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Non-compliance with foreign exchange regulations: CEMAC extractive companies exposed to sanctions

22/10/2021
Categories: Economy/Forex

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Extractive companies in the Economic and Monetary Community of Central Africa (CEMAC) are exposed to sanctions for non-compliance with exchange regulations. From January 1, 2022, all economic agents in activity must comply with the foreign exchange regulations in force since March 2019 under penalty of sanctions.

The strict deadline set by the Heads of State of the sub-region at the extraordinary summit on August 18, to "equitably apply exchange regulations to all economic agents" is December 31, 2021 at the latest. Thus, extractive companies expose themselves to administrative and pecuniary sanctions, in particular the payment of a 10% fine for non-repatriation of export earnings, non-domiciliation of export operations and suspension of all operations. offenders for a period ranging from 1 to 9 months. In addition, the non-retrocession of currencies by the banks of their customers to the Central Bank exposes them to a fine of 5% of the amount of the currencies not retroceded.

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