Financial Crime World

Somalia Takes a Major Step Forward in Fight Against Money Laundering and Terrorism Financing

Mogadishu, Somalia - In a landmark move aimed at strengthening the country’s fight against money laundering and terrorism financing, Somalia has established the National Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) Committee, also known as NAMLC.

Background

According to sources, the committee is mandated by the 2016 AML/CFT Act to provide policy guidance and set strategies for Somalia’s AML/CFT regime. For the first time in the country’s history, this law criminalizes money laundering and terrorism financing, marking a significant shift towards combating these serious financial crimes.

NAMLC’s Mandate

NAMLC’s primary focus is on:

  • Developing a national AML/CFT strategy
  • Capacity building of member institutions
  • Setting strategic priorities for the Financial Reporting Centre (FRC)
  • Facilitating information sharing and promoting domestic and international coordination to combat money laundering and terrorism financing

Progress Made

In recent years, NAMLC has made significant progress:

  • Approving reporting requirements for financial institutions
  • Endorsing regulations for governance and compliance
  • Approving Somalia’s membership in the North Africa and Middle East Financial Action Task Force (MENAFATF)
  • Encouraging domestic coordination and cooperation among local and international stakeholders

Vision

According to a statement from NAMLC, its vision is:

  • To establish an effective, responsive, and adaptive AML/CFT framework consistent with international standards
  • To achieve this through the engagement of human and technical resources amongst relative local and international stakeholders

Impact

The establishment of NAMLC marks a major milestone in Somalia’s efforts to combat money laundering and terrorism financing, and it is expected to have a significant impact on the country’s financial sector and overall security landscape.

This development demonstrates Somalia’s commitment to strengthening its AML/CFT regime and working towards international standards. As the committee continues to work towards its goals, it is likely to have far-reaching consequences for the country’s financial system and national security.