Mali’s Compliance with International Financial Regulations Under Scrutiny
The Financial Action Task Force (FATF) has released an assessment of Mali’s compliance with global financial regulations. The results are mixed, highlighting areas where Mali is compliant and others where improvement is needed.
Compliance in Key Areas
Mali is largely compliant in several critical areas, including:
- National Cooperation and Coordination (R.2): Mali has established effective cooperation and coordination mechanisms to combat money laundering and terrorist financing.
- Money Laundering Offence (R.3): The country has implemented laws and regulations that criminalize money laundering activities.
- Targeted Financial Sanctions Related to Terrorism and Terrorist Financing (R.6): Mali has established a system for implementing targeted financial sanctions against individuals and entities linked to terrorism and terrorist financing.
The country is also considered compliant in regards to:
- Correspondent Banking (R.13): Mali has implemented measures to prevent the misuse of correspondent banking relationships.
- Reliance on Third Parties (R.17): The country has established guidelines for relying on third-party services, such as outsourcing and sub-contracting.
Partial Compliance in Key Areas
Mali has shown partial compliance in areas that require improvement, including:
- Confiscation and Provisional Measures (R.4): While Mali has implemented laws and regulations related to confiscation and provisional measures, there are concerns about their effectiveness.
- Terrorist Financing Offence (R.5): The country has criminalized terrorist financing activities, but there are concerns about the adequacy of penalties for these offenses.
- Customer Due Diligence (R.10): Mali has implemented customer due diligence measures, but there are concerns about their effectiveness in preventing money laundering and terrorist financing.
The country is also partially compliant with regards to:
- Politically Exposed Persons (R.12): Mali has established guidelines for dealing with politically exposed persons, but there are concerns about their effectiveness.
- Correspondent Banking (R.14): The country has implemented measures to prevent the misuse of correspondent banking relationships, but there are concerns about their effectiveness.
- Wire Transfers (R.16): Mali has established guidelines for wire transfers, but there are concerns about their effectiveness in preventing money laundering and terrorist financing.
Non-Compliance in Key Areas
Mali has shown a lack of compliance in areas that require significant improvement, including:
- Non-Profit Organisations (R.8): The country lacks effective regulations and supervision for non-profit organizations.
- Higher-Risk Countries (R.19): Mali lacks effective measures to prevent the misuse of correspondent banking relationships with higher-risk countries.
- Transparency in Beneficial Ownership of Legal Persons and Arrangements (R.24-25): The country lacks transparency in beneficial ownership of legal persons and arrangements.
- Regulation and Supervision of DNFBPs (R.28): Mali lacks effective regulations and supervision for designated non-financial businesses and professions (DNFBPs).
Key Areas for Improvement
The following areas require significant improvement:
- Non-profit organizations (R.8)
- Higher-risk countries (R.19)
- Transparency in beneficial ownership of legal persons and arrangements (R.24-25)
- Regulation and supervision of DNFBPs (R.28)
Mali’s compliance with FATF recommendations is a work in progress, and the country must address its shortcomings to meet international standards.
The assessment by the Financial Action Task Force highlights areas where Mali needs to improve its compliance with global financial regulations. The country has shown partial compliance in several areas, including confiscation and provisional measures, terrorist financing offence, customer due diligence, record keeping, politically exposed persons, correspondent banking, wire transfers, and reliance on third parties. However, it lacks effective regulations and supervision for non-profit organizations, higher-risk countries, transparency in beneficial ownership of legal persons and arrangements, and regulation and supervision of DNFBPs. Addressing these shortcomings is crucial to meet international standards and prevent money laundering and terrorist financing.