Cobac denounces overcharging on money transfers

The Central African Banking Commission (Cobac) has pinned down the activities of microfinance structures in Cameroon based on the commissions on money transfer operations which was deemed exorbitant on the margins of the related regulation.

In a report published June 30, 2015 resulting from an investigation in Cameroon by Cobac, between April 27 and May 15, 2015, the watchdog of the banking sector in CEMAC zone noted that the Cameroonian Emf had made provisions for regulation on the harmonization of the currency regulations in the Member States of CEMAC.

This was fixed at 0.25% and 0.50% of the amount sent plus, a possible tax on the turnover and for any other specific tax on the commission rate applicable respectively for money transfers in the CEMAC zone and outside.

But in Cameroon, noted Cobac, “different tariff scales produced by the Emf reveals that when carrying out domestic transfers, the average rate fluctuates between 0.10% and 5% while for international transfers, the average rate varies between 3.18% and 12.5% with variations from one institution to the other”.

"All these practices which are carried out at the expense of the interests of the people, must end," ordered Bodin Haider, the Cobac SG, in a letter addressed to managers of the Emf.

Moreover, despite the recriminations of Cobac on the commissions charged by the Emf during money transfer operations, Cobac realized that this activity in the Cameroonian microfinance sector, presents good prospects for development.

“Related statistics, including the number of institutions involved in this activity, the variety of the products and services offered, as well as volume and the amount of the transactions, demonstrate this reality,” underlines Cobac.