Lesotho Government to Introduce New Law for Enhanced Fight Against Money Laundering and Terrorist Financing

Strengthening the Fight Against Serious Crimes

The Lesotho government is set to introduce a new law, the Money Laundering and Prevention of Terrorism Financing Bill (MLPC Bill), aimed at empowering Law Enforcement Agencies (LEAs) and the Directorate on Corruption and Economic Offences (DCEO) to work together in investigating and confiscating the proceeds of crime.

Key Provisions of the MLPC Bill

• The LEAs, including the Lesotho Mounted Police Service (LMPS), will have the powers to freeze funds and assets linked to terrorist financing and money laundering.
• A new authority, the Anti-Money Laundering Authority (AMLA), will be established to prevent, investigate, and prosecute money laundering and terrorist financing offenses.

Challenges and Recommendations

Experts have noted that there is a need for greater clarity on how LEAs and DCEO will work together to achieve their goals. They recommend:

• Clear identification of the law enforcement agency(s) with primary task(s) of investigating ML and TF offences in the MLPC Bill.
• Review of Lesotho’s laws on penalties for serious crimes, as many are outdated and do not adequately reflect the seriousness of the offenses.

Capacity Building and Training

The assessment team has recommended that the government consider providing training and capacity-building programs for DCEO investigators to enhance their skills in investigating complex financial crimes.

Way Forward

While the MLPC Bill is seen as a step in the right direction towards strengthening Lesotho’s efforts to combat money laundering, terrorist financing, and other serious crimes, it is crucial that the government ensures that the necessary infrastructure and resources are put in place to support its implementation.