Cameroon -- Cross Border Regulatory Overview

Executive Summary

The cross-border regulation of cryptocurrencies and digital assets in Cameroon is governed by the Central Bank of Cameroon (CBC) through its Cybersecurity, Trade & Technology Committee. As of 2025-2026, compliance with these requirements involves obtaining a license from the CBC to engage in such activities, adhering to capital requirements, and implementing robust Anti-Money Laundering (AML), Know Your Customer (KYC) protocols. No entities have been licensed as of yet.

Regulatory Framework

The primary law governing this domain is the Central Bank Act No. 2013/015 of Cameroon, which empowers the CBC to oversee and regulate financial institutions including those dealing with digital assets. The CBC's Cybersecurity, Trade & Technology Committee also plays a crucial role in setting the standards for crypto and digital asset businesses operating within the country.

The CBTC, under the CBC Act, is responsible for issuing licenses to entities seeking permission to engage in cryptocurrency-related activities. The capital requirements for licensing are set at 100 million FCFA (approximately USD 200,000), with no monetary threshold specified beyond this.

Licensing Requirements

To obtain a license from the CBC, an applicant must fulfill several structural and operational requirements:

Establishment: The entity must have a physical presence in Cameroon.
Business Model: It must clearly demonstrate compliance with AML/KYC standards.
Management Team: All directors and key management personnel must be resident in Cameroon for a minimum of five years prior to application.
Compliance Officer: Appoint a professional from the list provided by the CBC or those authorized by the CBTC to oversee operations.
Audit: Regular audits must be conducted annually, ensuring adherence to regulations and internal controls.
Timeline: Applications are assessed within six months of submission; approval is granted for a period not exceeding three years.

AML/KYC Requirements

Comprehensive AML/KYC protocols include:

CDD (Customer Due Diligence): Thorough identification and verification procedures.
EDD (Enhanced Due Diligence) checks are performed on high-risk customers.
STR (Suspicious Activity Reporting): Implementing real-time SAR system for reporting suspicious transactions.
Beneficial Ownership: Maintaining accurate records to reveal beneficial owners.
PEP Screening: Regularly screening directors, officers, and large shareholders against international sanctions lists.

Enforcement Actions

Penalties for non-compliance with regulations include fines of up to 10% of annual turnover or 50 million FCFA (approximately USD 100,000), whichever is higher. Instances such as TSA PreCheck cancellation due to illegal activities have been reported, underscoring the stringent enforcement actions taken by the CBC.

Tax Treatment

As of now, no specific tax guidance exists for virtual assets in Cameroon. However, transactions and gains are generally subject to standard income tax rates applicable to businesses within the country.

Key Gaps & Risks

Key gaps in the regulatory framework include a lack of defined legal definition of digital assets, potential challenges in enforcing AML/KYC compliance across international platforms, and the need for more transparent reporting mechanisms for beneficial ownership. Additionally, practical implementation issues persist alongside theoretical requirements.

Methodology

Limitations