Regulation No./25/CEMAC/UMAC/CM/COBAC of December 19, 2025, introduces a rigorous centralized mechanism for debtor discipline, fundamentally altering the recovery landscape and client risk management within the CEMAC zone amid rising NPLs.
Practice Areas: Banking & Finance, Corporate Compliance, and Dispute Resolution
On 19 December 2025, the Ministerial Committee of the Economic and Monetary Community of Central Africa (CEMAC) adopted a timely regulation aimed at curbing non-performing loans (NPLs) across the region’s financial system. Regulation No./25/CEMAC/UMAC/CM/COBAC relating to the blacklisting of clients of entities subject to COBAC in case of non-repayment of credit (the “Blacklisting Regulation”) establishes a powerful, centralised disciplinary regime for borrowers in default.
This represents a paradigm shift in the credit enforcement scheme within the CEMAC zone (Cameroon, Central African Republic, Chad, Republic of Congo, Equatorial Guinea, and Gabon).
Moving beyond traditional bilateral recovery measures, the Regulation creates a systemic, cross-border sanction with significant operational and legal ramifications for regulated financial institutions, their corporate clients, and individual borrowers.
1. The Core Mechanism: “Mise à l’Index” (Blacklisting)
At the heart of the Regulation is the “mise à l’index” (Blacklisting) – a severe administrative sanction pronounced not by the creditor bank, but by the National Economic and Financial Committee (Comité National Économique et Financier or “CNEF”) of the relevant member state, under the supervision of the Central African Banking Commission (COBAC).
A blacklisted person is prohibited from:
- Conducting any debit transaction on any bank or payment account they hold, sign, or manage within the CEMAC banking system (with narrow exceptions).
- Opening any new account or acting as a signatory/authorised representative on an account.
This effectively constitutes a functional banking exclusion for the duration of the measure, severely restricting an individual’s or company’s ability to operate financially within the region.
2. Key Triggers and Procedure
- Trigger: An unpaid credit instalment overdue by more than three (3) months.
- Who can initiate: The creditor institution or the CNEF on its own initiative or at COBAC’s request.
- Who is liable? the client, the guarantor, and the endorser of the borrower.
- Process: The CNEF decides within two months of a complete file. The sanction is then automatically communicated to all regulated entities, COBAC, and the BEAC, ensuring region-wide enforcement.
- Extension to Management: For corporate defaulters, the CNEF can extend the blacklisting to senior managers (General Administrator, Manager, General Manager, or Deputy General Manager of the legal entity) deemed responsible for the default, following a mandatory non-objection procedure with COBAC.
3. Critical Implications for Financial Institutions
For banks, microfinance institutions, and payment service providers, this is not merely a new recovery tool but a source of stringent operational and compliance obligations:
- Enhanced Due Diligence & Contractual Updates: Obligatory pre-credit checks and credit agreement templates must be revised to incorporate mandatory clauses referencing the blacklisting regime.
- Procedural Rigour: Institutions must document and demonstrate that proportionate recovery measures were attempted before filing a request with the CNEF.
- System-Wide Enforcement & Monitoring: Upon notification, institutions must immediately block accounts and transactions of blacklisted clients. They must also screen transactions to identify beneficial owners who may be blacklisted.
- Lifting Obligations: Institutions have a positive duty to promptly inform the CNEF once a debt is regularised to lift the measure.
- Cost: A commission, payable by the requesting institution to the CNEF, is levied for each successful blacklisting.
4. Risks and Recourse for Clients (Corporate & Individual)
Borrowers face unprecedented consequences:
- Severe Business Disruption: For corporates, a blacklisting can instantly paralyse operations by freezing cash flows.
- Personal Liability: Directors and managers face personal financial incapacitation if the corporate blacklisting is attributed to them.
- Criminal Penalties: Knowingly conducting a prohibited transaction while blacklisted is a criminal offence, punishable by imprisonment (6 months to 5 years) and heavy fines.
- Limited Exceptions: Derogations for “vital needs” or tax payments are possible but require a motivated request and approval from COBAC.
- Recourse: A two-tier appeals process exists (first to the CNEF, then to COBAC), with strict two-month deadlines.
5. Strategic Considerations and Recommendations
The Regulation, effective 1 January 2026, requires immediate action:
For Financial Institutions:
- Conduct a Gap Analysis: Review internal controls, credit policies, and agreements for compliance with the Blacklisting Regulation.
- Update IT Systems: Ensure systems can integrate with COBAC/CNEF registries, impose automated blocks, and flag beneficial owners.
- Train Staff: Front-office, compliance, and recovery teams must be trained on the new triggers and procedures.
- Develop Internal Protocols: Define clear governance for deciding when to initiate a blacklisting request.
For Corporate Borrowers:
- Prioritise Debt Dialogue: Proactively engage with lenders at the first sign of distress. Amicable restructuring or rescheduling (complying with COBAC rules) prevents blacklisting.
- Strengthen Governance: Document decision-making to mitigate personal liability risk for directors.
- Review Contingency Plans: Assess operational resilience in the event of a potential banking access freeze.
For All Parties:
- Meticulous Documentation: All communications with the CNEF and COBAC must be in writing, accompanied by proof of receipt.
- Monitor Secondary Regulations: COBAC is mandated to issue several implementing regulations (e.g., on commission rates, registry access, publication modalities). Staying ahead of these is crucial.
The CEMAC Blacklisting Regulation is a bold and aggressive tool to tackle systemic NPLs. It significantly amplifies the stakes of credit default, transforming it from a commercial dispute into a public administrative sanction with crippling cross-border effects.
While aiming to strengthen financial stability, it creates a complex new layer of regulatory risk. Successfully navigating this new environment will require proactive legal review, robust compliance upgrades, and strategic financial management.
Contact our Banking & Finance, Corporate Compliance, and Dispute Resolution Practice teams for a tailored NPL impact assessment, compliance strategies, and defence preparedness.
This publication is provided for general information purposes only and does not constitute legal advice. Professional advice should be sought for specific circumstances.
