Togo Falls Short on Financial Sanctions Regulations, FATF Report Shows

Lomé, Togo - A recent report by the Financial Action Task Force (FATF) has highlighted several areas where Togo falls short in implementing its financial sanctions regulations.

Compliance Assessment

The report assesses the country’s compliance with international standards aimed at preventing money laundering and combating terrorist financing. The findings show that Togo is “partially compliant” or “non-compliant” in many areas.

Strengths

• Togo was found to be largely compliant with recommendations on:
  • Assessing risk and applying a risk-based approach
  • National cooperation and coordination
  • Targeted financial sanctions related to terrorism and terrorist financing
• The report praised Togo for its good practices in these areas.

Weaknesses

• Togo was found to be partially compliant or non-compliant with recommendations on:
  • Effective regulation and supervision of non-profit organizations and legal persons
  • Measures to prevent the misuse of new technologies
  • Confiscation and provisional measures
  • Terrorist financing offence
  • Money or value transfer services
• The report noted that:
  • The country’s financial intelligence unit is not functioning effectively
  • Law enforcement and investigative authorities lack sufficient powers to combat financial crimes

Recommendations for Improvement

The FATF report highlights several areas where Togo needs to improve its regulations and implementation, including:

• Strengthening regulation and supervision of:
  • Financial institutions
  • DNFBPs (designated non-financial businesses and professions)
  • New technologies
• Enhancing customer due diligence requirements
• Improving record-keeping systems
• Increasing transparency and beneficial ownership disclosure for legal persons and arrangements

Implications and Next Steps

The report’s findings have significant implications for Togo’s financial sector, as well as its international reputation. The FATF has called on the government to take immediate action to address these shortcomings and bring its regulations in line with international standards.

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