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COMOROS Struggles to Meet FATF Regulatory Requirements, Latest Report Reveals

The Comoros Islands have faced numerous challenges in implementing the technical requirements of the Financial Action Task Force (FATF) recommendations, according to a recent report. The country’s rating has been stuck at “largely compliant” for several years, with some areas showing significant room for improvement.

Benin Follow-Up Report 2023

The report highlights several key areas where the Comoros Islands have struggled to comply with FATF requirements:

  • National cooperation and coordination (R.2)
  • Money laundering offence (R.3)
  • Confiscation and provisional measures (R.4)
  • Terrorist financing offence (R.5)

On the other hand, the country has made significant progress in other areas:

  • Assessing risk and applying a risk-based approach (R.1)
  • Targeted financial sanctions related to terrorism and terrorist financing (R.6)
  • Customer due diligence (R.10)

The report also notes that the Comoros Islands have implemented certain measures, including:

  • Record keeping (R.11)
  • Internal controls and foreign branches and subsidiaries (R.18)

However, these efforts are often hampered by inadequate resources and infrastructure.

Key Issues to Address

To improve its compliance with FATF requirements, the Comoros Islands must address several key issues:

  • Strengthening national cooperation and coordination
  • Improving money laundering and terrorist financing offence definitions
  • Increasing transparency and beneficial ownership of legal persons and arrangements (R.24 and R.25)

International Cooperation and Assistance

The report highlights the need for increased international cooperation and assistance to support the Comoros Islands in its efforts to improve compliance with FATF requirements.

Conclusion

While the Comoros Islands has made progress in some areas, it still faces significant challenges in implementing FATF recommendations. The country must address these issues to ensure a safer financial system and prevent the misuse of its financial institutions for illicit activities.