Financial Crime World

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Somalia’s Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) Regime

Institutional Development

The Somali parliament passed the AML/CFT Act in 2016, which established the National Anti-Money Laundering and Financing Terrorism Committee (NAMLC) and the Financial Reporting Center (FRC). The NAMLC has policy-making and oversight responsibility for the AML/CFT regime, while the FRC serves as Somalia’s Financial Intelligence Unit (FIU).

Key Requirements

  • Institutions are required to report on financial transactions that may be designed to launder money or finance terrorist activities.

National AML/CFT Committee and Taskforce

The NAMLC consists of relevant stakeholders entrusted with implementing the national strategy. The committee is chaired by the Minister of Finance, and members include Ministers from Justice, Commerce and Industry, and Internal Security, as well as the Governor of the Central Bank, Attorney General, Director of NISA, and FRC Director (as secretary).

Committee Structure

  • The AML/CFT Taskforce has been created to operationalize and enforce NAMLC directives.

Financial Reporting Center (FRC)

The FRC is an independent national agency responsible for receiving, analyzing, and disseminating information on money laundering and terrorist financing. The FRC’s vision and mission are to become a trusted and exemplary agency in support of a robust financial system hostile to financial crimes.

Mandate

  • Undertake systematic collection and analysis of data associated with money transfers
  • Document suspicious transactions
  • Provide strategic intelligence

Annual Report 2020

The Financial Reporting Center (FRC) releases an annual report, which may include details about the FRC’s activities. The report may cover topics such as:

  • Building and maintaining an environment in Somalia directed to identify and eradicate money laundering and terrorist financing.
  • Addressing ML/FT challenges and working closely with reporting entities, including financial institutions and designated non-financial business and professions.