Guinea Under Fire for Enforcement Actions Against Financial Institutions

The Financial Action Task Force (FATF) has issued a stern warning to Guinea, citing significant shortcomings in its efforts to combat money laundering and terrorist financing.

FATF Evaluation Reveals Shortcomings

According to the FATF report, Guinea’s financial institutions are not adequately implementing the necessary measures to prevent illicit transactions. The country scored poorly on several key areas, including:

• National cooperation and coordination
• Confiscation and provisional measures
• Powers of supervisors

Specific Concerns

The report highlighted specific concerns over Guinea’s lack of effective risk assessment, inadequate customer due diligence practices, and insufficient record-keeping requirements for financial institutions. Additionally, the country was criticized for its failure to:

• Establish a robust system for reporting suspicious transactions
• Have adequate powers of law enforcement and investigative authorities

Lack of Transparency and Regulation

The FATF also expressed concern over Guinea’s lack of transparency in the beneficial ownership of legal persons and arrangements, as well as its inadequate regulation and supervision of financial institutions.

Failure to Implement Key Measures

The report noted that Guinea has failed to implement several key measures aimed at preventing money laundering and terrorist financing, including:

• Targeted financial sanctions related to terrorism and proliferation

Deadline for Reforms

The FATF has given Guinea a deadline to address these shortcomings and implement the necessary reforms to bring its anti-money laundering and counter-terrorist financing regime in line with international standards. Failure to comply could result in further action, including the imposition of economic sanctions.

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