Tanzania yawekwa kwenye uangalizi Maalumu hadi itekeleze ahadi ya Kupambana na Utakatishaji Fedha na Ufadhili wa Ugaidi

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Jul 24, 2018
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Hatua hiyo imefanywa na Kitengo Maalum cha Kimataifa cha Udhibiti wa Fedha Haramu (FATF) kwa kuziweka Nchi 4 za Afrika Mashariki (Tanzania, Uganda, Sudan Kusini na DR-Congo) ambazo zimeahidi kuongeza hatua kali katika kupambana na Utakatishaji Fedha na Ufadhili wa Ugaidi na Kuenea kwa Silaha.

FATF imesema, hadi kufikia Oktoba 2023 jumla ya Nchi 129 zilifanyiwa ukaguzi wa namna zinavyodhibiti Utakatishaji Fedha pamoja na Vitendo vya Ufadhili wa Ugaidi ambapo Nchi 76 zilionesha hatua nzuri na kuondolewa katika Nchi zilizo katika Orodha ya Kijivu na Nyeusi.

Kiujumla Nchi 23 zimewekwa kwenye uangalizi maalumu na wa karibu ambapo kati yake 11 ni za Afrika na zilizosalia ni za Mabara mengine. FATF inapoiweka Mamlaka au Nchi katika Uangalizi Maalumu inamaanisha Nchi husika imeahidi kuchukua hatua za haraka kurekebisha mapungufu ndani ya muda uliokubaliwa.

Utakatishaji Fedha umeripotikuwa kuharibu Taasisi za Sekta ya Fedha pamoja na Ukuaji wa Uchumi kwa kuendeleza Uhalifu na Rushwa, hali inayokimbiza Wawekezaji wa Kigeni.

===========

Global financial crime watchdog, Financial Action Task Force (FATF) has retained four East African countries on the ‘grey’ list in its latest review of countries’ commitment to fighting money laundering, terrorist financing, and arms proliferation financing. This may dampen hopes of promoting the region as an attractive investment destination.

FATF is an inter-governmental organisation set up to combat money laundering and terrorism financing by setting global standards and checking if countries respect them.

The watchdog-maintained Uganda, Tanzania, South Sudan, and the DR Congo on its list of jurisdictions under ‘increased monitoring’ noting glaring weaknesses in their measures to combat money laundering, terrorist financing, and proliferation financing.

“The FATF calls on these jurisdictions to complete their action plans expeditiously and within the agreed timeframes,” FATF stated on its website.

“The FATF welcomes their commitment and will closely monitor their progress. The FATF does not call for the application of enhanced due diligence measures to be applied to these jurisdictions” it added.

Money laundering damages financial sector institutions critical for economic growth by promoting crime and corruption, thereby slowing growth and reducing efficiency in various sectors.

While foreign investors are crucial for the growth and expansion of companies, it is not easy to attract this group of financiers in money laundering countries leading to slowing fore inflows.

The FATF’s latest review conducted on October 27 reviewed 129 countries and jurisdictions of which 102 of them were identified as having weak measures to combat money laundering and terrorist financing.

According to the statement, several jurisdictions have not yet been reviewed by the FATF but will be in due course.

The watchdog said the DRC has taken steps to strengthen effectiveness of its AML/CFT regime since October 2022 including finalising the national risk assessment and providing more resources to the Financial Intelligence Unit (FIU).

But more still needs to be done to address its strategic deficiencies including developing and implementing a risk-based supervision plan and building the capacity of the FIU.

In South Sudan, FATF noted Juba’s limited progress across its action plan with all deadlines now expired and work remaining. The country has made progress in strengthening effectiveness of its AML/CFT regime since June 2021 but glaring deficiencies remain including operationalising a fully functioning and independent FIU.

In Tanzania, the government made a high-level political commitment to work with the FATF and ESAAMLG to strengthen the effectiveness of its AML/CFT regime in October 2022.

In Uganda, the government made a high-level political commitment to strengthening the effectiveness of its AML/CFT regime in 2020. Despite these, the FATF notes that there are still many weaknesses in the country’s measures to combat money laundering.

