Financial Crime World

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Eritrea’s AML/CFT Regulations Under Scrutiny: Country Scores Mixed Results

Eritrea’s anti-money laundering (AML) and combating the financing of terrorism (CFT) regulations have been assessed by international experts, with mixed results. The country has made progress in implementing some technical requirements, but still lags behind in others.

Assessment Results

According to a report released today, Eritrea scored:

  • Largely Compliant on several key indicators, including:
    • Assessing risk and applying a risk-based approach
    • National cooperation and coordination
    • Money laundering offence
    • Confiscation and provisional measures
    • Targeted financial sanctions related to terrorism and terrorist financing
  • Partially Compliant on other indicators, such as:
    • Customer due diligence
    • Record keeping
    • Political exposed persons
  • Non-Compliant in several areas, including:
    • New technologies
    • Wire transfers
    • Reporting of suspicious transactions

Deficiencies Identified

The report highlighted Eritrea’s efforts to improve its AML/CFT regime, including:

  • The establishment of a financial intelligence unit
  • The implementation of targeted financial sanctions related to terrorism

However, the report also identified several areas that require further attention and action, including:

  • Lacking transparency and beneficial ownership of legal persons and arrangements
  • Failing to regulate and supervise certain financial institutions and DNFBPs (designated non-financial businesses and professions)

Call to Action

Eritrea’s authorities have been urged to address the deficiencies identified in the report and to implement the necessary reforms to bring the country’s AML/CFT regime in line with international standards. The country has committed to implementing the recommendations of the Financial Action Task Force (FATF) and to demonstrating its commitment to combating money laundering and terrorist financing.

Full Report Available

The full report is available on the website of the FATF, a global standard-setting body that sets guidelines for AML/CFT regulations.