Financial Crime World

Title: Sierra Leone’s Progress in Combating Money Laundering and Terrorism Financing: A FATF Evaluation

Evaluating Financial Crime Prevention Measures in Place

A recent evaluation report published by the Financial Action Task Force (FATF) acknowledges that Sierra Leone has made strides in combating money laundering and the financing of terrorism and weapons of mass destruction. In this article, we explore the key findings of the report and the areas for improvement identified.

Sierra Leone’s Progress in Meeting FATF Recommendations

During an evaluation conducted between July 15 and 26, 2019, Sierra Leone generally met 26 of the 40 FATF recommendations. Here are some of the improvements noted:

  • Enhanced operations of financial intelligence unit and other relevant entities.

However, challenges remain in various areas, such as:

  • Improve customer due diligence, risk assessment, and application of enhanced due diligence measures.
  • Strengthen regulatory and supervisory frameworks.
  • Increase international cooperation.
  • Bolster financial education initiatives.

Addressing Challenges and the Way Forward

Despite facing unique challenges, Sierra Leone has shown commitment to improve its AML/CFT measures. It has enacted new laws, established bodies to oversee compliance, and collaborated with international partners to build capacity and knowledge.

Key Issues Requiring Attention

According to the report, the following issues need immediate attention and action:

  1. Effectiveness of customer due diligence, risk assessment, and enhanced due diligence measures.
  2. Strengthening of regulatory and supervisory frameworks.
  3. Enhancement of international cooperation with neighboring countries and financial intelligence units.
  4. Boosting financial education initiatives.

Future Engagements and Cooperation

Sierra Leone will now engage with FATF-Style Regional Bodies for mutual evaluation follow-up. This will involve reporting on progress made in addressing FATF’s recommendations and implementing corrective action plans.

Quote from the FATF Executive Secretary

“Sierra Leone’s commitment to improving its AML/CFT regime is evident in its engagement with the FATF process,” said Ibrahima Yansané, Executive Secretary of GIABA. “We appreciate the progress the country has made but acknowledge that more work is needed.”

Accessing the Full Report

To learn more about Sierra Leone’s progress in combating money laundering and the financing of terrorism and proliferation, read the full report on the FATF website.