STEPS AND CONDITIONS FOR THE AUTHORIZATION AND OPERATION OF A BUREAUX DE CHANGE / CURRENCY EXCHANGE OFFICE IN CAMEROON
A bureau de change per definition an office managed or operated by financial intermediaries, whose main activity is the physical exchange of one currency for another currency, taking into account the floating rates in force and its own remuneration policy.
The exchange office also called the foreign exchange bank, is in certain cases authorized to exchange the equivalent in euros, dollars, or in other currencies of coins or gold bars.
In Cameroon Private economic operators, natural or legal persons having their habitual residence in Cameroon, are authorized to carry out manual exchange operations subject to obtaining an authorization issued by the Monetary Authority (the Minister of Finance).
PERSONS SUBJECT TO APPROVAL IN THE AUTHORIZATION PROCESS OF A BUREAUX DE CHANGE / CURRENCY EXCHANGE OFFICE IN CAMEROON
The partners who are natural persons having control of the legal person approved as a money changer as well as the persons assuming its management must be approved under the same conditions as the natural persons approved on an individual basis.
ETHICAL AND PROFESSIONAL CAPACITY TO OPERATE A CURRENCY EXCHANGE OFFICE IN CAMEROON
Any person wishing to obtain approval as a money changer must meet the following conditions:
• Be of good character;
• Never have been convicted of bankruptcy, crime, theft, breach of trust, bad check fraud or any other violation of foreign exchange regulations
• Not be a dishonest debtor of the banking system;
• Justify professional experience in the following areas: management, economics, commerce, public relations, and marketing.
OPERATION
Under pain of sanctions provided for by the regulations in force, money changers are required, within the framework of their activity, to respect the following rules
1) Display the rates applied to the purchase and sale of currencies as well as the commissions levied, distinguishing between tickets, traveler’s checks, and other means of payment.
2) For the purchase as well as for the sale, issue a receipt of which he keeps the duplicate, and include the following information
• identification of the exchange office;
• the date of the transaction:
• the amount per currency exchanged;
• the exchange value served;
• The payment method used.
3) Inform customers by means of notices of the regulatory provisions applicable to the issuance and holding of foreign currency;
4) Keep records showing:
• The sums exchanged;
• The date. the purpose and destination or origin of the capital;
• the number of the currency purchase authorization issued, where applicable, by the competent departments of the Ministry of Finance,
• The exchange rates applied.
5) Send monthly to the General Directorate of the Treasury of Financial and Monetary Cooperation a statement of its external position by type of currency for the establishment of the Balance of Payments and for the purposes of clearing the transactions carried out
6) Guarantee all conditions of security and continuity of public service, in particular by noting the identity of customers.
7) In the event of the opening of a new counter, make a simple declaration to the Monetary Authority.
DOCUMENTS REQUIRED FOR THE APPROVAL OF A BUREAU DE CHANGE (CURRENCY EXCHANGE OFFICE) IN CAMEROON
The authorization application file must include the following documents:
• A stamped application indicating the location of the exchange office and the address;
• The registration number in the commercial register;
• A copy of the article of association of the office being created;
• A valid taxpayer card;
• A copy of the birth certificate dated less than (3) three months;
• A criminal record extract dating from less than (3) three months
• Draft contracts or agreements with national or foreign banks for supply needs;
• Rules of procedure to ensure internal control
• A bank certificate confirming the payment of a deposit of 50 million FCFA;
• The list of staff employed and their functions;
• Any other document enabling the Monetary Authority to better assess the applicant’s application.
REGULATORY REFERENCES
• Regulation N`02/OO/CEMAC/UMAC/CM of April 29, 2000, harmonizing foreign exchange regulations in CEMAC member states
• Order No. 194/MINEFI/FE of 16 September 1998 on the conditions for the opening and operation of manual exchange offices by private economic operators.
Article by CHUO ANGABUA JUNIOR
‘’The content of this article is intended to provide a general guide to the subject matter. We insist specialist advice be sought depending on your specific circumstance’’
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