The Financial Action Task Force (FATF) has added Algeria, Angola, and Côte d’Ivoire to its grey list, identifying significant deficiencies in their financial regulatory frameworks. Senegal, however, has been removed from the list following marked improvements in its anti-money laundering (AML) and counter-terrorism financing (CTF) regimes.
The FATF, an intergovernmental watchdog, establishes global standards to combat money laundering, terrorism financing, and the financing of weapons proliferation. Countries on the grey list work with the FATF to address shortcomings, though being listed can damage a nation’s financial reputation and restrict international financial activities.
Each country has been given a tailored action plan:
- Algeria must improve risk-based supervision, enhance beneficial ownership frameworks, and strengthen mechanisms for monitoring suspicious transactions and imposing sanctions for terrorism financing.
- Angola is tasked with increasing its understanding of AML and CTF risks, improving oversight of non-financial entities, and boosting investigations into money laundering and terrorism financing.
- Côte d’Ivoire is required to strengthen international cooperation, enhance financial intelligence use, and bolster prosecutions and targeted sanctions frameworks.
The FATF emphasised that these nations must address their deficiencies promptly to align with international standards.
Senegal, added to the grey list in 2021, has been removed after adopting a robust legal framework to counter illicit financing. The FATF commended Senegal for increasing financial intelligence analysis and enhancing its AML and CTF frameworks.
Despite its removal from the grey list, Senegal will continue collaborating with regional partners like the Intergovernmental Action Group against Money Laundering in West Africa (GIABA) to sustain progress.
US-based law firm Hogan Lovells advised financial institutions to exercise due diligence when engaging with entities in grey-listed jurisdictions. While enhanced scrutiny isn’t mandatory for every transaction, institutions must assess risks based on the jurisdiction’s AML controls.
The FATF’s decisions underscore the need for continuous vigilance in global financial systems and highlight the importance of proactive reforms to prevent financial crimes.
Source:
Africabriefing
