Financial Crime World

Mauritania’s Financial Watchdog Under Fire for Lack of Independence

A recent report by the Financial Sector Assessment Program (FSAP) has highlighted concerns over the independence of Mauritania’s financial regulator, the Banking and Monetary Commission (BCM). The BCM is responsible for licensing, regulating, supervising, and sanctioning financial institutions, but its authority is limited due to two key factors.

Limited Authority

  • The Governor of the BCM can be removed from office at any time, despite being appointed for a four-year term. This lack of job security raises questions about the regulator’s ability to issue effective measures to combat money laundering and terrorist financing.
  • The BCM and its staff are not protected by legal safeguards against potential actions that may be taken against them in good faith while exercising their functions. This lack of protection could discourage the regulator from taking bold action to address financial crimes.

Strengthening Supervision

The report also highlighted the need for strengthening the BCM’s operational capacities for supervision, including:

  • Continuing the selection and training program recently launched by the commission
  • Providing specialized training for judges, police, and customs officials to handle financial crime cases

Awareness-Raising Initiatives

In related news, an awareness-building seminar hosted by the BCM in November 2005 brought together over 50 participants from various sectors to discuss anti-money laundering and combating the financing of terrorism (AML/CFT) measures. The commission is also preparing an instruction for banks to implement internal AML/CFT procedures.

Establishing a National Financial Information Commission

The report emphasized the importance of setting up a National Financial Information Commission (CANIF) as soon as possible, which will serve as the core mechanism for preventing financial crimes. CANIF has recently been established with a presidential decree and a secretary general appointed.

Educating Designated Non-Financial Businesses and Professions

In addition, the report called for greater awareness-raising and training programs to educate designated non-financial businesses and professions (DNFBPs) about their responsibilities in combating money laundering and terrorist financing. DNFBPs include:

  • Lawyers
  • Notaries
  • Accountants
  • Real estate agents
  • And others

However, the report noted that while Law No. 2005-048 requires DNFBPs to exercise due diligence in identifying customers and detecting suspicious transactions, no specific provisions outline the practical modalities for implementing this duty.

Conclusion

Overall, the report emphasized the importance of strengthening Mauritania’s financial regulatory framework to prevent money laundering and terrorist financing, while also promoting transparency and accountability within the financial sector.