Financial Crime World

Mali’s Anti-Money Laundering Efforts Raise Concerns Over Data Retention

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A recent report has highlighted concerns over Mali’s ability to effectively combat money laundering and terrorist financing, citing issues with data retention and lack of comprehensive statistics.

Data Retention Concerns

  • Mali does not maintain adequate information on beneficial ownership, with no obligation to keep such data in the country’s commercial register.
  • Information held by banks can only be accessed upon consent from a state prosecutor.
  • The authorities have not conducted an assessment of legal persons operating in the country, despite efforts to roll out new software aimed at facilitating proper maintenance and timely access to basic information on beneficial owners.
  • Mali’s legal framework for mutual legal assistance and extradition is considered satisfactory.
  • However, there are concerns over delays in responding to requests for such assistance.

Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT)

  • The country does not maintain comprehensive statistics on AML/CFT matters.
  • Significant risks posed by terrorist financing, with cash remaining the preferred means of movement for terrorist groups.
  • Other sources of funds include non-regulated money transfer services, fundraising, and the use of non-profit organizations to transfer resources.

National Risk Assessment

  • Mali’s national risk assessment acknowledged various proceeds-generating crimes, including fraud, drug trafficking, and corruption, as key money laundering threats within the country.
  • However, there are concerns over the lack of a comprehensive internal system for prioritizing and managing requests for mutual legal assistance and extradition.

Recommendations

  • Enhance supervisory actions on a risk-sensitive basis.
  • Conduct parallel investigations.
  • Apply provisional freezing and confiscation of illicit proceeds.
  • Strengthen international cooperation, particularly judicial assistance.
  • Harmonize supervisory roles with non-profit organizations.
  • Finalize its national AML/CFT strategy and develop an action plan to implement the recommendations of its risk assessment exercise.

Conclusion

The report concludes that while Mali has improved its AML/CFT regime since 2008, significant improvements are still needed to strengthen its capacity to combat money laundering and terrorist financing. The need for improved data retention and comprehensive statistics on AML/CFT matters in Mali is highlighted, as well as enhanced cooperation and coordination among authorities to effectively combat money laundering and terrorist financing.