Senegal Removed, Algeria Added to Money Laundering Watchlist
Shifting Sands: Algeria Added to Money Laundering Watchlist as Senegal Exits
The Financial Action Task Force (FATF), the global watchdog for financial crime, has made significant updates to its watchlists, most notably adding Algeria to its “grey list” of countries under increased monitoring for deficiencies in combating money laundering and terrorist financing. Conversely, Senegal, which had been on the grey list since 2021, was removed, signaling progress in strengthening its financial systems against illicit activities.
Algeria Faces Scrutiny
The FATF’s decision to add Algeria to the grey list comes after an evaluation of the country’s efforts to combat money laundering and terrorism financing. The organization cited concerns about Algeria’s legal and institutional frameworks, particularly in areas like identifying and freezing terrorist assets and effectively investigating and prosecuting money laundering cases.
Being placed on the grey list can have significant economic implications for a country. It can deter foreign investment, complicate international financial transactions, and increase borrowing costs. For instance, in 2020, Pakistan’s economy suffered an estimated loss of $38 billion while on the FATF grey list.
Algeria now joins a list of countries under increased monitoring, including Panama, Syria, and Yemen. The country will be subject to increased scrutiny and will need to demonstrate concrete progress in addressing the FATF’s concerns to be removed from the list.
Senegal Celebrates Progress
In contrast to Algeria’s situation, Senegal’s removal from the grey list marks a significant achievement for the West African nation. Since its inclusion in 2021, Senegal has worked diligently to address the FATF’s recommendations, enacting legislative reforms, bolstering its financial intelligence unit, and enhancing international cooperation in combating financial crime.
Senegal’s success story underscores the importance of a comprehensive and collaborative approach to strengthening a country’s defenses against money laundering and terrorist financing. It also highlights the positive impact that being removed from the FATF grey list can have on a country’s economic outlook and international standing.
The Global Fight Against Financial Crime
The FATF’s recent actions serve as a stark reminder of the ever-evolving nature of financial crime and the need for countries to remain vigilant in their efforts to combat it. The organization’s work is crucial in safeguarding the global financial system and promoting international security. As the landscape of financial crime continues to shift, the FATF’s role in setting global standards and monitoring compliance will remain paramount.,
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