Financial Crime World

Guinea-Bissau Seeks to Strengthen Financial Governance

In an effort to address its fiscal challenges, Guinea-Bissau has announced plans to improve tax administration, licensing, and other regulatory obligations. The country’s Ministry of Justice, Ministry of Finance, and other relevant authorities have been tasked with implementing these reforms.

Short-Term Recommendations

The government has identified several key areas that require immediate attention:

  • Transparency in Fee Charges: Ensure transparency in fee charges by all entities, including the publication of organizational charts for each public entity.
  • Strengthening Anti-Money Laundering and Combating the Financing of Terrorism Measures: Strengthen supervision of preventive anti-money laundering (AML) and combating the financing of terrorism (CFT) measures related to politically exposed persons.
  • Operational Independence of Investigative Bodies and Courts: Safeguard the operational independence of investigative, prosecutorial bodies, and courts from political interference and undue influence.

Medium-Term Objectives

In addition to these short-term recommendations, Guinea-Bissau has set its sights on several medium-term objectives:

  • Resources for Law Enforcement Agencies: Grant necessary resources, including a sufficient budget for operations, and appropriate budgetary autonomy to law enforcement agencies.
  • Addressing Gaps in Criminal Legislation: Address gaps in the country’s criminal legislation, particularly with regard to corruption offenses.

Fiscal Challenges

Guinea-Bissau faces significant fiscal challenges:

  • Low Domestic Revenue Base: A low domestic revenue base (12.5% of GDP) and a high public debt-to-GDP ratio (65%) require significant fiscal adjustment to secure a foundation for stronger economic growth and attainment of development objectives.

Governance Reforms

Improving governance and curbing corruption is critical to ensuring debt sustainability and safeguarding public resources:

  • Public Financial Management: Improve domestic revenue and expenditure management, as well as ensure transparency and accountability in the use of public funds.
  • Tax Administration and Policy: Develop a comprehensive reform plan for tax administration and policy.

Conclusion

Guinea-Bissau’s efforts to strengthen its financial governance are essential for addressing the country’s fiscal challenges and securing a foundation for stronger economic growth. By implementing these reforms, the government aims to improve transparency, accountability, and efficiency in public resource management, ultimately benefiting the people of Guinea-Bissau.