Financial Crime World

Cameroon’s New Financial Compliance Regulations: A Game Changer for Businesses

The President of the Republic of Cameroon signed into law the 2019 Finance Law (No. 2019/023), introducing new financial compliance regulations to enhance transparency and accountability in the economy. The following are the key changes in this legislation, effective from January 1, 2020.

Modernizing Financial Reporting and Accountability

The new financial compliance regulations aim to modernize and streamline financial reporting processes, as indicated below:

  • Several articles revised or added, focusing on taxes, public finance management, and the fight against money laundering and tax evasion.

Tax System Changes

Article 1409 of the new law enables automatic exchange of tax information between Cameroon and partner countries, aligning with international efforts to counter tax evasion and promote transparency. Moreover, Article 2001 amends the income tax code to introduce new tax exemptions and special tax regimes.

Financial Management and Corruption Control

Article 2441 mandates reporting of public procurement contracts over CFA 5 million to ensure transparency and efficiency in public funds allocation. New rules for public funds management in articles 2456 and 2457 aim to eliminate potential loopholes, promoting good governance and accountability.

Addressing Financial Crimes and Money Laundering

Article 2421 of the new regulations updates Cameroon’s Anti-Money Laundering and Combating Financing of Terrorism (AML/CFT) framework. The changes bring Cameroon’s legislation in line with global FATF guidelines and enhance its ability to effectively combat financial crimes.

Adapting to the New Regulations

Businesses operating in Cameroon must reassess their financial reporting practices to ensure compliance with the new regulations:

  • Adaptation is necessary to avoid potential fines and reputational damage.
  • Failure to comply with the regulations may result in a less business-friendly environment.

Conclusion

The new financial compliance regulations in Cameroon represent a significant step towards a more transparent and accountable economy:

  • They address key challenges faced by local and international businesses.
  • They promote investor confidence and pave the way for an efficient and vibrant economy.