Financial Crime World

Sierra Leone Intensifies Fight Against Corruption with Advanced Money Laundering Detection System

The Government of Sierra Leone is taking a bold step in the fight against corruption by blocking pathways that allow corrupt proceeds to be utilized. One key area of focus is the anti-money-laundering drive led by the Financial Intelligence Unit, supported by the existing legal and regulatory framework.

A Strong Political Will Against Corruption

Sierra Leone’s commitment to tackling money laundering is backed by several pieces of legislation, including:

  • The Anti-Money Laundering and Combating of Financing of Terrorism Act 2012
  • The Terrorism Prevention (Freezing of International Terrorists Funds and other Related Measures) Regulations 2013
  • The Revised Directives for Financial Institutions on the prevention of Money Laundering and Terrorism Financing 2018
  • Resolutions from the United Nations Security Council
  • Several Memorandums of Understanding for information sharing with entities in the anti-corruption and public financial management space

Limitations of Current System

The Financial Intelligence Unit has been relying on manual and semi-manual submission of statutory reports, processing of requests for information, and analysis of data. However, this process has several limitations, including:

  • Manual analytical processes
  • Limited technology
  • Lack of investment in training front-line staff
  • Non-existence or low use of investigative technology systems
  • Incomplete coverage of required data

A New Era of Money Laundering Detection

In line with the National Innovation and Digital Strategy, the government is set to design, deploy, and support a system capable of handling big financial data and beneficial ownership information using machine learning and artificial intelligence technologies. The new system will enable:

  • Data analytics
  • Anomaly detection
  • Risk prediction methodologies
  • Monitoring transactions
  • Determining links between them
  • Identifying possible proceeds from corruption, money laundering, and other crimes

Interoperability and Information Sharing

The system will be interoperable with those of other data-sharing entities, including:

  • Bank of Sierra Leone
  • National Revenue Authority
  • Foreign exchange bureaus
  • Anti-Corruption Commission
  • Office of National Security

This sharing of information will facilitate:

  • Identification of suspicious persons, assets, criminal networks, and associations
  • Improvement of compliance
  • Lowering or preventing corruption and criminal incidents

Funding and Technical Assistance

The government has secured potential funding and technical assistance through the International Monetary Fund’s Innovation Lab, Directorate of Science, Technology and Innovation, Research and Delivery Division, Ministry of Finance, and Financial Intelligence Unit to support this initiative aimed at improving Sierra Leone’s anti-money laundering regulatory and compliance regime.