Madagascar Makes Strides in Anti-Money Laundering Compliance, But Remains Under Enhanced Follow-up
Madagascar has made significant progress in addressing technical compliance shortcomings in its anti-money laundering (AML) and counter-terrorist financing (CFT) standards, according to a recent follow-up evaluation by the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG). However, the country remains under enhanced follow-up to ensure continued improvement.
Progress Made
According to the 2023 Mutual Evaluation Report, Madagascar was deemed Compliant with six of the Financial Action Task Force (FATF) 40 Recommendations, and Largely Compliant with 11 others. The country’s overall rating showed significant progress since its previous evaluation in 2018, where it had struggled to address technical compliance shortcomings.
Areas of Improvement
The report noted that seven recommendations from the 2018 evaluation had been re-rated, with improvements seen in areas such as:
- Customer due diligence
- Reporting of suspicious transactions
- International cooperation
Continued Efforts Required
Despite this progress, Madagascar remains under enhanced follow-up by ESAAMLG, which will continue to monitor the country’s efforts to address outstanding issues and implement recommendations. The enhanced follow-up is aimed at ensuring that Madagascar continues to improve its AML/CFT standards.
Regional Cooperation
ESAAMLG has acknowledged Madagascar’s progress and will continue to work closely with the country to ensure continued improvement. The organization has also highlighted the importance of bilateral and regional activities in promoting AML compliance across the region.
Initiatives and Recognition
Madagascar is implementing various initiatives aimed at strengthening its financial sector and combating money laundering and terrorist financing. The country’s efforts have been recognized by international organizations, including the FATF, which has praised Madagascar’s progress in addressing technical compliance shortcomings.
Future Plans
ESAAMLG has announced plans to conduct bilateral activities with Madagascar starting November 2023, aimed at promoting cooperation and information sharing on AML/CFT matters. The regional organization has also been involved in various regional activities aimed at promoting financial integrity and combating money laundering and terrorist financing.
Conclusion
The report’s findings are a significant step forward for Madagascar, which has made significant progress in addressing technical compliance shortcomings in its AML/CFT standards. However, the country remains under enhanced follow-up to ensure continued improvement, and ESAAMLG will continue to work closely with Madagascar to promote financial integrity and combat money laundering and terrorist financing.