Financial Crime World

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Mauritania’s Financial Watchdog Faces Independence Threats

The country’s financial regulator, the Banking and Monetary Commission (BCM), has been granted full authority to stand as an autonomous institution. However, its independence is threatened by two key factors.

Factors Affecting Independence

  • The Governor’s ability to be removed from office at any time, despite being appointed for a four-year term, raises concerns about the BCM’s capacity to issue effective measures and ensure they are enforced.
  • Lack of legal protection for the oversight authority and its staff against potential legal actions taken against them for actions carried out in good faith while exercising their functions.

Measures to Strengthen Independence

  • The BCM is preparing an instruction to guide banks on implementing internal anti-money laundering (AML) and combating the financing of terrorism (CFT) procedures.
  • The commission is strengthening its operational capacities through training programs for staff and judges.
  • A multidisciplinary and multisectoral training program has been launched as part of a national action plan, with the first phase set to take place by the end of the year.

Designated Non-Financial Businesses and Professions

According to Law No. 2005-048, designated non-financial businesses and professions must exercise due diligence in knowing their customers and detecting suspicious transactions. However:

  • There is a lack of clarity on the practical modalities and conditions under which this duty should be carried out.
  • The law does not explicitly establish record-keeping obligations for these entities.

Non-Financial Professions

Law No. 2005-048 requires lawyers, notaries, statutory auditors, accountants, dealers in precious stones and metals, art dealers, real estate agents, travel agents, and non-governmental organizations to report suspicious transactions to CANIF. However:

  • Since CANIF is not yet operational, these professions are unable to report their suspicions.
  • Professional associations of accountants, lawyers, and notaries are responsible for regulating and supervising these professions but have yet to take any measures or enhance awareness within their professions.

Law No. 2000-05 of March 15, 2000 on the commercial code establishes the legal framework for companies in Mauritania. However:

  • There is a lack of clarity on how this law applies to non-profit organizations and other entities.
  • The BCM has been granted full authority to regulate and supervise financial institutions but its independence is threatened by factors that limit its ability to issue effective measures and ensure they are enforced.

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