In order to achieve optimal mobilization of internal resources necessary for its financing development,
Cameroon has undertaken measures to combat international tax fraud and evasion alongside several
other states. Consequently, it joined the Global Forum on Transparency and Exchange of Information
for Tax Purposes (Global Forum) in 2012. Through this membership, Cameroon committed to
implementing the Automatic Exchange of Financial Account Information (AEOI) Standard latest by
September 2026. However, more than a decade after joining the Global Forum, Cameroon had still not
initiated the automatic exchange of information on financial accounts. It was not until the 2024
Finance Law that the foundations for implementing this commitment were laid down. Through Article
18d newly established by this law, the Cameroonian tax legislature requires financial institutions and
similar organizations, including banks, financial establishments, insurance and reinsurance companies,
to identify the tax residence of financial account holders and report the required information to the tax
administration. The purpose is for Financial Institutions to provide the tax administration with
information about all account holders in order to exchange information on these accounts with other
jurisdictions. This helps in monitoring financial account holders in conducting, maintaining, and
managing investments through financial institutions located outside their jurisdiction of residence. In
this article, we will examine the true substance of this requirement introduced by the legislature. Our
analysis will, therefore, focus on the content (I) as well as execution of obligations and related
sanctions (II).
I. The Content of Obligations
The obligations for identifying and declaring tax residence imposed on financial institutions, as
outlined in Article 18d as per the 2024 Finance Law, require them to determine the true tax residence
of the holders of accounts opened in their books, as well as, where applicable, the tax residence of
individuals controlling these accounts. To do so, they are required firstly, to collect a set of information
of their clients and secondly communicate it to the tax administration. Regarding collection, it
involves gathering information from individual or corporate entities concerning their identity and
accounts to determine their tax residence. Although the Cameroonian legislature does not specify these
information elements, it can nevertheless be inferred that they refer to those defined in paragraphs A
and B of Section I of the Common Reporting Standard established by the Organisation for Economic
Co-operation and Development OECD. These may include, among others, the name, address,
jurisdiction of residence, date and place of birth, account number, and tax identification number.
Furthermore, the required information also covers financial details related to the accounts, including
capital income, account balances, surrender value of insurance and annuity contracts, capitalization
bonds or contracts and similar investments as well as proceeds from the sale or redemption of financial
assets. With regards to the communication of this information, paragraph 2 of section18d specifies that
financial institutions should provide the requested information to the tax administration to facilitate the
implementation of agreements concluded by Cameroon within the framework of automatic exchange
of information on financial accounts for tax purposes. Financial institutions are nevertheless obliged to
notify the administration of any absence of information or inability to obtain it.
II. Execution of obligations and Related sanctions
The obligations imposed on Financial Institutions are subject to specific modalities and their violations
are liable to penalties. With regards to modalities, they pertain to the methods of disclosing
information to the tax administration and keeping of documents related to the identification of account
holders. Concerning the methods of reporting information, paragraph 2 of the aforementioned
section18d states that financial institutions must communicate the required information to the tax
administration through a declaration in accordance with the prescribed model. This refers to a form
established by the tax administration, clearly indicating the information to be collected by financial
institutions from their clients and corresponding to international standards. As for the keeping of
documents, reference should be made to the provisions of paragraph 3 of the same section, which
obliges financial institutions to retain records relating to measures taken to comply with the obligation.
Moreover, they are also required to keep all supporting documents, self-certifications, and any other
probative documents used to comply with the identification obligation. In the same light, financial
institutions are also obliged to keep records for a period of five (05) years from the end of the period
during which they are required to provide the requested information. This last requirement
undoubtedly contributes to ensuring the traceability of information and facilitates audits and other
forms of investigations conducted by tax authorities. In relation to sanctions, they vary depending on
whether the violation relates to obligations or the preservation of information and documents as per
Section18h of the General Tax Code. Failure to comply with the identification and reporting
obligations shall be punishable by a fine of FCFA 5 million per account. Such penalty shall also apply
to late, incomplete, insufficient or erroneous reporting. As far as failure to keep information and
documents is concerned, this shall lead to a fine of FCFA 1 million per year and per account.
In conclusion, the obligations of identification and reporting of tax residence imposed on financial
institutions by Section18d as per the 2024 Finance Act require them to collect and disclose a set of
information to the tax authorities in order to identify the tax residence of account holders.
Furthermore, the implementation of these obligations follows certain modalities, and their violation is
subject to heavy tax sanctions. These new legal requirements aim to facilitate Cameroon’s
implementation of automatic exchange of information on financial accounts for tax purposes.
Author: Ngo Ntomb Elise Patricia Tax & Legal consultant; supervisor: Albert Désiré Zang, Managing
Partner