Financial Crime World

Burkina Faso’s Progress in Combating Money Laundering and Terrorist Financing (AML/CFT)

Positive Developments

In 2012, Burkina Faso made notable progress in its fight against money laundering and terrorist financing. Some of the key developments include:

Establishment of the Financial Intelligence Unit (FIU)

  • The FIU was established to facilitate the receipt, analysis, and dissemination of Suspicious Transaction Reports (STRs) from reporting entities.
  • This move marked a significant step towards strengthening Burkina Faso’s AML/CFT framework.

Training and Awareness

  • The FIU organized training and awareness workshops for students, compliance officers, and directors of insurance companies to educate them on AML/CFT issues.
  • These initiatives helped increase understanding and awareness of the risks associated with money laundering and terrorist financing.

Cooperation Agreements

  • The FIU signed cooperation agreements with the FIUs of Nigeria, Ghana, Gabon, the Principality of Monaco, and the Kingdom of Morocco to enhance international cooperation.
  • These agreements facilitated the exchange of information and best practices, further bolstering Burkina Faso’s AML/CFT efforts.

National Strategy

  • Burkina Faso’s Minister of Economy and Finance presented a report on AML/CFT progress to the cabinet meeting to inform high-ranking officials.
  • This move demonstrated the government’s commitment to transparency and accountability in its fight against money laundering and terrorist financing.

Challenges

Despite these positive developments, Burkina Faso still faces significant challenges in its AML/CFT efforts. Some of the key issues include:

Limited STRs Received

  • Only seventeen (17) STRs were filed with the FIU in 2012, indicating a lack of active involvement from reporting entities.
  • This limited number of STRs hinders the FIU’s ability to effectively monitor and analyze suspicious transactions.

Insufficient Capacity

  • The FIU lacked personnel, appropriate software, and a database to effectively process STRs until 2012.
  • These resource constraints hindered the FIU’s ability to function efficiently and effectively.

No Convictions

  • There have been no convictions for money laundering or terrorist financing in Burkina Faso.
  • This lack of enforcement demonstrates the need for further action to prevent and prosecute these crimes.

Recommendations

To address these challenges, we recommend the following:

Strengthen Customer Due Diligence Measures

  • Burkina Faso should improve customer due diligence measures in the financial system to prevent predicate crimes.
  • This can be achieved through increased transparency and scrutiny of customer transactions.

Enhance Supervision and Monitoring

  • The country should strengthen supervision and monitoring of reporting entities to ensure compliance with AML/CFT regulations.
  • Regular audits and inspections can help identify areas for improvement and ensure that reporting entities are meeting their obligations.

Implement International Cooperation

  • Burkina Faso should put in place mechanisms for freezing and confiscation, as well as establish an Inter-Ministerial Committee at the technical level to coordinate national efforts against money laundering and terrorist financing.
  • This will facilitate international cooperation and ensure that Burkina Faso is working effectively with other countries to combat these crimes.