Since then the country has taken steps towards improving its AML/CFT regime, but deficiencies remain including improving risk-based supervision of financial institutions and Designated Non-Financial Businesses and Professions (DNFBPs) by conducting inspections on a risk-sensitive basis and applying effective, proportionate, and dissuasive sanctions for non-compliance.

At its October 2023 plenary, the FATF made the initial determination that Uganda has substantially completed its action plan and warrants an on-site assessment to verify that the implementation of AML/CFT reforms has begun and is being sustained and that the necessary political commitment remains in place to sustain implementation in the future.

“The FATF continues to monitor Uganda’s oversight of the non-profit organisation (NPO) sector to encourage the application of the risk-based approach to supervision of NPOs in line with the FATF Standards and mitigate unintended consequences,” FATF said.

In August, the International Monetary Fund (IMF) told the Bank of Uganda to strengthen the fight against money laundering if the country was to get off the Financial Action Task Force grey list.

In June, FATF noted that Uganda would remain on the grey list of countries that do not take full measures to combat money laundering and “terrorism” financing after the government failed to meet the May deadline, in which it had been expected to put in place measures to fight money laundering.

Jurisdictions under increased monitoring are actively working with the FATF to address strategic deficiencies in their regimes to counter money laundering, terrorist financing, and proliferation financing.

When the FATF places a jurisdiction under increased monitoring, it means the country has committed to resolve quickly the identified strategic deficiencies within agreed timeframes and is subject to increased monitoring.

In October, Kenya took over the leadership of the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG) in a bid to lead the region in the fight against money laundering from next year.

Kenya’s Treasury Cabinet Secretary Njuguna Ndung'u and the director-general of the Financial Reporting Centre, Saitoti ole Maika, assumed leadership of the ESAAMLG as Chair of the Council of Ministers and Chair of the ESAAMLG Task Force of Senior Officials.

The ESAAMLG is a Financial Action Task Force (FATF) established to combat money laundering, terrorist financing, and the proliferation of weapons of mass destruction.

It consists of a Council of Ministers (Council), a Task Force of Senior Officials, a Steering Committee, and a Secretariat.
 

View: https://m.youtube.com/watch?v=rDhcgsRIGSk
In the shadows of the interconnected world of international trade lies a pervasive threat that silently endangers the security of global markets. Financial crimes, with their detrimental effects on stability and integrity, cast a dark cloud over the world economy, threatening the trust upon which international trade relies. From money laundering to terrorist financing, illicit activities can have far-reaching consequences.

Amidst these challenges, organisations like the Financial Action Task Force (FATF) along with the policies of Anti-Money Laundering (AML) and Know Your Customer (KYC) have emerged as crucial lines of defence, protecting the global financial systems.

But what exactly is the role of FATF and AML/KYC in combating these crimes? How do they contribute to the reliability and transparency of international trade?

In partnership with the ICC UAE’s annual conference, TFG’s Editor, Deepesh Patel, had an insightful discussion with Mohammed Daoud, Director and Industry Practice Lead at Moody’s to understand the role of FATF and KYC/AML in the relentless fight against financial crimes.

The global guardian against financial crime: The FATF mission​

The Financial Action Task Force (FATF) is an intergovernmental organization established by the G7 summit in 1989. It serves as the global watchdog for money laundering and terrorist financing, promoting the implementation of AML/CFT procedures.

The FATF encourages jurisdictions worldwide to incorporate measures combating illicit financial activities into their legislative frameworks through a set of recommendations known as the “40 plus nine” recommendations. By advocating for updated laws, the FATF facilitates a country’s ability to freeze assets, close accounts, and conduct thorough investigations.

Moreover, every few years, the FATF conducts a mutual evaluation, which is a review process to assess if a country has effectively implemented new legislation, policies, and supervision against those crimes. Based on this evaluation, a country may pass, or be placed on a scrutiny or grey list in a bid to help the country improve its efforts in fighting money laundering and terrorist financing.

According to Daoud, the enforcement of FATF regulations has evolved over the years. Initially, the focus was primarily on tier-one banks and large financial institutions. However, Daoud clarified that this approach has gradually changed and expanded to encompass cross-border remittances due to their perceived high risk.

Establishing KYC guidelines and customer due diligence has been instrumental in mitigating these risks. Subsequently, the insurance sector and capital markets were also impacted by enforcement measures. Most recently, the non-financial sector has come under scrutiny, with countries facing more stringent evaluations.

