Financial Crime World

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Burkina Faso’s Anti-Money Laundering and Counter-Terrorist Financing Efforts Receive Mixed Review

A recent report by GIABA (Inter-Governmental Action Group against Money Laundering in West Africa) has evaluated Burkina Faso’s efforts to combat money laundering and terrorist financing. While the country has made progress in some areas, the report highlights both strengths and weaknesses.

Banking Sector Regulatory Authorities

The banking sector regulatory authorities have a good understanding of ML/TF risks, but there are concerns about:

  • Limited scope of off-site inspections
  • Inadequate resources for supervisory bodies
  • Sanctions for non-compliance with AML/CFT requirements are rarely used in practice

Transparency

The OHADA provisions define the framework for company establishment, but access to information on legal persons is hindered by:

  • Inefficient systems
  • Manual record-keeping at the Commercial Court
  • Challenges in obtaining beneficial ownership information
  • Law enforcement agencies do not typically request it from banks

International Cooperation

Burkina Faso provides assistance to countries that request it, with satisfactory cooperation generally observed. However:

  • Some countries have not responded to requests for assistance
  • The number of ML/TF-related mutual assistance requests is modest

Priorities for Burkina Faso

The report identifies several priorities for Burkina Faso, including:

  • Disseminating the National Risk Assessment (NRA) report to stakeholders
  • Developing a national AML/CFT policy based on identified risks
  • Improving cooperation and coordination among institutions
  • Sensitizing revenue and customs administrations on the importance of AML/CFT

Conclusion

While there are areas for improvement in Burkina Faso’s AML/CFT efforts, the country has made progress in some areas, such as:

  • Implementing risk-based supervision
  • Introducing a credit institution rating system

Overall, the report suggests that Burkina Faso should continue to strengthen its anti-money laundering and counter-terrorist financing efforts to effectively combat these threats.