Financial Crime World

Mali Fails to Comply with Anti-Money Laundering and Countering Financing of Terrorism Regulations

Insufficient Measures to Combat Money Laundering and Terrorist Financing

Bamako, Mali - Despite having a satisfactory legal framework for mutual legal assistance and extradition, Mali’s authorities have failed to conduct an assessment of the legal persons operating in the country. Moreover, the Republic of Mali has not maintained comprehensive statistics on anti-money laundering (AML) and countering financing of terrorism (CFT) matters.

The country’s Financial Intelligence Unit (FIU) proactively requests information from foreign counterparts, but there is no comprehensive internal system of prioritization or case management to monitor the processing of requests for mutual legal assistance. This lack of transparency and accountability makes it difficult to track and prevent money laundering and terrorist financing.

National Risk Assessment Highlights Key Money Laundering Threats

Mali’s National Risk Assessment (NRA) identified various proceeds-generating crimes, including fraud, drug trafficking, and customs and tax offenses, as key money laundering threats within the country. The NRA also highlighted the real estate and precious mineral sectors as posing considerable risks of money laundering.

Areas for Improvement in AML/CFT Regime

The country has improved its AML/CFT regime since its mutual evaluation in 2008, but there are still areas that require improvement. Mali needs to strengthen its institutional frameworks, including providing additional resources to the FIU and implementing targeted financial sanctions related to proliferation.

Terrorist Financing Risks and Lack of Risk Mitigation Policy

Mali’s authorities also understand the significant terrorist financing risks that underlie multiple terrorist attacks perpetrated by various terrorist groups in the country. However, the country has not put in place a risk mitigation policy identified by the NRA and lacks a comprehensive national strategy for AML/CFT.

Recommendations to Strengthen AML/CFT Regime

To address these challenges, we recommend:

  • Conducting an assessment of legal persons operating in Mali
  • Implementing targeted financial sanctions related to proliferation
  • Strengthening institutional frameworks, including providing additional resources to the FIU
  • Developing a comprehensive national strategy for AML/CFT
  • Enhancing international cooperation, particularly judicial assistance
  • Conducting AML/CFT capacity building within the criminal justice system
  • Harmonizing and strengthening supervisory roles with non-profit organizations (NPO) sector

Risk Assessment Highlights

  • Mali faces significant terrorist financing risks from both home-grown terrorists and foreign actors.
  • Cash remains the preferred means of moving financial resources for terrorist groups.
  • The expansion of jihadist organizations across the Sahel, limited state control in the north of the country, and weak state structures have enabled terrorist groups to gain a foothold in the region.
  • The country’s cash-based economy, low level of banking, and lack of reliable identification system deepens the risk of money laundering and terrorist financing.