Benin Cracks Down on Money Laundering and Financial Crime: A New Dawn for Africa’s Financially Vulnerable Nation

In a significant stride towards curbing financial crimes, the West African nation of Benin is intensifying its efforts to bolster its Anti-Money Laundering and Counter-Terrorism Financing (AML/CFT) system ¹. Following a recent evaluation by the Financial Action Task Force (FATF), which highlighted the need for improvement in Benin’s AML/CFT regime, the country has begun implementing various measures to comply with international standards.

FATF Evaluation: Identifying Areas of Improvement

The FATF evaluation was carried out between 25 February and 13 March 2019, and it assessed Benin’s level of compliance with the FATF 40 Recommendations ². While Benin made considerable progress, the assessment revealed several areas requiring attention:

1. Improving customer due diligence measures
2. Enhancing supervisory oversight
3. Bolstering investigation and prosecution capabilities

Addressing Shortcomings: Implemented Measures

To address these shortcomings, Benin has initiated the following measures:

1. Enhanced customer due diligence

• Implementation of a new [Customer Due Diligence (CDD)] framework
• Financial institutions and designated non-financial businesses and professions (DNFBPs) now required to:
  • Conduct CDD checks on all new clients
  • Assess risk levels for existing clients

2. Increased supervisory oversight

• Financial Intelligence Unit (FIU) empowered to issue directives
• Greater autonomy provided to the FIU to supervise financial institutions and DNFBPs

3. Bolstering investigative and prosecutorial capabilities

• AML/CFT training provided to law enforcement agencies and prosecutors
• Ensuring thorough understanding of laws and regulations

Moving Forward: Recommendations for a Stronger AML/CFT System

The FATF evaluation also suggested ways Benin could further strengthen its AML/CFT system ³:

1. Establishing mutual legal assistance arrangements
2. Enhancing regulatory framework for DNFBPs
3. Improving the capacity and resources of the FIU

A New Dawn: Commitment to Combating Financial Crimes

Benin’s commitment to addressing money laundering and financial crimes signifies a renewed determination to tackle financial vulnerabilities and maintain the integrity of its financial system. Stay tuned for updates on Benin’s progress towards FATF Recommendations compliance.