Regulation No. 02 on the Inseizability of Foreign Currency Accounts for Extractive Companies in CEMAC

ECONOMIC AND MONETARY COMMUNITY OF CENTRAL AFRICA

MONETARY UNION OF CENTRAL AFRICA

MINISTERS' COMMITTEE

REGULATION NO. 02 /CEMAC/UMAC/CM
On the Inseizability of Foreign Currency Accounts in CEMAC for Extractive Companies

THE MINISTERS' COMMITTEE,

Having regard to the Revised Treaty of the Economic and Monetary Community of Central Africa (CEMAC);

Having regard to the Convention 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 Convention establishing a Central African Banking Commission (COBAC) and subsequent amending instruments;

Having regard to the Convention on the harmonization of banking regulation in Central African States and subsequent amending instruments;

Having regard to the OHADA Uniform Act on the organization of simplified recovery procedures and enforcement measures, particularly Article 51, under which unseizable assets and rights are defined by each Member State;

Having regard to Regulation No. 01/16/CEMAC/UMAC/CEMAC on the prevention and repression of money laundering, terrorism financing, and proliferation 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 regulation in CEMAC and subsequent implementing instruments;

Having regard to Regulation No. /21/CEMAC/UMAC/CM on the implementation modalities of certain foreign exchange regulation provisions in CEMAC by extractive companies;

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 in achieving BEAC's objectives regarding strengthening CEMAC's foreign exchange reserves;

Considering that extractive companies may open foreign currency accounts in CEMAC credit institutions under the conditions and modalities defined by the applicable foreign exchange regulations;

Considering that the counterpart of the balances of said foreign currency accounts is deposited in the foreign currency accounts of credit institutions held at BEAC;

Considering that the repatriation of a substantial portion of foreign currency assets held by extractive sector companies and site restoration funds contributes to the external sustainability of the common currency;

Eager to facilitate BEAC's achievement of its objectives regarding the repatriation of foreign currency assets and the subsequent strengthening of CEMAC's foreign exchange reserves;

Eager to ensure the external stability of BEAC-issued currency through maintaining an adequate level of foreign exchange reserves;

Having received the concurring opinion of BEAC's Board of Directors, issued during its ordinary session on December 17, 2021, in Douala, Republic of Cameroon;

Meeting in ordinary session on December 23, 2021, in Douala, Republic of Cameroon;

On the proposal of the Governor of BEAC,

ADOPTS UNANIMOUSLY THE REGULATION HEREAFTER:

Article 1. - Foreign currency accounts of extractive companies domiciled in the books of CEMAC credit institutions are unseizable, except for those of transporters and subcontractors.

The companies referred to in this Article are understood within the meaning of the Regulation on the implementation modalities of certain foreign exchange regulation provisions in CEMAC by extractive companies.

Article 2. - The unseizability provided for in Article 1 of this Regulation does not preclude the implementation by the Central Bank of the automatic debit referred to in Article 177 of Regulation No. 02/18/CEMAC/UMAC/CM on foreign exchange regulation in CEMAC.

In the event of an automatic debit referred to in the first paragraph of this Article, it is applied primarily to the FCFA accounts of extractive companies.

Article 3. - In the course of carrying out 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, within their respective competences, for ensuring strict application of this Regulation.

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

Article 6. - This Regulation enters into force as of its date of signature. It shall be published in the Official Bulletin of the Community.

Done at Douala, on December 23, 2021

The President of the Ministers' Committee,
Louis Paul MOTAZE