Financial Crime World

Liberia Faces Scrutiny Over Terrorist Financing Prevention Measures

A recent evaluation by the Financial Action Task Force (FATF) has revealed that Liberia’s efforts to prevent terrorist financing are still incomplete. The country has been found to be partially compliant with 34 out of the 40 recommendations set forth by FATF.

Areas for Improvement

The evaluation, which assesses a country’s implementation of technical requirements for combating money laundering and terrorist financing, has identified several areas where Liberia needs improvement:

  • National cooperation and coordination: Partially compliant
  • Confiscation and provisional measures: Partially compliant
  • Transparency and beneficial ownership of legal persons and arrangements: Partially compliant

Strengths and Weaknesses

On the other hand, Liberia has been found to be largely compliant with requirements such as:

  • Assessing risk and applying a risk-based approach: Compliant
  • Money laundering offence: Compliant
  • Financial institution secrecy laws: Compliant

However, it still needs to work on improving its regulation and supervision of financial institutions, DNFBPs, and cash couriers.

Implications for Liberia’s Financial Sector

The FATF recommendations are designed to help countries prevent the financing of terrorism and money laundering activities. Liberia’s partial compliance with these requirements poses a risk to the country’s financial system and could lead to reputational damage if not addressed.

Call to Action

The Liberian government has been urged to take immediate action to address the deficiencies identified in the evaluation. This includes:

  • Strengthening national cooperation and coordination
  • Improving confiscation and provisional measures
  • Increasing transparency and beneficial ownership of legal persons and arrangements

FATF’s Position

In a statement, the FATF welcomed Liberia’s progress but emphasized that more needs to be done to meet international standards. “We encourage Liberia to continue working towards full compliance with the FATF Recommendations,” said a spokesperson.

Significance for Liberia’s Financial Sector

The evaluation is expected to have significant implications for Liberia’s financial sector, as countries around the world increasingly focus on combating terrorist financing and money laundering activities.