Financial Crime World

Title: Benin’s Strides in Strengthening Measures Against Money Laundering and Terrorist Financing

Benin’s Progress Towards International AML/CFT Standards

Benin, a West African nation, has made commendable strides in addressing the technical compliance deficiencies identified in its Mutual Evaluation Report (MER) regarding anti-money laundering and countering the financing of terrorism (AML/CFT). The Financial Action Task Force (FATF) and the West African Economic and Monetary Union’s Inter-Governmental Action Group against Money Laundering in West Africa (GIABA) have closely monitored Benin’s progress, providing invaluable guidance and support.

FATF Follow-up Report: An Analysis of Benin’s Progress

In a recent follow-up report, the FATF analyzes Benin’s progress towards international AML/CFT standards by addressing the deficiencies outlined in its MER. Benin’s advancements in critical areas include:

Benin has revised its AML/CFT legal and regulatory framework to rectify the identified weaknesses. Laws and procedures related to the prevention and punishment of money laundering and terrorist financing have been strengthened, ensuring a solid basis for AML/CFT measures.

Risk Assessment

The National Risk Assessment (NRA) was updated to reflect current money laundering and terrorist financing risks. This comprehensive risk analysis will serve as the foundation for Benin’s future AML/CFT efforts.

Customer Due Diligence

Financial institutions in Benin have improved their systems for conducting customer due diligence. The improved measures ensure that they have robust procedures in place to identify, verify, and risk assess their clients.

Transparency and Beneficial Ownership

Benin has made significant progress in enhancing transparency and understanding the true beneficial ownership of legal persons and arrangements. These steps will help prevent the misuse of such structures for money laundering and terrorist financing.

Commitment to Combating Money Laundering and Terrorist Financing

These achievements demonstrate Benin’s commitment to combating money laundering and terrorist financing in its jurisdiction. Continued cooperation and collaboration between Benin, the FATF, and the GIABA will further strengthen the country’s AML/CFT framework.

Challenges Remain and The Path Forward

Despite progress, challenges remain. Benin must fully implement the FATF Recommendations and address the remaining deficiencies. Ongoing capacity building and targeted technical assistance are crucial for the long-term success in this endeavor.

Sources

  • FATF - Benin: Follow-up Report, FATF, April 2023.
  • GIABA - Mutual Evaluation Report of Benin, GIABA, February 2022.