Financial Crime World

Title: FATF Evaluates Liberia’s Progress in Anti-Money Laundering and Counter-Terrorist Financing Regime

FATF Releases Report on Liberia’s Implementation of Recommendations

The Financial Action Task Force (FATF), the global anti-money laundering and counter-terrorist financing watchdog, has published a follow-up report on Liberia’s progress in implementing the measures to combat financial crimes. The report evaluates Liberia’s performance regarding 40 FATF recommendations, revealing both progress and challenges for the West African nation.

FATF Ratings: Compliance Levels for Liberia

FATF ratings reflect the extent of a country’s implementation of the technical requirements. The ratings are:

  • Compliant (C)
  • Largely Compliant (LC)
  • Partially Compliant (PC)
  • Non-Compliant (NC)

Liberia’s Assessment: Progress and Challenges

Liberia has made significant strides in implementing measures to assess risk, ensure national cooperation, and enforce money laundering and terrorist financing offenses. However, the country still faces concerns in several areas:

  1. Non-profit organizations (R.8) - Liberia has not yet established a legal and regulatory framework for non-profit organizations, making it a significant non-compliance.
  2. Beneficial ownership (R.24 and R.25) - Liberia’s lack of progress in these areas leaves it non-compliant with FATF recommendations.
  3. Designated non-financial businesses and professionals (DNFBPs) (R.28) - Liberia is still in the process of establishing a regulatory and supervisory framework for DNFBPs, making it non-compliant with this recommendation.
  4. Financial Intelligence Unit (FIU) (R.29) - Liberia’s FIU is considered compliant with the FATF Standards, showcasing the country’s progress in this area.

Key Highlights of the Report

  • Non-profit organizations: Liberia’s non-compliance with R.8 poses a significant challenge.
  • Beneficial ownership (R.24 and R.25): Liberia’s non-compliance in this area also has negative implications.
  • Designated non-financial businesses and professionals: Liberia’s lack of a regulatory and supervisory framework for DNFBPs hinders its implementation efforts.

Consequences of Non-compliance

With several non-compliant areas, Liberia risks being added to the FATF “grey” or “high-risk” list, potentially hindering its access to the international financial system. The government has been urged to address these gaps and improve implementation efforts to meet FATF standards.

FATF’s Continued Monitoring

The FATF will continue to monitor Liberia’s progress and may conduct another assessment in the future to evaluate the implementation of any corrective actions.