Financial Crime World

Chad’s Money Laundering Efforts Under Scrutiny

FATF Report Highlights Concerns

The Financial Action Task Force (FATF) has released its latest report on Chad’s anti-money laundering efforts, highlighting several areas of concern. The country’s financial system is vulnerable to money laundering and terrorist financing due to inadequate regulations and supervision.

Partial Compliance with International Standards

According to the report, Chad is only partially compliant with international standards for combating money laundering and terrorist financing. While it has made some progress in recent years, there are still significant gaps in its regulatory framework and enforcement mechanisms.

Key Areas of Concern

  • Risk Assessment: Chad has not conducted a comprehensive risk assessment, leaving critical vulnerabilities in its financial system unaddressed.
  • National Cooperation and Coordination: Mechanisms for sharing information and coordinating efforts between government agencies and institutions are often inadequate or ineffective.
  • Money Laundering Offence: The country’s laws and regulations related to money laundering are unclear and lack transparency.
  • Confiscation and Provisional Measures: Chad lacks effective measures to confiscate and freeze assets related to money laundering and terrorist financing.
  • Beneficial Ownership of Companies and Trusts: There is a lack of transparency around the beneficial ownership of companies and trusts, making it difficult to track illegal activities.
  • Enforcement of Financial Sanctions: Chad struggles to enforce financial sanctions related to terrorism and terrorist financing.

Positive Steps Taken

Despite these challenges, the FATF report identifies some positive steps taken by Chad in recent years:

  • Strengthened regulations on cash couriers
  • Implemented measures to improve customer due diligence

Way Forward

To effectively combat money laundering and terrorist financing, Chad must take more comprehensive and sustained action to address the gaps identified in the report. This includes:

  • Implementing a robust risk assessment framework
  • Improving national cooperation and coordination
  • Strengthening enforcement mechanisms

The international community is closely monitoring Chad’s progress in this area and will be looking for significant improvements in its anti-money laundering efforts.