Financial Crime World

Title: Liberia’s Central Bank Introduces New Financial Compliance Regulations

Date: December 1, 2023

The West African Monetary Institute (WAMI) in Liberia has recently announced several new financial compliance regulations aimed at enhancing financial stability and consumer protection in the country. Here’s a summary of the newest regulations:

Money Remittance Entities (MREs)

  • A new regulation establishes a regulatory framework for Money Remittance Entities (MREs) in Liberia, ensuring they operate efficiently and effectively while adhering to Anti-Money Laundering and Counter-Terrorism Financing (AML/CFT) requirements.

Discount Houses

  • New Regulatory Requirements for Discount Houses in Liberia have been issued, setting minimum capital adequacy requirements, operational guidelines, and other prudential measures.

Electronic Payment Services (E-Payment)

  • Existing regulations regarding the licensing and operations of Electronic Payment Services (E-Payment) have been amended to provide clearer compliance requirements for E-Payment service providers.

Credit Unions

  • Regulations for the licensing and operations of Credit Unions in Liberia have been updated to improve the supervisory framework and ensure financial stability and compliance with AML/CFT regulations.

Prudential Regulations

  • A regulation concerning prudential regulations for asset classification provisions, loan loss provisions, and the suspension of interest on non-performing loans and advances has been issued. It strengthens the risk management framework for financial institutions to minimize potential loan losses.

Previous Regulatory Announcements

  • Regulation concerning Prudential Regulations for Non-Bank Credit Only Institutions (NBCOs) became effective on October 20, 2021
  • Regulations concerning Rural Community Finance Institutions became effective on September 29, 2020
  • Amended Regulations concerning AML/CFT for Financial Institutions in Liberia became effective on May 9, 2018
  • Regulations concerning Agent Banking became effective on May 24, 2017
  • Regulations on the Payment of Inbound Money Transfers became effective on December 23, 2016

These newly introduced and updated regulations are essential in ensuring that financial institutions and other financial service providers in Liberia adhere to international best practices and maintain a strong and stable financial sector.