BANK SECRECY IN CAMEROON:

AN OVERVIEW OF THE NEW

LAW
Prepared by
4M Legal and Tax

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BANK SECRECY IN CAMEROON: AN OVERVIEW OF THE NEW LAW

On the 27th of April 2022, the President of the Republic of Cameroon enacted a new law governing
bank secrecy. This Law of 30 sections repeals every provision of the previous law contrary to it.

According to the Minister of Finance who defended the bill at the parliament, this Law takes into
consideration the recent trends and developments especially with the entry of new technology
actors in the financial services sector such as payment service providers (FINTECH) and the need to
contain new risks of criminal activities. Also, the previous Law had become obsolete.

This new Law which modernizes the existing framework and enhances the protection of personal
data belonging to clients of reporting entities shall be seen below.

I-CLARIFICATION OF EXISTING CONCEPTS AND INSTITUTION OF

NEW CONCEPTS

The following existing concepts were The following new concepts were
reformulated by the new law: instituted by the new law:

1.Guardian replaced with Guardianship;
2. Donee replaced with Donation;
3.Credit Institutions replaced with Reporting
Entities;
4.Bare-owner replaced with Bare-ownership;
5.Legal Tutor replaced with Tutelage;
6.Beneficial owner replaced with Usufruct.
1.Rightful claimant defined as any person with
legal claim to something;
2.Supreme audit institution defined as a
national body empowered by law or
presidential decree to perform the external
audit duties of finance management;
3.Third-party defined as a natural or legal
person outside the relationship binding the
client to the reporting entity.

II– INCREASE IN THE NUMBER OF REPORTING ENTITIES AND

SUBJECTED PERSONS
A– Reporting entities. B– persons prohibited from disclosure
Previously only credit institutions, that is Previously, we had employees, management,
Banks, were subjected to the bank and control organs of reporting entities as those
secrecy law. prohibited from disclosure of client’s
information.
The new law increased the number
reporting entities to include microfinance The new law has included administrators of
institutions, payment service providers, reporting entities among those prohibited from
and any other duly authorized body to disclosure.
carry out the dedicated activities.
We however note that shareholders of reporting
entities are not prohibited from disclosure save
where such shareholders are equally
administrators.
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III–INSTITUTION OF AN INDEFINITE NON–DISCLOSURE

OBLIGATION
The new law includes a new provision instituting an indefinite non-disclosure
obligation for the subjected persons.

In other words, employees, management and control organs, and

administrators of reporting entities are bound by a non-disclosure
obligation throughout their lives and even after cessation of work with the
reporting entity.
The following existing concepts were reformulated by the
reformed law:
IV– CLARIFICATION OF NON–DISCLOSURE OBLIGATIONS
A–Acts constituting a violation of Bank Secrecy

The reform clarifies acts constituting a violation of bank secrecy.

In effect, section 5(1)(a) provides that, the violation of bank secrecy shall constitute the release
and communication by any means whatsoever of facts and information on banking,
microfinance and payments operations obtained in the performance of their duties by
employees, administrators, management, or control organs of a reporting authority.

The exclusion by the above provision of DEEDS of clients gives the impression that this may be
disclosed, contrary to section 3 of the new law, wherein non-disclosure obligation also covers
DEEDS of clients of the reporting entity.
Guardian replaced with Tutelage;
Also, it could be Beneficial
deduced occupant
from above that,with
replaced facts and information about clients obtained from
Usufruct.
sources other than in the performance of their duties by employees, administrators,
management, or control organs, may be disclosed.

B–Acts not constituting violation

Credit Institutions of Bank
replaced withSecrecy
Reporting Entities;
Bare-owner replaced
Trusteewith Bare-ownership;
replaced with Guardianship;
The exception provisions under the previous law permitting third-party disclosures have been
Donee re444444444laced with Donation;
amended to take into consideration the newly instituted concepts. These
01 provisions were also
expanded to include more acts which do not require the client’s consent for disclosure. This
includes the following: 02

– Communication by any means whatsoever of information or data with the authorization of the
client or the member or his/her rightful claimants. A rightful claimant
03defined as a person with
a legal claim to something.
04
– Disclosure by reporting entities of banking information to the State Counsel, monetary
authority, supervisory bodies, and any other entity against which banking secrecy may not be
invoked, upon requisition, request, or by a regulatory obligation.
05
– Statements made to the National Agency for Financial Investigation on transactions or
information concerning sums of money suspected to be derived from,06inter alia, drug trafficking,
activities by criminal organizations, money laundering or terrorist financing, and all other
underlying offenses.

