Financial Crime World

Niger Struggles to Implement Anti-Money Laundering Measures, FATF Report Reveals

The Financial Action Task Force (FATF) has recently evaluated Niger’s efforts to prevent money laundering and terrorist financing. The evaluation highlights significant gaps in the country’s anti-money laundering framework, despite some progress made.

Limited Progress in Implementing Anti-Money Laundering Measures

Niger is only “largely compliant” with six out of 40 FATF Recommendations, which assess a country’s technical requirements to prevent money laundering and terrorist financing. The report identifies weaknesses in assessing risk, applying a risk-based approach, and implementing measures to prevent money laundering and terrorist financing.

Areas of Concern

The report highlights several areas where Niger needs improvement:

  • National cooperation and coordination
  • Confiscation and provisional measures
  • Targeted financial sanctions related to terrorism and terrorist financing

Additionally, concerns have been raised about:

  • Financial institution secrecy laws
  • Customer due diligence
  • Record keeping
  • Internal controls

Positive Developments

While there are areas of concern, the report notes that Niger has made progress in implementing measures to prevent money laundering and terrorist financing in certain sectors, such as banking and finance.

Risks Posed by Inadequate Implementation

The FATF recommendations aim to help countries prevent their financial systems from being used for illicit activities. Niger’s failure to adequately implement these measures poses risks not only to the country itself but also to its international partners and the global financial system as a whole.

Recommendations for Improvement

To address these concerns, Niger is urged to:

  • Strengthen its anti-money laundering framework
  • Enhance cooperation with other countries
  • Improve its capacity to detect and investigate suspicious transactions

The report serves as a wake-up call for the government to take concrete steps to prevent money laundering and terrorist financing in the country.