Burkina Faso Takes a Risk-Based Approach to Financial Crime, FATF Report Shows

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Burkina Faso has been assessed by the Financial Action Task Force (FATF) as largely compliant with 14 out of 40 recommendations on combating financial crime. The country’s risk-based approach is deemed effective in addressing money laundering and terrorist financing risks.

Effective Risk-Based Approach

The FATF report commends Burkina Faso for its ability to assess and apply a risk-based approach to identifying and mitigating financial crime risks. This approach has been shown to be effective in combating money laundering and terrorist financing.

• Identifying and mitigating financial crime risks
• Assessing national cooperation and coordination mechanisms

Areas for Improvement

While Burkina Faso’s efforts have been commended, there are still some areas that require improvement. These include:

• Non-profit organizations’ lack of transparency and beneficial ownership information
• Financial institution secrecy laws
• Internal controls at foreign branches and subsidiaries
• Strengthening regulation and supervision of designated non-financial businesses and professions (DNFBPs)
• Improving powers of supervisors

Progress in Implementing FATF Recommendations

Burkina Faso has made significant progress in implementing laws related to money laundering and terrorist financing offenses, as well as confiscation and provisional measures. The country has also:

• Implemented targeted financial sanctions related to terrorism and terrorist financing
• Strengthened its financial intelligence unit
• Improved the transparency of beneficial ownership information for legal persons and arrangements

Conclusion

While there are still areas that require improvement, Burkina Faso’s risk-based approach to combating financial crime is deemed effective. The country is making steady progress towards implementing FATF recommendations.