Financial Crime World

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Burkina Faso’s Financial Institution Security Standards Come Under Scrutiny

A recent report has highlighted the country’s progress in implementing global standards to combat money laundering and terrorist financing. The assessment, which evaluates Burkina Faso’s compliance with 40 key recommendations set by the Financial Action Task Force (FATF), reveals both positive and negative trends.

Progress and Areas for Improvement

The country scores highest in technical compliance, achieving “compliant” ratings in several areas, including financial institution secrecy laws and customer due diligence. However, it falls short in other critical areas, such as transparency and beneficial ownership of legal persons and arrangements, earning a rating of “non-compliant”.

Key Areas for Improvement

Burkina Faso has made significant progress in implementing measures to combat money laundering and terrorist financing, with ratings of “largely compliant” or better in several key areas. These include:

  • Assessing risk and applying a risk-based approach: Burkina Faso’s financial institutions have been found to be using effective risk management practices.
  • National cooperation and coordination: The country has made significant progress in coordinating its efforts across different sectors to combat money laundering and terrorist financing.
  • Targeted financial sanctions related to terrorism and terrorist financing: Burkina Faso has implemented measures to freeze assets and impose targeted financial sanctions on individuals and entities suspected of being involved in terrorism or terrorist financing.

Areas for Further Improvement

However, the report highlights several areas where Burkina Faso needs to improve its standards. These include:

  • Confiscation and provisional measures: The country’s laws and regulations are not yet adequate to allow for effective confiscation and provisional measures.
  • Terrorist financing offence: The definition of terrorist financing in Burkina Faso’s laws is incomplete, which hinders efforts to prosecute individuals involved in this type of crime.
  • Non-profit organisations: Burkina Faso has failed to implement effective measures to prevent the misuse of non-profit organisations for money laundering and terrorist financing.

Experts Call for Urgent Action

The report’s findings have sparked calls for urgent action to address these weaknesses. “Burkina Faso must take immediate steps to strengthen its anti-money laundering and counter-terrorist financing regime,” said a leading expert in the field. “This includes implementing effective measures to prevent the misuse of non-profit organisations and ensuring that financial institutions are adequately supervised.”

Government Response

The government of Burkina Faso has welcomed the report’s findings, acknowledging areas for improvement and committing to address these weaknesses. A senior government official noted, “We will work tirelessly to strengthen our financial institution security standards and ensure that we are fully compliant with international recommendations.”