Financial Crime World

Lesotho’s Fight Against Money Laundering and Terrorist Financing: A Matrix for Implementation

The Government of Lesotho has unveiled a comprehensive matrix to combat money laundering and terrorist financing in the country. The Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) regime aims to strengthen national cooperation and international cooperation to prevent and detect financial crimes.

Key Objectives

The AML/CFT matrix outlines 15 key objectives, including:

  • Establishing a National Inter-Agency Committee
  • Developing a comprehensive Memorandum of Understanding among relevant government agencies
  • Implementing effective legislation to combat money laundering and terrorist financing

National Inter-Agency Committee

To address the lack of coordination at higher management levels, the National Inter-Agency Committee will be established comprising representatives from:

  • Finance
  • Development Planning
  • Justice
  • Law and Constitutional Affairs
  • Home Affairs and Public Safety
  • Foreign Affairs and International Relations
  • Central Bank of Lesotho
  • Lesotho Revenue Authority

The committee will define its mandate and implement its objectives through a Memorandum of Understanding and Service Level Agreement.

Capacity Building

The matrix highlights the need for capacity building for both financial and human resources to effectively combat money laundering and terrorist financing.

Financial Intelligence Unit (FIU)

Lesotho’s FIU is expected to play a critical role in receiving and analyzing suspicious transactions reports from financial institutions. However, the matrix notes that:

  • Lack of FIU infrastructure
  • Admissibility of electronic data as evidence in courts

are major challenges that need to be addressed.

International Cooperation

To enhance international cooperation, Lesotho has committed to:

  • Ratifying international and regional instruments
  • Developing legal treaties
  • Establishing mutual legal assistance agreements with other countries

Implementation Timeline

The implementation of this AML/CFT regime is expected to be completed by April 2009.

Funding and Awareness

The government has pledged to secure funding for activities aimed at enhancing awareness and appreciation of AML/CFT among the public and relevant stakeholders.

List of Acronyms

  • AMLA - Anti-Money Laundering Authority
  • AML/CFT - Anti-Money Laundering and Combating the Financing of Terrorism
  • DCEO - Directorate on Corruption and Economic Offences
  • DPP - Director of Public Prosecutions
  • DSI - Development Strategy Implementation
  • FIU - Financial Intelligence Unit
  • LEA - Law Enforcement Agencies
  • MLPC - Money Laundering and Proceeds of Crime Act
  • MOU - Memorandum of Understanding
  • SLA - Service Level Agreement