Guinea Fails to Meet International Standards on Anti-Money Laundering and Terror Financing
A recent report by the GIABA (Groupe Intergouvernemental d’Action contre le Blanchiment des Capitaux et le Financement du Terrorisme) has revealed that Guinea has made significant efforts to improve its anti-money laundering and counter-terrorism financing (AML/CFT) regime, but still falls short of meeting international standards.
Key Findings
- Guinea’s poor understanding of money laundering and terrorist financing risks
- Lack of national cooperation and coordination
- Limited use of financial intelligence
- Defective system for detecting and reporting suspicious transactions
- Rare ML-related investigations and prosecutions due to lack of prioritization and inadequate resources
- Failure to implement effective measures to prevent terrorism financing
Criticisms
- Lack of national policy and strategy on the issue of terrorism financing
- Financial institutions are not adequately supervised
- DNFBPs (Designated Non-Financial Businesses and Professions) are weak links in the AML/CFT chain
Recommendations
Strengthen National Cooperation and Coordination
- Between law enforcement agencies, financial regulatory bodies, and other stakeholders
Enhance Use of Financial Intelligence
- Provide adequate resources and training for financial institutions and law enforcement agencies
Improve Supervision and Regulation of Financial Institutions
- Ensure that they are adequately implementing AML/CFT measures
Develop National Policy and Strategy on Terrorism Financing
- Prevent terrorist financing in the country
Take Steps to Prevent Money Laundering and Terrorist Financing
- Improve transparency of legal persons and legal arrangements
- Strengthen national cooperation and coordination
- Enhance use of financial intelligence
- Improve supervision and regulation of financial institutions
Conclusion
Guinea has made significant efforts to improve its AML/CFT regime, but still faces several challenges. To meet international standards, Guinea must:
- Strengthen national cooperation and coordination
- Enhance the use of financial intelligence
- Improve supervision and regulation of financial institutions
- Develop a national policy and strategy on terrorism financing
- Take steps to prevent money laundering and terrorist financing in the country