Financial Crime World

Benin Financial Intelligence Unit Cracks Down on Money Laundering with New Regulations

The Benin Financial Intelligence Unit (FIU), a key player in combating money laundering and terrorist financing in Benin, has announced new regulations to strengthen financial crime prevention measures.

Role of Benin FIU

As the dedicated government body to protect the integrity and stability of Benin’s financial system, the Benin FIU’s mission includes:

  • Assisting in the development of robust legal frameworks against financial crimes
  • Covering ECOWAS member countries including Benin, Togo, Ivory Coast, Liberia, Sierra Leone, Mali, Burkina Faso, Nigeria, Senegal, Cape Verde, and Guinea
  • Combating money laundering, terrorist financing, and other financial crimes within Benin’s borders
  • Monitoring and supervising businesses vulnerable to such activities, providing them with guidelines to implement AML/CFT controls

Legislation plays a crucial role in this fight, and Benin’s FIU emphasizes its commitment to effective and up-to-date legal frameworks. Key acts include:

  • Act No. 4 of 2013 on Money Laundering and Terrorism (Prevention) and its subsequent amendments

New Regulations

Determined to ensure compliance with reporting obligations, the Benin FIU has issued fines to all insurance companies operating in Cotonou for non-compliance. New requirements include submitting:

  • Suspicious Transaction Reports (STR)
  • Currency and Monetary Instrument Transaction Reports (CTR)
  • Other reports to the FIU using stated procedures and methods

Enforcement and Sanctions

Regulators and supervisors of reporting entities will be mandated to monitor enforcement of the reporting obligations. In the event of non-compliance:

  1. The Ministry of Justice will be authorized to impose administrative sanctions for potential prosecutions

Support

The Egmont Group supports the BFIU’s efforts by providing a platform for exchanging expertise and financial intelligence to combat money laundering, terrorist financing, and associated offenses.

Conclusion

The Benin Financial Intelligence Unit remains steadfast in its commitment to safeguarding the financial system against money laundering, terrorist financing, and other financial crimes.

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