Guinea’s Anti-Money Laundering and Counter-Terrorism Financing Regime: A Mixed Bag

A recent report by the West African Commission on Information and Financial Intelligence (GIABA) has painted a mixed picture of Guinea’s efforts to combat money laundering and terrorist financing. While the country has made significant strides in strengthening its legal framework, its effectiveness is hampered by several key deficiencies.

Challenges in Combating Money Laundering

Limited Banking Infrastructure

Guinea’s AML/CFT regime is limited by the low banking rate, widespread use of cash, and prominence of the informal sector. This makes it difficult to track financial transactions and identify suspicious activities.

Poor National Risk Assessment (NRA)

The country’s national risk assessment (NRA) is also poorly understood, with no action plan in place three years after its completion. This lack of understanding hinders Guinea’s ability to effectively address money laundering and terrorist financing risks.

Areas for Improvement

• National Cooperation and Coordination: National cooperation and coordination among AML/CFT authorities are lacking, and there is a need for more robust mechanisms to facilitate information sharing and cooperation.
• Financial Intelligence: Guinea’s system for producing and using financial intelligence is also criticized for being overly reliant on banks, with other sectors such as real estate and dealers in gems and precious metals failing to contribute significantly to the reporting of suspicious activities.
• Bank Supervision: Bank supervision is well-structured but lacks teeth, with inadequate resources and sanctions making it difficult to ensure compliance.
• Transparency Regime: The country’s transparency regime is also limited by structural challenges and a poor understanding of money laundering and terrorist financing risks linked to legal persons and arrangements.

International Cooperation

Guinea falls short in international cooperation in AML/CFT, with no mechanism or adequate resources in place for effective cooperation with other countries.

Progress Made

Despite these challenges, the report noted that Guinea has made some progress in strengthening its legal framework and creating institutions such as the Agency for the Management and Recovery of Seized and Confiscated Assets (AGRASC).

Conclusion

Overall, while Guinea’s AML/CFT regime shows promise, it remains a work in progress. The country must address the key deficiencies highlighted in this report to effectively combat money laundering and terrorist financing.