The interdependence of banking and corporate sector compliance: Defying the cascading risks​

In today’s global economy, the banking and corporate sectors are intricately interconnected, forming a symbiotic relationship that significantly impacts financial stability and regulatory compliance. This close interdependence between these two sectors creates a delicate balance, where the failure to uphold compliance standards in one sector can trigger a cascading effect of risks throughout the entire financial system.

Compliance within the financial landscape is driven not only by local and international regulators but also by the inherent connectivity of the banking system. When banks engage in cross-border transactions with counterparties in other countries, they are bound to adhere to the regulations of those counterparties’ jurisdictions, particularly in emerging markets that heavily rely on third-party transactions and international currencies like the US dollar.

As Daoud explained, this principle of reciprocity, along with the expectation of shared values and guidelines among business partners, creates a complex compliance network.

While there was once a misconception that banks alone were solely responsible for transaction integrity, regulatory authorities have clarified that the corporate sector also holds liability to adhere to AML principles and KYC. Shifting the focus to the corporate sector recognises the potential misuse of shell companies for illicit activities, prompting the need for thorough due diligence and scrutiny.

banking sector compliance vs corporate sector compliance

Aggregators: Empowering effective compliance screening​

Compliance screening plays an indispensable role in safeguarding the integrity of transactions and mitigating risks associated with illicit activities. The utilisation of external sanctions data, not only influences the effectiveness of compliance programs but also determines their ease of implementation. As Daoud highlighted, “There is a lot of external sanctions data that has a significant impact on the easiness and effectiveness of compliance.”

With over 300 lists issued by international regulatory bodies, each with its own set of criteria, navigating the vast array of sanctions lists can be troublesome. This challenge is further compounded by the diverse formats employed by different regulatory bodies such as the OFAC 50% sanctions rule, which extends sanctions to corporate entities with more than 50% ownership by a sanctioned party.

To address the complexity of diverse sanctions lists, aggregators, such as Moody’s, act as intermediaries, curating, standardising, and simplifying the data. Furthermore, aggregator databases not only include sanctions information but also cover the three compliance screening levels: sanctions, politically exposed persons (PEPs), and enhanced due diligence (EDD).

In addition, Daoud emphasised that it is equally essential to consider the impact of compliance regulations on other key actors within the industry. This includes verifying the identity of import-export clients, examining vessels and carriers, and assessing the role of agents, customs, and transport companies.

The complexity of trading operations makes trade-based money laundering a considerable concern, particularly during periods of geopolitical tensions. Instances of shell companies being used to evade sanctions and circumvent scrutiny have been observed, calling for increased diligence and monitoring in the threat finance domain.

different sanction types aml cft requirements

Unleashing the power of technology for robust trade finance compliance​

Trade finance compliance has undergone a remarkable transformation with the aid of technology, revolutionising processes and elevating compliance standards.

Daoud presented the transformative impact of technology in trade finance, shedding light on the following key applications and the tangible benefits they bring to all stakeholders involved:

  • KYC and Due Diligence Solutions: Technology-driven solutions streamline customer onboarding and ongoing monitoring, by verifying identities, assessing risk profiles, and ensuring AML/CFT compliance.
  • Document Comparison and Reconciliation: Advanced technologies can swiftly scan and analyse complex trade documents, reducing errors and ensuring compliance with documentary credit requirements.
  • Tracking and Monitoring Systems: Technology empowers institutions to track threat finance over time, identifying patterns, profiling transactions, and uncovering suspicious activities related to dual-use goods or sanctions evasion.
With an abundance of technology-driven solutions, it is apparent that the integration of technology in trade finance heralds a new era of compliance, where streamlined processes and enhanced monitoring capabilities facilitate secure and transparent trade transactions.
Source : VIDEO | Illuminating international trade: The role of FATF and AML/KYC in combating financial crimes

N.B
Taarifa muhimu hii, Mh. Mwigulu Nchemba waziri wa fedha aifanyie kazi kuunda kikosi kazi kusaidia kutoa elimu kuwezesha raia kujielewa na pia kusafisha jina la nchi yetu.
 
Vizuri sana wamefanya.

ASANTE KWA BANDIKO MKUU.

