Chad Faces Criticism for Inadequate Measures Against Financial Crime
Risk Assessment and National Cooperation
A recent report has highlighted significant shortcomings in Chad’s efforts to combat financial crime, including money laundering and terrorist financing. The assessment, which evaluated the country’s compliance with international anti-money laundering standards, revealed numerous areas where improvements are needed.
- Inadequate risk assessment: Chad lacks effective national cooperation and coordination mechanisms to tackle financial crimes effectively.
- Lack of robust approach: The country needs to apply a more robust risk-based approach to prevent financial crimes.
Money Laundering Offense
While Chad has made some progress in enacting laws related to money laundering, the report found that the offense is not adequately defined or prosecuted. This creates a loophole for individuals and organizations involved in financial crimes.
- Inadequate definition: The money laundering offense is not clearly defined or prosecuted.
- Loopholes for financial crimes: The lack of clear definition and prosecution creates loopholes for individuals and organizations involved in financial crimes.
Confiscation and Provisional Measures
The assessment also highlighted gaps in Chad’s ability to confiscate assets linked to financial crimes and implement provisional measures to prevent the movement of illicit funds.
- Inadequate asset confiscation: Chad lacks effective mechanisms to confiscate assets linked to financial crimes.
- Limited provisional measures: The country needs to improve its ability to implement provisional measures to prevent the movement of illicit funds.
Customer Due Diligence
In addition, the report criticized Chad’s banks and other financial institutions for inadequate customer due diligence procedures, which leave them vulnerable to money laundering and terrorist financing.
- Lack of effective customer due diligence: Chad’s banks and other financial institutions lack effective customer due diligence procedures.
- Vulnerability to money laundering and terrorist financing: The lack of effective customer due diligence leaves these institutions vulnerable to money laundering and terrorist financing.
Transparency and Beneficial Ownership
Chad was also found wanting in terms of transparency and beneficial ownership requirements for companies and trusts. The lack of clarity on who ultimately controls these entities makes it difficult to track the flow of illicit funds.
- Limited transparency: Chad lacks effective transparency and beneficial ownership requirements for companies and trusts.
- Difficulty tracking illicit funds: The lack of clarity on who ultimately controls these entities makes it difficult to track the flow of illicit funds.
Regulation and Supervision
The report noted that Chad’s regulatory bodies lack effective powers to supervise financial institutions and DNFBPs (designated non-financial businesses and professions), which undermines efforts to combat financial crime.
- Inadequate regulation: Chad’s regulatory bodies lack effective powers to supervise financial institutions and DNFBPs.
- Undermining efforts to combat financial crime: The lack of effective powers undermines efforts to combat financial crime.
International Cooperation
Chad was also criticized for its limited engagement in international cooperation on anti-money laundering and counter-terrorism financing. The country needs to improve its mutual legal assistance agreements with other nations and enhance its participation in global initiatives to tackle these issues.
- Limited international cooperation: Chad’s limited engagement in international cooperation undermines efforts to combat financial crime.
- Need for improved cooperation: The country needs to improve its mutual legal assistance agreements and participate more effectively in global initiatives to tackle these issues.