Financial Crime World

Lesotho Unveils Ambitious Plan to Combat Money Laundering and Terrorist Financing

Lesotho has launched a comprehensive plan aimed at strengthening its anti-money laundering (AML) and combating the financing of terrorism (CFT) regime. The plan seeks to enhance cooperation among government agencies, improve regulation of accountable institutions, raise public awareness, and assess money laundering and terrorist financing risks.

Plan Highlights

The plan includes several key components:

  • Establishment of a National Inter-Agency Committee: A committee comprising key government agencies will be established to define its mandate and implement measures to combat money laundering and terrorist financing.
  • International Cooperation: Lesotho will ratify international and regional instruments, establish legal treaties with other countries, and apply for membership in the Egmont Group, a global network of financial intelligence units.
  • Regulation of Accountable Institutions: The country will regulate accountable institutions, including financial and non-financial bodies and professions, by defining their categories and monitoring compliance.
  • Public Awareness Campaigns: Outreach programs will be conducted to raise public awareness about the dangers of money laundering and terrorist financing.
  • Risk Assessment: Lesotho will undertake a mutual evaluation to assess money laundering and terrorist financing risks.

Challenges Ahead

Despite the plan’s ambitious goals, several challenges lie ahead:

  • Lack of Financial and Human Resources: The country faces significant financial and human resource constraints that may hinder the implementation of the plan.
  • Absence of a Financial Intelligence Unit (FIU): Lesotho does not have a dedicated FIU, which is essential for effective AML/CFT efforts.
  • Limited Access to Banks: Investigators face challenges accessing bank records due to limited access and availability.
  • Capacity Building: The country needs capacity building for both financial and human resources to effectively implement the plan.

Next Steps

To move forward with the plan, Lesotho must:

  • Establish the National Inter-Agency Committee by April 1, 2009
  • Conduct outreach programs to raise public awareness about money laundering and terrorist financing
  • Undertake a mutual evaluation to assess money laundering and terrorist financing risks

The plan is seen as a crucial step towards combating money laundering and terrorist financing in Lesotho. However, experts warn that implementation of the plan will require significant resources and cooperation among government agencies.