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Guinea Bissau Mutual Evaluation Report: Strengthening Anti-Money Laundering and Combating the Financing of Terrorism Measures

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A comprehensive review of Guinea Bissau’s anti-money laundering (AML) and combating the financing of terrorism (CFT) measures has been conducted by international experts. The report highlights key findings, identifies deficiencies, and provides recommendations to strengthen the country’s AML/CFT system.

Key Findings

Lack of Understanding of Money Laundering/Terrorist Financing Risks

  • Guinea Bissau lacks a thorough understanding of its money laundering/terrorist financing (ML/TF) risks.
  • A national risk assessment is still pending finalization.

Inadequate National AML/CFT Policy and Strategy

  • The country has not developed a national AML/CFT policy to address identified risks, despite adopting a seven-year National Integrated Plan (2021-2027).
  • Weaknesses in the AML/CFT regime include:
    • Large informal economy
    • Under-resourced authorities
    • Porous borders
    • Inadequate supervision of non-bank financial institutions (NBFIs) and designated non-financial businesses and professions (DNFBPs)

Limited Effectiveness of Sanctions and Financial Intelligence

  • Lack of effective sanctions against reporting entities that violate AML/CFT requirements.
  • Limited use of financial intelligence to support investigative activities.

Administrative Challenges

  • The Inter-Ministerial Committee (IMC), responsible for national coordination, is not operational due to administrative and resource constraints.

Recommendations

Strengthening the AML/CFT Regime

  1. Finalize the national risk assessment to better understand ML/TF risks and develop a comprehensive AML/CFT policy.
  2. Strengthen supervision of NBFIs and DNFBPs, including regular on-site inspections and effective sanctions for non-compliance.
  3. Improve coordination among supervisory authorities and operational cooperation with law enforcement agencies (LEAs).
  4. Enhance the use of financial intelligence to support investigative activities, including access to information held by key competent authorities.
  5. Develop a comprehensive national strategy to address the informal economy and cash-based transactions.

Conclusion

Guinea Bissau’s AML/CFT system faces significant challenges, including a lack of understanding of ML/TF risks, inadequate supervision, and limited use of financial intelligence. To strengthen its AML/CFT regime, the country must prioritize policy development, supervision, coordination, and the effective use of financial intelligence.

Summary

This report provides an overview of Guinea Bissau’s AML/CFT measures as of January 18th to February 5th, 2021. It analyzes compliance with FATF 40 Recommendations, assesses the effectiveness of the country’s AML/CFT system, and offers recommendations for improvement.

Glossary

A comprehensive glossary of acronyms is included at the end of this report.