Financial Crime World

Sierra Leone Remains Vigilant Amidst Risks of Financial Crimes

Freetown, Sierra Leone - The government of Sierra Leone is taking proactive steps to mitigate the risks of financial crimes, despite being vulnerable to money laundering and terrorist financing (ML/TF) due to its high level of technical compliance.

Strengthening Anti-Money Laundering and Combating Financing of Terrorism Framework

According to a recent mutual evaluation report, Sierra Leone has made significant strides in strengthening its anti-money laundering and combating the financing of terrorism (AML/CFT) framework. The country re-enacted its AML/CFT Act in 2012 and amended it in 2019, while also re-acting the Banking Act in 2019.

Key Achievements

  • Implemented an AML/CFT system that is moderately effective in understanding ML/TF risks and national coordination
  • Completed National Risk Assessment (NRA) in 2017, which has improved the understanding of ML/TF risks across the board
  • Financial Intelligence Unit (FIU) played a pivotal role in the NRA process and has a good understanding of risk in the country

Areas for Improvement

However, the report identified some deficiencies, including:

  • Lack of specific guidelines for international cooperation
  • Absence of case management system
  • Inadequate dedicated staff
  • Insufficient comprehensive statistics on ML/TF-related activities hinders the government’s ability to demonstrate its effectiveness in combating financial crimes.

Two-Year Action Plan

To address these issues, Sierra Leone has adopted a two-year Action Plan based on the findings of the NRA. The plan prioritizes key areas of deficiencies identified in the NRA and implementation is ongoing, although inadequate resources among key competent authorities are affecting effective implementation.

Key Areas of Focus

  • Strengthening AML/CFT framework
  • Improving response to ML/TF risks
  • Enhancing international cooperation and information sharing
  • Developing case management system and dedicated staff

Conclusion

The government of Sierra Leone is working to strengthen its AML/CFT framework and improve its response to ML/TF risks. However, more needs to be done to address the vulnerabilities and ensure that Sierra Leone remains a safe haven for financial transactions.

Sources:

  • Mutual Evaluation Report on Sierra Leone’s Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) Framework
  • Financial Intelligence Unit (FIU)
  • Government of Sierra Leone