Guinea Struggles to Meet Anti-Money Laundering Standards, Says FATF Report

A recent report by the Financial Action Task Force (FATF) has highlighted Guinea’s struggles in implementing anti-money laundering measures. The country scored poorly on several key indicators, with only a few areas showing moderate compliance.

Key Findings

• Guinea was largely compliant in just three out of 40 recommendations:
  • Assessing risk and applying a risk-based approach (R.1)
  • National cooperation and coordination (R.2)
  • Targeted financial sanctions related to terrorism and terrorist financing (R.6)
• The country fell short on many other fronts, including:
  • Confiscation and provisional measures (R.4)
  • Terrorist financing offence (R.5)
  • Non-profit organisations (R.8)
  • Financial institution secrecy laws (R.9)
  • Transparency and beneficial ownership of legal persons and arrangements (R.24)

Weaknesses Identified

The FATF report highlighted Guinea’s weaknesses in implementing anti-money laundering measures, citing:

• Inadequate regulation and supervision of financial institutions, DNFBPs, and law enforcement authorities
• Lack of resources and capacity to effectively combat money laundering and terrorist financing

Implications

The report’s findings are likely to raise concerns among international partners and financial institutions about the risks associated with doing business in Guinea. The country’s poor record on anti-money laundering measures is likely to undermine its efforts to attract foreign investment and improve its economic prospects.

Recommendations for Improvement

In response, Guinea will need to take immediate action to address these weaknesses and implement effective anti-money laundering measures. This includes:

• Strengthening regulation and supervision of financial institutions, DNFBPs, and law enforcement authorities
• Increasing transparency and beneficial ownership disclosure requirements
• Demonstrating significant progress in addressing the gaps identified by the FATF report to avoid further action.

The country’s ability to address these weaknesses will be crucial in improving its economic prospects and reputation.