Financial Crime World

TOGO Makes Strides in Anti-Money Laundering Compliance, But Room for Improvement Remains

Financial Action Task Force (FATF) Assessment Highlights Progress and Areas for Improvement

The Financial Action Task Force (FATF) has recently assessed Togo’s compliance with global anti-money laundering (AML) and combating the financing of terrorism (CFT) standards. The assessment highlights that while Togo has made significant progress in implementing technical requirements, there are still areas where improvement is needed.

Technical Compliance Rating

Togo received a rating of “Partially Compliant” on the 40-point rating scale, which assesses countries’ implementation of AML/CFT measures based on 11 key criteria. This indicates that Togo has taken steps to strengthen its AML/CFT regime, including:

  • Improving national risk assessments
  • Enhancing customer due diligence requirements for financial institutions

Effectiveness in Combating Money Laundering and Terrorist Financing

However, the country’s effectiveness in combating money laundering and terrorist financing remains a concern. The FATF noted that Togo’s measures are only “Moderately Effective” at achieving desired outcomes, with areas such as:

  • Asset freezing and confiscation
  • International cooperation

requiring further improvement.

Recommendations for Improvement

The FATF assessment emphasizes the need for sustained efforts to strengthen Togo’s AML/CFT framework. Financial institutions in Togo are advised to continue enhancing their compliance programs to prevent money laundering and terrorist financing activities. Key areas for improvement include:

  • Improving customer due diligence
  • Reporting suspicious transactions
  • Enhancing cooperation with international partners

By prioritizing AML/CFT compliance, Togo can improve its rating and demonstrate its commitment to combating financial crimes.

Conclusion

Togo’s progress in implementing AML/CFT measures is encouraging, but there is still much work to be done. The country’s financial institutions must continue to enhance their compliance programs to prevent money laundering and terrorist financing activities. By doing so, Togo can improve its rating and demonstrate its commitment to combating financial crimes.