Guinea’s Struggle to Combat Money Laundering and Terrorist Financing

A recent evaluation by a reputable international organization has revealed significant challenges facing Guinea in its efforts to combat money laundering (ML) and terrorist financing (TF). While the country has made some progress in strengthening its anti-money laundering (AML) and combating the financing of terrorism (CFT) regime, numerous weaknesses remain.

Key Findings

The evaluation identified several critical issues hindering Guinea’s ability to effectively tackle AML/CFT:

Limited Understanding of ML/TF Risks

• The country lacks a comprehensive national risk assessment, making it difficult to prioritize efforts and develop an effective strategy.

Insufficient Institutional Coordination

• National cooperation and coordination among authorities are fragmented, impeding the sharing of financial intelligence and joint investigations.

Weak Financial Intelligence System

• The Financial Intelligence Unit (FIU) relies heavily on a single source of information and lacks access to international financial intelligence networks.

Defective Cash Declaration System

• A critical mechanism for detecting suspicious transactions is dysfunctional, leaving authorities vulnerable to ML and TF.

Lack of Prioritization in ML-related Investigations and Prosecutions

• Investigations are rare due to inadequate resources and training, and confiscation of proceeds remains a low priority.

Challenges Ahead

Guinea faces significant challenges in addressing these weaknesses, including:

Low Banking Rate and Cash-based Economy

• The country’s informal sector and vast land borders make it challenging to monitor financial transactions.

Corruption

• Widespread corruption undermines the effectiveness of AML/CFT measures.

Limited International Cooperation

• Guinea lacks a mechanism for sharing financial intelligence with foreign counterparts.

Recommendations

To address these challenges, Guinea is recommended to:

Conduct a Comprehensive National Risk Assessment and Develop an Action Plan

• Identify and prioritize ML/TF risks to develop an effective strategy.

Strengthen Institutional Coordination among Authorities

• Establish a robust inter-agency mechanism for sharing financial intelligence and conducting joint investigations.

Enhance the FIU’s Financial Intelligence Capabilities

• Join international networks and improve access to foreign financial intelligence.

Implement a Functional Cash Declaration System

• Detect suspicious transactions and prevent ML/TF.

Prioritize ML-related Investigations and Prosecutions, and Confiscate Proceeds of Crime

• Investigate and prosecute ML cases effectively, and confiscate proceeds of crime.

By addressing these weaknesses, Guinea can strengthen its AML/CFT regime and effectively combat money laundering and terrorist financing.