Financial Crime World

Lesotho Makes Progress in Combating Financing of Terrorism, According to New Report

Lesotho has made significant progress in implementing measures to combat the financing of terrorism, according to a new report from the Financial Action Task Force (FATF). The country received a largely compliant rating for its efforts, with several areas showing improvement.

Assessment by FATF Recommendations

The report assesses Lesotho’s technical compliance with the FATF Recommendations, which provide guidelines for countries to prevent and combat money laundering and terrorist financing. Lesotho scored highly in areas such as:

  • National cooperation and coordination
  • Money laundering offence
  • Confiscation and provisional measures
  • Targeted financial sanctions related to terrorism and terrorist financing

Areas for Improvement

However, there were some areas where improvement was needed:

  • Transparency and beneficial ownership of legal persons and arrangements (non-compliant)
  • Regulation and supervision of designated non-financial businesses and professions (DNFBPs) and financial intelligence units (require further strengthening)

Commitment to Combating Terrorism Financing

Despite these challenges, the report highlights Lesotho’s commitment to combating terrorism financing. The country has implemented a range of measures, including:

  • Establishment of a national committee on counter-terrorism
  • Development of a comprehensive anti-money laundering/counter-terrorist financing framework
  • Implementation of targeted financial sanctions related to terrorism and terrorist financing

International Cooperation

The FATF report also notes that Lesotho has demonstrated its willingness to cooperate with international partners in combating terrorism financing. The country has:

  • Signed several international agreements aimed at preventing and combating money laundering and terrorist financing
  • Provided information to other countries on suspicious transactions

Conclusion

Overall, the report suggests that Lesotho is making progress in implementing measures to combat the financing of terrorism, but there are still areas where improvement is needed. The country’s continued commitment to combating terrorism financing will be crucial in preventing the misuse of its financial system for illicit purposes.