Financial Crime World

Mauritania’s Anti-Money Laundering and Counter-Terrorism Financing Progress: A MENAFATF Evaluation

Amidst the vast Saharan desert landscape of Mauritania, a West African nation, significant strides are being made in the fight against money laundering and terrorist financing. A new report released by the Middle East and North Africa Financial Action Task Force (MENAFATF) evaluates the progress of the Islamic Republic of Mauritania in implementing international standards against these illicit activities.

Mauritania’s Financial System under Review

Prepared by experts from the World Bank, the report applies the FATF methodology from 2004. Adopted as a MENAFATF Mutual Evaluation on November 14, 2006, the assessment covers various aspects of the Mauritanian financial system, including:

  1. Regulatory Environment
  2. Supervisory Framework
  3. Preventive Measures for Both Financial and Non-Financial Sectors

Mauritania’s Political Landscape and Economic Interests

Mauritania, a predominantly desert country with a sprawling terrain that borders the Atlantic Ocean, harbors rich mineral resources such as iron ore, oil, gold, and diamonds. These resources have piqued international interest, while its political landscape saw changes following a military coup in 2005. The new government, led by Mr. Sidi Mohamed Ould Boubacar, has been implementing new legislations to address anti-money laundering (AML) and counter-terrorism financing (CTF).

Two significant laws have been passed in Mauritania:

  1. Anti-Money Laundering Law No. 2005-048
  2. Law on Combating Terrorism No. 2005-047

The former extends the scope of an earlier drug-related law to criminalize money laundering activities not directly linked to drug trafficking. Regarding CTF, an Interministerial Commission was established to draft required legal provisions and coordinate the creation of future operational structures. Furthermore, the Directorate-General of National Security added a new economic and financial police unit for combatting financial crimes.

Despite these advancements, critical challenges remain:

  1. Inefficient and Endemically Corrupt Legal System: The lack of a properly functioning and independent judiciary contributes to the difficulty of effectively implementing AML and CTF measures.
  2. Institutional Reforms: Substantial improvements are required in the areas of institutional reform and legal system strengthening for Mauritania to build a robust financial system against illicit financial activities.

Detailed Recommendations for Continued Progress

The full report provides detailed recommendations in the following areas to strengthen Mauritania’s financial system against AML and CTF:

  1. Improving the regulatory framework
  2. Enhancing the supervisory framework
  3. Strengthening the operational framework
  4. Providing technical assistance and training
  5. Enhancing international cooperation

These recommendations aim to help Mauritania in its quest for a robust financial system that stands up against illicit financial activities.