Monkagedi Gaotlhobogwe
27 August 2007
African governments have been urged to implement stringent laws to combat money laundering and terrorism on the continent.
Officially opening a council of ministers meeting of the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG) in Gaborone on Friday, Financial Action Task Force (FATF) president, James Sassoon said: "Consistent application of recognised international standards is essential if we are to ensure that criminals and terrorists do not have access to the financial system and to the resources they need to survive and grow".
ESAAMLG met in Gaborone to evaluate anti-money laundering country reports, a process that helps the regional body to evaluate the extent to which member states comply with the FATF standards, and where possible assist those members that are failing to meet the international standards in the fight against money laundering and terrorism.
Sassoon, also former senior official at HM Treasury, the British finance ministry, responsible for UK financial services and industry said " the links between abuse of the financial system by criminals and its potential impact on economies are well understood. The very recent events in London, Glasgow and elsewhere emphasise the global nature of the threat we face from terrorism," he said.
"We need to only look back to the Kenya and Kikambala bombings of 2002 to see that Africa is exposed to this threat. In response to crime, corruption and terrorism, we must remain committed to ensure adequate anti-money laundering and combating the financing of terrorism (AML/CFT) measures are in place as a matter of priority".
Sassoon warned finance ministers from 14 East and Southern African countries that "terrorists and criminals are well resourced. They present a continuous and evolving challenge to our societies. They are also quick to adapt the techniques through which they exploit our financial systems to avoid detection and facilitate their devious activities," he said.
The FATF president also warned that "in an increasingly interconnected world, it is no longer enough to focus efforts on closing gaps that may be exploited in the system of one country. Criminals and terrorists will exploit gaps between, as well as within national, financial and other systems. What we need is a global solution to a global challenge.
"For this reason" consistent application of recognised international standards is essential if we are to ensure that criminals and terrorists do not have access to the financial system and to the resources they need to survive and grow," Sassoon warned.
Sassoon however admitted that the FATF standards are very high and that no first world country, even the UK, has been able to comply with all the 49+9 recommendations. He said member countries whose reports appear lacking in meeting the stringent FATF requirements should not feel belittled, adding that it is common for countries -even the first world countries- to complain about the high standards.
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