Financial Crime World

Mali’s Financial Regulations Compliance Raises Concerns

A recent review by the Financial Action Task Force (FATF) has identified several key areas where Mali needs to improve its compliance with global financial regulations.

Key Findings

  • Lack of effective measures to prevent money laundering and terrorist financing: Mali needs to improve its laws and regulations to address these issues.
  • Regulation of non-profit organizations: The country fails to implement adequate measures to prevent them from being used for illicit activities.
  • Ability to regulate and supervise financial institutions: Mali falls short in this area, which is crucial for preventing financial crimes.

Areas of Improvement

While Mali has made progress in some areas, such as:

  • Customer due diligence and record keeping: The country has improved its customer due diligence and record-keeping practices.
  • Targeted financial sanctions related to terrorism and terrorist financing: Mali has implemented targeted financial sanctions related to terrorism and terrorist financing.

Reforms to Address Concerns

Mali’s authorities have committed to implementing a series of reforms aimed at strengthening its anti-money laundering and combating terrorist financing (AML/CFT) regime. These reforms include:

  • Improving customer due diligence
  • Enhancing record keeping
  • Increasing transparency and beneficial ownership of legal persons and arrangements
  • Strengthening the financial intelligence unit
  • Improving international cooperation on AML/CFT issues

FATF Compliance Rating

The FATF has rated Mali’s compliance with global financial regulations as follows:

  • Technical Compliance: 24/40 (partially compliant in 12 areas, non-compliant in 4, compliant in 4)
  • Ratings:
    • C = compliant
    • LC = largely compliant
    • PC = partially compliant
    • NC = non-compliant

Areas of Concern

The FATF has identified the following areas as concerns:

  • Regulation and supervision of financial institutions (R.26)
  • Transparency and beneficial ownership of legal persons (R.24)
  • Transparency and beneficial ownership of legal arrangements (R.25)
  • Regulation and supervision of DNFBPs (R.28)

Recommendations

To address the concerns raised by the FATF review, Mali’s authorities are recommended to:

  • Implement effective measures to prevent money laundering and terrorist financing
  • Improve regulation and supervision of financial institutions
  • Enhance transparency and beneficial ownership of legal persons and arrangements
  • Strengthen the financial intelligence unit
  • Increase international cooperation on AML/CFT issues

By addressing these concerns, Mali can improve its compliance with global financial regulations and reduce the risks associated with money laundering and terrorist financing.