Madagascar’s Struggle with Money Laundering Schemes Continues: Progress Remains Elusive

Despite being identified with technical compliance deficiencies in its 2018 Mutual Evaluation Report (MER), Madagascar has failed to make significant strides in addressing the issues. The country’s efforts to strengthen its anti-money laundering and combating the financing of terrorism (AML/CFT) measures have been met with limited success.

Insufficient Progress

According to officials, while some progress has been made on certain fronts, it is not enough to warrant a change in the current ratings for several key recommendations. The following recommendations will remain rated “Partially Compliant” (PC) due to the lack of sufficient progress:

• Recommendation 5: Strengthening customer due diligence
• Recommendation 12: Enhancing transparency and reporting requirements
• Recommendation 13: Improving cooperation with foreign authorities
• Recommendation 14: Increasing public awareness and education on AML/CFT
• Recommendation 32: Improving the monitoring of suspicious transactions

ESAAMLG’s Concerns

The Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG) has urged Madagascar to continue reporting back on its progress in strengthening its AML/CFT measures. The country is expected to provide regular updates on its efforts to address the deficiencies identified in its 2018 MER.

Conclusion

Madagascar’s struggle with money laundering schemes continues, with limited progress made in addressing technical compliance deficiencies. The country must continue to work towards implementing effective AML/CFT measures to prevent financial crimes and maintain international cooperation.