West African Economic and Monetary Union: Financial Sector Assessment Program-Technical Note on Anti-Money Laundering and Combating the Financing Terrorism (AML-CFT) Supervision of the Banking Sector

IMF Staff Country Reports, June 21, 2023

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West African Economic and Monetary Union: Financial Sector Assessment Program-Technical Note on Anti-Money Laundering and Combating the Financing Terrorism (AML-CFT) Supervision of the Banking Sector

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Bibliographic details

• Published: June 21, 2023
• Series: IMF Staff Country Reports
• DOI: https://doi.org/10.5089/9798400244957.002

Overview

• Focus: AML-CFT supervision of the banking sector in West African Economic and Monetary Union (WAEMU).
• Rationale for focus:
  • Based on the remit of the regional authorities.
  • Importance to the regional economy of a well-integrated and well-functioning banking sector.
  • Results of money laundering and terrorist financing national risk assessments conducted to date in West Africa, which identify banks as relatively high-risk financial institutions.
• Basis of observations and recommendations: discussions with regional and national authorities and the private sector, and a review of relevant templates.
• Publication date: June 21, 2023.
• Pages: 38.

Key findings

• AML/CFT off-site supervision:
  • Feeds into the risk-rating process but is not itself risk-based.
  • Communication with supervised entities is insufficient.
• On-site supervision:
  • The on-site inspection methodology requires sharpening.
• Risk-based approach:
  • The risk-based approach should be fully implemented across supervision activities.
• Feedback mechanisms:
  • Feedback to banks as part of off-site supervision should be enhanced.

Policy recommendations and supervisory priorities

• Enhance feedback to banks resulting from off-site supervision to improve supervisory communication and remedial action.
• Sharpen the on-site inspection methodology to better identify and mitigate AML/CFT risks.
• Fully implement a risk-based approach across off-site and on-site AML/CFT supervision to align supervisory resources with identified risks.

Scope, subject matter, and keywords

• Subject areas covered: Anti-money laundering and combating the financing of terrorism (AML/CFT); Bank supervision; Commercial banks; Crime; Financial institutions; Financial regulation and supervision; Financial Sector Assessment Program; Financial sector policy and analysis; Internal controls; International organization; Monetary policy; Revenue administration.
• Keywords include: Anti-money laundering and combating the financing of terrorism (AML/CFT); Bank supervision; Commercial banks; Financial Sector Assessment Program; FSAP's finding; Global; IMF finance competitiveness; IMF-World Bank Financial Sector Assessment Program; Internal controls; staff team of the International Monetary Fund; TF risk; West Africa; World Bank staff.

Content in this bundle

• Executive Summary — Waemu Aml/Cft Technical Note
  • Executive Summary — Waemu Aml/Cft Technical Note (Markdown version)
  • Executive Summary — Waemu Aml/Cft Technical Note (PDF)