Financial Crime World

Burundi Struggles to Detect Money Laundering Schemes, Says Report

The Financial Action Task Force (FATF) has released a follow-up report on Burundi’s efforts to combat money laundering and terrorist financing. The report assesses the country’s technical compliance with international standards and highlights several areas where Burundi needs improvement.

Compliance Assessment

According to the report, Burundi is largely compliant in 14 out of the 40 recommendations made by the FATF. However, it was found to be partially compliant in six areas and non-compliant in one area.

Progress Made

The report noted that Burundi has made progress in:

  • Assessing risk and applying a risk-based approach to combating money laundering
  • National cooperation and coordination
  • Confiscating and freezing assets related to terrorism and terrorist financing

Areas for Improvement

However, the report identified several areas where Burundi needs improvement, including:

  • Lack of transparency and beneficial ownership of legal persons and arrangements
  • Regulation and supervision of designated non-financial businesses and professions (DNFBPs)
  • Ability to detect and prevent money laundering schemes in areas such as:
    • New technologies
    • Wire transfers
    • Reliance on third parties

Recommendations for Improvement

To address these shortcomings, the FATF recommended that Burundi:

  • Strengthen its regulatory framework
  • Improve customer due diligence procedures
  • Enhance internal controls and foreign branches and subsidiaries

The report also called for increased international cooperation and information sharing to combat money laundering and terrorist financing. Burundi was urged to work closely with other countries to share intelligence and best practices in order to stay ahead of the evolving threat posed by these types of crimes.

Conclusion

The FATF’s report highlights the importance of continued efforts to strengthen Burundi’s anti-money laundering and counter-terrorism financing framework. With a focus on improving transparency, regulation, and international cooperation, Burundi can work towards mitigating the risks associated with money laundering and terrorist financing.