Financial Crime World

Financial Crimes on the Rise: Chad’s Regulatory Challenges

As financial service providers continue to navigate the complexities of fraud and financial crime, regulators are increasingly focused on mitigating these risks. In Chad, as elsewhere, evolving technological developments, geopolitical events, and interconnected financial networks have created new vulnerabilities for perpetrators to exploit.

New Focus Areas for Regulators

Regulators in Chad will be focusing on several key areas to combat financial crimes:

  • Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF): Strengthening frameworks, risk models, operations, and investigation processes.
  • Insider Corruption: Mitigating the risks of insider corruption through robust internal controls and oversight.
  • Cybercrime: Enhancing cybersecurity risk management to protect against cyber threats.

Expanding Regulations in New Areas

Regulators will also be looking to combat emerging threats and vulnerabilities posed by:

  • Digital Assets: Investigating non-compliance with existing regulations, such as illegally offered crypto asset derivatives products and false statements about stablecoin assets.
  • NFTs and DeFi Platforms: Assessing CDD and suspicious activity reporting related to these platforms.

Sanctions and Price Cap Compliance

Continued geopolitical discordance will result in a continued focus on sanctions and price cap compliance, including:

  • Virtual Currency Mining: Ensuring that virtual currency mining operations comply with regulations.
  • Dark Net Markets: Banning services to sanctioned entities/countries.

Protecting Vulnerable Populations

Regulators expect companies to implement risk programs that identify and mitigate fraud/scams directed at:

  • Elderly: Protecting vulnerable populations from financial exploitation.
  • Military: Ensuring that military personnel are not targeted by scams or financial exploitation.
  • Other Vulnerable Groups: Identifying and mitigating risks for other vulnerable groups.

National Security Risks

Regulators in Chad will be addressing the following national security risks:

  • Domestic and International Terrorist Financing: Combating terrorist financing activities.
  • OFAC and Sanctions: Ensuring compliance with OFAC and sanctions regulations.
  • Transnational Criminal Organizations: Mitigating the risks of transnational criminal organizations.
  • Drug and Human Trafficking: Combating drug and human trafficking.
  • Smuggling: Preventing smuggling activities.
  • Proliferation Financing: Combating proliferation financing.

Governance and Compliance

Companies and their boards will be expected to enhance risk and compliance frameworks for effective oversight and governance in areas such as:

  • Anti-Bribery and Corruption: Implementing anti-bribery and corruption policies.
  • Competitive Behavior: Ensuring that companies engage in competitive behavior.
  • Lobbying/Political Involvement: Ensuring that companies do not engage in lobbying or political involvement activities.
  • Code of Conduct: Implementing a code of conduct for employees.

By prioritizing financial crime management efforts, companies can protect customers, combat fraud, and maintain a strong reputation. Leveraging technology and data to monitor activity and fostering a culture of doing the right thing are key strategies for mitigating risks and ensuring compliance with evolving regulations.