Regulatory Alerts2022-01-05
Regulation No. 01/CEMAC/UMAC/CM on the Implementation of Foreign Exchange Rules for Resident Extractive Companies
The Ministers' Committee of the Economic and Monetary Community of Central Africa (CEMAC) issued Regulation No. 01/CEMAC/UMAC/CM to mandate a minimum 35% repatriation of foreign currency generated by resident upstream hydrocarbon and mining companies into CEMAC, while exempting exploration-phase revenues and resource-backed loans. The regulation requires full repatriation of site rehabilitation (RES) funds within three years of January 1, 2022, into designated accounts at the Bank of Central African States (BEAC) or authorized credit institutions, subject to prior authorization and periodic declarations. Non-compliance incurs fines of up to 150% for unrepatriated or undomiciled funds and monthly penalties of one-thousandth for delayed transfers, with collected amounts distributed to BEAC and the Public Treasury to reinforce regional foreign exchange reserves.