In order to maintain a good exchange rate parity that guarantees monetary stability and economic
development, the CEMAC countries have set up rules aimed at regulating their financial relations
with the outside world. In this regard, they adopted a regulation harmonizing foreign exchange
regulations in CEMAC on 29 th April 2000. Eighteen (18) years later, this regulation which has become
inadequate and had many shortcomings, led to the adoption of a new regulation on 21 st December
2018, through Regulation No. 021/18/CEMAC/UMAC/CM, accompanied by a multitude of
instructions and decisions by the Governor of the Central Bank (BEAC). The new regulation clearly
reflects CEMAC’s desire to protect its economic and monetary area by imposing rules to be observed
in transactions with foreign countries. In this way, failure to comply with these rules constitutes an
infringement of the CEMAC exchange regulations. The sanctions of these offences are provided in
article 160 and following of the Regulation. However, prior to the implementation of sanctions
against offending economic agents, it is imperative to respect the norms that govern the
identification of offences. These are set out in Instruction No. 014/GR/2019 of 10 th June 2019 of the
Governor of BEAC. Therefore, what are the modalities for the detection of infringements of foreign
exchange regulation in the CEMAC zone? Our approach here will consist in revealing the different
entities authorized to record infringements (I) on the one hand, and the procedure for recording
them (II) on the other.
I. The Organs empowered to establish offences
Pursuant to the combined application of the provisions of Articles 4 and 7 of the above-mentioned
instruction, the establishment of offences laid down by foreign exchange regulations fall under the
competence of the Central Bank, the General Secretariat of COBAC, the Ministry in charge of finance
and credit institutions. Moreover, each body can only identify offences committed by economic
agents within its jurisdiction. However, it should be noted that unlike the other entities, the Central
Bank has unlimited power. As such, it can detect offences by economic agents under the jurisdiction
of other organs. Article 8 of the Instruction specifies that: “the Central Bank detect violations of
foreign exchange regulations by all economic agents”. Infringements committed by credit
institutions, microfinance institutions, payment institutions and exchange office are established by
the COBAC General Secretariat, as per Article 9 of the instruction. The Ministry in charge of finance is
competent for offences of postal establishments and economic agents other than credit, payment
and microfinance institutions and exchange offices. The Ministry may also in the context of its
administrative control, establish offences against microfinance institutions, exchange offices and
authorized foreign exchange agents, according article 10 of the Instruction. Finally, offences
committed by sub-delegated institutions are noticed by credit institutions to which they belong in
accordance with the provisions of Article 11. The detection of infringements of foreign exchange
regulations is thus subject to precise rules of competence that should be observed, as well as the
relevant procedure.
II. The procedural rules of establishing infringements
The establishment of foreign exchange violations in the CEMAC follows a well-defined procedure,
which must however be applied while ensuring certain guarantees for the economic agent involved.
Concerning the procedure, it is implemented by means of either by documentary audit or a control
carried out in the agent’s office. However, it should be noted that the first type of controls may be
conducted by authorized organs, excluding credit institutions. This control consists of the Central
Bank sending a letter of observation to the economic agent, inviting him/her to provide explanations
within a period of eight (8) days from the date of receipt of the letter. At the end of this period, the
BEAC notes the infringements and sends to the economic agent a statement listing all the offences
subject to sanctions. This is only possible if the economic agent’s explanations do not call into
question the shortcomings noted in the statement; or if the economic agent has not responded to
the letter, according to Article 12 and 13 of the Instruction. As for the Ministry in charge of finance
and the General Secretariat of COBAC, their control is limited to sending statements of offence to the
offending agents with a copy to the BEAC when they observe the offences. In regard to on-site
investigation, it may be carried out by all authorized organs. Defined by articles 15, 16 and 17 of the
instruction, it consist of sending a provisional report of findings to the agent concerned. The latter
has 15 days to respond in writing. At the expiration of that period the competent organ notifies the
final report to the economic agent, accompanied by a statement of offences. This is only possible if
the economic agent has not responded to the provisional report or if its written reply does not
challenge the shortcomings noticed in the said report. While it is true that the procedure is almost
identical for all organs, it should be noted that only other entities are obliged to send a copy to the
Central Bank for each report.
As far as the guarantees granted to the economic agent are concerned, they deal with respect of the
principles of adversary proceedings, fair hearing and rights of defense as set out in Article 2 of the
instruction. They guarantee that the economic agent can discuss and tackle the facts of which he is
accused as well as the legal arguments against him.
In conclusion, it appears that the recording of infringements of foreign exchange regulation in
CEMAC is subject to a set of well-defined modalities. These relate to the competent entities and the
procedure for identifying offences. Thus, economic agents presumed guilty of infringing foreign
exchange regulations must ensure that these requirements are observed before any sanctions are
applied.