Financial Crime World

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Financial Crime Definition in Chad: Country Fails to Meet FATF Standards, Scores Low in Follow-Up Report

Chad has failed to meet several key requirements for combating financial crime, according to a recent follow-up report by the Financial Action Task Force (FATF). The country scored poorly on 14 out of 40 recommendations, indicating a lack of technical compliance with global standards.

Areas of Concern

The report highlighted several areas of concern, including:

  • Risk Assessment: Chad’s failure to adequately assess risk and apply a risk-based approach to combating financial crime.
  • Transparency and Beneficial Ownership: Non-compliance regarding the transparency and beneficial ownership of legal persons and arrangements.
  • Cooperation with International Organizations: Lack of cooperation with international organizations and agencies, including inadequate regulation and supervision of financial institutions and DNFBPs (designated non-financial businesses and professions).

Progress Made

The report noted that Chad has made some progress in implementing FATF recommendations, particularly:

  • National Cooperation and Coordination
  • Money Laundering Offence
  • Confiscation and Provisional Measures

However, these advancements were not enough to offset the country’s overall lack of compliance.

Implications for Chad

Chad’s low score in the follow-up report is likely to have significant implications for the country’s international reputation and its ability to attract foreign investment and do business with other countries. The government will need to take concrete steps to address the deficiencies identified in the report and demonstrate its commitment to combating financial crime if it hopes to improve its standing in the global community.

Key Areas of Non-Compliance

Some of the key areas where Chad fell short of FATF standards include:

  • R.8: Non-profit organizations
  • R.16: Wire transfers
  • R.22: DNFBPs: Customer due diligence
  • R.24: Transparency and beneficial ownership of legal persons
  • R.25: Transparency and beneficial ownership of legal arrangements
  • R.29: Financial intelligence units

Government Response

In response to the report, Chad’s government has pledged to take immediate action to address the deficiencies identified by the FATF. The country will need to demonstrate significant progress in implementing its commitments if it hopes to avoid further criticism and sanctions from the international community.