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Lesotho Moves to Enhance Anti-Money Laundering and Combating the Financing of Terrorism Regime

Maseru, Lesotho - The government of Lesotho has taken a significant step in strengthening its anti-money laundering (AML) and combating the financing of terrorism (CFT) regime. A comprehensive implementation matrix has been developed to institutionalize a robust system that will enable effective prevention, detection, and prosecution of money laundering and terrorist financing activities.

Key Components of the AML/CFT Regime

The implementation matrix outlines the objectives, strategic actions, indicators, and means of verification for each component of the AML/CFT regime. The key components include:

  • Establishment of a national inter-agency committee
  • Development of comprehensive laws and regulations
  • Effective international cooperation

National Inter-Agency Committee

The national inter-agency committee, comprising representatives from key government agencies, including finance, justice, home affairs, foreign affairs, central bank, and revenue authority, will play a critical role in coordinating efforts to combat financial crimes.

Implementation of the Money Laundering and Proceeds of Crime Act (MLPC)

Lesotho has also committed to implementing the MLPC, which criminalizes money laundering and terrorist financing activities. The country has also ratified several international instruments related to AML/CFT, including the Egmont Group, a global network of FIUs.

Challenges Ahead

Despite the progress made, Lesotho still faces challenges in implementing the AML/CFT regime. These include:

  • Lack of coordination at higher management levels
  • Limited financial and human resources
  • Absence of a Financial Intelligence Unit (FIU)

The government has committed to addressing these challenges by providing necessary resources and capacity building for relevant agencies.

International Cooperation

Lesotho is also strengthening its international cooperation in AML/CFT. The country has signed memoranda of understanding with several countries and international organizations, including the Egmont Group, to facilitate information sharing and mutual legal assistance.

Conclusion

The implementation matrix is a significant step forward in Lesotho’s efforts to combat financial crimes. The government’s commitment to implementing effective measures to prevent money laundering and terrorist financing will help to strengthen the country’s financial system and improve its reputation globally.

Contact Information:

[Name] Ministry of Justice, Law and Constitutional Affairs Phone: [Number] Email: [Email]