Financial Crime World

Burkina Faso’s Anti-Money Laundering Laws: A Comprehensive Assessment

Recent Report Evaluates Burkina Faso’s AML Regulations

A recent report by international experts has assessed Burkina Faso’s anti-money laundering (AML) laws and regulations. The assessment reveals that while the country has made significant progress in implementing technical requirements, there are areas where improvement is needed.

Compliance with International Standards

Burkina Faso is largely compliant with Recommendation R.1, which requires countries to assess risk and apply a risk-based approach to AML/CFT measures. However, it falls short in Recommendation R.2, which emphasizes national cooperation and coordination among relevant authorities.

Criminal Law and Sanctions

Burkina Faso has made significant progress in criminal law, being compliant with Recommendations R.3 (money laundering offence) and R.5 (terrorist financing offence). Additionally, the country is partially compliant with Recommendation R.6, which concerns targeted financial sanctions related to terrorism and terrorist financing.

Areas for Improvement

The report highlights areas where Burkina Faso needs improvement:

  • Financial Institution Secrecy: Laws on financial institution secrecy are deemed to be compliant but could be more robust.
  • Customer Due Diligence: Effective customer due diligence measures are not fully implemented, as per Recommendation R.10.
  • Transparency and Beneficial Ownership: There are gaps in the implementation of AML/CFT measures regarding DNFBPs (Reporting entities) and transparency and beneficial ownership of legal persons.

Progress Made

Burkina Faso has made progress in other areas:

  • Regulation and Supervision of Financial Institutions: The country is compliant with Recommendation R.26.
  • Powers of Supervisors: Burkina Faso is compliant with Recommendation R.27.
  • Cash Couriers: The country is compliant with Recommendation R.32.

International Cooperation

The report notes that Burkina Faso has a long way to go in implementing effective international cooperation mechanisms, including:

  • Mutual Legal Assistance: Recommendation R.37
  • Extradition: Recommendation R.39
  • Other Forms of International Cooperation: Recommendation R.40

Conclusion

While Burkina Faso has made significant progress in implementing AML/CFT measures, there are still areas where improvement is needed to ensure the country’s financial system is robust and resilient to money laundering and terrorist financing threats.