Somali Government Publishes First National Risk Assessment Report to Mitigate Financial Crime Risks

In a significant move to combat financial crimes in the country, Somalia’s Financial Governmental Services (FGS) has released its first-ever National Risk Assessment (NRA) report for 2022. The report aims to help Somalia understand and mitigate money laundering and terrorist financing (ML/TF) risks, as outlined by the Financial Action Task Force (FATF).

What is the Report Designed For?

• To enable reporting entities in Somalia to adopt a risk-based approach (RBA) to mitigate ML/TF risks
• To develop national anti-money laundering and combating the financing of terrorism (AML/CFT) strategic guidelines and action plans

Significance of the Report

The publication of the NRA report is seen as a significant step forward for Somalia’s efforts to combat financial crimes, particularly ahead of its upcoming mutual evaluation with the MENA-FATF in 2024. The report is also part of the country’s debt relief package under the Heavily Indebted Poor Countries (HIPC) initiative.

Key Highlights

• The report is now available online for further review and analysis
• Experts hail it as a critical tool in Somalia’s fight against financial crime

Conclusion

The publication of the NRA report marks an important milestone in Somalia’s efforts to combat financial crimes. With this report, reporting entities can adopt a risk-based approach to mitigate ML/TF risks, ultimately enabling the country to develop national anti-money laundering and combating the financing of terrorism guidelines and action plans.