Financial Crime World

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Sierra Leone’s Fight Against Money Laundering and Terrorism Financing: A Work in Progress

Freetown, Sierra Leone - In its quest to combat money laundering and terrorism financing, Sierra Leone has made significant strides in recent years. The country’s efforts have been recognized by the inter-governmental working group against money laundering in West Africa (GIABA), which has praised Sierra Leone’s commitment to implementing anti-money laundering and combating the financing of terrorism (AML/CFT) measures.

Establishing a Financial Intelligence Unit

According to a report by GIABA, Sierra Leone’s Financial Intelligence Unit (FIU) was established as an autonomous entity in 2012, following the repeal and replacement of the country’s AML/CFT Act. The FIU is empowered to:

  • Identify proceeds of unlawful activities
  • Combat money laundering and terrorism financing
  • Share information with law enforcement authorities and international agencies
  • Supervise and enforce compliance with the AML/CFT Act

Challenges in Demonstrating Effectiveness

Despite these efforts, Sierra Leone still faces challenges in demonstrating the effectiveness of its AML/CFT regime. The country’s performance rating by GIABA has highlighted concerns over:

  • Lack of prosecutions and convictions of money laundering and terrorism financing offenses two years after the criminalization of these activities

Ombudsman’s Role in Fighting Corruption

In addition to the FIU, Sierra Leone’s Office of the Ombudsman plays a critical role in combating corruption. Established by Act No. 2 of 1997, the Ombudsman is responsible for:

  • Investigating any action taken or omitted to be taken in the exercise of administrative functions by government agencies and institutions set up with public funds
  • Safeguarding the community’s interests and promoting transparency and accountability in government dealings

Justice Sector Challenges

Sierra Leone’s justice sector faces numerous challenges, including:

  • Corruption
  • Inefficiency
  • Lack of transparency
  • Judges’ reluctance to hand down custodial sentences for corruption-related cases

Way Forward

In conclusion, while Sierra Leone has made progress in implementing AML/CFT measures and combating corruption, there is still much work to be done. The country must:

  • Continue to prioritize transparency and accountability in its justice sector
  • Ensure that its institutions are empowered to effectively combat money laundering and terrorism financing
  • Only then can Sierra Leone hope to achieve a more stable and prosperous future for its citizens.