Financial Crime World

Madagascar’s Anti-Money Laundering Regulations Under Scrutiny: Country Scores Mixed Results in Follow-Up Report

The Financial Action Task Force (FATF) has released a follow-up report assessing Madagascar’s compliance with international anti-money laundering regulations. The report highlights both progress and areas for improvement in the country’s efforts to prevent money laundering and terrorist financing.

Progress and Improvements

Madagascar has made significant progress in several key areas, including:

  • Assessing Risk and Applying a Risk-Based Approach: The country has shown improvement in assessing risk and applying a risk-based approach to anti-money laundering measures.
  • National Cooperation and Coordination: Madagascar has strengthened its national cooperation and coordination efforts to combat money laundering and terrorist financing.
  • Targeted Financial Sanctions Related to Terrorism and Terrorist Financing: The country’s targeted financial sanctions have been effective in disrupting illicit activities.
  • Regulations and Supervision of Financial Institutions: Madagascar has improved its regulations and supervision of financial institutions, including powers of supervisors.

Areas for Improvement

Despite progress in some areas, Madagascar still requires improvement in several critical areas, including:

  • Laws Regarding Non-Profit Organisations: The country’s laws regarding non-profit organisations are non-compliant with international standards.
  • Transparency and Beneficial Ownership of Legal Persons and Legal Arrangements: Madagascar’s laws on transparency and beneficial ownership require strengthening.
  • Regulations and Supervision of Designated Non-Financial Businesses and Professions (DNFBPs): The country’s regulations and supervision of DNFBPs, including customer due diligence and other measures, are partially compliant but require further strengthening.

Efforts to Combat Terrorist Financing and Proliferation

Madagascar has shown significant improvement in its efforts to combat terrorist financing and proliferation. The country’s targeted financial sanctions have been effective in disrupting illicit activities.

Areas for Further Improvement

The report identifies several areas where Madagascar still requires strengthening, including:

  • Laws Regarding Cash Couriers: The country’s laws on cash couriers require improvement.
  • Statistics: Madagascar needs to improve its statistics on anti-money laundering and terrorist financing efforts.
  • Guidance and Feedback: The country’s guidance and feedback mechanisms for financial institutions need strengthening.
  • Sanctions: Madagascar’s sanctions regime requires improvement.

Conclusion

The follow-up report highlights the importance of continued efforts by Madagascar to strengthen its anti-money laundering regulations and improve its compliance with international standards. The country must continue to work towards improving its ratings in key areas to prevent money laundering and terrorist financing.