Financial Crime World

Somalia Takes Stronger Stand Against Money Laundering and Terrorism Financing

Establishment of National AML/CFT Committee Marks Significant Step Forward in Combating Illicit Activities

In a landmark move to combat the scourge of money laundering and terrorism financing, Somalia has established a National Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) Committee. The committee is tasked with providing policy guidance and setting strategies for Somalia’s AML/CFT regime under the 2016 Anti-Money Laundering and Countering the Financing of Terrorism Act.

History-Making Legislation

For the first time in Somali history, this legislation criminalizes money laundering and the financing of terrorism. This marks a significant step forward in the country’s efforts to combat these illicit activities.

Responsibilities of the NAMLC

The National AML/CFT Committee is responsible for:

  • Developing a national AML/CFT strategy
  • Building the capacity of its member institutions
  • Setting strategic priorities for the Financial Reporting Committee (FRC)
  • Facilitating information sharing and promoting domestic and international coordination to tackle money laundering and terrorism financing

Progress Made by NAMLC

Over the past few years, the NAMLC has made significant progress, including:

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

Vision and Mission Statement

According to the committee’s vision and mission statement, its goal is to build a responsive and adaptive AML/CFT framework that meets international standards. To achieve this, NAMLC will engage with local and international stakeholders to establish a comprehensive AML/CFT framework.

Implications for Somalia’s Economy and National Security

The establishment of the NAMLC demonstrates Somalia’s commitment to strengthening its financial sector and combating illicit activities. The committee’s efforts are expected to have far-reaching implications for the country’s economy and national security.