Chad Fights Financial Crime, But Struggles to Keep Up with International Standards

The Republic of Chad has made significant strides in combating financial crime, but still lags behind international recommendations, according to a recent mutual evaluation report.

Progress and Challenges

Money Laundering Offense

Chad has made progress in establishing a money laundering offense, with the country’s law explicitly defining the crime. However, Chad struggled to confiscate assets and impose provisional measures on individuals suspected of financial crimes.

• Establishing a money laundering offense: Strengths
  • Explicit definition of the crime
• Confiscation and provisional measures: Weaknesses
  • Limited ability to confiscate assets
  • Inadequate imposition of provisional measures

Terrorist Financing

Chad was found to have a targeted financial sanctions regime, but it lacked effective enforcement mechanisms. The country also failed to implement adequate customer due diligence measures for non-profit organizations and DNFBPs (designated non-financial businesses and professions).

• Targeted financial sanctions regime: Weaknesses
  • Inadequate enforcement mechanisms
• Customer due diligence measures: Weaknesses
  • Insufficient for non-profit organizations
  • Insufficient for DNFBPs

Financial Intelligence Unit

Chad’s financial intelligence unit was also found to be underdeveloped, with limited resources and inadequate powers to investigate and prosecute financial crimes.

• Underdevelopment of the financial intelligence unit: Weaknesses
  • Limited resources
  • Inadequate powers

Recent Progress

Despite these challenges, Chad has made significant progress in recent years. The country has established a national coordination mechanism to combat financial crime, and has strengthened its regulation and supervision of financial institutions.

• National coordination mechanism: Strengths
  • Established to combat financial crime
• Regulation and supervision of financial institutions: Strengths
  • Strengthened

Key Findings

Recommendations

To address these challenges, Chad must continue to strengthen its institutional framework and implement new technologies to improve its ability to combat financial crime. The country must also enhance its international cooperation and coordination with other countries to effectively tackle the threat of financial crime.

• Enhance confiscation and provisional measures for individuals suspected of financial crimes
• Strengthen enforcement mechanisms for targeted financial sanctions regime
• Implement effective customer due diligence measures for non-profit organizations and DNFBPs
• Develop and enhance the country’s financial intelligence unit with adequate resources and powers
• Continue to strengthen institutional framework and implement new technologies to improve ability to combat financial crime