KaziKweliKweli/JobTrueTrue
 
Tukiwaaambia uhaba wa fedha za kigeni unachingiwe na illegal transaction , mwigulu anadai kuwa tuingeze mauzo ya nje kiko wapi sasa

View: https://m.youtube.com/watch?v=rDhcgsRIGSk
In the shadows of the interconnected world of international trade lies a pervasive threat that silently endangers the security of global markets. Financial crimes, with their detrimental effects on stability and integrity, cast a dark cloud over the world economy, threatening the trust upon which international trade relies. From money laundering to terrorist financing, illicit activities can have far-reaching consequences.

Amidst these challenges, organisations like the Financial Action Task Force (FATF) along with the policies of Anti-Money Laundering (AML) and Know Your Customer (KYC) have emerged as crucial lines of defence, protecting the global financial systems.

But what exactly is the role of FATF and AML/KYC in combating these crimes? How do they contribute to the reliability and transparency of international trade?

In partnership with the ICC UAE’s annual conference, TFG’s Editor, Deepesh Patel, had an insightful discussion with Mohammed Daoud, Director and Industry Practice Lead at Moody’s to understand the role of FATF and KYC/AML in the relentless fight against financial crimes.

The global guardian against financial crime: The FATF mission​

The Financial Action Task Force (FATF) is an intergovernmental organization established by the G7 summit in 1989. It serves as the global watchdog for money laundering and terrorist financing, promoting the implementation of AML/CFT procedures.

The FATF encourages jurisdictions worldwide to incorporate measures combating illicit financial activities into their legislative frameworks through a set of recommendations known as the “40 plus nine” recommendations. By advocating for updated laws, the FATF facilitates a country’s ability to freeze assets, close accounts, and conduct thorough investigations.

Moreover, every few years, the FATF conducts a mutual evaluation, which is a review process to assess if a country has effectively implemented new legislation, policies, and supervision against those crimes. Based on this evaluation, a country may pass, or be placed on a scrutiny or grey list in a bid to help the country improve its efforts in fighting money laundering and terrorist financing.

According to Daoud, the enforcement of FATF regulations has evolved over the years. Initially, the focus was primarily on tier-one banks and large financial institutions. However, Daoud clarified that this approach has gradually changed and expanded to encompass cross-border remittances due to their perceived high risk.

Establishing KYC guidelines and customer due diligence has been instrumental in mitigating these risks. Subsequently, the insurance sector and capital markets were also impacted by enforcement measures. Most recently, the non-financial sector has come under scrutiny, with countries facing more stringent evaluations.

The interdependence of banking and corporate sector compliance: Defying the cascading risks​

In today’s global economy, the banking and corporate sectors are intricately interconnected, forming a symbiotic relationship that significantly impacts financial stability and regulatory compliance. This close interdependence between these two sectors creates a delicate balance, where the failure to uphold compliance standards in one sector can trigger a cascading effect of risks throughout the entire financial system.

Compliance within the financial landscape is driven not only by local and international regulators but also by the inherent connectivity of the banking system. When banks engage in cross-border transactions with counterparties in other countries, they are bound to adhere to the regulations of those counterparties’ jurisdictions, particularly in emerging markets that heavily rely on third-party transactions and international currencies like the US dollar.

As Daoud explained, this principle of reciprocity, along with the expectation of shared values and guidelines among business partners, creates a complex compliance network.

While there was once a misconception that banks alone were solely responsible for transaction integrity, regulatory authorities have clarified that the corporate sector also holds liability to adhere to AML principles and KYC. Shifting the focus to the corporate sector recognises the potential misuse of shell companies for illicit activities, prompting the need for thorough due diligence and scrutiny.

banking sector compliance vs corporate sector compliance

Aggregators: Empowering effective compliance screening​

Compliance screening plays an indispensable role in safeguarding the integrity of transactions and mitigating risks associated with illicit activities. The utilisation of external sanctions data, not only influences the effectiveness of compliance programs but also determines their ease of implementation. As Daoud highlighted, “There is a lot of external sanctions data that has a significant impact on the easiness and effectiveness of compliance.”

