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FATF Recommendations in Central African Republic: A Comprehensive Assessment
The Financial Action Task Force (FATF) has released its mutual evaluation of the Central African Republic’s implementation of anti-money laundering and combating the financing of terrorism (AML/CFT) measures. The report assesses the country’s compliance with the FATF recommendations, highlighting areas of strength and weakness.
Risk Assessment and Risk-Based Approach
- The Central African Republic was found to have a comprehensive risk assessment framework in place, allowing it to identify and prioritize AML/CFT risks effectively.
- However, there are concerns about the lack of clarity on certain aspects of the risk assessment framework.
National Cooperation and Coordination
- The country has made significant progress in strengthening national cooperation and coordination among its financial institutions, law enforcement agencies, and other relevant authorities.
- However, there are concerns about the lack of effective communication among authorities.
Money Laundering Offence
- The Central African Republic’s money laundering offence is comprehensive, covering a wide range of activities.
- However, there are concerns about the lack of clarity on certain aspects of the offence.
Confiscation and Provisional Measures
- The country has implemented confiscation and provisional measures to combat money laundering and terrorist financing.
- However, these measures could be improved through more effective communication among authorities.
Terrorist Financing Offence
- The Central African Republic’s terrorist financing offence is adequate, covering a range of activities.
- However, there are concerns about the lack of resources and capacity to effectively investigate and prosecute cases.
Targeted Financial Sanctions
- The country has implemented targeted financial sanctions related to terrorism and terrorist financing.
- However, these measures could be improved through more effective coordination among authorities.
Non-Profit Organisations
- The report notes that non-profit organisations in the Central African Republic are subject to adequate regulations and supervision.
Transparency and Beneficial Ownership
- The country’s transparency and beneficial ownership requirements for legal persons and arrangements are adequate.
- However, there are concerns about the lack of effective implementation.
Financial Institution Secrecy Laws
- The country’s financial institution secrecy laws could be improved to ensure greater transparency and cooperation with foreign authorities.
- However, there are concerns about the lack of resources and capacity to effectively implement these measures.
Customer Due Diligence
- The report finds that customer due diligence requirements for financial institutions are comprehensive.
- However, there are concerns about the lack of effective implementation.
Record Keeping
- The country has implemented adequate record-keeping requirements for financial institutions.
- However, there are concerns about the lack of resources and capacity to effectively supervise these activities.
Politically Exposed Persons
- The Central African Republic’s rules on PEPs are adequate, covering a range of activities.
- However, there are concerns about the lack of resources and capacity to effectively monitor PEPs.
Correspondent Banking
- The country has implemented correspondent banking requirements.
- However, there are concerns about the lack of resources and capacity to effectively supervise these activities.
Money or Value Transfer Services
- The report finds that money or value transfer services in the Central African Republic are subject to adequate regulations and supervision.
- However, there are concerns about the lack of effective implementation.
New Technologies
- The country has implemented measures to address the risks associated with new technologies, such as digital currencies and online payment systems.
- However, there are concerns about the lack of resources and capacity to effectively monitor these activities.
Wire Transfers
- The report notes that wire transfers in the Central African Republic are subject to adequate regulations and supervision.
- However, there are concerns about the lack of effective implementation.
Reliance on Third Parties
- The country has implemented measures to address the risks associated with reliance on third parties, such as accountants and lawyers.
- However, there are concerns about the lack of resources and capacity to effectively monitor these activities.
Internal Controls
- The report finds that internal controls in place for financial institutions are adequate.
- However, there are concerns about the lack of effective implementation.
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