Cameroon
Last Updated: 24/03/2009
CENTRAL AUTHORITY FOR REPORTING
Agence Nationale d’Investigation Financière (ANIF) or National Financial Investigation Agency created by Decree n° 2005/187 of May 31 as provided for by CEMAC Regulation No 01/03/CEMAC/UMAC/CM of April 04 2003.
Cameroon’s banking and financial institutions regulatory system is dependent on:
OTHER ANTI-MONEY LAUNDERING REGULATOR(S)
Central African Action Group against Money Laundering or Groupe d’Action contre le blanchiment d’Argent en Afrique Centrale (GABAC).
According to Article 35 of Regulation No 01/03/CEMAC/UMAC/CM, the ANIF has to send statistics and information reports to the GABAC three times a year or annually. The GABAC also acts as regional co-ordinator for the ANIFs of Member countries, and the GABAC in turn every six months sends a regional summary report on the activities of the ANIFs to the BEAC and CEMAC.
The National Anti-Corruption Commission or Commission nationale anti-corruption (CONAC) as established by Decree No. 2006/088 of March 2006 is the main organisation responsible for the regulation and co-ordination of national anti-corruption issues in Cameroon.
ARE LAWYERS COVERED BY MONEY LAUNDERING LEGISLATION?
Yes. Article 5 of Regulation No 01/03/CEMAC/UMAC/CM of April 04 2003 makes the provisions of the regulation specifically applicable to members of the legal profession.
LIST THE LAWS REGARDING ANTI-MONEY LAUNDERING, INDICATING WHICH LAWS ARE APPLICABLE TO LAWYERS.
Règlement n ° 01/03/CEMAC/UMAC/CM du 4 Avril 2003 or CEMAC Regulation No 01/03/CEMAC/UMAC/CM of April 04 2003 (applicable to lawyers).
United Nations Convention against Transnational Organized Crime ratified in February 2006.
Cameroon Penal Code: Loi n° 67/LF/112 Juin 1967 Instituant Le Code Penal (loi no 65-LF-24 du 12 Novembre 1965 et loi no 67-LF-1 du 12 juin 1967/ law No. 65-LF-24 of 12 November 1965 and law No. 67-LF-1 of 12 June 1967).
-
Article 1 on exemptions to the law;
-
Article 9 on conspiracy and complicity to commit a crime in Cameroon or abroad or conspiracy abroad to commit a crime in Cameroon;
-
Articles 95, 96 and 97 on conspiracy, co-action and complicity.
ARE VISITING LAWYERS SUBJECT TO LOCAL LAWS REGARDING ANTI-MONEY LAUNDERING, AND, IF SO, TO WHAT EXTENT?
There is no specific reference to visiting lawyers. However according to the Article 12 due diligence requirements, any transfer of funds to and from or via Cameroon is regulated by the CEMAC anti money laundering regulations.
Moreover visiting lawyers could definitely be subject to national anti money laundering legislation by virtue of national Laws on sovereignty and jurisdiction over offences committed wholly or partially within the country’s jurisdiction since money laundering is a criminal offence according to the CEMAC money laundering regulation. See Articles 7(1) and (2) and 8 (1) of the penal code.
However while offences committed in Cameroon by foreigners are covered by the criminal laws, the courts have no jurisdiction to try foreigners unless they are arrested or extradited to Cameroon. See Article 8 of the penal code.
LIST ANY MONEY LAUNDERING GUIDANCE FOR LAWYERS (FOR EXAMPLE, LAW SOCIETY OR BAR ASSOCIATION GUIDELINES) CURRENTLY IN PLACE.
None.
IS THE LAW SOCIETY/ BAR ASSOCIATION INVOLVED IN SUPERVISING OR ENFORCING COMPLIANCE WITH ANTI-MONEY LAUNDERING REGULATIONS?
N/ A.
DESCRIBE CLIENT DUE DILIGENCE REQUIREMENTS, INCLUDING WHEN IT MUST BE UNDERTAKEN BY LAWYERS.
