Financial Crime World

Enhancing Due Diligence in Finance: Burkina Faso Partners with OECD

Burkina Faso is taking a significant step towards promoting transparency and accountability in its mineral supply chain by partnering with the Organization for Economic Co-operation and Development (OECD) to implement the OECD Guidance for Responsible Mineral Supply Chains.

Background

The Liptako-Gourma Integrated Development Authority (LGA) has been working with the OECD since 2016 to promote responsible business practices in mineral supply chains. The joint initiative aims to increase awareness among mining stakeholders in West Africa about the importance of due diligence and provide them with the necessary tools to apply it effectively.

Program Objectives

The program targets key players in the mineral supply chain, including:

  • Smelters
  • Refineries
  • Local and national traders
  • Exporters
  • Artisanal miners
  • Small- and medium-scale miners
  • Industrial mine operators
  • Regional and international organizations
  • Government institutions
  • The banking sector
  • Civil society
  • Universities

The program aims to:

  • Increase awareness about the importance of due diligence in mineral supply chains
  • Provide stakeholders with the necessary tools to apply due diligence effectively
  • Promote responsible business practices in mineral supply chains

Capacity-Building Programs

Seven capacity-building programs will be held across Burkina Faso, Mali, and Niger. Two out of three workshops in Burkina Faso and Mali will take place in mining areas. The training sessions will cover the following topics:

  • Due diligence process
  • Implementing due diligence effectively

Follow-Up Exercises

The program includes follow-up exercises aimed at identifying risks and mitigation measures with some of the most commonly involved actors in the supply chain. These exercises will help to strengthen the implementation of due diligence practices among stakeholders and ensure that the training program is effective.

Expected Outcomes

The expected outcomes of the program are:

  • Key stakeholders in the mineral supply chain, especially gold, understand the due diligence process
  • Stakeholders have the necessary tools to apply due diligence on the field
  • Evidence-based recommendations on how to improve, replicate, and extend the training program in other geographical areas

Impact

By promoting responsible business practices in mineral supply chains, the OECD Guidance and the LGA training program are expected to contribute significantly to reducing conflict financing and human rights violations in the region.

Conclusion

Burkina Faso’s partnership with the OECD is a significant step towards enhancing due diligence in finance and promoting transparency and accountability in its mineral supply chain. The joint initiative aims to promote responsible business practices among key stakeholders, reduce conflict financing and human rights violations, and provide evidence-based recommendations for future training programs.