Financial Crime World

Mali Struggles to Combat Financial Crime and Terrorism Financing, FATF Report Reveals

A recent report by the Financial Action Task Force (FATF) has highlighted Mali’s ongoing struggles to combat financial crime and terrorism financing. The West African country received a mixed bag of ratings from the global anti-money laundering watchdog, with significant weaknesses identified in several key areas.

Compliance and Weaknesses

According to the report, Mali is largely compliant with FATF recommendations on:

  • Assessing risk and applying a risk-based approach (R.1)
  • National cooperation and coordination (R.2)
  • Money laundering offence (R.3)
  • Confiscation and provisional measures (R.4)
  • Targeted financial sanctions related to terrorism and terrorist financing (R.6)
  • Record keeping (R.11)

However, Mali was found to be partially compliant in several areas, including:

  • Money or value transfer services (R.14)
  • Correspondent banking (R.13)
  • Customer due diligence for designated non-financial businesses and professions (DNFBPs) (R.22)

The country also failed to meet the FATF’s standards on transparency and beneficial ownership of legal persons and arrangements (R.24 and R.25).

Non-Compliance

Mali was found to be non-compliant in several critical areas, including:

  • Laws and regulations governing DNFBPs (R.28)
  • Financial intelligence units (R.29)
  • International cooperation, particularly with regards to:
    • Mutual legal assistance (R.37)
    • Extradition (R.39)

Call for Action

The FATF report highlights the need for Mali to strengthen its anti-money laundering and combating the financing of terrorism (AML/CFT) regime, particularly in light of the country’s history of political instability and terrorist activity.

“Mali must take immediate action to address these weaknesses and ensure that it is not used as a haven for financial criminals and terrorists,” said a FATF spokesperson. “The international community expects Mali to demonstrate its commitment to combating financial crime and terrorism financing, and we will be closely monitoring the country’s progress in this regard.”