With over 300 lists issued by international regulatory bodies, each with its own set of criteria, navigating the vast array of sanctions lists can be troublesome. This challenge is further compounded by the diverse formats employed by different regulatory bodies such as the OFAC 50% sanctions rule, which extends sanctions to corporate entities with more than 50% ownership by a sanctioned party.

To address the complexity of diverse sanctions lists, aggregators, such as Moody’s, act as intermediaries, curating, standardising, and simplifying the data. Furthermore, aggregator databases not only include sanctions information but also cover the three compliance screening levels: sanctions, politically exposed persons (PEPs), and enhanced due diligence (EDD).

In addition, Daoud emphasised that it is equally essential to consider the impact of compliance regulations on other key actors within the industry. This includes verifying the identity of import-export clients, examining vessels and carriers, and assessing the role of agents, customs, and transport companies.

The complexity of trading operations makes trade-based money laundering a considerable concern, particularly during periods of geopolitical tensions. Instances of shell companies being used to evade sanctions and circumvent scrutiny have been observed, calling for increased diligence and monitoring in the threat finance domain.

different sanction types aml cft requirements

Unleashing the power of technology for robust trade finance compliance​

Trade finance compliance has undergone a remarkable transformation with the aid of technology, revolutionising processes and elevating compliance standards.

Daoud presented the transformative impact of technology in trade finance, shedding light on the following key applications and the tangible benefits they bring to all stakeholders involved:

  • KYC and Due Diligence Solutions: Technology-driven solutions streamline customer onboarding and ongoing monitoring, by verifying identities, assessing risk profiles, and ensuring AML/CFT compliance.
  • Document Comparison and Reconciliation: Advanced technologies can swiftly scan and analyse complex trade documents, reducing errors and ensuring compliance with documentary credit requirements.
  • Tracking and Monitoring Systems: Technology empowers institutions to track threat finance over time, identifying patterns, profiling transactions, and uncovering suspicious activities related to dual-use goods or sanctions evasion.
With an abundance of technology-driven solutions, it is apparent that the integration of technology in trade finance heralds a new era of compliance, where streamlined processes and enhanced monitoring capabilities facilitate secure and transparent trade transactions.
Source : VIDEO | Illuminating international trade: The role of FATF and AML/KYC in combating financial crimes

N.B
Taarifa muhimu hii, Mh. Mwigulu Nchemba waziri wa fedha aifanyie kazi kuunda kikosi kazi kusaidia kutoa elimu kuwezesha raia kujielewa na pia kusafisha jina la nchi yetu.
 

View: https://m.youtube.com/watch?v=rDhcgsRIGSk
In the shadows of the interconnected world of international trade lies a pervasive threat that silently endangers the security of global markets. Financial crimes, with their detrimental effects on stability and integrity, cast a dark cloud over the world economy, threatening the trust upon which international trade relies. From money laundering to terrorist financing, illicit activities can have far-reaching consequences.

Amidst these challenges, organisations like the Financial Action Task Force (FATF) along with the policies of Anti-Money Laundering (AML) and Know Your Customer (KYC) have emerged as crucial lines of defence, protecting the global financial systems.

But what exactly is the role of FATF and AML/KYC in combating these crimes? How do they contribute to the reliability and transparency of international trade?

In partnership with the ICC UAE’s annual conference, TFG’s Editor, Deepesh Patel, had an insightful discussion with Mohammed Daoud, Director and Industry Practice Lead at Moody’s to understand the role of FATF and KYC/AML in the relentless fight against financial crimes.

The global guardian against financial crime: The FATF mission​

The Financial Action Task Force (FATF) is an intergovernmental organization established by the G7 summit in 1989. It serves as the global watchdog for money laundering and terrorist financing, promoting the implementation of AML/CFT procedures.

The FATF encourages jurisdictions worldwide to incorporate measures combating illicit financial activities into their legislative frameworks through a set of recommendations known as the “40 plus nine” recommendations. By advocating for updated laws, the FATF facilitates a country’s ability to freeze assets, close accounts, and conduct thorough investigations.

Moreover, every few years, the FATF conducts a mutual evaluation, which is a review process to assess if a country has effectively implemented new legislation, policies, and supervision against those crimes. Based on this evaluation, a country may pass, or be placed on a scrutiny or grey list in a bid to help the country improve its efforts in fighting money laundering and terrorist financing.

