Financial Crime World

Niger Steps Up Efforts to Combat Terrorism Financing, But Remains Non-Compliant in Key Areas

In its latest assessment, the global financial watchdog, Financial Action Task Force (FATF), has praised Niger for making significant progress in implementing anti-terrorism financing regulations. However, the country still needs to address several key areas to become fully compliant with international standards.

FATF Assessment Highlights

The FATF rated Niger as:

  • Partially Compliant with 14 of its 40 recommendations aimed at preventing the misuse of the financial system for terrorism financing.
  • Largely Compliant in seven areas, indicating that the country has made significant progress in implementing anti-terrorism measures.
  • Non-Compliant in nine areas, highlighting the need for further improvement.

Areas of Progress

Niger’s progress has been marked by improvements in:

  • Assessing Risk and Applying a Risk-Based Approach: The country has strengthened its ability to identify and mitigate risks related to terrorism financing.
  • National Cooperation and Coordination: Niger has improved cooperation between its financial intelligence unit, law enforcement agencies, and regulatory bodies.
  • Targeted Financial Sanctions Related to Terrorism: The country has implemented measures to prevent the misuse of new technologies for terrorist financing.

Challenges Remaining

Niger still faces challenges in:

  • Addressing Money Laundering Offences: The country needs to strengthen its laws and regulations to prevent money laundering.
  • Confiscation and Provisional Measures: Niger needs to improve its ability to freeze and confiscate assets related to terrorism financing.
  • Transparency and Beneficial Ownership of Legal Persons and Arrangements: The country must ensure that the beneficial ownership of legal persons and arrangements is transparent.

Financial Intelligence Unit

The FATF report highlighted several areas where Niger’s financial intelligence unit needs improvement, including:

  • Providing Guidance and Feedback to Financial Institutions: The unit must provide clear guidance and feedback to financial institutions to help them comply with anti-terrorism regulations.
  • Enhancing Its Capabilities: The unit should strengthen its capabilities to analyze data and provide actionable information to law enforcement agencies.

Government Commitment

Despite the challenges, Niger’s government has committed to implementing the necessary reforms to meet the FATF standards. The country has already taken steps to strengthen its financial regulatory framework and improve cooperation with international partners.

Pathway to Re-Entry into Global Anti-Terrorism Regime

The FATF assessment is seen as a key step towards Niger’s re-entry into the global anti-terrorism financing regime, which was suspended in 2018 due to concerns over the country’s lack of progress in combating terrorist financing.