Financial Crime World

Madagascar’s Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) System Under Scrutiny

A comprehensive assessment of Madagascar’s AML/CFT measures has revealed a mixed bag of compliance with international standards, prompting experts to recommend key improvements to strengthen the country’s financial defenses.

Background

The Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG) conducted an on-site visit between June 5-16, 2017, to evaluate Madagascar’s level of adherence to the Financial Action Task Force (FATF) 40 Recommendations. The assessment was adopted by the Council of Ministers in July 2018 and reviewed and endorsed by the FATF.

Assessment Findings

The resulting report provides a snapshot of Madagascar’s AML/CFT system as it stood at the time of the visit, highlighting areas where improvements are needed to enhance effectiveness. Key findings include:

  • Mixed compliance with international standards
  • Need for strengthened financial monitoring capabilities
  • Risk of money laundering and terrorist financing

Recommendations

The Executive Summary of the report outlines key findings and priority actions, offering actionable recommendations for Madagascar’s authorities to improve its AML/CFT system. These include:

  • Enhancing customer due diligence procedures
  • Improving reporting requirements for suspicious transactions
  • Strengthening cooperation with international partners
  • Increasing public awareness campaigns

Next Steps

The report provides a roadmap for Madagascar’s authorities to bolster its financial monitoring capabilities and reduce the risk of money laundering and terrorist financing. By implementing these recommendations, Madagascar can strengthen its AML/CFT system and improve its compliance with international standards.

Conclusion

Madagascar’s AML/CFT system is at a critical juncture, requiring swift action to address identified weaknesses and improve its effectiveness. The ESAAMLG assessment provides a valuable opportunity for the country to enhance its financial defenses and reduce the risk of financial crime. By implementing the recommended improvements, Madagascar can demonstrate its commitment to international cooperation and strengthen its position in the global fight against money laundering and terrorist financing.