Guinea’s Anti-Money Laundering (AML)/Combating the Financing of Terrorism (CFT) and Prevention of Proliferation Financing (PF) Challenges
Key Issues Identified
The current AML/CFT/PF situation in Guinea is plagued by several key issues, including:
Lack of National Strategy
- There is no clear national strategy to address ML/TF/PF, hindering coordination among stakeholders.
Inadequate Financial Intelligence
- The system for producing, enriching, and using financial intelligence is limited, with few LEAs utilizing it in investigations.
Defective Cash Declaration System
- The mechanism for detecting and communicating false declarations or non-declaration of cash and bearer negotiable instruments is defective.
Limited Confiscation of Proceeds of Crime
- Confiscation of proceeds and instrumentalities of crime is not a priority, with only a few confiscations recorded.
No National Policy on Terrorism Financing
- Prevention of terrorism financing is not addressed in any national policy or strategy.
Weak Link in the AML/CFT Chain
- DNFBPs (e.g., real estate and dealers in gems and precious metals) contribute little to reporting activity and due diligence measures.
Limited Bank Supervision
- Supervision of banks is well structured, but other sub-sectors (e.g., insurance, foreign exchange bureaus, MFIs, EMIs) lack risk-based approaches.
Inadequate Transparency in Legal Persons and Arrangements
- Structural challenges and poor understanding of ML/TF risks hinder transparency in legal persons and arrangements.
Recommendations to Address these Issues
To address the identified issues, Guinea should:
- Develop a National Strategy on AML/CFT/PF
- Improve Financial Intelligence Gathering and Sharing
- Enhance the Cash Declaration System
- Prioritize Confiscation of Proceeds of Crime
- Establish a National Policy on Terrorism Financing
- Strengthen Supervision of DNFBPs
- Implement Risk-Based Approaches in Bank Supervision and Other Sub-sectors
- Improve Transparency in Legal Persons and Arrangements
Enhancing Guinea’s AML/CFT/PF Framework
By implementing these recommendations, Guinea can enhance its AML/CFT/PF framework, strengthen its ability to prevent and combat money laundering, terrorist financing, and proliferation financing, ultimately contributing to a safer and more stable financial environment.