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| GIABA DG launches 2011 Report in Dakar, Senegal |
Low technical
know-how and inadequate financial resources to implement the global standards
set by the Financial Action Task Force (FATF) are
some of the daunting challenges staring in the faces of West African Member
States of GIABA.
The FATF, an
inter-governmental body established in 1989 by the Ministers of its Member
jurisdictions, is regarded a global pacesetter in the fight against money
laundering and terrorism financing. It has established a comprehensive,
integrated and impact-oriented approach in the fight against money laundering
and terrorist financing.
However, the Inter-Governmental Action Group against Money Laundering in West Africa
(GIABA) is concerned that member countries could not go by the
uniform and consistent application of the global Anti-Money Laundering and
Counter-Financing of Terrorism (AML/CFT) Standards set by the FATF.
GIABA’s Director
General Dr Abdullahi Shehu says the rationale for this includes competing
priorities for scarce government resources, severe lack of resources and
skilled workforce to implement government programmes - including AML/CFT
programmes, and an overall weakness in legal institutions. This makes it
difficult for member countries to fully implement the FAFT standards, he said.
He said: “Our member
countries have been confronted with operating environment filled with social
change and uncertainties, and a string of practical issues in the fight against
ML/TF, such as good governance, corruption, incomprehensive and competing
legislative system, and lagged financial system.”
In fact, GIABA’s
Mutual Evaluation Reports (MERs), which assesses member countries conformity
with international standards for preventing money laundering and financing of
terrorism, provide for remedial actions and timelines to address identified
deficiencies.
The MERs reveal
that some of the FATF Standards are not implemented at all, admits Dr. Shehu,
but noted most countries are making significant progress to address the
identified deficiencies in their AML/CFT regimes.
Nonetheless, he
admitted the low level of compliance to the FATF Recommendation by GIABA member
countries. It is reminiscent of the environmental peculiarities of the West
African region, he said.
The FATF Recommendations clearly encapsulate the various
preventive measures that countries and stakeholder institutions are required to
take. The recommendations set out principles of actions by governments and
their competent authorities, as well as permit flexibility in implementation
with due regard to countries’ unique circumstances and constitutional
framework.
The FATF
Recommendations also broadly covered four areas, that is, criminal justice
system, financial system and its regulation, law enforcement and other
competent authorities, and international cooperation.
Catch-22
situation
Considerable
efforts to deal with money laundering and terrorism financing (ML/TF) in West
Africa at the national, regional and the international levels, have been
inhibited by several challenges – a catch-22 situation.
These challenges
include legal and constitutional challenges; lack of proper autonomy of some
regulatory and enforcement institutions, along with budgetary constraint;
equipment and logistics problem; and absence of robust national ML/TF
strategies, GIABA said in its latest report.
It said where
national AM/TF strategies exist, they are yet to be approved or implemented.
The sub region is also challenged by non functional inter-ministerial
committees to coordinate efforts at the national level and ensure synergy; and
weak strategic and operational cooperation at the regional and international
levels.
GIABA said the
major predicate crimes that generate funds for laundering in the West Africa as
reported by the authorities across the sub-region are corruption, fraud
(general or advance fee or tax or bank),
abuse of trust using forged documents, drug trafficking; smuggling of precious
metals or stones; capital market-related crimes and cyber crimes.
Written by Modou S. Joof
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