Financial Crime World

EQUATORIAL GUINEA FALLS SHORT ON ANTI-MONEY LAUNDERING REGULATIONS

Global Anti-Money Laundering Watchdog Criticizes Equatorial Guinea’s Progress

Equatorial Guinea, a small West African nation, has failed to adequately implement several key recommendations from the Financial Action Task Force (FATF), a global anti-money laundering and terrorist financing watchdog. A recent report highlights the country’s shortcomings in implementing FATF’s 40 Recommendations, which aim to prevent the misuse of financial systems for illicit purposes.

Key Areas of Concern

  • Regulation and Supervision of Non-Financial Businesses and Professions (DNFBPs): Equatorial Guinea has failed to implement measures requiring DNFBPs to conduct customer due diligence.
  • Transparency and Beneficial Ownership of Legal Persons: The country lacks adequate laws and regulations to ensure transparency and beneficial ownership of legal persons.

Positive Developments

On the other hand, Equatorial Guinea has made progress in implementing other FATF Recommendations, including:

  • Establishment of a Financial Intelligence Unit (FIU): A key step in combating money laundering and terrorist financing.
  • Strengthening Anti-Terrorism Financing Laws: Enhancing the country’s ability to prevent and combat financial crime.

International Implications

The report’s findings are likely to be of concern to international partners and financial institutions, which may view Equatorial Guinea as a high-risk jurisdiction for money laundering and terrorist financing. The country’s failure to implement key FATF Recommendations could impact its access to international capital markets and its ability to attract foreign investment.

Call to Action

Equatorial Guinea’s government has been urged to take immediate action to address the report’s findings and improve its anti-money laundering regulations. This includes:

  • Strengthening Laws and Regulations: Related to DNFBPs, transparency, and beneficial ownership of legal persons.
  • Implementing Measures: To prevent money laundering and terrorist financing risks.

By working together to strengthen our defenses against these threats, we can protect our financial systems from abuse.