The Bank of Central African States (BEAC) has extended the deadline for compliance of companies operating in the mining and hydrocarbon sectors with the provisions of foreign exchange regulations. Changes due to the impact of the Covid-19 health crisis on the production tool.

The deadline for compliance with foreign exchange regulations initially set at 31 December 2020 for mining and oil companies operating in the Economic and Monetary Community of Central Africa (CEMAC) has been extended to 31 December 2021, because of the negative repercussions of the Coronavirus pandemic.

It is a question for the companies concerned, to regularize the foreign currency accounts they hold by requesting the required authorizations and to regularize all transactions subject to declaration before the entry into force of the regulation on foreign exchange adopted on December 21, 2018.

"Considering the current context of the Covid-19 pandemic causing difficulties in the organization of the working sessions initially planned with  companies resident in the CEMAC operating in the mining and hydrocarbon sectors in accordance with the circular letter of 12 November 2019 on the due diligence to be carried out by these companies (...), whereas the deadline set at 31 December 2020 is not sufficient for the conclusion of the ongoing discussions (...), the deadline for compliance is set at 31 December 2021", informs the BEAC.

During this derogation period, these companies have until 30 April 2021 to transmit to the Central Bank all the financial operations requested, among others, loans, repayments, loans, direct or portfolio investments, hedging operations against foreign exchange risks, the list of offshore accounts, the information for each account listed, the most recent statements, the agreements of the various accounts, loan agreements, mining and oil contracts... Failure to comply with these measures by the companies concerned exposes them to sanctions, warns the BEAC.