New Liberal Professionals Subject to Anti-Money Laundering, Terrorism Financing, and Proliferation Obligations in the CEMAC Region

As indicated in our last month publication, the member states of the CEMAC (Cameroon, Congo, Gabon, Equatorial Guinea, Chad, and the Central African Republic) exhibit a clear commitment to strengthening the fight against money laundering, terrorist financing, and proliferation. This commitment has been manifested through the establishment of a new obligation to declare the beneficial owner, as enshrined in Regulation No. 02/24/CEMAC/UMAC/CM dated December 20^th 2024. In the same vein, to enhance the transparency of professionals whose activities entail heightened risks of illicit financial flows, the new regulation has substantially broadened the scope of liberal professions subject to anti-money laundering (AML) and counter-terrorism financing (CTF) obligations. This normative development reflects the regional authorities’ determination to hold liberal professionals more accountable in preventing illicit flows. By “liberal profession”, one refers to professional activities carried out independently, requiring specialized expertise and skills. Given the diversity of liberal professions, it is essential to identify those covered by the new regulation and outline the obligations that pertain to them.

 I. Expansion of the Scope to New Liberal Professionals

Under the previous framework specifically Regulation No. 01/3-CEMAC-UMAC of 2016, only certain liberal professionals such as statutory auditors, chattered accountants, external auditors, and tax advisors were subject to AML and CTF obligations. However, pursuant to Article 7 of Regulation No. 02/24/CEMAC/UMAC/CM dated December 20^th 2024, the scope has been significantly expanded to include additional liberal professions. Lawyers, notaries, bailiffs, judicial administrators, and court-appointed auctioneers are now explicitly subject to these obligations. Nevertheless, it is important to clarify that these obligations apply to liberal professions only in specific circumstances, namely when they: act on behalf of their clients in financial or real estate transactions; represent trusts or similar structures; or assist their clients in the preparation or execution of operations such as the purchase or sale of real estate, commercial enterprises, or the management of funds, securities, or other assets. Conversely, these obligations do not extend to mere legal consultations, unless provided for the purpose of money laundering or if the professional is aware or should have been aware of such intentions from the client.

II. Obligations of Liberal Professionals in Combating Money Laundering, Terrorist Financing, and Proliferation

Liberal professionals including the new aforementioned ones are all henceforth subject to a set of specific obligations under the new regulatory framework. First, Article 18 introduces a cash transaction reporting requirement.  In fact, they must now report to the National Financial Investigation Agency (NFIA) any cash transaction equal to or exceeding 5,000,000 FCFA whether it involves a single transaction or multiple linked operations. Second, liberal professionals are bound by a client due diligence obligation, which applies both at the outset of a business relationship and throughout its duration. From the start, they must rigorously identify their clients whether natural persons, legal entities, or other legal arrangements as well as the ultimate beneficial owner(s), where applicable. This must be done using reliable, independent documentary evidence or credible sources. This requirement may be simplified where there is a demonstrably low risk of money laundering. Throughout the professional relationship, liberal professionals must continuously gather and assess relevant information to understand the nature and purpose of the services rendered, thereby enabling them to identify and manage any potential risks of money laundering or illicit financing. Lastly, they are strictly prohibited from maintaining anonymous accounts or accounts opened under fictitious names, reinforcing the transparency and traceability measures mandated by the regulatory framework.

In sum, it is important to note that the normative arsenal established by CEMAC to counter money laundering, terrorist financing, and proliferation in Central Africa imposes clear obligations on liberal professionals, assigning them a pivotal role in detecting and preventing unlawful activities scourges widely acknowledged as modern threats. Nonetheless, a key weakness persists in the effectiveness of the framework: the absence of specific sanctions for non-compliance by liberal professionals, which may hinder the successful implementation of the system.

Author: Martin Hendje,  Tax and Legal Consultant Supervisor: Albert Désiré Zang, Managing Partner