Senegal: Global Watchdog Takes Senegal Off Dirty Money List

Président de la République du Sénégal/Page Facebook
President Bassirou Diomaye Faye (file photo).
27 October 2024
Daba Finance (Abidjan)

 

  • Senegal removed from FATF's gray list due to strengthened financial regulations and targeted sanctions.
  • Recent IMF audit revealed underreported debt and fiscal deficit figures, impacting investor confidence.
  • Gray-listing typically reduces capital inflows, adding financial strain to Senegal amidst concerns over IMF program.

Senegal has been removed from the Financial Action Task Force's (FATF) gray list, which targets countries with heightened money laundering and terrorist-financing risks.

The decision follows Senegal's strengthened financial regulations and targeted sanctions, including new anti-money-laundering and anti-terrorism financing laws adopted in February.

The move comes as Senegal works to rebuild investor confidence after a recent IMF audit revealed underreported debt and fiscal deficit figures, triggering a selloff of its Eurobonds and an S&P Global credit downgrade. These findings raised questions over Senegal's $1.5 billion IMF program, adding to the financial strain that gray-listing typically imposes by reducing capital inflows.

Key Takeaways

With Senegal now off the FATF gray list, the country could regain investor interest despite recent setbacks. Senegal's increased regulatory rigor aims to restore fiscal transparency, a critical step to regain trust among foreign investors and stabilize its Eurobond market, helping secure long-term capital inflows essential for growth.

Read the original article on Daba Finance.

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