Financial Crime World

Mali Financial Regulation: A Mixed Bag, Says Report

FATF Assessment Highlights Strengths and Weaknesses of Mali’s Anti-Money Laundering and Combating Terrorism Measures

The Financial Action Task Force (FATF) has released its latest report on Mali’s implementation of anti-money laundering and combating the financing of terrorism (AML/CFT) measures, giving the country a mixed assessment.

Compliance with Recommendations

Mali is largely compliant with several FATF recommendations, including:

  • 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)
  • Correspondent banking (R.13)

Areas of Concern

However, the report highlights areas where Mali falls short, including:

  • Partial compliance with:

    • Definition of money laundering offence (R.5)
    • Confiscation and provisional measures (R.4)
    • Targeted financial sanctions related to proliferation (R.7)
    • Customer due diligence (R.10)
    • Record keeping (R.11)
    • Politically exposed persons (R.12)
    • Correspondent banking (R.14)
    • Reporting of suspicious transactions (R.20)

  • Non-compliance with:

    • Transparency and beneficial ownership of legal persons and arrangements (R.24-25)
    • Regulation and supervision of financial institutions (R.26)
    • Regulation and supervision of designated non-financial businesses and professions (DNFBPs) (R.28)
    • Measures related to new technologies (R.15) and cash couriers (R.32)

Progress Made

The report praises Mali’s efforts in strengthening its legal framework, particularly:

  • Financial institution secrecy laws (R.9)
  • Internal controls and foreign branches and subsidiaries (R.18)
  • Powers of supervisors (R.27)
  • Financial intelligence units (R.29) and responsibilities of law enforcement and investigative authorities (R.30)

Recommendations for Improvement

The FATF recommends that Mali:

  • Continue to strengthen its AML/CFT regime, particularly in areas where it is non-compliant or partially compliant
  • Implement measures to prevent money laundering and terrorist financing through DNFBPs and new technologies

Government Response

In a statement, the Malian government welcomed the report’s recognition of progress made in implementing AML/CFT measures. However, it acknowledged that there is still much work to be done to address the remaining gaps and deficiencies identified by the FATF.