Financial Crime World

Cameroon’s COBAC Regulation R-2023/01: Strengthening Anti-Money Laundering and Countering Terrorism Financing

The Government of Cameroon has implemented the COBAC Regulation R-2023/01 to combat money laundering and terrorism financing. This regulation aims to strengthen the national and sub-regional anti-money laundering (AML) and countering the financing of terrorism (CFT) framework, while ensuring that financial institutions and other stakeholders comply with international standards.

Key Requirements

To mitigate AML/CFT risks, reporting entities in Cameroon must have internal policies and procedures in place. These policies should cover all aspects of the AML/CFT risk framework, including:

  • Appointment of a compliance officer
  • Customer onboarding
  • Reporting of suspicious transactions
  • Identification and verification of client identity
  • Verification of individuals acting on behalf of clients

Reporting Requirements

Reporting entities must submit reports to the National Anti-Financial Intelligence Unit (NAFI) on specific transactions. The requirements include:

  • Monthly reporting: Cash transactions exceeding 5 million FCFA must be reported by the 10th day of each month.
  • Immediate reporting: Suspicious transactions must be reported immediately to NAFI.
  • Annual report: An annual internal control report must be submitted to COBAC by April 30th.

Sanctions for Non-Compliance

Failure to comply with the requirements may result in disciplinary actions, including:

  • Disciplinary hearing by the regulator
  • Administrative sanctions (warning, suspension, or revocation of licenses)
  • Pecuniary sanctions

Government and Stakeholder Commitment

The Government of Cameroon is committed to addressing strategic deficiencies in its AML/CFT regime. To achieve this, a Priority Action Plan must be completed by the 2nd quarter of 2025. All stakeholders, including financial institutions, are required to comply with the requirements incumbent on them.

By implementing the COBAC Regulation R-2023/01, Cameroon aims to strengthen its national and sub-regional AML/CFT framework, while preventing money laundering and terrorism financing.