Lesotho Moves to Strengthen Fight Against Money Laundering and Terrorist Financing

The government of Lesotho has taken a significant step towards enhancing its efforts to combat money laundering (ML) and terrorist financing (TF) with the introduction of the Money Laundering and Prevention of Terrorism Bill.

Money Laundering and Prevention of Terrorism Bill

The bill, which was recently tabled in parliament, aims to provide a comprehensive framework for the prevention, detection, investigation, and prosecution of ML and TF offenses. The legislation is designed to strengthen Lesotho’s capacity to tackle these serious crimes, which pose a significant threat to its financial stability and national security.

Investigations and Prosecution

The bill provides for the establishment of a dedicated authority, known as the Anti-Money Laundering Authority (AMLA), which will be responsible for preventing, investigating, and prosecuting ML and TF offenses. AMLA will be housed within the Directorate on Corruption and Economic Offences (DCEO) and will have powers to conduct investigations and gather evidence.

• The bill outlines procedures for freezing and confiscating assets linked to ML and TF activities.
• It provides for the sharing of information between law enforcement agencies and financial institutions.

Cooperation and Capacity Building

The government has acknowledged that effective implementation of the bill will require a collaborative effort among various public sector stakeholders. As such, it is recommended that Lesotho authorities prioritize issues of cooperation among responsible departments and agencies, including:

• Establishing and maintaining structures that facilitate communication among relevant role-players.
• Providing capacity building in law enforcement agencies to enable them to investigate complex financial crimes.

Recommendations

The assessment team has made several recommendations aimed at strengthening Lesotho’s efforts to combat ML and TF, including:

• Clarifying the roles and responsibilities of law enforcement agencies in investigating ML and TF offenses.
• Ensuring that AMLA’s functions and powers are framed in a way that promotes accountability and transparency.
• Providing capacity building support for law enforcement agencies to investigate complex financial crimes.

Conclusion

The introduction of this bill marks an important step towards enhancing Lesotho’s ability to combat money laundering and terrorist financing. Its successful implementation will require a coordinated effort from government agencies, financial institutions, and the private sector to ensure that these serious crimes are effectively prevented and prosecuted.