FATF Recommends Improvements in Qatar’s AML/CTF Efforts

Qatar has made significant strides in combating money laundering and terrorism financing, according to a recent report by the Financial Action Task Force (FATF). While the country’s technical compliance with FATF requirements is strong, it still requires major improvements in its criminal justice response to terrorist financing.

Key Challenges Facing Qatar

• The small but wealthy nation relies heavily on an expatriate workforce, making it vulnerable to money laundering risks from smuggling, fraud, drug crimes, and corruption.
• Qatar’s citizens are targeted for fundraising at home and abroad, posing a notable threat of terrorist financing.

FATF Evaluation Highlights

The FATF-MENAFATF mutual evaluation highlights that Qatar has: + A good understanding of the risks it faces + Needs to improve its understanding of more complex forms of money laundering and terrorist financing + Made significant progress in collecting beneficial ownership information for its unified register, which is nearing completion + Insufficient controls remain to ensure that the collected information remains accurate and up-to-date

Areas Requiring Improvement

• Qatar’s financial intelligence unit is well-equipped but fails to utilize its sophisticated analysis capabilities to identify money laundering and terrorist financing to their fullest extent.
• The number of money laundering investigations and prosecutions in Qatar remains low, and authorities must improve their investigative efforts to identify the country’s potential role in complex or professional schemes.
• Qatar has secured only a small number of terrorist financing convictions and prosecutions, with major inconsistencies between its risk profile and the type and extent of terrorist financing activity prosecuted and convicted.

Positive Developments

• Qatar is effectively confiscating large sums, including proceeds and instrumentalities of crime, and property of equivalent value.
• The country prioritizes international cooperation but must make further progress to improve its overall system for mutual legal assistance and extradition.
• Qatar has a robust framework in place to implement targeted financial sanctions related to terrorist financing and has successfully seized a significant amount of assets.

Recommendations for Improvement

• Focus on implementing proliferation financing sanctions
• Improve investigative efforts to identify complex or professional schemes
• Enhance international cooperation to improve the overall system for mutual legal assistance and extradition.