Financial Crime Risk Assessment Tools Take Center Stage in Burkina Faso

Burkina Faso has made significant strides in implementing international standards to combat financial crime. The latest follow-up report from the Financial Action Task Force (FATF) assesses the country’s compliance with 40 key recommendations aimed at preventing money laundering and terrorist financing.

Progress and Improvements

The FATF ratings reflect Burkina Faso’s progress in implementing the technical requirements of the FATF Recommendations. A rating system was used to evaluate the country’s performance, with “C” indicating compliance, “LC” signifying largely compliant, “PC” representing partially compliant, and “NC” denoting non-compliant.

Key Areas of Progress

• Risk Assessment and Approach: Burkina Faso has established a framework for identifying high-risk areas and applying targeted measures to mitigate these risks.
• National Cooperation and Coordination: The country demonstrates effective collaboration between its financial intelligence unit, law enforcement agencies, and other stakeholders.
• Customer Due Diligence: Burkina Faso has implemented customer due diligence measures, including verifying the identity of customers and assessing their risk profile.

Areas in Need of Improvement

• Money Laundering Offence: The country’s penal code defines a money laundering offence but lacks clarity and specificity, making it difficult to prosecute offenders.
• Financial Institution Secrecy Laws: Burkina Faso should consider repealing its financial institution secrecy laws to ensure that financial institutions can be held accountable for facilitating money laundering activities.

Key Recommendations

• Correspondent Banking Relationship Management: The country needs to improve its correspondent banking relationship management and wire transfer regulations.
• Transparency and Beneficial Ownership: Burkina Faso should increase transparency and beneficial ownership disclosure for legal persons and legal arrangements.
• Regulation and Supervision of Financial Institutions: The country has made progress in regulating and supervising financial institutions, but needs to strengthen the powers of supervisors.

Financial Intelligence Units and Law Enforcement

• Financial Intelligence Unit (FIU): The FIU is playing a crucial role in combating financial crime.
• Responsibilities of Law Enforcement and Investigative Authorities: Burkina Faso has assigned responsibilities to law enforcement and investigative authorities, but needs to strengthen international cooperation in combating financial crime.

Conclusion

The FATF report highlights Burkina Faso’s progress in implementing international standards to combat financial crime. However, the country still needs to address areas where further improvement is needed to ensure effective prevention of money laundering and terrorist financing.