Somalia Tightens Belts on Terrorism Financing Laws: NAMLC Leads the Charge

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In a major breakthrough, Somalia has taken a significant step in combating terrorism financing by establishing the National Anti-Money Laundering and Countering the Financing of Terrorism Committee (NAMLC). This committee is tasked with providing policy guidance and setting strategies for the country’s AML/CFT regime.

Background

The 2016 Anti-Money Laundering and Countering the Financing of Terrorism Act has given NAMLC a broad mandate to develop a national AML/CFT strategy, build capacity among member institutions, and set priorities for the Financial Reporting Centre (FRC).

NAMLC’s Focus

NAMLC’s focus is on facilitating information sharing and promoting domestic and international coordination to combat the threat of terrorist financing. The committee has made significant strides since its inception, including:

• Approving the reporting of suspicious and large cash transactions by financial institutions
• Endorsing the Minister of Finance’s Governance and Compliance Regulations and AML/CFT Regulations for Financial Institutions
• Encouraging Somalia’s membership in the North Africa and Middle East FATF (MENAFATF)

NAMLC’s Vision

NAMLC’s vision is to establish a comprehensive AML/CFT framework consistent with international standards, engaging human and technical resources from local and international stakeholders. The committee’s mission is to build, sustain, and coordinate an effective, responsive, and adaptive AML/CFT framework that will effectively combat terrorism financing in Somalia.

Conclusion

With NAMLC at the helm, the country is poised to take a significant step forward in combating this menace and ensuring a safer financial environment for all. The establishment of NAMLC marks a major breakthrough in Somalia’s efforts to combat terrorism financing, and it is expected to have a positive impact on the country’s financial landscape.