Liberia Tightens Grips Against Money Laundering, Terrorism Financing

17 June 2024
Liberian Observer (Monrovia)
By David A. Yates

Liberia has taken a significant step in combating money laundering and terrorism financing by obtaining a full membership of the Egmont Group, a Charter of Financial Intelligence Units. This move signifies a commitment to international cooperation and information sharing in the fight against financial crimes. This effort will improve Liberia's international cooperation and lawfully protect the global financial system from abuse and corruption.

Mohammed A. Nasser, Officer-In-Charge of the Financial Intelligence Agency of Liberia (FIA) signed on behalf of the country -- making Liberia a full member of the Egmont Group -- which is designed to improve communication, information sharing, and training coordination amongst its FIU members.

The signing of the Egmont Group Charter by Liberia marks a milestone in the country's efforts to protect its financial system from abuse and corruption. Egmont, which comprises 174 Financial Intelligence Units (FIUs) including Liberia, aims to provide a forum for member FIUs to improve support to their respective governments in the fight against money laundering, terrorist financing, and other financial crimes.

With mentorship guaranteed from Nigeria and Congo Brazzaville, Liberia has gained access to a global network of financial intelligence units dedicated to combating money laundering, terrorist financing, and other financial crimes.

"Nigeria and Congo Brazzaville provided mentorship for Liberia to acquire membership with the Egmont Group," Nasser told newsmen at a recent briefing in Monrovia. "Being a member of the group gives Liberia all rights and privileges on the global platform, which is a medium to improve international cooperation, communication, information sharing, and training coordination in the fight against money laundering, terrorist financing, and other financial crimes."

By aligning with the Egmont Group's standards and practices, Liberia stands to benefit from enhanced information exchange and cooperation with other member states.

Accordingly, Nasser elaborated that FIA-Liberia's membership with Egmont Group shall provide a protective international platform for information exchange between FIA-Liberia and other Egmont group member states to enhance bilateral, multilateral, and flexible global practices, by global Anti-Money Laundering, Countering the Financing of Terrorism, and Proliferation Financing (AML/CFT/PF) Standards set by the Financial Action Task Force (FATF).

He stressed that this global platform provides Liberia with a wider and more secure means to protect the country's financial system from abuse.

Said Nasser, "The global network will deeply improve the exchange of knowledge and information to combat money laundering, terrorist financing, and associated predicate offenses for the protection of Liberia and the global financial system."

In another development, Liberia has successfully submitted its first follow-up report to its Second Round of Mutual Evaluation Report (MER), which was conducted by Assessors of the Inter-Governmental Action Group against Money Laundering in West Africa (GIABA) from September 5-16, 2023, in Monrovia, Liberia.

The Second Round of Mutual Evaluation Report, which was adopted by the GIABA 39th Technical Commission and Plenary Meetings in May 2023, placed Liberia on an Enhanced Follow-up process, requiring Liberia to report back to Plenary annually.

The Mutual Evaluation Report (MER) process primarily focused on two interrelated components of the FATF 40 Recommendations: i) Technical Compliance and ii) Effectiveness. It also analyzes the level of compliance with the FATF 40 Recommendations and the level of effectiveness of Liberia's AML/CFT system, providing recommendations on how the system could be strengthened.

Liberia's first follow-up report highlights its key actions to address the priority actions, the recommended actions, and deficiencies identified in its MER.

Key actions highlighted in Liberia's first follow-up report include the enactment of the Control Drug and Substance Act of 2023. This act seeks to regulate, restrict, control, limit, or eradicate the illegal importation and exportation, as well as the use, abuse, and proliferation of narcotic substances within the bailiwick of Liberia.

This new law grades drug/substance trafficking as a first-degree felony, punishable by a prison term of 10 years and not exceeding 20 years consistent with provisions of the Penal Code Section 5 0.5 and 50.6 and it is a Non-Bailable Offense.

Liberia approved and published the Beneficial Ownership (BO) Regulations and launched the Beneficial Ownership Registry for legal persons and arrangements in August 2023.

The approval of Liberia's membership request to the Egmont Group of Financial Intelligence Units (FIUs) by the Membership Support Compliance Working Group (MSCWG) in Malta, in January 2024 for recommendation to the Heads of FIU (HoFIU), from June 3-7, 2024, in Paris, France.

Meanwhile, Liberia's delegation to the GIABA 41st Technical Commission and Plenary meeting was headed by Mohammed A. Nasser, Officer-In-Charge (OIC) of the Financial Intelligence Agency of Liberia (FIA) and GIABA National Correspondent. Also on the delegation were: Cllr. Oswald Tweh, Minister of Justice and Chairperson of the National AML/CFT Inter-Ministerial Steering Committee (IMC); Atty. Samuel Kofi Woods, National Security Adviser to the President of the Republic of Liberia; and Cllr. Alexandra K. Zoe, Executive Chairperson of the Liberia Anti-Corruption Commission (LACC) and Member of the IMC.

Other members included: Abraham Kromah - Director General of the Liberia National Drug Enforcement Agency (LDEA) and Member of the IMC (prior to his suspension); Amos Y. Boakai-Deputy Director General, FIA; Fonsia M. Donzo, Director of Regulation and Supervision at the Central Bank of Liberia (CBL); Bobby Quiwu Harris, Compliance Manager, FIA; and Murrella R. Bedell-Fahnbulleh, Assistant Director, AML/CFT Unit, CBL.

Meanwhile, Liberia's membership with the Egmont Group and its ongoing efforts to strengthen its AML/CFT system reflect a proactive approach to safeguarding its financial integrity and contributing to global efforts in combating financial crimes.

Read the original article on Liberian Observer.

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