Financial Crime World

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Highest Authorities Urged to Improve AML/CFT Regime

A report by the Inter-Governmental Action Group against Money Laundering in West Africa (GIABA) has revealed significant progress in Niger’s efforts to combat money laundering and terrorist financing. The country’s authorities are being urged to sustain this momentum and improve their Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) regime.

Progress Made

According to GIABA, Niger’s 4th Follow-Up Report, submitted in November 2012, shows a new impetus in anti-money laundering and counter-terrorist financing efforts. The national authorities are playing an active role in ensuring effective control of corruption and related offenses.

  • Key developments include the establishment of the Haute Autorité de Lutte contre la Corruption et les Infractions Assimilées (HALCIA), which has led to the interrogation and detention of high-profile individuals suspected of smuggling goods.
  • The Justice Ministry has also set up a hotline for citizens to report cases of corruption.

Counter-Terrorism Financing Efforts

On counter-terrorism financing, a central service has been established at the General Directorate for Territorial Surveillance, while a terrorism prevention and counter-terrorist financing unit has been created within the judicial system.

Financial Intelligence Unit (FIU)

The report also notes that Niger’s CFT law is compliant with the WAEMU Community law, and the FIU now enjoys better working conditions, including more resources and equipment. The FIU has revised its rules and regulations to strengthen its structure and has signed agreements with other FIUs in Ghana and Gabon.

Training and Capacity Building

In addition, the FIU has conducted training sessions with GIABA’s Secretariat and UNODC, and has organized study tours to foreign FIUs to learn best practices.

Challenges and Recommendations

However, the report emphasizes that Niger still faces significant challenges, including geopolitical instability and porous borders that facilitate the transfer of weapons and illegal substances. To effectively tackle organized crime, all social groups must work together, including security services, judges, and AML/CFT entities.

To further support Niger’s efforts, GIABA has provided technical assistance, including a financial analyst for the FIU and sponsorship of training programs for its members.

The authorities are urged to sustain their momentum by implementing recommendations from their Mutual Evaluation Report and putting in place a proper mechanism for freezing and confiscating proceeds of crime. They must also provide sufficient and secured office accommodation for the CENTIF to take advantage of GIABA’s analytical hard and software and apply for membership of the Egmont Group.

Recommendations

  1. Restore confidence among banks and other reporting entities by ensuring the confidentiality of reports.
  2. Conduct training programs for all subject persons, including reporting entities.
  3. Provide specific training exercises for investigation and prosecution authorities.
  4. Organize a consultative meeting on manual currency exchange issues.
  5. Raise awareness among local communities about AML/CFT issues.
  6. Provide top-quality technical materials to the FIU, including software and hardware.
  7. Organize an international forum on the financing of terrorism.
  8. Facilitate cooperation arrangements with other FIUs.

By implementing these recommendations, Niger can further improve its AML/CFT regime and effectively combat money laundering and terrorist financing.