CAMEROON LAW AND PRACTICE Contributed by: Serges Martin Zangue, Brandon Ntahdui, Joel Noussie, Julienne Happi, Mathias Choudjem, Maeva Pokem, Winy Felifack and Synthia Pamela Dounking Amfouo, Zangue & Partners
7. Foreign Investment/National Security 7.1 Applicable Regulator and Process Overview Cameroon has a foreign investment review regime that applies to certain sectors, particularly those deemed strategic or sensitive to national security and econom - ic stability. Even though there is no single dedicated law specifically governing foreign investment screen - ing, various legal and institutional frameworks have been put in place at the sub-regional and national levels to contribute to the safeguarding of national security within the framework of FDI. Legal and Institutional Frameworks Governing Foreign Investment/National Security and Relevant Authorities Sub-regional level At the sub-regional level, under the 2018 Exchange Control Regulation, the BEAC, COSUMAF and the Ministry of Finance monitor and approve internation - al financial transactions to prevent money laundering and illicit transfers that could threaten national secu - rity and economic stability. In relation to approvals provided by the 2018 Exchange Control Regulation, please refer to 1.2 Regulatory Framework for FDI . This first stage of screening basi - cally focuses on the origin of funds and cash flow in and out of CEMAC. Other sub-regional authorities enter into play depend - ing on the target of FDI – notably, COSUMAF for FDI that involves capital movements, COBAC for FDI in the banking sector, the CEMAC Competition Council for competition matters, etc. National level The legal enactments governing commercial activity in Cameroon incorporate national security safeguards by regulating foreign investment and trade practices. These laws ensure that economic activities carried out by foreign investors do not threaten economic sover - eignty and public safety. In relation to approval, please refer to 1.2 Regulatory Framework for FDI .
Types of FDI Subject to Review and Exemptions In Cameroon, all forms of FDI are subject to regula - tory review – be it a commercial investment, invest - ment in natural resources and the extractive indus - tries, infrastructure and public-private partnerships, or transactions that involve foreign exchange and capital movements. As explained in the foregoing, depending on the type of FDI, declarations, approvals, licences, permits, etc, may be required. General Overview of the Requirements, Process, Clearance and Timeline for Notification The requirements for the review of FDIs, and the pro - cess and timeline for notification, vary depending on the regulatory authority handling the notification. 7.2 Criteria for National Security Review Although Cameroon does not have a dedicated for - eign investment/national security review regime, FDI is subject to regulatory control at both the sub-regional and national levels. The review process applies to all types of foreign investments, including partnerships and joint ventures, acquisitions by foreign govern - ments or government-affiliated entities, and non- controlling minority investments. Criteria, Considerations and Analyses for Review of Foreign Investment/National Security in Cameroon During FDI review, the competent authorities make a wide range of checks, including: • ensuring that the foreign investor complies with foreign exchange regulations, as provided by the 2018 Exchange Control Regulation; • ensuring compliance with anti-money laundering and terrorism financing laws and policies; • ensuring compliance with the authorisation require - ments of the Ministry of Trade; • ensuring compliance with sector-specific laws and requirements; • ensuring that the FDI does not violate Cameroon public policy; • ensuring that the FDI does not threaten economic sovereignty;
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