Financial Crime World

Qatar’s Fight Against Money Laundering and Terrorist Financing: Enhancing Due Diligence Measures

Overview

Doha, Qatar - In its latest assessment, the Financial Action Task Force (FATF) has identified areas of improvement for Qatar in its efforts to combat money laundering and terrorist financing. While the country has made progress in implementing anti-money laundering and counter-terrorist financing measures, smaller financial institutions (FIs) and designated non-financial businesses and professions (DNFBPs) remain at an early stage of implementation.

FATF Assessment Highlights

The FATF assessment highlights that:

  • FIs generally have appropriate internal controls and group-wide programs in place.
  • Reporting of Suspicious Transaction Reports (STRs) remains a challenge, with some FIs and DNFBPs failing to submit reports in a timely manner.
  • The quality of STRs has been criticized as being low.

Challenges

The Qatar Financial Intelligence Unit (QFIU) and Anti-Money Laundering/Counter-Terrorist Financing (AML/CFT) supervisors have taken steps to improve the quality of reporting, including manual reviews of each STR and thematic reviews. However:

  • Some DNFBPs in Qatar still submit reports manually, while others are unclear about whom they should report suspicious transactions.
  • AML/CFT supervisors have a fair overall understanding of Qatar’s money laundering/terrorist financing (ML/TF) risks, but there is room for improvement in their sector-specific risk assessments.

Recommendations

To combat money laundering and terrorist financing effectively, the country must prioritize the following areas:

  • Enhance due diligence measures
  • Improve transparency and beneficial ownership information
  • Strengthen international cooperation and verification processes

Conclusion

The FATF assessment concludes that while Qatar has made significant progress in implementing AML/CFT measures, there are still areas for improvement. To combat money laundering and terrorist financing effectively, the country must prioritize these areas of improvement.

References

  • Financial Action Task Force (FATF). (2022). Qatar’s Fight Against Money Laundering and Terrorist Financing: Enhancing Due Diligence Measures.
  • Ministry of Commerce and Industry (MOCI).
  • Qatar Central Bank (QCB).
  • Qatar Financial Markets Authority (QFMA).
  • Qatar Financial Centre Regulatory Authority (QFCRA).
  • Ministry of Justice (MOJ).