Financial Crime World

Mauritania’s Anti-Money Laundering Efforts Under Scrutiny

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Mauritania has requested a re-rating of four recommendations from the Financial Action Task Force (FATF) in an effort to strengthen its anti-money laundering (AML) and combating the financing of terrorism (CFT) measures. This move comes after new amendments to Recommendation 15 were adopted in 2019.

Weaknesses Remain

According to a recent report by the MENA Financial Action Task Force (MENAFATF), Mauritania’s anti-money laundering efforts are still plagued by weaknesses. Specifically, the country has failed to:

  • Adequately identify and sanction natural or legal persons engaged in virtual currency activities
  • Sanction exchange service providers (VASPs) without necessary licenses

The report highlights that Mauritania has not provided sufficient information on its procedures for identifying and sanctioning individuals or entities engaging in these activities, creating a risk of money laundering and terrorist financing.

Ratings and Challenges

Despite weaknesses, the MENAFATF has upgraded some of Mauritania’s ratings. The country has been rated:

  • “Compliant” in 14 recommendations
  • “Largely Compliant” in 21 others
  • “Partially Compliant” in five

However, significant challenges remain in implementing AML/CFT measures. Mauritania must submit a fourth Enhanced Follow-up Report (EFUR) to the MENAFATF by November 2022 to remain in the Enhanced Follow-up process.

International Cooperation Crucial

The report emphasizes the importance of international cooperation in combating money laundering and terrorist financing. Mauritania is urged to:

  • Provide information on its procedures for requesting and receiving cooperation from other authorities
  • Improve coordination with law enforcement agencies

Conclusion

While Mauritania has made some progress in strengthening its AML/CFT measures, significant challenges remain. The country must continue to work towards implementing effective measures to prevent money laundering and terrorist financing, and provide sufficient information on its procedures and cooperation mechanisms to ensure compliance with international standards.