Senegal’s Stride Forward in Strengthening Measures against Money Laundering and Terrorist Financing

Senegal, a West African nation, has made significant strides in enhancing its regulatory framework to counteract money laundering and terrorist financing. These efforts come in response to a mutual evaluation report by the Financial Action Task Force (FATF) and subsequent Follow-Up Recommendations (FURs).

FATF Evaluation and Corrective Actions

• FATF Mutual Evaluation Report (2022): The FATF assessed Senegal’s level of compliance with international anti-money laundering and counter-terrorist financing (AML/CFT) standards. Although some deficiencies were identified, the country has taken substantial steps to address them.

• Addressing Deficiencies: Senegal has made improvements in the areas of:

  • Risk assessment
  • Customer due diligence
  • Ongoing supervision of financial institutions

• FATF’s 2018 Mutual Evaluation: The country has addressed all prior action plans, as outlined in the FATF’s 2018 mutual evaluation.

FATF Recommendations for Further Enhancements

The FATF encourages Senegal to continue its efforts to tackle AML/CFT challenges by implementing the following recommendations:

• AML/CFT Risk Assessment: The country must enhance its AML/CFT risk assessment to reflect identified risks.
• National Action Plan: Senegal should update and implement its AML/CFT National Action Plan.
• Central Bank Effectiveness and Transparency: The effectiveness and transparency of its central bank should be enhanced.

International Cooperation

Senegal’s progress extends to increased cooperation with regulatory agencies in other jurisdictions. These collaborative efforts are crucial in furthering efforts against money laundering and terrorist financing.

Commitment to Combating AML/CFT Activities

By addressing the concerns pointed out in the mutual evaluation report, Senegal demonstrates its commitment to combating criminal activities that might threaten the global financial system. This progress is essential as Senegal continues to attract foreign investments and strengthen its position within the West African and global economy.

Conclusion

The recent FATF report on Senegal underscores the country’s strides in strengthening its regulatory framework against money laundering and terrorist financing. While the journey is ongoing, the progress made highlights Senegal’s determination to meet international AML/CFT standards and ensure the integrity of its financial sector.