Combating Financial Terrorism Requires Strengthened Measures, Says Report
Mali’s anti-money laundering and combating the financing of terrorism (AML-CFT) regime requires significant strengthening to effectively combat financial terrorism, according to a recent report by the World Bank and the Inter-Ministerial Group for Action Against Money Laundering in West Africa (GIABA).
Assessment Findings
The report, based on a country visit from February 4 to 14, 2008, found that while Mali has made some progress in implementing its AML-CFT measures, there are still several weaknesses and vulnerabilities that need to be addressed. The assessment team met with government agencies and private sector representatives to gather information and assess the effectiveness of Mali’s anti-money laundering and counter-terrorism measures.
Weaknesses and Vulnerabilities
According to the report, Mali needs to improve its laws, regulations, and institutional framework for combating financial terrorism. Specifically, the country needs to:
- Enhance customer due diligence procedures
- Strengthen reporting requirements
- Improve international cooperation
The report also notes that Mali has a high risk of being used as a conduit for money laundering and terrorist financing due to its weak banking supervision and lack of effective border controls.
Recommendations
To address these weaknesses, the assessment team recommends that Mali:
- Establish a centralized AML-CFT authority
- Strengthen its financial intelligence unit
- Improve cooperation with other countries in the region
Conclusion
The report concludes that while Mali has made some progress in implementing its AML-CFT measures, there is still much work to be done to effectively combat financial terrorism. The country needs to take concrete steps to address its weaknesses and vulnerabilities if it is to meet its international obligations and prevent its financial system from being used for illicit purposes.
Report Details
The report was published in 2013 by GIABA and the World Bank.