Alternately known as financial privacy, banking secrecy is a conditional agreement between a bank and its clients that all foregoing activities remain secure, confidential, and private.
Cameroon already had law No. 2003/4 of 21 April 2003 relating to banking secrecy. Over eighteen years following its entry into force, some aspects of the law have become obsolete, given the developments in the financial and technological sector. These developments have ushered in a new wave of criminal activities like money laundering, cybercrime and terrorist financing this prompting CEMAC to legislate thereon. Such is the case in particular through its Regulation No. 01/CEMAC/UMAC/CM of 11 April 2016on the prevention and repression of money laundering amongst other crimes in Central Africa. Similarly, some provisions of the OHADA Uniform Act provide for mechanisms to check to check the aforementioned risks.
The bill defended by Minister Louis Paul Motaze thus governs banking secrecy in Cameroon. According to the explanatory note, financial sector efficiency is currently characterised by its ability to ensure optimal mobilisation and relocation of resources to finance the economy. To this end, professionals of the sector must strictly abide by the legal principles governing their activity. This means the obligation incumbent upon reporting entities, their organs and employees to guarantee the confidentiality of the personal and financial date of their clients. This will be by refraining from disclosing such information to third parties.
Fully aware of the said obligation, which if unobserved can create mistrust among savers and disrupt the financial intermediation system that is so useful to the economy, there already existed a law but which need to be updated.
The bill which comprises four parts and 30 sections presents the following innovations. The inclusion of microfinance institutions and other payment service providers among reporting entities. The extension of the limit of pecuniary penalty incurred by whoever breaches banking secrecy to take into account inflation and to highlight the dissuasive nature of the law within public opinion. Also, there is the extension of entities and public authorities against which banking secrecy may not be invoked.
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