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Burundi: Combating Corruption and Money Laundering

A recent review by an international organization has highlighted several areas where Burundi can improve its efforts to combat corruption and money laundering.

Challenges in Combating Corruption

According to the report, Burundi’s laws do not adequately address tax fraud, with intentional destruction of accounting documents being a common practice. The country’s General Tax Code also fails to mention the prohibition of deducting expenses that constitute bribes.

The review team expressed concern about the lack of progress in establishing a National Financial Intelligence Unit (FIU), which is responsible for receiving and analyzing suspicious transaction reports. Despite plans to restructure national measures to prevent money laundering, the FIU has yet to become operational.

Additionally, Burundi’s financial institutions lack specific regulations for electronic transfers of funds, and cross-border movements of cash are not regulated.

Positive Developments

However, there are some positive developments in Burundi’s efforts to combat corruption. Existing codes of ethics form an integral part of public officials’ employment contracts, and the country has observer status with the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG).

Recommendations for Improvement

To address these concerns, it is recommended that Burundi:

  • Advance the adoption of a national policy letter on Good Governance and Anti-Corruption
  • Strengthen specific anti-corruption preventive practices, such as awareness-raising and education campaigns for the public
  • Grant the Ministry of Good Governance and Public Sector Leadership (MGBP) the necessary independence to effectively carry out its functions
  • Strengthen the system of selection for public positions considered vulnerable to corruption
  • Promote education and training programs for public officials
  • Encourage integrity, honesty, and accountability among public officials
  • Consider strengthening measures to facilitate reporting by public officials of acts of corruption

Conclusion

By implementing these recommendations, Burundi can strengthen its efforts to combat corruption and money laundering, and improve transparency and accountability in its public administration.

Key Recommendations

  1. Advance the adoption of a national policy letter on Good Governance and Anti-Corruption
  2. Strengthen specific anti-corruption preventive practices, such as awareness-raising and education campaigns for the public
  3. Grant the MGBP the necessary independence to effectively carry out its functions
  4. Strengthen the system of selection for public positions considered vulnerable to corruption
  5. Promote education and training programs for public officials
  6. Encourage integrity, honesty, and accountability among public officials
  7. Consider strengthening measures to facilitate reporting by public officials of acts of corruption

Source

CAC/IRG/2019/CRP.17