Financial Crime World

Terrorist Financing Detection in Guinea: Country Fails to Meet FATF Standards

Guinea, a West African country, has been found lacking in its efforts to combat terrorist financing. According to the Financial Action Task Force (FATF), Guinea’s rating for technical compliance with anti-money laundering and combating the financing of terrorism (AML/CFT) standards is largely compliant, but with significant shortcomings.

Shortcomings in AML/CFT Regime

The FATF Follow-Up Report 2023 highlights several areas where Guinea needs to improve its AML/CFT regime. Specifically:

  • Guinea has failed to fully implement measures to prevent terrorist financing through non-profit organizations.
  • The country lacks sufficient regulation and supervision of financial institutions, designated non-financial businesses and professions (DNFBPs), and law enforcement authorities.

Some Areas of Compliance

Guinea’s rating is largely compliant in several areas, including:

  • Assessing risk and applying a risk-based approach
  • National cooperation and coordination
  • Money laundering offense
  • Confiscation and provisional measures
  • Targeted financial sanctions related to terrorism and terrorist financing
  • International instruments

Recommendations for Improvement

The FATF report recommends that Guinea take immediate action to address its deficiencies, including:

  • Strengthening regulation and supervision of financial institutions, DNFBPs, and law enforcement authorities
  • Improving transparency and beneficial ownership requirements for legal persons and arrangements

Consequences of Non-Compliance

Guinea’s failure to meet FATF standards poses significant risks to the global financial system and undermines international efforts to combat terrorist financing. It is imperative that the country takes concrete steps to address these deficiencies and ensure that it meets the minimum standards set by the FATF.

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