Financial Crime World

Mauritanian Financial Authority Seeks Enhanced Autonomy and Strengthened Supervision

The Bank of Mauritania (BCM), the country’s central bank and financial regulator, has expressed its commitment to enhancing its autonomy and strengthening its supervision of the financial sector.

Concerns about Independence

A recent report by the Financial Sector Assessment Program (FSAP) raised concerns about the BCM’s independence in practice. Two key factors were identified as contributing to these concerns:

  • The Governor of the BCM can be removed from office at any time, despite being appointed for a four-year term.
  • There is no legal protection for the oversight authority and its staff against any legal actions that may be initiated against them for carrying out their duties in good faith.

Addressing Concerns

To address these concerns, the BCM has launched an ambitious selection and training program to enhance its operational capacities for supervision. The bank has also begun preparing an instruction for banks to implement internal anti-money laundering (AML) and combating the financing of terrorism (CFT) procedures.

Establishing a National Financial Information Commission

The Mauritanian authorities have announced plans to establish a National Financial Information Commission (CANIF), which will play a crucial role in preventing financial crimes. CANIF is expected to begin operating shortly, with a broad awareness-raising and training program scheduled to start soon.

Strengthening Supervisory Powers

The report also highlighted the importance of strengthening the BCM’s supervisory powers over designated non-financial businesses and professions (DNFBPs). While Law No. 2005-048 requires DNFBPs to exercise due diligence in identifying their customers and detecting suspicious transactions, there is a need for clearer guidelines on practical modalities and conditions.

Recommendations

The report makes several recommendations, including:

  • CANIF should outline practical and appropriate measures for DNFBPs, including record-keeping obligations.
  • Professional associations regulating professions such as accountants, lawyers, and notaries should take measures to prevent and detect money laundering and terrorist financing.
  • An awareness-raising program should be launched for these professionals, and implementation of their AML/CFT internal plans should be monitored.

Conclusion

Overall, the report highlights the importance of strengthening the BCM’s autonomy and supervisory powers to effectively prevent financial crimes in Mauritania. The authorities’ commitment to enhancing autonomy and supervision is crucial in this regard.