Guinea’s AML/CFT Struggle: Challenges Persist in a Socio-Politically Tense Environment

Political Situation

• Guinea has faced political instability, with disputes over voter registers leading to the postponement of legislative elections.
• Opposition clashes with police, heightening tensions and uncertainty.
• Weakened governance structure, ranking 179 out of 183 in the World Bank’s 2012 Doing Business Report.

Economic and Financial Situation

• Expected 5.1% economic expansion in 2012 affected by political instability, causing a loss of foreign investment and business opportunities.
• High poverty rate (55.2%) and large rural-urban divide.
• Foreign exchange reserves cover only three months of import costs.
• Twelve deposit money banks account for over 90% of the financial sector.
• Remittances inflows totaled USD78 million in 2012.

Prevalence of Predicate Crimes

• Burdened with high unemployment and poverty, Guinea remains vulnerable to various predicate criminal activities.
• A transit and repackaging point for narcotics.
• Persistent issue of corruption.
• Only 24 out of 100 in the 2012 Transparency International Corruption Perception Index.

AML/CFT Situation

• Evaluated in June 2012, identified significant challenges, including:
  • Absence of a functioning Financial Intelligence Unit (FIU).
  • No national CFT law.
  • No National Correspondent to GIABA.
  • Weak cooperation among relevant institutions.

Technical Assistance

• GIABA conducted a pre-evaluation workshop in March 2012.
• Guinea requires support in areas such as:
  • Developing a national AML/CFT strategy.
  • Strengthening the Technical Committee.
  • Providing training for judicial personnel on financial crimes.

Conclusion

• Guinea must prioritize establishing an FIU, adopting a CFT law, and creating a comprehensive national AML/CFT strategy.
• GIABA is committed to supporting Guinea’s efforts in strengthening its AML/CFT framework and combating money laundering and terrorist financing.