Financial Crime World

Mauritania’s Efforts to Combat Terrorism Financing Receive Mixed Assessment

Mauritania has been praised for its efforts to combat terrorism financing, but still faces some shortcomings according to a recent report. The report assesses the country’s progress in implementing the recommendations of the Financial Action Task Force (FATF).

Freezing and Unfreezing Funds

One area where Mauritania has excelled is in freezing and unfreezing funds. Article 13 of Decree No. 199-2019 provides guidelines for financial institutions and designated non-financial businesses and professions (DNFBPs) on their obligations to freeze and unfreeze funds. The report notes that the country’s mechanism allows financial institutions and DNFBPs to implement these measures within a maximum timeframe of 24 hours.

Non-Profit Organizations

However, Mauritania has been found to be non-compliant with Recommendation 8, which relates to non-profit organizations (NPOs). The report notes that:

  • The country did not identify the sectors that fall under this category.
  • There is no information on how terrorist actors abuse NPOs.
  • There are no evidence of outreach programs or best practices in place to prevent TF risks and vulnerabilities.

Positive Developments

In a positive development, Mauritania has reviewed its procedures related to NPOs, resulting in amendments to relevant laws and regulations. The National Risk Assessment concluded that there are almost no threats posed by terrorist entities to NPOs, but the report notes that this assessment is based on limited data and may not be comprehensive.

Recommendations

The report highlights the importance of setting up a mechanism to periodically reassess risks every three years, including the NPO sector. Additionally, Mauritania has signed a protocol with supervisory authorities to promote outreach and awareness programs about potential vulnerabilities in NPOs.

Conclusion

In conclusion, while Mauritania has made progress in combating terrorism financing, it still needs to address several shortcomings related to NPOs. The country must:

  • Provide information on how terrorist actors abuse NPOs
  • Develop best practices to prevent TF risks and vulnerabilities
  • Enhance supervisory authorities’ powers to investigate NPOs

By addressing these shortcoming, Mauritania can further strengthen its efforts to combat terrorism financing and maintain a robust system for preventing the misuse of NPOs.