Financial Reporting Center: A Key Institution in Combating Money Laundering and Terrorist Financing in Somalia

Establishment of the Financial Reporting Center

The Financial Reporting Center (FRC) was established in 2016 as part of the Anti-Money Laundering and Countering the Financing of Terrorism Act (AML/CFT). This legislation made AML/CFT a government priority, creating key institutions to oversee the regime.

Vision and Mission

• The FRC’s declared vision is to become a trusted and exemplary agency in support of a robust financial system hostile to financial crimes.
• Its mission is to help rebuild Somalia’s financial system and restore its credibility in the global financial networks.

Mandate and Role in Combating Money Laundering and Terrorist Financing

The FRC is mandated to:

• Undertake systematic collection and analysis of data associated with money transfers
• Document suspicious transactions
• Provide strategic intelligence, including statistics and typologies aimed at increasing risk awareness

The FRC contributes to building and maintaining an environment in Somalia that is directed towards identifying and eradicating money laundering and terrorist financing. This objective has national value and fulfills Somalia’s international obligations to combat money laundering and terrorist financing.

Key Functions of the Financial Reporting Center

• Receiving, requesting, analyzing, and disseminating information concerning money laundering and terrorist financing
• Analyzing suspicious financial activities and investigating financial crimes
• Conducting AML/CFT risk assessments and issuing regulations and guidelines for reporting entities

The FRC plays a crucial role in Somalia’s efforts to prevent and combat money laundering and terrorist financing. Its functions and mandate are designed to support the country’s national strategy and international obligations related to AML/CFT.