CEMAC/UMAC Regulation No. 02 on the Unseizability of Foreign Currency Accounts of Extractive Companies

COMMUNITY OF CENTRAL AFRICAN ECONOMIC AND MONETARY REGULATION No. 02/CEMAC/UMAC ON THE UNSEIZABILITY IN CEMAC OF FOREIGN CURRENCY ACCOUNTS OF EXTRACTIVE COMPANIES MONETARY UNION OF CENTRAL AFRICA

THE MINISTERIAL COMMITTEE,
Having regard to the revised Treaty of the Community of Central African Economic and Monetary (CEMAC); Having regard to the Agreement governing the Monetary Union of Central Africa (UMAC); Having regard to the Statutes of the Bank of Central African States (BEAC); Having regard to the Agreement establishing the Central African Banking Commission (COBAC) and its subsequent amending texts; Having regard to the Agreement on the harmonization of banking regulations in the Central African States and its subsequent amending texts; Having regard to the Uniform Act of OHADA on simplified collection and enforcement procedures, particularly Article 51, according to which unseizable assets and rights are defined by each of the Contracting States; Having regard to Regulation No. 01/16/CEMAC/UMAC/CEMAC on the prevention and repression of money laundering and terrorist financing in Central Africa; Having regard to Regulation No. 03/16/CEMAC/UMAC/CM on payment systems, instruments and incidents; Having regard to Regulation No. 02/18/CEMAC/UMAC/CM on foreign exchange regulations in CEMAC and its subsequent implementing texts; Having regard to Regulation No. 04/21/CEMAC/UMAC/CM on the application modalities of certain provisions of foreign exchange regulations in CEMAC by extractive companies;

THE MINISTERIAL COMMITTEE,
Considering the principles of the Extractive Industries Transparency Initiative (EITI); Considering that investments in the extractive sector contribute to ensuring the harmonious and sustainable development of Member States and the Community; Considering the importance of activities carried out by resident companies operating in the extractive sector to achieve BEAC's objectives of strengthening CEMAC's foreign exchange reserves; Considering that extractive companies may open accounts in foreign currency at CEMAC credit institutions under the conditions and procedures defined by current foreign exchange regulations; Considering that the counterpart of balances in these foreign currency accounts is deposited in foreign currency accounts at credit institutions within BEAC's books; Considering that the repatriation of a substantial portion of foreign currency external assets by extractive sector companies and rehabilitation site funds contributes to the external sustainability of the common currency; Concerned with facilitating BEAC's achievement of its objectives regarding foreign asset repatriation and the consequent strengthening of CEMAC's foreign exchange reserves; Concerned with ensuring the external stability of BEAC-issued currency by maintaining an adequate level of foreign exchange reserves; Having received the conforming opinion of BEAC's Board of Directors, issued at its ordinary session on December 17, 2021, in Douala, Republic of Cameroon; Having met in ordinary session on December 23, 2021, in Douala, Republic of Cameroon; Upon proposal by the Governor of BEAC,

HAS ADOPTED BY UNANIMITY THE FOLLOWING REGULATION:

Article 1. - Foreign currency accounts of extractive companies domiciled in the books of CEMAC credit institutions, with the exception of those belonging to transporters and subcontractors, shall be exempt from seizure.
The companies referred to in this article are understood within the meaning of the Regulation on application modalities of certain provisions of foreign exchange regulations in CEMAC by extractive companies.

Article 2. - The unseizability provided for in Article 1 of this Regulation does not prohibit the application by the Central Bank of the automatic debit provided for in Article 177 of Regulation No. 02/18/CEMAC/UMAC/CM, dated December 21, 2018, on foreign exchange regulations in CEMAC.
In the case of the automatic debit referred to in the first paragraph of this article, priority shall be given to CFA franc accounts of extractive companies.

Article 3. - In the course of their activities, resident extractive companies may formally waive the unseizability of their foreign currency accounts in CEMAC, as provided for in Article 1 of this Regulation.

Article 4. - Credit institutions, COBAC, BEAC and the competent national authorities are each responsible for ensuring strict application of this Regulation.

Article 5. - This Regulation may be amended by the Ministerial Committee.

Article 6. - This Regulation shall enter into force from the date of its signature. It shall be published in the Official Gazette of the Community.

Signed, on December 23, 2021
The President of the Ministerial Committee,
Louis Paul MOTAZE