According to Daoud, the enforcement of FATF regulations has evolved over the years. Initially, the focus was primarily on tier-one banks and large financial institutions. However, Daoud clarified that this approach has gradually changed and expanded to encompass cross-border remittances due to their perceived high risk.

Establishing KYC guidelines and customer due diligence has been instrumental in mitigating these risks. Subsequently, the insurance sector and capital markets were also impacted by enforcement measures. Most recently, the non-financial sector has come under scrutiny, with countries facing more stringent evaluations.

The interdependence of banking and corporate sector compliance: Defying the cascading risks​

In today’s global economy, the banking and corporate sectors are intricately interconnected, forming a symbiotic relationship that significantly impacts financial stability and regulatory compliance. This close interdependence between these two sectors creates a delicate balance, where the failure to uphold compliance standards in one sector can trigger a cascading effect of risks throughout the entire financial system.

Compliance within the financial landscape is driven not only by local and international regulators but also by the inherent connectivity of the banking system. When banks engage in cross-border transactions with counterparties in other countries, they are bound to adhere to the regulations of those counterparties’ jurisdictions, particularly in emerging markets that heavily rely on third-party transactions and international currencies like the US dollar.

As Daoud explained, this principle of reciprocity, along with the expectation of shared values and guidelines among business partners, creates a complex compliance network.

While there was once a misconception that banks alone were solely responsible for transaction integrity, regulatory authorities have clarified that the corporate sector also holds liability to adhere to AML principles and KYC. Shifting the focus to the corporate sector recognises the potential misuse of shell companies for illicit activities, prompting the need for thorough due diligence and scrutiny.

banking sector compliance vs corporate sector compliance

Aggregators: Empowering effective compliance screening​

Compliance screening plays an indispensable role in safeguarding the integrity of transactions and mitigating risks associated with illicit activities. The utilisation of external sanctions data, not only influences the effectiveness of compliance programs but also determines their ease of implementation. As Daoud highlighted, “There is a lot of external sanctions data that has a significant impact on the easiness and effectiveness of compliance.”

With over 300 lists issued by international regulatory bodies, each with its own set of criteria, navigating the vast array of sanctions lists can be troublesome. This challenge is further compounded by the diverse formats employed by different regulatory bodies such as the OFAC 50% sanctions rule, which extends sanctions to corporate entities with more than 50% ownership by a sanctioned party.

To address the complexity of diverse sanctions lists, aggregators, such as Moody’s, act as intermediaries, curating, standardising, and simplifying the data. Furthermore, aggregator databases not only include sanctions information but also cover the three compliance screening levels: sanctions, politically exposed persons (PEPs), and enhanced due diligence (EDD).

In addition, Daoud emphasised that it is equally essential to consider the impact of compliance regulations on other key actors within the industry. This includes verifying the identity of import-export clients, examining vessels and carriers, and assessing the role of agents, customs, and transport companies.

The complexity of trading operations makes trade-based money laundering a considerable concern, particularly during periods of geopolitical tensions. Instances of shell companies being used to evade sanctions and circumvent scrutiny have been observed, calling for increased diligence and monitoring in the threat finance domain.

different sanction types aml cft requirements

Unleashing the power of technology for robust trade finance compliance​

Trade finance compliance has undergone a remarkable transformation with the aid of technology, revolutionising processes and elevating compliance standards.

Daoud presented the transformative impact of technology in trade finance, shedding light on the following key applications and the tangible benefits they bring to all stakeholders involved:

  • KYC and Due Diligence Solutions: Technology-driven solutions streamline customer onboarding and ongoing monitoring, by verifying identities, assessing risk profiles, and ensuring AML/CFT compliance.
  • Document Comparison and Reconciliation: Advanced technologies can swiftly scan and analyse complex trade documents, reducing errors and ensuring compliance with documentary credit requirements.
  • Tracking and Monitoring Systems: Technology empowers institutions to track threat finance over time, identifying patterns, profiling transactions, and uncovering suspicious activities related to dual-use goods or sanctions evasion.
With an abundance of technology-driven solutions, it is apparent that the integration of technology in trade finance heralds a new era of compliance, where streamlined processes and enhanced monitoring capabilities facilitate secure and transparent trade transactions.
Source : VIDEO | Illuminating international trade: The role of FATF and AML/KYC in combating financial crimes

N.B
Taarifa muhimu hii, Mh. Mwigulu Nchemba waziri wa fedha aifanyie kazi kuunda kikosi kazi kusaidia kutoa elimu kuwezesha raia kujielewa na pia kusafisha jina la nchi yetu.

