FATF Status

Cameroon is on the FATF List of Countries that have been identified as having strategic AML deficiencies

Latest FATF Statement  -  23 February 2024

In June 2023, Cameroon made a high-level political commitment to work with the FATF and GABAC to strengthen the effectiveness of its AML/CFT regime. Since the adoption of its MER in October 2021, Cameroon has made progress on some of the MER’s recommended actions by increasing the resources of the FIU and building the capacity of investigation authorities and judicial bodies to effectively conduct ML/TF cases. Cameroon will work to implement its FATF action plan by: (1) Aligning AML/CFT national strategies and policies with the findings of the NRA and monitoring their implementation, and demonstrating AML/CFT cooperation and coordination between competent authorities; (2) Ensuring risk-based prioritisation of incoming international cooperation requests in line with risks and responding in an effective manner; (3) Enhancing risk-based supervision of banks and implementing effective risk-based supervision for non-bank FIs and DNFBPs, and conducting appropriate outreach to high-risk FIs and DNFBPs; (4) Maintaining and ensuring timely access by competent authorities to adequate and up to date beneficial ownership information on legal persons, and establishing a sanctions regime for violations of transparency obligations applicable to legal persons; (5) Enhancing secure information exchange between the FIU, reporting entities and competent authorities and demonstrating an increase in dissemination of intelligence reports to support operational needs of competent authorities; (6) Demonstrating that authorities are able to conduct a range of ML investigations, and prosecute ML in line with risks; (7) Implementing policies and procedures for seizing and confiscating proceeds and instrumentalities of crime and managing frozen, seized and confiscated property, and prioritising seizure and confiscation of assets at the border; (8) Demonstrating that TF investigations and prosecutions are pursued in line with risk; and (9) Demonstrating effective implementation of TF and PF TFS regimes and implementing a risk-based approach to NPOs without disrupting legitimate NPO activities.

Compliance with FATF Recommendations

The last Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Cameroon was undertaken in 2022. According to that Evaluation, Cameroon was deemed Compliant for 5 and Largely Compliant for 13 of the FATF 40 Recommendations.

It was deemed Highly Effective for 0 and Substantially Effective for 0 of the Effectiveness & Technical Compliance ratings.

US Department of State Money Laundering assessment (INCSR)

Cameroon was deemed a ‘Monitored’ Jurisdiction by the US Department of State 2016 International Narcotics Control Strategy Report (INCSR). Key Findings from the report are as follows: -

Cameroon’s growing financial sector is the largest in the Economic and Monetary Community of Central African States (CEMAC) and, in 2014, hosted 13 banks, 25 insurance companies, over 460 microfinance institutions, and a nascent stock exchange (The Douala Stock Exchange). Yet despite hosting 70 percent of financial institutions in CEMAC, Cameroon is still relatively disconnected from the international financial system. According to the Bank of Central African States (BEAC), less than 10 percent of the population has access to bank services. Cameroon’s economy is heavily cash dependent, and the majority of financial transactions take place in the informal sector, notably in indigenous savings schemes locally known as “Njangui.”

Corruption in Cameroon is an endemic problem in commerce and government; it facilitates money laundering and other financial crimes and retards broad-based development. Various government programs to address corruption have proven ineffectual. Most significant financial crimes in Cameroon derive from domestic public corruption, tax evasion, and embezzlement. The Cameroonian media regularly reports cases of embezzlers of public funds who reinvest funds in real estate projects in an attempt to launder the ill-gotten funds. High profile corruption cases also have revealed the use of offshore transfers by government officials. Cameroonian authorities assert that Cameroon is not a major narcotics transit hub or destination.

Risks to the integrity of the Cameroonian financial system include terrorism activities, illicit wildlife trafficking, and maritime piracy.  Instability in neighboring countries and the use of a common currency have resulted in Cameroon being used as a conduit to move funds from those countries to Nigeria, Europe, and the Middle East. Trade-based money laundering is rampant and utilizes the banking system, microfinance institutions, and the informal financial sector.

Cameroon is particularly vulnerable to abuse by bulk cash smugglers and exploitation by companies transferring money internationally. Most foreign currency transactions are in naira, euros, or dollars.

