Financial Crime World

Chad’s Anti-Money Laundering Regulations Under Scrutiny: Country Fails to Meet FATF Recommendations

A recent evaluation by the Financial Action Task Force (FATF) has revealed that Chad has fallen short of implementing several key anti-money laundering regulations. The country received ratings ranging from non-compliant to partially compliant, indicating significant room for improvement.

Evaluation Findings

The evaluation assessed Chad’s implementation of the FATF Recommendations and found that the country is not doing enough to prevent money laundering and terrorist financing. Specifically:

  • Non-Compliance: Chad was rated as non-compliant in several areas, including:
    • Assessing risk and applying a risk-based approach (R.1)
    • National cooperation and coordination (R.2)
    • Financial institution secrecy laws (R.9)
  • Partially Compliant: Chad received partially compliant ratings for:
    • Confiscation and provisional measures (R.4)
    • Customer due diligence (R.10)
    • Record keeping (R.11)
    • Reporting of suspicious transactions (R.20)

These deficiencies raise concerns about the country’s ability to effectively prevent and detect money laundering and terrorist financing.

Areas for Improvement

The FATF evaluation also highlighted several areas where Chad needs improvement, including:

  • Targeted financial sanctions related to terrorism and terrorist financing (R.6)
  • Regulation and supervision of financial institutions (R.26)
  • Powers of law enforcement and investigative authorities (R.31)

Positive Findings

However, the evaluation did identify some areas where Chad was found to be compliant, including:

  • Assessing the risk of money laundering and terrorist financing offenses (R.3)
  • Transparency and beneficial ownership of legal persons (R.24)

Conclusion

The FATF evaluation provides a critical assessment of Chad’s anti-money laundering regulations and serves as a wake-up call for the country to take immediate action to address its deficiencies. Failure to do so could have severe consequences, including increased scrutiny from international financial institutions and potentially even sanctions.