Financial Crime World

Madagascar Makes Progress on AML/CFT, But Remains in Enhanced Follow-up

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Madagascar’s latest Mutual Evaluation Report, conducted in 2023, has shown significant overall progress in addressing technical compliance shortcomings identified in its 2018 report. According to the follow-up evaluation, Madagascar has made substantial strides in resolving issues related to anti-money laundering and counter-terrorist financing (AML/CFT) standards.

Progress Made

The report re-rated seven recommendations, with Madagascar deemed Compliant for six and Largely Compliant for 11 of the Financial Action Task Force’s (FATF) 40 Recommendations. However, it remains Highly Effective for zero and Substantially Effective for zero of the Effectiveness and Technical Compliance ratings.

Enhanced Follow-up

As a result, Madagascar will continue to be monitored under enhanced follow-up by the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG). The country’s efforts to implement AML/CFT standards remain a key focus area for regional authorities.

Challenges Remaining

Despite progress made, Madagascar still faces challenges in implementing effective measures to prevent money laundering and terrorist financing. The ESAAMLG will continue to work closely with the country to address these shortcomings and ensure that its financial sector remains robust and secure.

International Cooperation

In related news, bilateral activities between Madagascar and other countries are underway, with the goal of strengthening international cooperation on AML/CFT issues. Regional consultations and working meetings are also being held to discuss best practices and share expertise in this critical area.

Key Takeaways

  • Madagascar has made significant progress in addressing technical compliance shortcomings
  • The country remains monitored under enhanced follow-up by ESAAMLG
  • Challenges remain in implementing effective measures to prevent money laundering and terrorist financing
  • International cooperation is ongoing to strengthen AML/CFT standards and best practices