Madagascar Stumbles in Addressing Financial Sector Compliance Challenges

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Despite efforts to rectify technical compliance deficiencies identified in 2018, Madagascar has made little headway in strengthening its anti-money laundering and combating the financing of terrorism (AML/CFT) framework.

Insufficient Progress

The country’s progress in addressing shortcomings under Recommendations 5, 12, 13, 14, and 32 remains insufficient. The Financial Action Task Force (FATF) has taken note of the steps taken to address these deficiencies, but it appears that Madagascar has not made sufficient strides to warrant a change in its ratings.

Current Ratings

Partial Compliance

As such, the current ratings for Recommendations 5, 12, 13, 14, and 32 will remain at the “partial compliance” level. This indicates that Madagascar still needs to demonstrate significant improvements in meeting international standards for combating money laundering and terrorist financing.

Reporting Progress

Madagascar will continue to report back to the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG) on its progress in strengthening its AML/CFT measures, as per the follow-up process. The country’s financial sector is expected to demonstrate tangible improvements in meeting international standards for combating money laundering and terrorist financing.

Key Takeaways

• Madagascar has made little headway in addressing technical compliance deficiencies identified in 2018.
• The current ratings for Recommendations 5, 12, 13, 14, and 32 will remain at the “partial compliance” level.
• Madagascar will continue to report back to ESAAMLG on its progress in strengthening its AML/CFT measures.
• The country’s financial sector is expected to demonstrate tangible improvements in meeting international standards for combating money laundering and terrorist financing.