Financial Crime World

Senegal’s Financial Institutions Face Compliance and Regulation Challenges

In its latest report, Senegal has been assessed to be largely compliant with the technical requirements of the Financial Action Task Force (FATF) recommendations. The report evaluates the country’s efforts in combating money laundering and terrorist financing.

Progress Made

According to the report, Senegal has made significant progress in implementing the FATF’s 40 Recommendations for Combating Money Laundering and Terrorist Financing. The country has been found to be largely compliant with requirements such as:

  • Assessing risk and applying a risk-based approach (R.1)
  • National cooperation and coordination (R.2)
  • Confiscation and provisional measures (R.4)

Challenges Faced

However, Senegal has also faced challenges in implementing certain recommendations. For instance, the report notes that the country is:

  • Partially compliant with requirements related to terrorist financing offences (R.5)
  • Partially compliant with requirements related to targeted financial sanctions related to terrorism and terrorist financing (R.6)
  • Non-compliant with requirements related to transparency and beneficial ownership of legal persons and arrangements (R.24 and R.25)

Areas for Improvement

The report also highlights areas where Senegal needs improvement, including:

  • Financial institution secrecy laws (R.9), which have been criticized for being overly broad and potentially hindering anti-money laundering efforts
  • Enhancing supervisory and regulatory powers (R.27) to ensure effective implementation of anti-money laundering measures

Praise from International Bodies

Despite these challenges, Senegal has made significant strides in implementing measures to combat money laundering and terrorist financing. The country’s efforts have been praised by international bodies such as the FATF, which notes that Senegal has a robust legal framework in place.

Conclusion

As Senegal continues to work towards improving its anti-money laundering and combating of terrorist financing regime, the report provides valuable insights into areas where the country needs to improve. The report’s findings will be closely watched by international financial institutions and governments as they assess Senegal’s compliance with global standards for combating money laundering and terrorist financing.