Money Laundering (ML) and Terrorist Financing (TF) Risks in Burkina Faso: A Report Excerpt

High-Risk Areas of Concern

High ML Risk in the DNFBP Sector

• The lack of mechanisms to report suspicious transactions and implement compliance obligations contributes to a high risk of money laundering.
• This sector is particularly vulnerable due to inadequate oversight and enforcement.

Limited Knowledge of AML within the DNFPB Sector

• There is a need for increased awareness and training on Anti-Money Laundering (AML) regulations.
• This lack of knowledge exacerbates the ML risk in this sector.

Significant Vulnerabilities in the Banking Sector

• Poor quality of general controls related to AML
• Non-compliance with regulations
• High ML risk due to inadequate oversight and enforcement.

Terrorist Financing (TF) Risks

• Moderate to High Risk: The country’s TF risk is rated as being moderately high.
• Investigations have revealed that banks, decentralized financial institutions, and non-profit organizations were used as channels for TF.
• Radicalization of certain citizens, vulnerabilities within the NPO sector, and foreign terrorist fighters contribute to TF risks.

Higher-Risk Issues Requiring Deeper Attention

Economic and Financial Crimes

• The investigation and prosecution of ML in cases involving:
  • Tax and customs fraud
  • Embezzlement of public funds
  • Illicit drug trafficking
  • Other related offenses are a priority.

Cash-Based Economy

• Burkina Faso’s extensive use of cash as a means of payment contributes to the informal sector playing a major role in the functioning of the domestic economy.
• This highlights the need for increased awareness, training, and regulation to combat ML and TF risks.