Somalia passes law on anti-money laundering, terrorism

Published: February 23, 2016

somali news
President Hassan Sh. Mohamud Signs AML/CFT Bill to Law
Mogadishu, February 22, 2016 — The President of the Federal Republic of Somalia H.E. Hassan Sh. Mohamud signed the Anti-Money Laundering and Combatting the Financing of Terrorism (AML/CFT) Bill to law on February 21, 2016. The AML/CFT Bill was approved by the Council of Ministers and passed by the Somali Parliament on December 26, 2015. The signed AML/CFT Bill was the product of a yearlong effort by the Central Bank of Somalia and the Ministry of Finance.
The Bill empowers the Central Bank of Somalia to implement AML/CFT regulations and an examination regime to improve and strengthen the nascent financial sector in the country. The AML/CFT Law addresses a wide range of activities/weaknesses including:
Money Laundering & Terrorism Financing (ML/TF) activities and offenses
Customer verification and due diligence
Prohibited relationships and anonymous accounts
Politically Exposed Persons (PEPs)
Suspicious activities monitoring and reporting
Record keeping and reporting obligations
Establishment of AML/CFT Committee
Establishment of the Financial Reporting Center (FRC)
Civil & criminal penalties
International cooperation
The AML/CFT Law was drafted with assistance from UNDOC, and in consultation with relevant Somali government institutions as well as international partners. The Law complies with the requirements and recommendations of the Financial Action Task Force (FATF).
The AML/CFT Law is part of a broader initiative by the Central Bank of Somalia to formalize the financial sector and provide a more conducive environment for international transactions, including remittances from abroad.
Other initiatives at the Central Bank of Somalia include:
Developing policies, regulations, procedures, guidelines and standardizing reporting
Implementing Core Banking and Payment/Settlement Systems
Undertaking institutional reform including human resources
Strengthening the supervision department with the support of our international partners
Adopting international standards and best practices
Following the successful passing of the AML/CFT Law, the Central Bank of Somalia will continue its efforts to improve the country’s finance sector by developing stronger relations with partners and the financial sector.
SOURCE: Central Bank of Somalia

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