Anti-Money Laundering Regulations in Madagascar: Little Progress Made, Ratings Remain Unchanged

Madagascar has made little progress in addressing technical compliance deficiencies identified in its 2018 Mutual Evaluation Report (MER), according to a recent report by the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG).

Insufficient Progress

Despite taking steps to address specific recommendations, Madagascar’s progress is deemed insufficient to warrant re- rating. The country’s failure to make significant strides in addressing technical compliance deficiencies has left its ratings unchanged.

Unchanged Ratings for Specific Recommendations

Recommendations 5, 12, 13, 14, and 32, which were initially rated as partially compliant (PC), will continue to bear that rating due to Madagascar’s lack of substantial improvement. While some efforts have been made to address these deficiencies, the information currently available does not indicate sufficient progress.

Ongoing Requirements

As part of the follow-up process, Madagascar is required to continue reporting back to the ESAAMLG on its progress in strengthening its implementation of anti-money laundering and combating the financing of terrorism (AML/CFT) measures. The country will need to demonstrate more tangible improvements if it hopes to see its ratings change in the future.

Key Takeaways

• Madagascar has failed to make significant strides in addressing technical compliance deficiencies.
• Ratings for specific recommendations remain unchanged due to insufficient progress.
• Madagascar is required to continue reporting back to the ESAAMLG on its progress in implementing AML/CFT measures.
• The country will need to demonstrate tangible improvements if it hopes to see its ratings change.