Financial Crime World

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

Maseru, Lesotho - The government of Lesotho has announced plans to strengthen its anti-money laundering (AML) and combating the financing of terrorism (CFT) regime, aimed at tackling financial crimes and protecting the country’s financial system.

Challenges and Risks

According to a report by the Financial Intelligence Unit (FIU), the country’s AML/CFT implementation matrix highlights several challenges and risks that need to be addressed. These include:

  • Lack of coordination among government agencies
  • Inadequate legislation
  • Insufficient resources

National Inter-Agency Committee

To address these challenges, the government has established a National Inter-Agency Committee comprising key stakeholders such as:

  • Finance and Development Planning Ministry
  • Justice Law and Constitutional Affairs Ministry
  • Home Affairs and Public Safety Ministry
  • Central Bank of Lesotho
  • Lesotho Revenue Authority

The committee’s mandate is to define its objectives, develop a memorandum of understanding (MOU), and implement its strategies.

Government Plans

Additionally, the government plans to:

  • Criminalize money laundering
  • Confiscate proceeds of crime
  • Establish a Criminal Asset Recovery Fund
  • Strengthen its enforcement structure by providing process intelligence, investigating crimes, and prosecuting suspects

Key Challenges

The report highlights several key challenges that need to be addressed, including:

  • Lack of financial and human resources
  • Absence of an FIU
  • Limited capacity building for law enforcement agencies (LEAs)

The government has committed to addressing these challenges through technical assistance and capacity building programs.

International Cooperation

Lesotho is also working towards enhancing international cooperation by:

  • Ratifying international and regional instruments
  • Establishing a mutual legal assistance mechanism
  • Applying to join the Egmont Group, a global network of FIUs

Regulation and Supervision

The report emphasizes the need for effective regulation of accountable institutions, including financial and non-financial bodies and professions. This will involve:

  • Monitoring compliance
  • Categorizing institutions
  • Establishing supervisory mechanisms

Awareness Raising

To raise awareness about AML/CFT risks, the government plans to:

  • Develop outreach programs
  • Conduct awareness campaigns
  • Secure funding for these activities

Development Strategy Implementation

The country’s development strategy implementation (DSI) report highlights the importance of implementing the recommendations outlined in this strategy to prevent a negative evaluation outcome by the international community.

List of Acronyms

  • AMLA - Anti-Money Laundering Authority
  • AML/CFT - Anti-Money Laundering and Combating the Financing of Terrorism
  • DCEO - Directorate on Corruption and Economic Offences
  • DPP - Director of Public Prosecutions
  • DSI - Development Strategy Implementation
  • FIU - Financial Intelligence Unit
  • LEA - Law Enforcement Agencies
  • MLPC - Money Laundering and Proceeds of Crime Act
  • MOU - Memorandum of Understanding
  • SLA - Service Level Agreement