegal, FIU, and Prosecution Authority Expert has found that Cameroon has failed to meet international standards for anti-money laundering (AML) and combating the financing of terrorism (CFT).
Falling Short of International Recommendations
The report, adopted by the 15th Plenary session of the GABAC Technical Commission in Douala, Cameroon on October 21, 2021, highlights several areas where Cameroon falls short of meeting the 40 Recommendations of the Financial Action Task Force (FATF).
Understanding ML/TF Risks
According to the report, Cameroon has a good understanding of ML/TF risks, but this understanding varies among authorities and sectors. The country’s National Risk Assessment (NRA) identified ML/TF threats and vulnerabilities for various sectors, but there is no authority responsible for coordinating national AML/CFT policies.
Investigating Authorities
The report also notes that investigating authorities do not systematically conduct parallel investigations for ML/TF when dealing with predicate offenses. Additionally, the country faces a high risk of terrorist financing, mainly through crowdfunding from abroad, donations, and fundraising through certain non-profit organizations (NPOs).
Supervisory Authorities
Furthermore, the report finds that supervisory authorities do not program controls on a risk basis, and that financial institutions (FIs) have limited understanding of their AML/CFT obligations. Non-bank FIs, such as financial market actors, microfinance institutions, and leasing companies, have even less understanding of their AML/CFT obligations.
Training and Resources
The report also highlights the lack of training and resources for investigating and prosecuting authorities, which hinders their ability to effectively conduct investigations into ML/TF cases. Additionally, there is no mechanism in place for managing frozen, seized, and confiscated assets.
Recommendations for Improvement
The CENTIF-Senegal, FIU, and Prosecution Authority Expert has recommended that Cameroon strengthen its AML/CFT system by implementing the priority recommendations set out in the report. These recommendations include:
- Enhancing understanding of ML/TF risks among all actors involved in AML/CFT
- Improving coordination among authorities
- Increasing training and resources for investigating and prosecuting authorities
Wake-Up Call
The evaluation report is a wake-up call for Cameroon to take concrete steps to address its weaknesses in AML/CFT and to ensure that it meets international standards.