Lawyers by virtue of article 5 and in accordance with Article 12 Regulation No 01/03/CEMAC/UMAC/CM must whenever engaging in:
- Significant transactions involving unitary or cumulative sums which exceed the limit set by national laws or the ministerial committee;
- Even when such do not call for a declaration of suspicion within the context of article 18;
- But appear unconventional, unusual, complex and with no apparent business or legal purpose
Exercise due diligence or undertake a due diligence investigation aimed at determining;
-
The origin and destination of the funds involved;
-
The subject or objective of the transaction;
-
The identity and domicile of the client and beneficiary or recipient
Due diligence is compulsory for all electronic transfers and in general for any type of money transfer irrespective of the mode of execution, transfer or receipt.
Due diligence is also required for transfers emanating from or destined for:
-
Financial organisations or institutions in jurisdictions which are not Member Sates of the Financial Action Task Force (FATF); or
-
Where the legal requirements and obligations pertaining to identification and control of funds are not at least equivalent to the Regulation; or
-
Are simply identified as FATF non-cooperative countries and territories.
The identification process and requirements for clients is the same as provided for in Articles 9 – 11. In the case of a natural person a valid official original document comprising a picture is required. Upon presentation of the original document a copy is made and retained by the authority or professional involved.
In the case of a legal entity, all original documents pertaining to, and showing proof of legal creation and existence up to the time of verification are required. Upon presentation copies are made and retained.
All persons or entities acting on behalf of others must, apart from presenting proof of their own identities and addresses, do the same for the persons on whose behalf they are acting. They must also present valid documents attesting to the delegation of power they claim.
In due diligence situations as explained above, the nature of the transaction as well as information relating to the domicile and identity of interested parties to the transaction is put in writing and preserved along with other retained documents to be made available only to the relevant authorities if the need arises.
DOES YOUR COUNTRY FOLLOW A RISK-BASED APPROACH TO CLIENT DUE DILIGENCE BY LAWYERS?
No.
ARE THERE ENHANCED DUE DILIGENCE MEASURES FOR CERTAIN TYPES OF CLIENTS, FOR EXAMPLE, POLITICALLY EXPOSED PERSONS?
No.
ARE THERE SIMPLIFIED DUE DILIGENCE MEASURES FOR CERTAIN TYPES OF CLIENTS, FOR EXAMPLE, LISTED COMPANIES?
No.
ARE LAWYERS PERMITTED TO RELY ON THIRD PARTY DUE DILIGENCE? IF YES, PLEASE DESCRIBE.
No.
WHEN IS A LAWYER UNDER AN OBLIGATION TO REPORT SUSPICIOUS TRANSACTIONS?
Article 36 (Regulation No 01/03) imposes an obligation to declare any suspicious transactions or funds to the ANIF if there is valid reason to believe that funds or a transfer of funds could be linked to, associated with, or destined to be used to finance terrorism or terrorist acts
A lawyer is under an obligation to report to the ANIF:
-
Whenever transactions involve payments (of any kind) whose individual or cumulative totals exceed the limit provided for by the State;
-
Whenever in possession of money or goods which could be linked to a crime or felon, or subject to a money laundering process;
-
All transactions which could be sponsored or funded by proceeds from a crime or felon or involve money laundering activities; and
-
All transactions wherein the identities of the owner or beneficiary remain suspicious despite rigorous identification and verification efforts.
Declarations can be verbal or written as per Article 19, and should be addressed to the ANIF. Declarations made via telephone can be confirmed by fax or any other writing method. The declaration must state a delay period within which the transaction should be finalized or failing which it must state the reasons why the transaction has already been finalized.
DOES ATTORNEY/ CLIENT PRIVILEGE AND/ OR DUTIES OF CONFIDENTIALITY PROVIDE A DEFENCE OR PARTIAL/ TOTAL EXCEPTION TO THE REQUIREMENT TO REPORT SUSPICIOUS TRANSACTIONS?
No. See Articles 10 and 31 of Regulation No 01/03/CEMAC/UMAC/CM.
DOES LOCAL LAW PROVIDE ANY CRIMINAL AND/OR CIVIL INDEMNITY TO A LAWYER WHO HAS REPORTED A SUSPICIOUS TRANSACTION?
