Financial Crime World

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Burkina Faso’s AML/KYC Regulations Come Under Scrutiny: Report Reveals Country’s Compliance Status

A recent report has shed light on Burkina Faso’s compliance with international anti-money laundering (AML) and know-your-customer (KYC) regulations. The country, which has been a member of the Financial Action Task Force (FATF) since 2003, has faced criticism in the past for its inadequate AML/CFT measures.

Progress and Challenges

The report assesses Burkina Faso’s implementation of FATF Recommendations and reveals that the country has made significant progress in some areas but still lags behind in others.

  • Under Recommendation R.1, assessing risk and applying a risk-based approach, Burkina Faso was rated “largely compliant” (LC).
  • Similarly, it received an LC rating for its national cooperation and coordination under Recommendation R.2.
  • However, the country struggled to comply with other recommendations:
    • It was deemed “non-compliant” (NC) in areas such as financial institution secrecy laws (R.9), internal controls and foreign branches and subsidiaries (R.18), and regulation and supervision of DNFBPs (R.28).
    • Additionally, Burkina Faso received a “partially compliant” (PC) rating for its implementation of targeted financial sanctions related to terrorism and terrorist financing (R.6).

Areas Requiring Improvement

The report also highlighted areas where Burkina Faso requires improvement:

  • Confiscation and provisional measures under Recommendation R.4
  • Reporting of suspicious transactions under R.20
  • International cooperation on mutual legal assistance (R.37)

Strengthening AML/CFT Regime

Despite these challenges, Burkina Faso’s authorities have taken steps to strengthen their AML/CFT regime in recent years:

  • The country has implemented new laws and regulations aimed at combating money laundering and terrorist financing.
  • It has established a financial intelligence unit.

Next Steps

The report’s findings are likely to inform discussions among international bodies, including the FATF, which will review Burkina Faso’s progress during its next plenary session.