Financial Crime World

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Burkina Faso Introduces Stricter Due Diligence Requirements for Financial Institutions

Ouagadougou, Burkina Faso

The government of Burkina Faso has taken a significant step to strengthen oversight and prevent illicit activities such as money laundering and terrorist financing by introducing new due diligence requirements for financial institutions operating within the country’s borders.

New Operational Manual

The Financial Harmonization and Risk Management Unit (FHRAOC) has developed an Operational Manual that outlines specific guidelines for financial institutions to adhere to. The manual includes several annexes that provide a standardized framework for due diligence, ensuring consistency across the financial sector.

Key Requirements

The following are some of the key requirements outlined in the Operational Manual:

  • Documents required for due diligence: A list of essential documents needed for the due diligence process.
  • Model grant agreements: Model grant agreements for non-governmental organizations (NGOs) and UN agencies.
  • Amendments to grant agreements: Amendments to grant agreements for NGOs and UN agencies.
  • Standard operating procedures: Standard operating procedures for submitting and processing project revision requests.
  • Financial spot checks: Guidelines for financial spot checks.
  • Reporting suspicious activities: Procedures for reporting suspected fraudulent acts by partners.

Country-Specific Addendum

A country-specific addendum has been developed for the Burkina Faso envelope, outlining specific requirements and guidelines for financial institutions operating in the country. This addendum is designed to address unique challenges and risks associated with the country’s financial sector.

Compliance and Enforcement

Financial institutions that fail to comply with the new regulations risk facing penalties and measures applicable to non-compliant partners. The government has emphasized its commitment to enforcing these regulations and preventing illicit activities within the country’s financial sector.

By implementing these stricter due diligence requirements, Burkina Faso aims to maintain a stable and secure financial environment, essential for economic growth and development.