Financial Crime World

Burkina Faso’s Anti-Money Laundering Laws Under Scrutiny: Country Faces Challenges in Implementing FATF Recommendations

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A recent assessment has revealed that Burkina Faso’s anti-money laundering (AML) laws and regulations are not fully compliant with international standards. The country has been rated “partially compliant” or “largely compliant” on most of the 40 Recommendations issued by the Financial Action Task Force (FATF), a global watchdog on money laundering and terrorist financing.

Assessment Highlights Weaknesses

The assessment found that Burkina Faso’s AML framework is still developing, with some areas requiring significant improvement. The country has made progress in implementing measures to prevent money laundering and terrorist financing, but there are concerns about the effectiveness of its legal framework and the ability of authorities to enforce it.

  • Lack of a comprehensive AML law
  • Inadequate customer due diligence requirements for financial institutions
  • Insufficient reporting of suspicious transactions
  • Financial intelligence unit still in development, hindering information sharing with international partners

Progress Made

Despite these challenges, Burkina Faso has made significant progress in recent years, particularly in terms of:

  • Increasing public awareness about AML/CTF risks
  • Improving cooperation between law enforcement agencies
  • Strengthening financial sector regulation and supervision

Recommendations for Improvement

The assessment recommends that Burkina Faso prioritize the implementation of a comprehensive AML law, improve customer due diligence requirements for financial institutions, and enhance reporting of suspicious transactions. Additionally, the country is encouraged to:

  • Increase public awareness about AML/CTF risks
  • Improve cooperation between law enforcement agencies

Conclusion

While Burkina Faso has made progress in implementing anti-money laundering measures, there is still much work to be done to ensure that its laws and regulations are fully compliant with international standards. The country’s financial sector must continue to prioritize AML/CFT efforts to prevent the misuse of its financial system.