Financial Crime World

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Senegal’s Efforts to Combat Money Laundering and Terrorism Financing: Progress and Challenges

Senegal, a country in West Africa, has made significant progress in combating money laundering (ML) and terrorism financing (TF), but still faces challenges in implementing effective measures to prevent these financial crimes. According to the latest assessment by international organizations, Senegal’s efforts have improved since its last evaluation in 2007.

Risks and General Situation

The National Risk Assessment (NRA) report adopted in August 2017 identified key risks facing the country, including the financing of terrorism and money laundering through various sectors. However, the report noted that some sectors, such as foreign exchange dealers, real estate, and precious stones and metals, were not fully considered in determining the overall level of ML/TF risk.

Overall Level of Effectiveness and Technical Compliance

Senegal has made legislative and regulatory reforms to combat ML/TF, including the adoption of the Counter Financing of Terrorism Law. However, there are still major deficiencies in technical compliance due to non-domestication of relevant international directives and non-compliance with new recommendations from the Financial Action Task Force (FATF).

Key Achievements

Despite challenges, Senegal has made progress in raising awareness among reporting entities in the banking sector about their role in preventing ML/TF. The country’s Financial Intelligence Unit (FIU) has also analyzed intelligence that led to the submission of reports to the Prosecutor’s office with convictions.

Challenges and Recommendations

However, Senegal still faces challenges in preventing and supervising all reporting entities, including designated non-financial businesses and professions (DNFBPs). The country is advised to:

  • Strengthen its prevention and supervision measures
  • Improve coordination among stakeholders
  • Disseminate non-confidential results of the NRA report to all stakeholders

Future Directions

To address these challenges, Senegal should focus on implementing its action plan developed following the NRA report. The country should also:

  • Continue to raise awareness about ML/TF risks among reporting entities and DNFBPs
  • Improve coordination and cooperation among stakeholders
  • Enhance technical compliance with international standards

In conclusion, while Senegal has made progress in combating ML/TF, there are still significant challenges to be addressed. Effective implementation of its action plan and continued improvements in prevention, supervision, and coordination will be crucial for the country’s efforts to combat these financial crimes.