Democratic Republic of the Congo (DRC), Mozambique and Tanzania have been put on the Financial Action Task Force (FATF) ‘grey list’ of jurisdictions under increased monitoring it was announced at the end of the global financial watchdog’s plenary meetings in Paris last week.
All three African states must now actively work with the task force to address strategic deficiencies in their regimes to counter money laundering (ML), terrorist financing (TF), and proliferation financing (PF).
Democratic Republic of the Congo
The DRC must work to implement its FATF action plan by finalising its national risk assessment on ML and TF and adopting a national anti-money laundering and counter financing of terrorism (AML/CFT) strategy.
The central African country must also establish supervisory authorities for all designated non-financial businesses and professions and develop and implement a risk-based supervision plan.
The DRC is also required to adequately resource its financial intelligence unit, and build its capacity to conduct operational and strategic analysis; strengthen the capabilities of authorities involved in the investigation and prosecution of ML and TF, and demonstrate effective implementation of TF- and PF-related targeted financial sanctions.
The FATF action plan for Mozambique stipulates nine areas for improvement, including better cooperation and coordination amongst authorities to implement risk-based AML/CFT strategies and policies and the provision of adequate financial and human resources to supervisors.
Mozambique must also provide training for law enforcement agencies and demonstrate that they can effectively investigate ML/TF cases using financial intelligence. The southern African country’s action plan also calls for capacity-building in the country’s financial intelligence unit.
Other areas of improvement required by the plan include the need for the collection of adequate, accurate and up-to-date beneficial ownership information and an increasing awareness of TF- and PF-related targeted financial sanctions.
Amongst other areas, Tanzania is expected to work to implement its FATF action plan by improving risk-based supervision of financial institutions; demonstrating authorities’ capability to effectively conduct a range of investigations and prosecutions of ML, and demonstrating that law enforcement agencies identify, trace, seize, and confiscate proceeds and instrumentalities of crime.
The East African country must also conduct a comprehensive TF risk assessment, begin implementing a comprehensive national CFT strategy, and increase awareness of the private sector and competent authorities on TF- and PF-related targeted financial sanctions.
Further details on FATF’s decisions regarding DRC, Mozambique and Tanzania can be found, via links, at Outcomes FATF Plenary, 20-21 October 2022, which is available here.
Categories: Trade Based Financial crimes News