Financial Crime World

Senegal’s Efforts to Combat Money Laundering Receive Mixed Review

Senegal has made significant strides in implementing anti-money laundering (AML) laws, but still faces challenges in some areas, according to a recent report from the Financial Action Task Force (FATF). In this article, we’ll explore Senegal’s progress and identify areas for improvement.

Progress and Challenges

The FATF’s Benin Follow-Up Report 2023 assesses Senegal’s implementation of AML laws and regulations. While the country has made significant progress in:

  • Assessing Risk: Senegal has implemented a risk-based approach to assessing risk and applying targeted financial sanctions related to terrorism and terrorist financing.
  • Customer Due Diligence: The country has received high ratings for its implementation of customer due diligence, record-keeping, and internal controls and foreign branches and subsidiaries.

However, Senegal still faces challenges in:

  • Regulating Non-Profit Organizations: The country was found to be non-compliant with regards to regulating and supervising non-profit organizations.
  • Transparency and Beneficial Ownership: Senegal must improve transparency and beneficial ownership of legal persons and arrangements.
  • DNFBPs (Designated Non-Financial Businesses and Professions): The country’s laws and regulations regarding DNFBPs were deemed partially compliant, requiring further strengthening.

Recommendations for Improvement

The report highlights areas where Senegal needs to improve, including:

  • Increasing Transparency: Strengthen transparency and beneficial ownership of legal persons and arrangements.
  • Regulating DNFBPs: Improve regulations and supervision of DNFBPs.
  • Addressing Financial Institution Secrecy Laws: Work to address issues related to financial institution secrecy laws and cash couriers.

Conclusion

Senegal’s efforts to combat money laundering are critical in preventing illegal activities such as terrorism financing and organized crime. While the country has made progress, there is still work to be done to strengthen its AML regime. The FATF will continue to closely monitor Senegal’s progress, and international organizations and governments around the world will also be watching with interest.

Key Takeaways

  • Senegal has made significant progress in implementing anti-money laundering laws.
  • The country faces challenges in regulating non-profit organizations, transparency, and beneficial ownership.
  • Recommendations include increasing transparency, regulating DNFBPs, and addressing financial institution secrecy laws.