Financial Crime World

Financial Crime Risk Assessment in Chad Raises Concerns

A recent report by the Financial Action Task Force (FATF) has highlighted several areas of concern regarding Chad’s efforts to combat financial crime. The country was assessed on a range of technical requirements aimed at preventing money laundering and terrorist financing.

Areas of Non-Compliance

  • Risk Assessment and Risk-Based Approach: Chad’s authorities do not have adequate systems in place to identify and mitigate potential financial crimes.
  • National Cooperation and Coordination: There is a lack of effective communication between different government agencies and law enforcement bodies.
  • Correspondent Banking: Chad’s regulations are not robust enough to prevent financial crimes.
  • Money or Value Transfer Services: The country’s regulations in this area are also considered insufficient.

Areas of Partial Compliance

  • Confiscation and Provisional Measures: Chad demonstrated some level of compliance in this area, but it was not deemed sufficient to meet international standards.
  • Targeted Financial Sanctions Related to Terrorism and Terrorist Financing: While Chad showed some level of compliance, more needs to be done to address weaknesses.

Recommendations for Improvement

The FATF has recommended that Chad take steps to improve its regulatory framework and enforcement mechanisms, including:

  • Strengthening Customer Due Diligence: Enhancing procedures to ensure effective customer due diligence.
  • Record Keeping: Improving record-keeping procedures to prevent financial crimes.
  • Enhancing Cooperation between Government Agencies and Law Enforcement Bodies: Fostering effective communication and cooperation to combat financial crime.

Conclusion

While Chad has made some progress in implementing anti-money laundering measures, there are significant areas of concern that need to be addressed. The FATF report highlights the importance of continued efforts to strengthen regulatory frameworks and enforcement mechanisms to prevent financial crimes and protect the integrity of the global financial system.