Somalia Grapples with AML/KYC Challenges

Somalia’s Anti-Money Laundering (AML) and Counter Financing of Terrorism (CFT) Act 2016 is the country’s primary legislation governing its AML/CFT regime. Signed by President Mohamed Abdullahi Mohamed and published in the official bulletin of the Federal Government, the act came into effect on February 21st last year.

Key Provisions

The AML/CFT Act outlines the following key provisions:

• Definition of Money Laundering and Terrorism Financing: The act defines money laundering and terrorism financing as criminal offenses.
• Investigation Powers: Law enforcement agencies and public prosecutors are empowered with wide-ranging investigation powers, including the ability to:
  • Freeze properties suspected of being involved in money laundering or terrorism financing activities
  • Seize properties related to these crimes
• Court Forfeiture: The court has the power to forfeit properties derived from the proceeds of serious crimes, further strengthening Somalia’s efforts to combat financial crimes

Challenges and Opportunities

Despite these measures, Somalia continues to face significant challenges in implementing its AML/CFT regime. To effectively prevent money laundering and terrorism financing in the country, continued effort and support are necessary.

This highlights the need for:

• Strengthening institutional capacity and coordination among law enforcement agencies and financial institutions
• Improving public awareness and understanding of AML/CFT requirements
• Enhancing international cooperation and information sharing to combat financial crimes

By addressing these challenges, Somalia can move closer to achieving its goals in combating financial crimes and ensuring a safer and more stable future for its citizens.