The six member states of CEMAC share the BEAC, a regional central bank, and a common currency, the Central African Franc (CFA). Traffickers and money launderers may exploit dysfunctions in cross-border cooperation between national agencies. As the largest economy in the region such regulatory weaknesses may, at the domestic level, result in Cameroon being used as a conduit to move funds from those countries to tax havens and other personal investments primarily in Europe and Asia.

Rating                                                                           (100-Good / 0-Bad)

Transparency International Corruption Index                           27

World Governance Indicator – Control of Corruption             13

Corruption is endemic in Cameroon and significantly increases the costs and risks of doing business. Bribery, nepotism and corruption are rife in almost all sector of the Cameroonian government and economy; but is particularly prevalent in the judiciary, public services, and customs. The legal and regulatory systems are non-transparent and difficult for foreign companies to navigate. In addition, there exists a lack of effective regulations, insufficient law enforcement and significant delays in courts. Cameroon's Penal Code (in French) criminalizes corruption, bribery, extortion and bribery of foreign public officials, and corruption is punishable by a prison term of five years to life, a fine of up to USD 4,000 and/or asset seizure. Facilitation payments  and gifts are also addressed in Cameroon's legislation, yet insufficient implementation of anti-corruption legislation coupled with impunity among public officials has exacerbated  the levels of corruption in the country. For further information - GAN Integrity Business Anti-Corruption Portal

Cameroon, the largest economy in the Central African Economic and Monetary Union (CEMAC), continues to recover from external economic shocks. The International Monetary Fund (IMF) projects Cameroon’s real GDP growth to reach 4.6 percent in 2023, up from 3.4 percent in 2022, supported by higher oil prices and non-oil production. The current account deficit is expected to deepen to 3 percent in 2023 against 1.6 percent in 2022. Headline inflation is projected to reach 5.9 percent at end the of 2023, up from 5.3 percent in 2022. The overall fiscal deficit improved from 2.3 percent of GDP in 2022 to around 1.3 percent in 2023 reflecting higher oil revenues, while the non-oil primary deficit is estimated to improve from 4.5 percent of GDP in 2022 to 2.4 percent in 2023, mainly due to the phasing out of fuel subsidies.

Cameroon’s current National Development Strategy (NDS30) sets out to create an enabling environment for public-private partnerships which can spur job growth. The strategy also focuses on boosting local production, developing, infrastructure and leveraging technology for growth and employment.

Cameroon’s economy has faced major external shocks like the COVID-19 pandemic and the war in Ukraine, that have disrupted food commodity and fuel supplies, and placed upward pressure on prices. While some of the adverse effects of exogenous shocks are being weathered with support from the IMF’s three-year $689.5 million hybrid Extended Credit Facility (ECF) and Extended Fund Facility (EFF) arrangements, the upward pressure on fuel prices nonetheless forced the government to ease its fuel subsidies policy. This led to a rise in official fuel prices at the pumping stations. In January 2023, the IMF Executive Board completed the third review of the ECF-EFF program and approved a new disbursement of $73 million.

Cameroon’s 2023 budget totals $10.1 billion, an increase of 4 percent from the 2022 mid-term revised budget, largely funded by tax increases for businesses and households even as the cost of living for Cameroonians soars. The 2023 budget aligns with the National Development Strategy and the IMF program and sets a target to contain the budget deficit.

Cameroon maintains strong competitive advantages due to bilingualism in French and English, relative political stability, a diversified economy, and its location as a gateway to landlocked countries in the Central African region. It offers immense investment potential in infrastructure, agriculture and extractive industries, consumer markets, and modern communication technology (for example, internet broadband, fiber optic cable, and data centers). However, Cameroon’s telecommunication infrastructure needs significant investment for upgrade, as network outages are frequent. More investment opportunities exist in the financial sector as only 15 percent of Cameroonians have access to formal banking services. Governance challenges and administrative bottlenecks remain major setbacks to Cameroon’s investment climate.

Country Links

Banque des Etats de l'Afrique Centrale