Financial Crime World

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Burkina Faso Struggles to Implement FATF Recommendations, Report Reveals

A recent report by the Financial Action Task Force (FATF) has painted a mixed picture of Burkina Faso’s efforts to combat money laundering and terrorist financing. The report highlights both positive steps taken by the country to improve its financial regulations and supervisory framework, as well as areas where significant improvement is still needed.

Progress Made

According to the report, Burkina Faso has made some progress in implementing the technical requirements of the FATF Recommendations, particularly in relation to:

  • National cooperation and coordination (R.2)
  • Confiscation and provisional measures (R.4)
  • Financial intelligence units (R.29)

The country has also taken steps to improve its regulation and supervision of financial institutions (R.26) and powers of supervisors (R.27).

Areas for Improvement

However, the report also identifies several areas where Burkina Faso falls short of meeting international standards, including:

  • Lack of a risk-based approach to assessing money laundering and terrorist financing risks (R.1)
  • Inadequate customer due diligence measures (R.10)
  • Limited cooperation with foreign authorities in cases involving financial crimes (R.37)

The report also notes that Burkina Faso has not yet implemented key provisions related to targeted financial sanctions, including those related to terrorism and proliferation (R.6 and R.7). Additionally, the country’s laws and regulations do not provide sufficient powers for law enforcement and investigative authorities to effectively investigate and prosecute financial crimes (R.30 and R.31).

Conclusion

The report concludes that Burkina Faso is partially compliant with the FATF Recommendations, reflecting a mixed picture of progress and challenges in implementing these international standards.

Recommendations

The FATF has recommended that Burkina Faso take concrete steps to address these weaknesses, including:

  • Strengthening its risk assessment framework
  • Enhancing customer due diligence measures
  • Improving cooperation with foreign authorities

Financial sector regulators and supervisors must also ensure that they have the necessary powers and resources to effectively supervise and regulate financial institutions.

Conclusion

The report serves as a wake-up call for Burkina Faso to address these pressing issues and strengthen its efforts to combat money laundering and terrorist financing. Failure to do so could result in increased risks to the country’s financial system, as well as to international stability and security.