Yule hawezi n chawa hasa wa mama halafu ni mjuaji balaa , mpina alimwambia kuna transactions zenye thamani ya trillion 200 zimefanyika yeye akadai kuwa ni hela za watu binafsi na hawdzi kuzuia shughuli za kiuchumi
 
Mulika kama mbaya iwe mbaya
Anza na dipiworld tuone panapovuja
Deal la dipiworld itacost Tz kwenye mambo mengi kimataifa.. Juzi kati wamesema mizigo port haisogei
Kuna ambalo hatulijui lakini karibu kunakucha….
 
tunafadhili ugaidi gani?
-hivi vyombo vya kimataifa vinavyoendeshwa na mashoga kazi kweli.
-kila mwenye akili timamu anajua USA kupitia mashirika yake sio tu wanatoa pesa kwa magaidi kama idf, isil na ppk's,
-wakitaka kutimiza lengo lao lazima watumie magaidi, naamini USA lazima wana kundi la kigaidi mashariki ya drc, -haiwezekani lazima wanalo.
-hivi majuzi USA wamewapa magaidi talibani siraha za mabillioni ya dolla shenzi sana mashoga wale.
-hao FATF wamuthibiti kwanza kiongozi wa mashoga USA ndio waje kwetu.
-mwisho FATF ni malofa sana
 

View: https://m.youtube.com/watch?v=rDhcgsRIGSk
In the shadows of the interconnected world of international trade lies a pervasive threat that silently endangers the security of global markets. Financial crimes, with their detrimental effects on stability and integrity, cast a dark cloud over the world economy, threatening the trust upon which international trade relies. From money laundering to terrorist financing, illicit activities can have far-reaching consequences.

Amidst these challenges, organisations like the Financial Action Task Force (FATF) along with the policies of Anti-Money Laundering (AML) and Know Your Customer (KYC) have emerged as crucial lines of defence, protecting the global financial systems.

But what exactly is the role of FATF and AML/KYC in combating these crimes? How do they contribute to the reliability and transparency of international trade?

In partnership with the ICC UAE’s annual conference, TFG’s Editor, Deepesh Patel, had an insightful discussion with Mohammed Daoud, Director and Industry Practice Lead at Moody’s to understand the role of FATF and KYC/AML in the relentless fight against financial crimes.

The global guardian against financial crime: The FATF mission​

The Financial Action Task Force (FATF) is an intergovernmental organization established by the G7 summit in 1989. It serves as the global watchdog for money laundering and terrorist financing, promoting the implementation of AML/CFT procedures.

The FATF encourages jurisdictions worldwide to incorporate measures combating illicit financial activities into their legislative frameworks through a set of recommendations known as the “40 plus nine” recommendations. By advocating for updated laws, the FATF facilitates a country’s ability to freeze assets, close accounts, and conduct thorough investigations.

Moreover, every few years, the FATF conducts a mutual evaluation, which is a review process to assess if a country has effectively implemented new legislation, policies, and supervision against those crimes. Based on this evaluation, a country may pass, or be placed on a scrutiny or grey list in a bid to help the country improve its efforts in fighting money laundering and terrorist financing.

According to Daoud, the enforcement of FATF regulations has evolved over the years. Initially, the focus was primarily on tier-one banks and large financial institutions. However, Daoud clarified that this approach has gradually changed and expanded to encompass cross-border remittances due to their perceived high risk.

Establishing KYC guidelines and customer due diligence has been instrumental in mitigating these risks. Subsequently, the insurance sector and capital markets were also impacted by enforcement measures. Most recently, the non-financial sector has come under scrutiny, with countries facing more stringent evaluations.

The interdependence of banking and corporate sector compliance: Defying the cascading risks​

In today’s global economy, the banking and corporate sectors are intricately interconnected, forming a symbiotic relationship that significantly impacts financial stability and regulatory compliance. This close interdependence between these two sectors creates a delicate balance, where the failure to uphold compliance standards in one sector can trigger a cascading effect of risks throughout the entire financial system.