Exemption from criminal liability by virtue of Article 22 Regulation No 01/03/CEMAC/UMAC/CM but there are no provisions for indemnities of any kind.
ONCE A SUSPICIOUS TRANSACTION REPORT HAS BEEN FILED, IS A LAWYER ALLOWED TO PROCEED WITH THE LEGAL ADVICE/ TRANSACTION, AND, IF SO, MUST CONSENT FROM AUTHORITIES BE OBTAINED FIRST?
A lawyer can proceed with a transaction unless there is an order by the ANIF to put the transaction on hold. If such an order is passed (for a maximum of 48 hrs before the end of the delay period for the execution of the transaction stated in the declaration by fax or any other method which can be traced in writing), until the order elapses the lawyer cannot proceed with the transaction.
After this period unless a competent judge orders that all assets, funds etc involved in the transaction should be frozen before the stated delay period expires (for another maximum period of 8 days maximum) lawyers can proceed with the transaction. Article 33.
IS THERE A TIPPING-OFF PROHIBITION? IF YES, PLEASE DESCRIBE.
Articles 8 and 15 Regulation No 01/03/CEMAC/UMAC/CM on strict confidentiality in relation to a declaration on pain of criminal sanctions. Under no circumstances should lawyers divulge confidential information about a declaration to legal entities or natural persons apart from those specified in the regulation.
According to Article 48 anyone who has access to confidential information as a result of their professional status and affiliation and informs the person or people who are under investigation will be criminally liable and subject to the relevant penalties and fines in Article 46.
DESCRIBE ANY RESTRICTIONS ON ACCEPTING A NEW CLIENT.
Lawyers are prohibited from establishing a working or business relationship with a client without ascertaining the client’s identity, domicile and address or the same for any person acting on behalf of the client or on whose behalf the client is acting and proof of all the latter. They must press for a valid, official, and original document comprising a photo and should retain copies. See Article 9 Regulation No 01/03/CEMAC/UMAC/CM.
ARE THERE ONGOING MONITORING REQUIREMENTS FOR EXISTING CLIENTS? IF YES, PLEASE DESCRIBE.
Yes. Article 9 Regulation No 01/03/CEMAC/UMAC/CM on client identification: Lawyers must ensure existing clients always provide proof of their identity and domicile for all transactions involving sums which exceed the fixed threshold.
Identification is also required whenever in doubt of the legality of funds for a particular transaction
When individual transactions are carried out repeatedly within a limited period, even when single transaction values are within the fixed threshold, lawyers must insist on the identification process for clients.
DESCRIBE ANY OTHER WAYS IN WHICH LAWYERS ARE AFFECTED BY ANTI-MONEY LAUNDERING LEGISLATION.
N/ A.
HAVE LAWYERS IN YOUR JURISDICTION BEEN IMPLICATED IN MONEY LAUNDERING, INCLUDING ANY TYPE OF COMPLAINT, ARREST OR PROSECUTION?
N/ A.
HAS THE FINANCIAL ACTION TASK FORCE (FATF) CONDUCTED A MUTUAL EVALUATION OF THIS COUNTRY, AND, IF SO, WHAT WERE THE FINDINGS CONCERNING LAWYERS’ COMPLIANCE WITH THE FATF 40+9 RECOMMENDATIONS?
Cameroon has not been evaluated by the Financial Action Task force (FATF). However, there have been reports on the implementation of the FATF recommendations in the CEMAC zone and notably the IMF report on the Observation of Standards and Codes (ROSC) in 2006.
According to this report, CEMAC Regulation No. 01/03, enacted prior to the revision of the FTF recommendations is in line with required international standards. Nevertheless, the report recommends the official recognition of the FATF 40+9 recommendations as the international standard by GABAC. Cameroon is also one of the only two countries in the region to have established a national financial investigation agency (ANIF).
Information provided by:
Manyi Orok-Tambe
Commercial Law intern
International Bar Association
10th Floor, 1 Stephen Street
LONDON, W1T 1AT
United Kingdom
Email: Gonzalo.Guzman@int-bar.org
Sources: