Financial Crime World

Sierra Leone Financial Institutions Fall Short on Security Measures, Report Reveals

Lack of Effective Supervision and Enforcement Mechanisms

A comprehensive assessment conducted by the Financial Action Task Force (FATF) has found that financial regulators in Sierra Leone are lacking in their security measures, leaving the country’s financial institutions vulnerable to fraud and other criminal activities.

Methodology Used

The evaluation was based on information provided by the country as well as observations made during an on-site visit. The FATF used its 2013 methodology to assess the effectiveness of Sierra Leone’s anti-money laundering and combating financing of terrorism (AML/CFT) systems.

Key Shortcomings Identified

According to the report, which has been reviewed and endorsed by the FATF, Sierra Leone’s financial institutions failed to meet several key recommendations aimed at strengthening their AML/CFT systems. The assessment found that:

  • Inadequate AML/CFT Regime: The country’s AML/CFT regime was deemed inadequate, with a lack of effective supervision and enforcement mechanisms in place.
  • Need for Robust Customer Due Diligence Procedures: Financial institutions were found to be lacking in their customer due diligence procedures, making it difficult to identify and prevent illegal activities.
  • Insufficient Transparency and Cooperation: There was a need for increased transparency and cooperation between financial institutions and law enforcement agencies to combat financial crime.
  • Improved Reporting Requirements: The report highlighted the need for improved reporting requirements to ensure timely and effective reporting of suspicious transactions.

Call to Action

The FATF has called on Sierra Leone to take immediate action to address these shortcomings and bring its AML/CFT regime in line with international standards. The full report is available online, including a detailed executive summary outlining the key findings and priority actions required to address the issues identified.

Takeaway

Sierra Leone’s financial institutions must prioritize strengthening their AML/CFT systems to prevent fraud and other criminal activities. This requires robust customer due diligence procedures, increased transparency and cooperation between financial institutions and law enforcement agencies, and improved reporting requirements.