Financial Crime World

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Financial Compliance in Chad: A Mixed Bag, Report Finds

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A recent report by the Financial Action Task Force (FATF) assesses Chad’s compliance with international anti-money laundering and combating the financing of terrorism (AML/CFT) standards.

Key Findings

The 2023 Mutual Evaluation Report provides a comprehensive overview of Chad’s efforts to combat money laundering and terrorist financing. Here are some key findings:

Areas Requiring Improvement

* Confiscation and Provisional Measures (R.4)

  • Customer Due Diligence (R.10)
  • Record Keeping (R.11)
  • Regulation and Supervision of Financial Institutions (R.26)

These areas received a “Partially Compliant” rating, indicating that they require improvement to ensure effective implementation of AML/CFT measures.

Areas Receiving Attention

* Correspondent Banking (R.13)

  • Money or Value Transfer Services (R.14)

Chad received a “Partially Compliant” rating for these areas, highlighting the need for more attention to prevent the misuse of financial systems.

Progress Made

* Terrorist Financing Offence (R.5)

  • Wire Transfers (R.16)

The country scored “Largely Compliant” in these areas, indicating progress in implementing AML/CFT measures related to terrorism financing.

Areas for Improvement

The report highlights several areas where Chad needs improvement, including:

Strengthening Customer Due Diligence Procedures

  • Enhancing record keeping requirements
  • Improving regulation and supervision of financial institutions
  • Increasing transparency and beneficial ownership of legal persons and arrangements

Recommendations

To address these shortcomings, the FATF recommends that Chad implement a comprehensive action plan to strengthen its AML/CFT framework. This includes:

Improving National Cooperation and Coordination

  • Enhancing customer due diligence procedures
  • Increasing transparency and beneficial ownership requirements

By addressing these challenges, Chad can continue to work towards strengthening its compliance with international standards to prevent the misuse of financial systems for money laundering and terrorist financing.