Financial Crime World

Somali Government Takes Stand Against Financial Crime

Effective Anti-Money Laundering Policies in Somalia

In a significant move to curb financial crimes in Somalia, the National Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) Committee has outlined its vision for an effective anti-money laundering framework consistent with international standards.

The Committee’s Mission

According to Chairman Minister of Finance, the committee’s mission is to establish a comprehensive AML/CFT framework through the engagement of human and technical resources. The ultimate goal is to promote cooperation, coordination, and information exchange between members, while also implementing prevention mechanisms to combat money laundering (ML) and terrorism financing (TF).

History of Anti-Money Laundering Efforts in Somalia

The establishment of NAMLC is a significant milestone in Somalia’s efforts to tackle financial crimes. The 2016 Anti-Money Laundering and Countering the Financing of Terrorism Act marked the first time money laundering and terrorist financing have been criminalized in the country.

Importance of Effective Anti-Money Laundering Policies

As Somalia continues to rebuild its economy and strengthen its institutions, the implementation of effective anti-money laundering policies is crucial in preventing the misuse of financial systems for illicit activities. With NAMLC at the helm, the Somali government is taking a critical step towards ensuring that its financial sector is transparent, accountable, and secure from financial crimes.

Committee Objectives

The committee’s objectives are clear:

  • Prevent the flow of illicit funds: Disrupt money laundering networks and prevent the misuse of financial systems for illicit activities.
  • Disrupt terrorist networks: Identify and disrupt terrorist financing networks to prevent the financing of terrorism in Somalia.
  • Promote economic stability: Create an AML/CFT regime that is robust, effective, and consistent with global standards.

By working together with international partners and domestic stakeholders, NAMLC aims to create a secure and transparent financial sector in Somalia.