Niger’s Financial Institution Compliance: A Mixed Bag

In its latest assessment, Niger has been found to have made progress in implementing financial institution compliance measures, but still lags behind in several key areas. The country received a mixed bag of ratings from the international community, with some recommendations being met and others requiring further improvement.

Compliance Progress

Niger has demonstrated significant compliance with certain technical requirements, including:

• Laws and regulations on money laundering and terrorist financing
• Implementation of targeted financial sanctions related to terrorism and terrorist financing
• Measures to prevent the misuse of non-profit organizations
• Internal controls

These efforts have been deemed largely compliant by the international community.

Challenges Ahead

However, Niger still faces challenges in several areas, including:

• Laws and regulations on confiscation and provisional measures: only partially compliant
• Regulation and supervision of financial institutions and designated non-financial businesses and professions (DNFBPs): not yet fully implemented
• Prevention of the misuse of cash couriers: partially compliant
• Statistics on suspicious transactions: partially compliant

Furthermore, Niger’s laws and regulations on transparency and beneficial ownership of legal persons and legal arrangements are non-compliant. Additionally:

• Regulation and supervision of DNFBPs is still lacking
• Financial intelligence unit has not yet been fully established
• Law enforcement and investigative authorities lack the necessary powers to effectively combat money laundering and terrorist financing

Positive Developments

Despite these challenges, Niger has made progress in several areas, including:

• Implementation of customer due diligence measures for financial institutions
• Prevention of the misuse of correspondent banking relationships
• Cooperation with international partners: largely compliant

Conclusion

While Niger still faces significant challenges in implementing financial institution compliance measures, the country has demonstrated a commitment to addressing these issues and improving its regulatory framework. With continued efforts, Niger can work towards achieving full compliance and strengthening its financial system.

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