Money Laundering Investigation in Lesotho: A Closer Look
Subtitle: The latest developments in Lesotho’s anti-money laundering efforts
Lesotho, a small country located in southern Africa, has recently faced increased scrutiny regarding its efforts to tackle money laundering, terrorism financing, and the financing of weapons of mass destruction. This article provides a closer look into the latest developments in Lesotho’s regulatory framework.
Concerns about Lesotho’s Financial System
The international community has expressed concerns about potential vulnerabilities in Lesotho’s financial system. In October 2022, the Eastern and Southern African Anti-Money Laundering Group (ESAAMLG) released a report on its on-site visit to the country and identified several deficiencies, including missing legal provisions against money laundering and insufficient supervision.
ESAAMLG and FATF Call for Improvements
International watchdogs, such as ESAAMLG and the Financial Action Task Force (FATF), have called for further improvements in Lesotho’s regulatory framework. In June 2023, the FATF issued a Public Statement expressing disappointment in Lesotho’s progress and placing the country under increased monitoring.
Recent Strides in Strengthening Lesotho’s Regulatory Framework
Despite these challenges, Lesotho has made recent strides in strengthening its regulatory framework. In July 2023, the country amended its Financial Intelligence and Anti-Money Laundering Act, which includes provisions for:
- Customer due diligence
- Reporting obligations
- Penalties for non-compliance
Additionally, Lesotho has demonstrated a commitment to international cooperation by ratifying the United Nations Convention against Transnational Organized Crime and the United Nations Convention against Corruption.
FATF Review Scheduled for February 2024
The FATF is scheduled to review Lesotho’s progress in February 2024. If the country demonstrates significant progress in addressing money laundering and terrorist financing risks, it may be removed from the FATF’s monitoring list.
Stay informed about the latest news and updates on Lesotho’s anti-money laundering efforts. Join the conversation and share your thoughts on the country’s progress towards implementing more comprehensive regulatory frameworks.
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