BANK OF CENTRAL AFRICAN STATES
The Governor
Yaoundé, October 5, 2020
For the attention of General Managers of Credit Institutions and other Economic Agents
CIRCULAR LETTER N° 014 /GR/2020
Specifying the supporting documents to be provided by Economic Agents in the context of direct and portfolio investment transactions with foreign countries
In accordance with the relevant provisions of the Foreign Exchange Regulations in force in CEMAC, operations relating to direct and portfolio investments with foreign countries are subject to prior authorisation by the Bank of Central African States or to prior declaration to the latter before the execution of any related transfer by Credit Institutions.
As a reminder, the operations relating to direct and portfolio investments subject to prior declaration to BEAC are the following:
- foreign direct investment in CEMAC;
- transfer of the proceeds from the liquidation of foreign direct investments in CEMAC;
- transfer of proceeds from the sale of foreign direct investment in the CEMAC;
- foreign portfolio investment in CEMAC;
- transfer of the proceeds of the sale of a foreign portfolio investment in CEMAC in the form of an equity investment when the amount to be transferred exceeds CFAF 100 million;
- transfer by a non-resident of the proceeds of the sale of CEMAC securities in an amount exceeding 100 million CFA francs.
The operations relating to direct and portfolio investments subject to prior authorisation by BEAC are as follows:
- direct investment abroad other than in real estate for individuals;
- direct investments abroad other than in real estate for legal persons;
- acquisitions outside CEMAC of real estate by residents, both natural and legal persons;
- outgoing portfolio investments of more than 20 million CFA francs.
Thus, this Circular Letter defines the elements of the files to be submitted to BEAC by Economic Agents wishing to carry out direct and portfolio investment operations with foreign countries.
| Nature of the operation | Supporting documents required |
|---|---|
| ✓ declaration of Foreign Direct Investment in CEMAC | • the official document certifying the legal existence of the investor; • the investor's updated statutes, if any; • The minutes of the corporate bodies relating to the decision to invest, where applicable; • the justification of the origin of the funds; • the location of the investor; • the nature of the contributions in kind or in cash • the minutes of the opening of the investment firm's capital; • the official document confirming the legal existence of the investment firm; • updated articles of association of the investment firm. |