Financial Crime World

Mali Falls Short in Compliance Risk Assessment, Says Report

A recent report has revealed that Mali’s compliance with global anti-money laundering (AML) and countering the financing of terrorism (CFT) standards falls short in several key areas. The country’s ratings on a number of technical requirements set out by the Financial Action Task Force (FATF) are cause for concern, highlighting significant vulnerabilities in its financial system.

Compliance Status

According to the report, Mali is largely compliant with only a few recommendations, including:

  • Assessing risk and applying a risk-based approach
  • National cooperation and coordination
  • Targeted financial sanctions related to terrorism and terrorist financing

However, it falls short in several other areas, including:

  • Confiscation and provisional measures
  • Terrorist financing offence
  • Transparency and beneficial ownership of legal persons

Partial Compliance

The report notes that Mali is partially compliant with recommendations on:

  • Money laundering offence
  • Confiscation and provisional measures
  • Terrorist financing offence

However, it is non-compliant in other areas, such as:

  • Financial institution secrecy laws
  • New technologies
  • Higher-risk countries
  • Regulation and supervision of DNFBPs (Designated Non-Financial Businesses and Professions)

Implementation Gaps

Furthermore, the report highlights that Mali has not fully implemented several key recommendations, including:

  • Customer due diligence
  • Record keeping
  • Reliance on third parties

Additionally, it notes that the country’s powers of supervisors, regulation and supervision of financial institutions, and financial intelligence units are compliant with FATF standards.

Conclusion

The report concludes by urging Mali to address its weaknesses in order to strengthen its AML/CFT framework and mitigate risks of money laundering and terrorist financing. The country must take concrete steps to improve its compliance with international standards to prevent the misuse of its financial system for illicit activities.

It remains to be seen whether Mali will take the necessary measures to address these concerns, but the report’s findings are a stark reminder of the importance of effective AML/CFT regulation and supervision in preventing financial crimes.