Financial Crime World

Burkina Faso’s Progress and Challenges in Combating Money Laundering and Terrorist Financing

Overview

The report highlights Burkina Faso’s progress and challenges in combating money laundering (ML) and terrorist financing (TF). The country has made some notable strides, but there are areas that require improvement.

Progress

Burkina Faso has taken steps to strengthen its anti-money laundering (AML) and combatting the financing of terrorism (CFT) regime. Key achievements include:

  • Training and Capacity Building: The Financial Intelligence Unit (FIU) received training on software provided by GIABA to improve its ability to process, analyze, and disseminate Suspicious Transaction Reports (STRs).
  • Legal Framework: A specialized ML/TF magistrate was appointed to handle money laundering-related issues.
  • Awareness Raising: The FIU organized several training and awareness workshops for various stakeholders, including students, compliance officers, and directors of insurance companies.
  • International Cooperation: Burkina Faso signed cooperation agreements with the FIUs of Nigeria, Ghana, Gabon, Monaco, and Morocco.

Challenges

Despite progress, there are challenges that need to be addressed:

  • Low Number of STRs Filed: Only seventeen (17) STRs were filed to the FIU in 2012, indicating a lack of active involvement from other AML/CFT reporting entities.
  • Limited Personnel and Resources: The FIU lacks analysts, appropriate software, and a database, which hinder its ability to process STRs effectively.
  • No Convictions for ML or TF: Despite two cases being referred to prosecution authorities, there have been no convictions for money laundering or terrorist financing in Burkina Faso.

Recommendations

To address the challenges and strengthen the AML/CFT regime, the following recommendations are made:

  • Strengthen the AML/CFT Regime: Burkina Faso should focus on strengthening customer due diligence measures, supervision and monitoring of reporting entities, and international cooperation.
  • Implement an Effective National AML/CFT Strategy: The country should establish an Inter-Ministerial Committee at the technical level to coordinate national efforts in fighting ML/TF.
  • Technical Assistance: Burkina Faso requires support for training activities and funding for study trips to foreign FIUs to optimize its performance.