Compliance within the financial landscape is driven not only by local and international regulators but also by the inherent connectivity of the banking system. When banks engage in cross-border transactions with counterparties in other countries, they are bound to adhere to the regulations of those counterparties’ jurisdictions, particularly in emerging markets that heavily rely on third-party transactions and international currencies like the US dollar.

As Daoud explained, this principle of reciprocity, along with the expectation of shared values and guidelines among business partners, creates a complex compliance network.

While there was once a misconception that banks alone were solely responsible for transaction integrity, regulatory authorities have clarified that the corporate sector also holds liability to adhere to AML principles and KYC. Shifting the focus to the corporate sector recognises the potential misuse of shell companies for illicit activities, prompting the need for thorough due diligence and scrutiny.

banking sector compliance vs corporate sector compliance

Aggregators: Empowering effective compliance screening​

Compliance screening plays an indispensable role in safeguarding the integrity of transactions and mitigating risks associated with illicit activities. The utilisation of external sanctions data, not only influences the effectiveness of compliance programs but also determines their ease of implementation. As Daoud highlighted, “There is a lot of external sanctions data that has a significant impact on the easiness and effectiveness of compliance.”

With over 300 lists issued by international regulatory bodies, each with its own set of criteria, navigating the vast array of sanctions lists can be troublesome. This challenge is further compounded by the diverse formats employed by different regulatory bodies such as the OFAC 50% sanctions rule, which extends sanctions to corporate entities with more than 50% ownership by a sanctioned party.

To address the complexity of diverse sanctions lists, aggregators, such as Moody’s, act as intermediaries, curating, standardising, and simplifying the data. Furthermore, aggregator databases not only include sanctions information but also cover the three compliance screening levels: sanctions, politically exposed persons (PEPs), and enhanced due diligence (EDD).

In addition, Daoud emphasised that it is equally essential to consider the impact of compliance regulations on other key actors within the industry. This includes verifying the identity of import-export clients, examining vessels and carriers, and assessing the role of agents, customs, and transport companies.

The complexity of trading operations makes trade-based money laundering a considerable concern, particularly during periods of geopolitical tensions. Instances of shell companies being used to evade sanctions and circumvent scrutiny have been observed, calling for increased diligence and monitoring in the threat finance domain.

different sanction types aml cft requirements

Unleashing the power of technology for robust trade finance compliance​

Trade finance compliance has undergone a remarkable transformation with the aid of technology, revolutionising processes and elevating compliance standards.

Daoud presented the transformative impact of technology in trade finance, shedding light on the following key applications and the tangible benefits they bring to all stakeholders involved:

  • KYC and Due Diligence Solutions: Technology-driven solutions streamline customer onboarding and ongoing monitoring, by verifying identities, assessing risk profiles, and ensuring AML/CFT compliance.
  • Document Comparison and Reconciliation: Advanced technologies can swiftly scan and analyse complex trade documents, reducing errors and ensuring compliance with documentary credit requirements.
  • Tracking and Monitoring Systems: Technology empowers institutions to track threat finance over time, identifying patterns, profiling transactions, and uncovering suspicious activities related to dual-use goods or sanctions evasion.
With an abundance of technology-driven solutions, it is apparent that the integration of technology in trade finance heralds a new era of compliance, where streamlined processes and enhanced monitoring capabilities facilitate secure and transparent trade transactions.
Source : VIDEO | Illuminating international trade: The role of FATF and AML/KYC in combating financial crimes

N.B
Taarifa muhimu hii, Mh. Mwigulu Nchemba waziri wa fedha aifanyie kazi kuunda kikosi kazi kusaidia kutoa elimu kuwezesha raia kujielewa na pia kusafisha jina la nchi yetu.

Mama anaifungua nchi!
#kataawahuni
 
"Mtanikumbuka"

~John Pombe Magufuli.
Rest in Power.

Hii ina maana wale watetezi wa majambazi na mafisadi ambao ndio wale wote waliokuwa wakimsimanga Hayat Rais kwa kuchukua hatua madhubuti za kupambana Rushwa na Utakashishaji....waone haya.
 
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