The procedure to send funds in Cameroon from an offshore Country; we will want to consider here that the funds are for investment purposes.
There are foreign investment/exchange control issues that could arise in the course of sending funds to Cameroon. It would be important to consider the applicable exchange control regulations in Cameroon. These are contained in Regulation N° 2/00/CEMAC/UMAC/CM to harmonize Exchange Control Regulations in CEMAC Member States (hereinafter “the Regulation”).
Defining Direct Investment
The Regulation contains two definitions of “direct investment”:
- Article 86: Acquisition of shares by a resident individual or corporate body to gain a long-term interest in a resident enterprise of another economy.
- Article 87: Holding at least 10% of the share capital of a non-resident enterprise by a resident, or vice-versa.
The Obligation to Declare
Article 94 mandates declarations for direct investments exceeding 100 million CFA francs, filed at least 30 days prior. Furthermore, Article 97 requires actual investment or final payment declarations to the Ministry of Finance and Central Bank within 30 days of each transaction.
Remitting Foreign Capital
Article 70 states that capital movements within CEMAC shall be done freely, provided approved intermediaries verify the origin and destination to prevent illegal trafficking. Approved intermediaries gather information for statistical purposes and posteriori control.
Our law firm is always available to assist any investor within the CEMAC zone in this domain.
For more information, contact us at info@bongamandyoumbilawfirm.org or via our hotline: 237 691 18 559.