Financial Crime World

Mali’s Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) Regime Evaluation Report

The evaluation report on Mali’s AML/CFT regime provides a comprehensive assessment of the country’s framework, risks, and effectiveness in combating money laundering and terrorist financing.

Key Findings

Risk Assessment

Mali faces significant risks from both home-grown terrorist groups and foreign actors. The main risk is related to domestic terrorism and radicalization of citizens who benefit from support funds.

  • TF Risks: Mali’s TF risks are attributed to the existence of terrorism at the domestic level and the radicalization of citizens.
  • Home-Grown Terrorist Groups: Domestic terrorist groups pose a significant threat to Mali’s security and stability.
  • Foreign Actors: Foreign actors also contribute to Mali’s TF risks, which can be mitigated through international cooperation.

Mali has a satisfactory legal framework for mutual legal assistance and extradition. However, there are delays in responding to MLAs.

  • Mutual Legal Assistance (MLA): Mali’s MLA framework is comprehensive, but responses to MLA requests are often delayed.
  • Extradition: The country’s extradition framework is also satisfactory, with some delays in processing extradition requests.

Regulatory Body

The Financial Intelligence Unit (FIU) plays a crucial role in the AML/CFT regime. It proactively requests information from foreign counterparts and engages in informal networks for exchanging information.

  • FIU: The FIU is responsible for collecting and analyzing financial intelligence to prevent money laundering and terrorist financing.
  • Information Sharing: The FIU regularly shares information with foreign counterparts, enhancing international cooperation against ML/TF.

Risk-Based Approach

Mali’s AML/CFT regime lacks a risk-based approach. Preventive measures are not targeted based on the risks posed by different sectors or entities.

  • Risk-Based Approach: A risk-based approach is essential for effective ML/TF prevention.
  • Targeted Measures: Targeted preventive measures can help mitigate ML/TF risks in specific sectors and entities.

Implementation of Preventive Measures

There are no preventive measures in place to identify and mitigate ML/TF risks in non-bank financial institutions (NBFIs) and designated non-financial businesses and professions (DNFBPs).

  • NBFIs: NBFIs pose a significant risk due to their potential involvement in money laundering and terrorist financing.
  • DNFBPs: DNFBPs, such as lawyers and accountants, also require targeted preventive measures to mitigate ML/TF risks.

Recommendations

Risk Assessment

Mali should complete its National Risk Assessment (NRA) process and develop a comprehensive NRA report that identifies the main ML/FT risks facing the country.

  • NRA Process: The NRA process is essential for identifying and mitigating ML/TF risks.
  • Comprehensive Report: A comprehensive NRA report will help the government make informed decisions to combat ML/TF.

Legislative Framework

The country should strengthen its AML/CFT legal framework by ensuring that it collects and maintains comprehensive statistics that will assist in evaluating the effectiveness of its AML/CFT system.

  • Statistical Data: Comprehensive statistical data is crucial for assessing the effectiveness of the AML/CFT system.
  • Legislative Framework: Strengthening the legislative framework will help Mali improve its AML/CFT regime.

Risk-Based Approach

Mali should apply a risk-based approach to ML/TF prevention, which means that preventive measures should be targeted based on the risks posed by different sectors or entities.

  • Risk-Based Approach: A risk-based approach is essential for effective ML/TF prevention.
  • Targeted Measures: Targeted preventive measures can help mitigate ML/TF risks in specific sectors and entities.

Implementation of Preventive Measures

The country should implement preventive measures in NBFIs and DNFBPs to identify and mitigate ML/TF risks.

  • NBFIs: NBFIs require targeted preventive measures to mitigate ML/TF risks.
  • DNFBPs: DNFBPs, such as lawyers and accountants, also need targeted preventive measures to combat ML/TF.