New Liberia Magazine national and international AML/CFT regulations, requiring financial institutions to report any money laundering and terrorist financing risks or activities. At the time when West Africa is witnessing unthinkable violent conflicts and rise in terrorism, which have transcended national borders and posed momentous challenges to countries both in and outside the sub-region, the significant role of the FIA cannot be overemphasized. With thousands killed and millions displaced in neighboring Niger, Mali, Burkina Faso, and Nigeria - at the cruelty of Jihadist groups associated with al Qaeda or Islamic State, there is a wakeup call for Liberia to strengthen its financial system against abuse. These extremist groups remain existential national security threat– destabilizing economies and disrupting national, regional and global peace In addition to its primary role of receiving and analyzing suspicious activity reports (SARs) from financial institutions and other reporting entities, the FIA may also carry out other tasks, such as placing temporary freezing orders, checking reporting entities’ (REs) compliance with their AML/CFT obligations,building the capacities of and supervising competent authorities on AML/CFT regulations; as well as providing regular updates and direction on financial crimes, trends, and advancing best practices to state and non-state actors. Upon inception, the current management team of the FIA has conducted a comprehensive review and analysis of the country’s AML/CFT regime to enable it makes informed technical and operational decisions. The review outlines both gains and challenges but offers prospects for continuous improvements. It has identified as most predominant money laundering offences in the country, the following: corruption and bribery, tax evasion, currency counterfeiting; illicit trafficking in narcotic drugs and psychotropic substances, trafficking in human beings and migrants smuggling, counterfeiting and piracy of products, and robbery/theft. Most of these criminal activities are mostly internal, with drug trafficking identified as the main external threat to Liberia’s AML/CFT regime. This means that the country’s financial sector has higher fundamental ML/TF risks, with widespread use of liquid cash and a huge informal economy, including physical transportation of bulk amounts of cash across borders. Previous assessment reports (NRA–2021) suggests that occurrence of terrorist and terrorist financing is low, and poses low risk. Also, illicit cash transactions, limited supervision of non-profit organizations (NPOs), porous borders and the rise of ideological radical teachings, could expose Liberia to terrorist financing threats. There are potential TF risks associated with NPOs, but the subset of NPO at risk of terrorist financing (TF) abuse has not been identified. However, suspicion exists that some international donor organizations could possibly be at risk of TF. Awareness raising and monitoring of NPOs regarding possible misuse or abuse of NPOs for TF purposes remain critical. Furthermore, the review shows that resource constraints and “lack of appropriate training and guidelines” to investigate and prosecute (ML) cases have impacted the efforts of competent authorities, particularly law enforcement agencies (LEAs) to effectively investigate and prosecute AML/CFT cases.
Moreover, a designated competent authority to implement Targeted Financial Sanctions and - Combating Financing of Proliferation of weapons of mass destruction (TFS–CFP) is required to fulfill Liberia’s commitment to this international legal instrument. The TFS–CFP concept itself has yet to be fully comprehended by competent authorities and reporting entities, despite a relatively strong legal framework for international cooperation - the Mutual Legal Assistance (MLA) Act, (Mutual Evaluation Report -, 2022). Thus, the AML/CFT Act of 2021, a framework which demonstrates Liberia’s commitment to pursuing a robust AML/CFT regime, encounters significant challenges due to the relatively new nature of anti- money laundering and countering the financing of terrorism, with expected results yet in view. However, Liberia has made some gains towards improving the country’s AML/CFT system. These include but not limited to improvements in technical compliance with the Financial Action Taskforce (FATF). Recommendations, enactment and amendments of several AML/CFT legislations and regulations, including the AML/CFT Act of 2021, the FIA Act of 2021, the LACC Act 2021, and other AML/CFT Regulations and guidelines.
Moving Forward, Addressing Deficiencies Since its inception in April 2024, the current management of the FIA, under the auspices of Officer-In-Charge (OIC), Mohammed A. Nasser, has taken practical steps to fully understand the current state of the Agency from its establishment, and to set measurable targets and allocate resources
New Liberia Magazine