Financial Crime World

Madagascar Stalls in Anti-Money Laundering Efforts, Ratings Remain Unchanged

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Madagascar’s progress in addressing technical compliance deficiencies identified in its 2018 Mutual Evaluation Report (MER) has been slow, leading the Economic Community of West African States’ Monitoring Group (ESAAMLG) to maintain its current ratings.

ESAAMLG’s Assessment

Although Madagascar has taken some steps to address concerns raised under Recommendations 5, 12, 13, 14, and 32, information provided by the country does not indicate sufficient progress to warrant a re-evaluation. As a result, ratings for these recommendations will remain at “Partially Compliant” (PC).

Outstanding Deficiencies

Recommendation 5: Effectiveness of Anti-Money Laundering Measures

  • Madagascar has made little progress in addressing technical compliance deficiencies related to its anti-money laundering measures.

Recommendation 12: Cooperation and Coordination between Financial Institutions and Law Enforcement

  • The country has taken some steps to improve cooperation and coordination, but more needs to be done to achieve greater compliance with international standards.

Recommendation 13: Supervision of Financial Institutions

  • Madagascar’s supervision of financial institutions remains inadequate, hindering its ability to effectively prevent money laundering and terrorist financing.

Recommendation 14: Customer Due Diligence and Beneficial Ownership Information

  • The country has made some progress in implementing customer due diligence measures, but more needs to be done to ensure that beneficial ownership information is accurately recorded and maintained.

Recommendation 32: International Cooperation and Coordination

  • Madagascar’s international cooperation and coordination efforts remain limited, making it difficult for the country to effectively address money laundering and terrorist financing threats.

Next Steps

Under ESAAMLG’s follow-up process, Madagascar is expected to continue reporting back on its efforts to strengthen anti-money laundering and combating the financing of terrorism (AML/CFT) measures. The country has been urged to intensify its efforts to address outstanding deficiencies and achieve greater compliance with international standards.

By doing so, Madagascar can improve its AML/CFT framework and prevent money laundering and terrorist financing activities that threaten regional and global stability.