Somalia Takes Steps to Fight Financial Crime with New Anti-Money Laundering and Counter-Terrorism Act

A Landmark Legislation to Combat Money Laundering and Terrorism Financing

On February 21st, 2016, the President of Somalia signed into law the Anti-Money Laundering and Counter Financing of Terrorism Act 2016. This landmark legislation was published in the official bulletin of the Federal Government of Somalia, marking a significant step towards curbing financial crime and terrorism financing.

Key Provisions of the AML/CFT Act

• Criminal Offences: The act makes it a criminal offence to engage in money laundering and terrorism financing activities.
• Investigative Measures: Law enforcement agencies and public prosecutors are empowered to take investigative measures, including freezing and seizing properties suspected of being involved in these crimes.
• Forfeiture of Properties: Courts are granted the authority to forfeit properties derived from the proceeds of serious crimes, disrupting financial networks of organized criminal groups and terrorist organizations.

Implications of the AML/CFT Act

• Protection of Economy: The new law demonstrates Somalia’s commitment to protecting its economy from the threats posed by money laundering and terrorism financing.
• Disruption of Criminal Networks: The act will disrupt the financial networks of organized criminal groups and terrorist organizations, making it more difficult for them to operate in the country.

Conclusion

The Anti-Money Laundering and Counter Financing of Terrorism Act 2016 is a significant step towards combating financial crime and protecting Somalia’s economy. The legislation provides a robust framework for preventing money laundering and terrorism financing offences, empowering law enforcement agencies and public prosecutors to take investigative measures, and disrupting the financial networks of criminal groups and terrorist organizations.