Financial Crime World

Burkina Faso’s Financial Institutions Show Strong Understanding of AML/CTF Risks

In a recent assessment, the Government of Burkina Faso demonstrated a good understanding of anti-money laundering (AML) and counter-terrorism financing (CFT) risks. The country’s financial institutions have taken steps to strengthen their internal systems, with large banks and insurance companies showing a high level of compliance.

National Risk Assessment

The National Risk Assessment (NRA) identified several areas where improvement is needed, including the need for more comprehensive assessments of non-profit organizations (NPOs) and legal persons and arrangements. The assessment also highlighted the importance of national cooperation and coordination on AML/CFT issues.

Key Findings

  • Large Banks and Insurance Companies: Implemented robust AML/CFT systems with strong compliance cultures.
  • Non-Bank Financial Institutions and Designated Non-Financial Businesses and Professions: Need to improve understanding of ML/TF risks in their sectors.
  • National Agency for the Fight Against Money Laundering and Terrorism Financing (NRA): Has a good understanding of AML/CFT risks, but reporting could be improved.
  • International Cooperation: Generally satisfactory, with Burkina Faso providing assistance to countries that request it.

Priorities

To address the identified gaps, the following priorities are recommended:

  • National AML/CFT Policy: Ensure the NLA report is disseminated to all relevant stakeholders and develop a national AML/CFT policy based on the risks identified in the NRA.
  • National Cooperation and Coordination: Strengthen national cooperation and coordination on AML/CFT issues by sensitizing all relevant institutions and stakeholders on their roles and responsibilities.
  • Scope of Future Assessments: Improve the scope of future assessments, particularly by incorporating the livestock trade, legal persons and arrangements, and NPOs.

By implementing these priorities, Burkina Faso can further enhance its efforts to prevent money laundering and terrorist financing, thereby reducing the risks to its financial system and economy.