Financial Crime World

Somalia’s Efforts to Combat Money Laundering and Terrorist Financing

The Financial Reporting Center (FRC) has made significant strides in institutional development to combat money laundering and terrorist financing in Somalia. Here are the key efforts and initiatives:

Drafting a Terrorist Financing Risk Assessment

  • Consultation meeting between FRC and Somali Security Sectors: A critical meeting was held to draft a Terrorist Financing (TF) risk assessment, which is essential for understanding vulnerabilities and risks associated with terrorist financing in Somalia.
  • Benefits of the TF Risk Assessment:
    • Identifies areas prone to terrorist financing
    • Helps develop targeted strategies to mitigate risks
    • Enhances international cooperation and information sharing

Evaluating the AML/CFT Framework

  • Comprehensive evaluation of Somalia’s Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT) framework: The forthcoming evaluation aims to assess the effectiveness of Somalia’s AML/CFT framework in combating financial crimes and terrorism financing.
  • Benefits of the Evaluation:
    • Identifies areas for improvement
    • Enhances international cooperation and information sharing
    • Supports Somalia’s efforts to meet its AML/CFT obligations

Preparing for the Mutual Evaluation

  • National Anti-Money Laundering Committee Chairperson meets with NAMLC Task Force and Mutual Evaluation Preparation Taskforce: The meeting was led by the Minister of Finance, who chairs the National Anti-Money Laundering Committee (NAMLC). The primary focus was on accelerating efforts to prepare for the upcoming Mutual Evaluation.
  • Benefits of Preparing for the Mutual Evaluation:
    • Enhances Somalia’s understanding of its AML/CFT obligations
    • Supports international cooperation and information sharing
    • Helps identify areas for improvement

Training for AML/CFT Competent Authorities

  • Training on MENA-FATF Mutual Evaluation and Mock Examination: This training session aimed to prepare Somalia’s AML/CFT competent authorities for the MENA-FATF Mutual Evaluation by conducting a mock examination of the FATF Methodology.
  • Benefits of Training:
    • Enhances knowledge and understanding of AML/CFT obligations
    • Supports international cooperation and information sharing
    • Helps identify areas for improvement

AML/CFT Awareness and Training Program

  • Financial Reporting Center (FRC) conducts AML/CFT awareness and training program for NAMLC staff: The FRC conducted an AML/CFT awareness and training program to enhance the knowledge and understanding of its staff.
  • Benefits of the Awareness and Training Program:
    • Enhances staff knowledge and understanding of AML/CFT obligations
    • Supports international cooperation and information sharing
    • Helps identify areas for improvement