New Liberia Magazine
FINANCIAL INTELLIGENCE AGENCY (FIA): COUNTERING TERRORIST FINANCING & MONEY LAUNDERING
Intro By: Nathan Mulbah To give Liberia proactive thrust under the government’s ARREST Agenda for Inclusive Development (AAID), the Financial Intelligence Agency (FIA) has reinforced it service as the frontier force for preventing and mitigating abuse of the country’s financial system, which over the past years, was targeted as anti-government entity due to the mysterious deaths of four auditors.
But under the ARREST Agenda – an acronym representing Agriculture, Roads, Rule of Law, Education, Sanitation, and Tourism, and or, economic downturn, the Agency has enforced national and international Anti Money Laundering and Countering the Financing of Terrorism (AML/ CFT) regulations, requiring financial institutions to report any money laundering and terrorist financing risks or activities. Below is write-up done by the Communication bureau of the FIA. Please read on.
A Glimpse At Liberia’s AML/CFT Regime
The FIA, birthed on the passage of its Act of 2021, is the country’s central Agency leading the fight against Money Laundering (ML), Terrorist Financing (TF), Proliferation Financing (PF), and financial crimes. As one of several integrity institutions, this Agency is pivotally placed to protect Liberia’s financial system from abuse and to enhance national, regional, and global peace and economic stability. Primarily, it is charged with ensuring the country’s compliance with international standards and national laws and regulations regarding Anti Money Laundering and Countering the Financing of Terrorism (AML/CFT). Historically, the FIA Act of 2021 repealed its antecedent (the FIU Act of 2012), thereby establishing the institution, this time, as an autonomous agency rather than a mere unit of government.
Why The FIA? The last decade has seen many countries strengthening their legal and institutional capacities to address the growing threats and reduce vulnerabilities resulting from acts of money laundering (ML) and terrorist financing, which are negatively impacting the integrity of financial systems. Crimes, such as corruption, drug trafficking, currency counterfeiting, fraud, tax evasion, human trafficking, etc. continue to undermine efforts to improve the integrity of financial systems. Proceeds from these criminal activities are often masked to conceal their illicit sources and then placed into the legal economy as legitimate monies - a process referred to as money laundering. On the other hand, terrorists and criminal organizations are raising, soliciting, collecting, or providing funds to support acts of violence across the Sahel and other regions of the world. While many Criminal Justice systems deal with AML/CFT preventative measures collectively, it is equally critical to point out that a contrast exists in the nature of the two offences.
A fundamental guiding principle is, for money laundering to occur, the funds involved must be identified as proceeds of criminal activity. Whereas, the sources of funds for terrorist financing (TF) may be legitimate or illegitimate. In other words, measures to prevent terrorist financing analyze the purpose or destination of the funds rather than their origins. In general, however, one thing is common to both ML/TF. They result in diverting critical national resources from “economically and socially productive uses and can negatively affect a country’s financial system by undermining its stability” (Anonymous source). Since weak AML/ CFT controls tend to undermine the reputation and hold serious consequences for a country’s financial system, the Financial Action Taskforce (FATF) has set global standards and best practices, which among other things require countries to establish financial intelligence units to regulate their AML/ CFT regimes. To this end, the FIA was established and serves as the frontier force for preventing and mitigating abuse of Liberia’s financial system and enforcing
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