Financial Crime World

Cameroon’s Money Laundering and Terrorist Financing Risks Revealed in New Report

YAOUNDE, Cameroon - A comprehensive report released today highlights the significant risks posed by money laundering and terrorist financing in Cameroon. The National Risk Assessment (NRA) exercise, conducted from November 2019 to April 2020, reveals that the country faces a high risk of money laundering and moderately high vulnerability to terrorist financing.

Challenges Faced During Data Collection

The NRA team encountered numerous challenges during data collection, including:

  • Lack of consolidated statistics on money laundering and terrorist financing crimes
  • Many public and private entities lacked quantified data on their anti-money laundering (AML) and combating the financing of terrorism (CFT) actions
  • Difficulties in collecting sensitive data related to national security cases

High-Risk Sectors for Money Laundering

The report identifies several sectors as high-risk areas for money laundering, including:

  • Banks
  • Currency exchange offices
  • Casinos
  • Real estate dealers
  • Dealers in precious metals and stones

Overall Risk Assessment

The overall money laundering risk is assessed as “HIGH”, with a significant threat posed by the banking sector. The report also assesses Cameroon’s overall vulnerability to terrorist financing as “HIGH”, driven by factors such as:

  • Recorded cases of terrorist acts
  • Damage suffered
  • Internally displaced persons
  • Deaths and injuries caused by terrorist acts

Recommendations for Strengthening AML/CFT Framework

The NRA team concludes that Cameroon needs to strengthen its AML/CFT framework, improve data collection and analysis, and enhance international cooperation to combat money laundering and terrorist financing. The report provides a roadmap for policymakers and financial institutions to address these risks and protect the country’s financial system.

Key Findings

  • Overall money laundering risk: HIGH
  • Overall vulnerability to money laundering: Moderately High
  • Sectors with high risk of money laundering:
    • Banks
    • Currency exchange offices
    • Casinos
    • Real estate dealers
    • Dealers in precious metals and stones
  • Overall terrorist financing risk: HIGH
  • Vulnerability to terrorist financing: Moderately High

Recommendations for Implementation

To address these risks, the report recommends:

  • Strengthening AML/CFT framework
  • Improving data collection and analysis
  • Enhancing international cooperation
  • Implementing measures to address the misuse of cash and NGOs
  • Developing centralized data on terrorism and terrorist financing
  • Providing training and specialization for actors responsible for investigating and prosecuting CFT cases