# Instruction N° 13/GR/2019
# on the Terms and Conditions for the Execution of Direct and Portfolio Investments
# THE GOVENOR
Mindful of the Statutes of the Bank of Central African States in force;
Mindful of Regulation No. 02/18/CEMAC/UMAC/CM of 21 December 2018 on exchange rate regulation in CEMAC;
Pursuant to Article 117 of the said Regulations,
# HEREBY GIVES THE FOLLOWING INSTRUCTIONS
Article 1 - This Instruction defines the terms and conditions for credit institutions to carry out direct and portfolio investment transactions with external parties.
# PART I. - FOREIGN DIRECT INVESTMENT
Article 2 - The following shall be considered as direct investments:
the acquisition of holdings or subscriptions of shares in existing or newly created companies for amounts representing at least 10% of the capital of the investment firm;
real estate acquisitions.
# Section 1- Direct Inward Investment
Article 3 - Foreign direct investments in CEMAC are declared by the investor or his agent to the Central Bank and the Ministry in charge of currency and credit at least 30 days before their completion.
To this end, the investor or his authorised representative shall send a declaration to the Central Bank, accompanied by the following supporting documents
-the official document attesting the legal existence of the investor; -the updated Articles of Association of the investor, if applicable; the minutes of the corporate bodies relating to the decision to invest, if applicable; the origin of the funds; the investor's location; - The minutes attesting to the opening of the investment firm's capital.
Article 4 - The transfer of the proceeds of the liquidation or transfer of foreign direct investment in CEMAC shall be declared to the Central Bank and the Ministry in charge of currency and credit at least 30 days before its completion.
To this end, the investor or his authorised representative shall send the Central Bank a declaration relating to the proposed transaction.
Article 5 - Credit institutions shall execute requests for the transfer of proceeds from the liquidation or transfer of investments on the basis of a transfer file containing the supporting documents listed below.
a) For the liquidation of the investment:
the prior declaration of the operation to the BEAC and the Ministry in charge of currency and credit: a nominative list of holdings in the capital of the direct investment firm; - the liquidation document, if applicable; the balance sheets, income statements and auditors' reports for the last three years, if applicable; - Proof of payment of taxes due, related to the transaction, if applicable. the closing balance sheet drawn up by the liquidator or any authorised person, justifying the net amount to be transferred.
b) For the liquidation of the investment:
the prior declaration of the operation to BEAC and the Ministry in charge of currency and credit; - the contract of assignment or any document attesting to the assignment; - Proof of payment of taxes due, related to the transaction, if applicable.
# Section 2 - Outgoing Direct Investment