Financial Crime World

Comoros Fails to Meet Anti-Money Laundering Regulations, Says International Experts’ Report

A recent assessment by international experts has revealed that the Union of Comoros is falling short in its efforts to combat money laundering and terrorist financing. The report, prepared by a team from the International Monetary Fund (IMF) and the World Bank, evaluated the country’s anti-money laundering and combating the financing of terrorism (AML/CFT) system based on the 2003 Forty Recommendations and the 2001 Nine Special Recommendations developed by the Financial Action Task Force (FATF).

Institutional Weaknesses and Ineffective Implementation

The report highlights several institutional weaknesses and ineffective implementation of laws and regulations in Comoros. The country lacks a comprehensive framework for regulating financial institutions and designated non-financial businesses and professions (DNFPBs), making it difficult to prevent money laundering and terrorist financing.

  • Lack of effective supervision and monitoring of financial institutions
  • Inadequate reporting requirements
  • Laws and regulations do not provide sufficient powers for law enforcement agencies to effectively investigate and prosecute money laundering and terrorist financing offenses

Positive Steps Taken

Despite these shortcomings, the report acknowledges some positive steps taken by Comoros to improve its AML/CFT system. These include:

  • Establishment of a national committee responsible for coordinating anti-money laundering efforts

Recommendations for Improvement

The report makes several recommendations aimed at strengthening Comoros’ AML/CFT system, including:

  • Comprehensive review of the country’s laws and regulations
  • Improved supervision and monitoring of financial institutions
  • Enhanced international cooperation
  • Increased public awareness campaigns to educate citizens about the dangers of money laundering and terrorist financing

Next Steps

The report is set to be presented to Comoros’ authorities, who are expected to take concrete steps to address the identified shortcomings and strengthen their AML/CFT system. The international community will closely monitor Comoros’ progress in implementing these recommendations to ensure that the country effectively combats money laundering and terrorist financing.