– Statements made by managers of a reporting entity during legal proceedings or before a

judicial police officer acting upon the request of the State Counsel or based on rogatory letters
from the investigating magistrate.
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– Where, upon a court order, a reporting entity allows its books and database to be examined
under conditions laid down by the OHADA Uniform Act relating to general business law.

– Communication by any means whatsoever of information to tax authorities under the

right to communicate as provided for by the General Tax Code and international
agreements concluded by Cameroon on tax matters.

– Communication to the customs administrators by any means whatsoever, of information,

pursuant to the right to communicate as provided for by the Customs Code of the Central
African Economic and Monetary Community (CEMAC), as well as international tax-related
conventions and agreements concluded by Cameroon.
01 Rightful claimant defined as
any person with legal claim to

02
something.
V–AUTHORITIES AND PERSONS WHO CAN REQUEST THE LIFTING OF BANK
SECRECY
The provisions of the new law amends and supplements certain provisions on authorities and
persons who may request lifting of Bank Secrecy and extends the list to other categories of
persons.

A–The amended and supplemented non–invocability

provisions

01 1.With regards to a judicial authority or a criminal investigator

Previously, a judicial authority, or a criminal investigator acting based on a

requisition from the State Counsel could be seen opposed bank secrecy by
the reporting entities.

With the new law, reporting entities may not invoke bank secrecy against
a judicial authority or a criminal investigator acting based on a requisition
from the State Counsel.
02
2.With regards to Tax Authorities

Previously, only sworn tax agents could have access to information of

clients of reporting entities.

With the new law, the only requirement for a tax agent is to be duly
03 mandated by the tax administration.

3.With regards to Custom Officials

Previously, the only requirement for a custom agent to have access to

information of clients of reporting entities was to be a sworn custom agent.

With the new law, in addition to being a sworn custom agent, the agent
must be in possession of a letter of authority.

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z`

04 4.With regards to financial markets officials

Following the merger of the Central African Financial Market Supervisory

Commission (COSUMAF) and the Financial Market Commission of
Cameroon (CMF), the body in charge of supervision of the Financial Market
became COSUMAF.

Taking this into consideration these changes, the new law thus reads as
such: “Banking secrecy may not be invoked against the financial markets
supervisory body acting within the framework of its market inspection
and supervision duties”.
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5.With regards to the institution in charge of recovery of public

Previously, the body in charge of the recovery of public debts was

considered a Public Company. This body was transformed to a “public
institution” following decree no 2020/026 of January 09, 2020, on the
reorganization and functioning of the Company in charge of the recovery of
public debts.

Taking into consideration these changes, the new law thus reads as such:
“Banking secrecy shall not invoke against the public institution in
charge of debt recovery, acting with the framework of activities under
its jurisdiction”.

B–Additional list of Persons and Institutions against whom non-

disclosure may not be invoked
ACCOUNTING

According to the new law, bank secrecy shall not be invoked against the
following persons in the exercise of their duties:

– The rightful claimants of a client or member of the reporting entities;

– The National Economic and Financial Committee (CNEF);

– Institutions in charge of combating corruption, money laundering and

terrorist financing.

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VI– THE CRIMINAL AND CIVIL LIABILITY FOR VIOLATING BANKING

SECRECY
The new law scraped off the criminal and civil liability of management and employees of credit
institutions who do not declare to the State Counsel or the Monetary Authority transactions
involving sums of money they are aware of or presume to be derived from drug trafficking, the
activity of criminal organizations or money laundering.

Also, the sanctions of confiscation of “corpus delicti” and loss of civil rights were scraped off
by the new law.
Basic
However, the civil liability for a breach of bank secrecy was increased from 20 000 000 (twenty
million) FCFA to a maximum of 50 000 000 (fifty million) FCFA by the new law. Also, where the
breach is caused by a legal entity, the civil liability shall be quintupled, that is 250 000 000 (two
hundred and fifty million) FCFA.

In addition to the above sanctions, the new law institutes the possibility to close the
establishment used to perpetrate the offence for a specified period.

Moreover, the new law increased the incriminated mediums through which a breach of bank
secrecy may be committed. The previous law considered only print media and information
networks without any precision. These mediums include radio, television, electronic
communications, or any other means intended to reach the public.

Furthermore, the prerogative to institute criminal proceedings is no longer the sole reserve of
the legal department. The monetary authority and the victim can now institute criminal
proceedings against the perpetrators of the offence.

Finally, offences for violating bank secrecy are now imprescriptible with the new law.

CONCLUSION
The reform introduced by Law no 2022/006 of 27 April 2022 governing bank secrecy
in Cameroon modernizes the existing framework and enhances the protection of
personal data belonging to clients of reporting entities.

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