Financial Crime World

Senegal’s Progress in Combatting Financial Crimes: Insights from the FATF Report

Background

In an effort to strengthen its anti-money laundering and countering the financing of terrorism (AML/CFT) measures, Senegal underwent an assessment by the Financial Action Task Force (FATF) through the Financial Sector Assessment Program (FSAP) and the Mutual Evaluation (ME) in early 2018. The results of this assessment were recently published in a report providing valuable insights into the West African country’s progress and recommendations for improvement.

The Evaluation Process

The FSAP and ME, conducted by the Inter-Governmental Action Group Against Money Laundering in West Africa (GIABA), evaluated Senegal’s legal and regulatory framework, enforcement mechanisms, and supervisory bodies in the financial sector. The purpose of this comprehensive evaluation was to assess the effectiveness of Senegal’s AML/CFT system and its level of compliance with the FATF Recommendations.

Areas of Progress

According to the FATF report, Senegal has made considerable progress in various areas:

  1. Implementation of regulations: Senegal has made significant strides in implementing AML/CFT regulations throughout its financial sector.
  2. Establishment of a Financial Intelligence Unit (FIU): The country has successfully established a Financial Intelligence Unit to receive, analyze, and disseminate suspicious transaction reports to relevant authorities.
  3. Strengthening of AML/CFT framework: Senegal has taken steps to enhance its AML/CFT framework by, for example, providing training to its financial sector stakeholders.

Areas for Improvement

The report also highlights several areas where Senegal needs to improve:

  1. Coordination between authorities: There is a need for increased coordination and information sharing between different law enforcement and regulatory agencies.
  2. Regulatory and supervisory capacities: The regulatory and supervisory bodies require additional resources, expertise, and personnel to effectively enforce AML/CFT measures.

The Importance of the Report

The FATF report serves as a valuable resource for understanding the current state of Senegal’s AML/CFT efforts and the steps it needs to take to further strengthen its system. By addressing the recommendations outlined in this assessment, Senegal can contribute to the global fight against financial crimes and continue its journey towards a more robust and effective AML/CFT regime.