Eritrea Establishes Financial Intelligence Unit (FIU) to Combat Money Laundering and Terrorist Financing

Strengthening Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) Regime

In a significant move towards enhancing its anti-money laundering and combating the financing of terrorism (AML/CFT) regime, Eritrea has decided to establish a financial intelligence unit (FIU). This strategic decision reflects the government’s commitment to strengthening its AML/CFT operational network by introducing a national center for receiving and analyzing suspicious transaction reports.

Key Roles and Responsibilities

The FIU will play a central role in the following activities:

• Receiving Suspicious Transaction Reports: The FIU will be responsible for collecting suspicious transaction reports from reporting entities.
• Conducting Analysis: It will analyze these reports to identify potential money laundering or terrorist financing activities.
• Dissemination of Results: The unit will disseminate its findings to relevant competent authorities through dedicated, secure, and protected channels.

Access to Information

To effectively carry out its functions, the FIU is expected to have access to a wide range of financial, administrative, and law enforcement information. This includes:

• Open or Public Sources
• Relevant Data Collected by Other Authorities
• Commercially Held Data

Importance of Information Security and Confidentiality

The operations of the FIU will be guided by stringent rules governing the handling, storage, dissemination, and protection of sensitive information. Procedures for access to its facilities and information technology systems will also be in place.

Operational Independence and Autonomy

To maintain operational independence and autonomy, the FIU will have the authority to forward or disseminate information to competent authorities as deemed necessary without undue influence or interference from external parties.

Eritrea’s Commitment to AML/CFT Standards

Eritrea’s establishment of a financial intelligence unit demonstrates its commitment to strengthening its AML/CFT regime and combating money laundering and terrorist financing in line with international standards. The FIU will play a critical role in supporting the country’s efforts to prevent and detect illicit activities, contributing to a safer and more secure financial system.

Related Developments

Eritrea has also been implementing regulations and guidelines for reporting entities, including requirements for cash transaction reporting. The government is considering introducing a system where financial institutions and designated non-financial businesses and professions (DNFBPs) report all domestic and international currency transactions above a fixed amount.

Regional and International Cooperation

Eritrea’s efforts to establish a robust AML/CFT regime are in line with its commitment to regional and international cooperation on combating money laundering and terrorist financing. The country is expected to continue strengthening its financial intelligence capabilities to effectively tackle illicit activities and maintain the integrity of its financial system.