Exchange regulation in Cameroon

I-Principal characteristics

Foreign exchange regulation in Cameroon is built around regulation No. 02/00/CEMAC/UMAC/CM of 29 April 2000 on the harmonisation of exchange in CEMAC member states in force since 2nd January 2004. This text which replaces the national regulations is characterised by:

• disengagement of the State from economic activities with the outside world through the transfer to authorised intermediaries of administrative competences in the management of exchange and transfer operations;
• the abolition of controls on capital movements in the short term with the suppression of administrative authorities and visas;
• the release of payments for current account (goods and services, visible, currency allocations);
• increased accountability of banks in the implementation and monitoring of operations.

II. Conditions for the realisation of transfers related to transactions.

Current transactions, whose sole objective is the transfer of capital also include operations of foreign trade, services and facilities in short term banking and credit, payments due as interest on loans or Income from other investments, moderate payments for amortization of loans. There is also the invisible and the allocation of foreign currency to travellers. We can note the following conditions relating to certain transactions (for more information www.dgtcfm.net).

Business Trips

Foreign currency allocation capped at 10 million CFA francs. Documents required:

• a valid passport and an entry visa to the host country
• a ticket (flight ticket);
• a valid business licence
• a valid taxpayer\’s card
• a certificate of business trip

Official Mission

Individual or group professional trips made for the needs of government or private authorities.

Foreign current allocation capped at 4 million FCFA. Documents required

• A mission order;
•  A valid passport
•  A Travel warrant, Etc..

III-Conditions for the realisation of transfers related to movement of capital

Primarily concerned are:

Loans

Only banks are entitled to check, and then execute loans that are not subject to authorisation, but to declaration at the Ministry in charge of Finance. These are all outstanding transactions that do not exceed 100 million FCFA and the banks\’ own operations.

Direct Investment

Direct investment is declared for statistical purposes if the amount is less than 100 million FCFA and the remittances relating thereto are freely executed by the authorized intermediaries.

For amounts over 100 million FCFA, direct investments should be declared to the Ministry of Finance, unless they take the form of a capital increase resulting from the reinvestment of undistributed profits. In addition, transfers of funds relating thereto shall be subject to authorization by the Ministry of Finance.

Securities

Generally, these are cash securities, bonds, stocks, shares of foundations and profit shares of all securities, which, by their nature, to be listed on any stock exchange, as well as all certificates representing these securities. It\’s also coupons, dividends, subscription rights and other rights attached to the said securities. The issuing, operating, advertising, offering for sale of foreign securities in CEMAC for amounts exceeding 10 million FCFA, are subject to prior approval from the Ministry of Finance.

IV- Conditions for obtaining a certificate of repatriation of operating revenue

The certificate is issued in a single copy by the Directorate General of Treasury, Financial and Monetary Cooperation within fifteen days after the filing of documents including:

• a stamped application indicating the period covered by the reimbursement in question;
• a certified photocopy of the taxpayer\’s card of the beneficiary company;
• a photocopy of each document relating to the operating period;
• the final invoices duly stamped by the home banks, the bill of lading or air waybill (AWB) for each title;
• the original credit or transfer notices and/or the repatriation bank statements.

Principal regulatory references

• Regulation No. 02/00/CEMAC/UMAC/CM of 29th April 2000 on the harmonisation of the exchange regulations in CEMAC member States;
• Circular No. 00829/MINEFI/DCE/FE/CEA1 of 20th March 2001 on condition for obtaining repatriation attestations for exploitation revenue necessary for VAT credit refund.