Somalia Moves to Strengthen Anti-Money Laundering Regime with New Legislation

In a significant step towards combating financial crime, Somalia has introduced new anti-money laundering (AML) regulations aimed at preventing the misuse of its financial system for illegal activities. The Anti-Money Laundering and Counter Financing of Terrorism Act 2016, signed into law by the President on February 21st this year, marks a major milestone in Somalia’s efforts to crack down on money laundering and terrorism financing.

Key Provisions

• Criminalization of money laundering and terrorism financing
• Investigation powers granted to law enforcement agencies and public prosecutors to:
  • Freeze properties suspected of being linked to money laundering or terrorism financing activities
  • Seize properties derived from the proceeds of serious crimes
• Courts empowered to forfeit properties derived from the proceeds of serious crimes

Impact on Somalia’s Fight Against Financial Crime

The AML/CFT Act is seen as a crucial tool in Somalia’s fight against financial crime, enabling authorities to disrupt the flow of illicit funds and bring perpetrators to justice. With this new legislation in place, Somalia is now better equipped to:

• Protect its financial system from being exploited by criminal networks and terrorist organisations
• Prevent the misuse of its financial system for illegal activities
• Bring criminals to justice and disrupt their operations

Overall, the introduction of this new legislation marks a significant step forward in Somalia’s efforts to combat financial crime and maintain the integrity of its financial system.