Financial Crime World

Media Article: FATF Intensifies Scrutiny on Senegal’s Financial Sector

Senegal Added to FATF’s List of Jurisdictions Under Increased Monitoring

Dakar, Senegal - The Financial Action Task Force (FATF), an international organization dedicated to combating money laundering and terrorist financing, has added Senegal to its list of jurisdictions under increased monitoring. The announcement comes amid ongoing challenges related to financial regulation in Senegal, particularly in the banking and financial sectors.

FATF’s Concerns

  • Adoption of a national risk assessment: Senegal has made progress in this area.
  • Development of a financial intelligence unit: Senegal has developed a financial intelligence unit.
  • Customer due diligence measures: Lingering concerns regarding the implementation of these measures.
  • Enforcement of sanctions: Concerns over the effectiveness of this area.
  • Investigative tools for authorities: Availability of these tools remains an issue.

International Community’s Efforts

The FATF’s increased monitoring of Senegal’s financial sector is part of a larger push by the international community to strengthen anti-money laundering efforts in West Africa. The region has long been a hub for illicit financial flows, with significant amounts of money trafficked through informal channels.

Consequences for Senegal

Being on the FATF’s watchlist could:

  • Make it harder for Senegalese financial institutions to access international banking networks.
  • Deter foreign investment.
  • Provide an impetus for the government to tighten up its regulatory framework and enhance its ability to combat financial crimes.

Review and Expected Outcomes

The FATF is scheduled to review Senegal’s progress in June 2024. The country is expected to:

  • Demonstrate meaningful progress in addressing the shortcomings identified in its risk assessment.
  • Make sufficient reforms to alleviate FATF’s concerns.

Central Bank of West African States’ Optimism

A senior official at the Central Bank of West African States (BCEAO) expressed optimism about Senegal’s ability to turn things around. The official stated that:

We are committed to working closely with the FATF and implementing the necessary reforms to address the concerns raised. We are confident that we can make sufficient progress by the time of the next review.

Regional Implications

The FATF’s watchlisting of Senegal underscores the challenges that remain in the fight against money laundering and terrorist financing in West Africa. It is hoped that the intensified scrutiny will encourage the Senegalese government to accelerate its reform efforts and help the region move toward greater financial stability and security.