Sierra Leone Struggles with Financial Sanctions Compliance, Experts Say
As Sierra Leone continues to grapple with financial sanctions compliance, experts warn that the country’s failure to effectively implement measures to prevent money laundering and terrorist financing activities could have severe consequences.
Financial Intelligence Unit (FIU)
The FIU, responsible for combating the flow of “dirty” money in Sierra Leone, performs three traditional core functions:
- Receipt of statutory reports
- Analysis
- Dissemination of information to other law enforcement agencies on issues relating to money laundering, financial crimes, suspicious transactions, and terrorist financing activities.
Challenges in Complying with Financial Sanctions
Despite the FIU’s efforts, experts say that Sierra Leone still faces significant challenges in complying with financial sanctions. The country has been criticized for its slow pace in implementing measures to prevent money laundering and terrorist financing activities, and there are concerns that the country’s financial system remains vulnerable to abuse.
Recent Cases of Money Laundering and Terrorist Financing
In recent years, Sierra Leone has faced a number of high-profile cases of money laundering and terrorist financing, which have highlighted the need for improved financial sanctions compliance. The country’s failure to effectively implement measures to prevent these crimes could have severe consequences, including damage to its international reputation and potential economic sanctions.
Efforts to Improve Financial Sanctions Compliance
Despite these challenges, officials say that they are working to improve financial sanctions compliance in Sierra Leone. In recent months, the FIU has conducted a number of initiatives aimed at strengthening the country’s anti-money laundering and counter-terrorism financing regime, including:
- A five-day national risk assessment workshop
- Analysis of financial transactions from different reporting entities
- Dissemination of financial intelligence to law enforcement agencies
Receiving Information about Financial Transactions
The FIU also receives information about financial transactions from different reporting entities, which it analyzes together with information sourced from databases of other institutions to develop financial intelligence in order to detect money laundering or terrorist financing activities.
Implementing UNSCR S 1267 & 1373
In addition, the FIU receives the UN “Lists” of designated persons from the Ministry of Foreign Affairs and International Cooperation (MoFAIC) for freezing/seizing/confiscation of terrorist funds/assets. The “Lists” are forwarded to CISU for action as per FIU procedure and mechanism.
Conclusion
Despite these efforts, experts say that more needs to be done to improve financial sanctions compliance in Sierra Leone. The country must continue to work to strengthen its anti-money laundering and counter-terrorism financing regime, including through the implementation of robust measures to prevent money laundering and terrorist financing activities.