Madagascar’s Struggle to Comply with Anti-Money Laundering Laws Raises Concerns
Madagascar has been facing difficulties in implementing the technical requirements of the Financial Action Task Force (FATF) Recommendations, a global standard for combating money laundering and terrorist financing. A recent report reveals that Madagascar scored poorly on several key indicators, raising concerns about its ability to effectively combat these financial crimes.
Non-Compliance with FATF Requirements
The report found that Madagascar was non-compliant with 10 out of 40 requirements, including those related to:
- Regulation and supervision of non-profit organizations
- Transparency and beneficial ownership of legal arrangements
- Regulation and supervision of designated non-financial businesses and professions (DNFBPs)
Some Areas of Improvement
Despite the poor performance in several areas, Madagascar did show some improvements in other key areas, such as:
- National cooperation and coordination efforts
- Money laundering offense laws
- Targeted financial sanctions related to terrorism and terrorist financing
Challenges Identified
The report identified several areas where Madagascar needs to improve, including:
- Customer due diligence requirements
- Record-keeping obligations
- Internal controls
Global Standard for Combating Financial Crimes
The FATF Recommendations provide a global standard for combating money laundering and terrorist financing. Countries are required to implement these standards to remain compliant with international financial norms. Madagascar’s struggles to comply with these standards raise concerns about the country’s ability to effectively combat these financial crimes and protect its economy from illicit activities.
International Cooperation
The report highlights the need for greater international cooperation in combating money laundering and terrorist financing. Madagascar has made progress through its membership in regional and international organizations, but more needs to be done to strengthen cooperation between countries and share information about suspected money laundering and terrorist financing activities.
Conclusion
Overall, the report suggests that Madagascar faces significant challenges in implementing anti-money laundering laws and combating financial crime. The country’s struggles in these areas raise concerns about its economic stability and security, and underscore the need for greater international cooperation and support to help it address these challenges.