By Noela EBOB BISONG
The Bank of Central African States – BEAC has issued a circular to commercial banks within the sub region, cautioning them against the promotion of money laundering and financing of terrorism. Recall that BEAC is the Central Bank of the Economic and Monetary Community of Central Africa. It manages the FCFA (XAF) currency.
In the Circular letter n ° OO8 GR/2O24, dated September 19, 2024, and signed by the Governor of BEAC, Yvon Sana Bangui, it recalls the provisions of the exchange regulations and the fight against money laundering as well as the financing of terrorism. BEAC wants these provisions to be applied by credit institutions, when carrying out operations on non-resident accounts labeled in XAF.
Following on-site checks, the central bank has identified three main aspects with regards to the issue. Firstly, it holds that, it has observed a large number of operations to the credit and debit of the non-resident accounts denominated in XAF, for which no beneficiary could be identified by the credit institution.
Also, a reprehensible practice of transfers in favour of accounts denominated in XAF of certain banking correspondents and foreign financial institutions, in settlement of imports of goods and services, not declared to customs authorities and not domiciled with credit institutions and subsequently not approved, in violation of the exchange regulations in force.
Moreover, BEAC has also noted operations ordered by exchange offices of CEMAC assimilated to imports from foreign banknotes without prior authorisation from the Central Bank.
This is not the first time the Central Bank is alerting a check on the issue of foreign exchange regulations as well as that of the fight against money laundering, the financing of terrorism and proliferation.
So far, tongues are wagging with respect to whether the said Credit Institutions are the accomplices of such fraudsters or if they are actually incapable of controlling such. The sub region continues to suffer several hardships from the ills.