Financial Crime World

Burkina Faso: Efforts to Combat Money Laundering and Terrorist Financing

In its quest for sustainable development, Burkina Faso has been grappling with various challenges, including money laundering and terrorist financing (ML/TF). The country’s anti-money laundering and counter-terrorist financing (AML/CFT) system is still in its early stages of development, but it has made some progress in recent years.

Challenges

Burkina Faso remains a significant transit point for narcotics from West Africa to Europe. The country’s porous borders and weak law enforcement capabilities make it an attractive route for drug traffickers.

Progress

In response to these challenges, the Financial Intelligence Unit (FIU) of Burkina Faso has been working to strengthen its AML/CFT regime. In 2012, the FIU organized a series of training and awareness workshops for students, compliance officers, and directors of insurance companies, among others. The unit also initiated formalities to become a member of the Egmont Group by July 2013.

International Cooperation

The FIU has signed cooperation agreements with the FIUs of Nigeria, Ghana, Gabon, Monaco, and Morocco, bringing the total number of MOUs signed to seven since its inception. Additionally, the Minister of Economy and Finance presented a report on AML/CFT issues to the cabinet meeting, informing high-ranking political and administrative authorities about the country’s progress on AML/CFT.

Challenges Ahead

Despite these efforts, challenges still remain. The FIU has only received 17 suspicious transaction reports (STRs) in 2012, indicating a lack of active involvement from other AML/CFT reporting entities. The unit also faces challenges related to personnel capacity, software, and database, which have hindered its ability to process STRs effectively.

Recommendations

To address these challenges, Burkina Faso requires:

  • Technical assistance for various training activities designed for regulatory, supervisory, judicial, and law enforcement officials.
  • Funding for study trips to foreign FIUs to optimize the performance of its staff.
  • Strengthening its AML/CFT system by implementing a national strategy on AML/CFT.
  • Increasing efforts to engage with other AML/CFT reporting entities and encouraging them to submit more STRs to the FIU.
  • Establishing mechanisms for freezing and confiscation of assets related to TF.

Conclusion

Burkina Faso faces significant challenges in combating ML/TF, but it has made some progress in recent years. Strengthening its AML/CFT regime and addressing the challenges faced by the FIU are critical steps towards ensuring the country’s economic stability and security.