Financial Crime World

Compliance and Regulatory Changes in Finance Sector Highlighted at One-Day Clinic in Senegal

Dakar, Senegal - A One-Day Regulatory Compliance Clinic was Hosted by Spaces for Change (S4C) and Publish What You Pay Senegal on December 7, 2022

A one-day Regulatory Compliance Clinic was held by Spaces for Change (S4C) and Publish What You Pay Senegal on December 7, 2022, bringing together 15 executives of civil society organizations to discuss the regulatory landscape governing non-profit entities in Senegal. The event aimed to equip participating organizations with the knowledge and skills necessary to comply with the country’s laws and regulations, including those related to money laundering (ML) and terrorism financing (TF).

Focus on Obligations Imposed by National Laws

The clinic focused on the obligations imposed by various national laws regulating the non-profit sector in Senegal, including:

  • Decree No. 2015-145 of February 4, 2015
  • Uniform Laws 2004-09 of February 6, 2004
  • Decree No. 2019-1500 of September 18, 2019

Participants learned about the submission of financial statements, declaration of suspicious transactions, safekeeping of financial registers, and due diligence on source financing.

AML/CFT Risks in Non-Profit Organizations

The training also delved into the laws governing anti-money laundering and countering the financing of terrorism (AML/CFT) risks in non-profit organizations. The Financial Action Task Force’s Recommendation 8 requires countries to identify, assess, and mitigate AML/CFT risks in the NPO sector.

Restrictive Provisions in National Laws

However, many NPOs operating in Senegal are unaware of these laws and regulations, putting them at risk of regulatory sanctions. The clinic highlighted the restrictive provisions in national AML/CFT laws that could potentially stifle civic space, such as:

  • Article 39 of Decree No. 2022-1676 of September 22, 2022
    • Subjects NGOs collecting or transferring funds to surveillance
    • Can be exploited to surveil groups critical of the government

Regional Context and Similarities with Other West African Countries

The NPO regulatory climate in Senegal mirrors that of other West African countries, such as Nigeria and Ghana, where S4C has conducted similar compliance clinics. Participants gained a better understanding of the intersection between counterterrorism laws and non-profit organizations, as well as the connection between international financial regulations and national AML/CFT regimes.

Conclusion

The clinic was organized under the banner of the Civic Space Resource Hub for West Africa, supported by the Ford Foundation. The event demonstrated S4C’s commitment to empowering civil society organizations in Senegal and across West Africa to navigate complex regulatory landscapes and promote a more enabling environment for civic engagement.