Officials from 9 MEFMI Countries Trained on AML / CFT

Money laundering, financing of terrorism and proliferation of weapons of mass destruction are crimes that can undermine the integrity and stability of the financial system. The crimes can also discourage foreign investment, drain resources from more productive economic activities, and weaken the stability of the broader economy.

To curb the flow of laundered funds, the international community has devised control mechanisms, such as setting appropriate laws, regulations, supervisory regimes, standards and guidelines. The Financial Action Task Force (FATF) is the global body responsible for developing standards that countries should adhere to in their fight against these vices. The FATF standards place significant obligations and responsibilities on regulatory authorities and accountable institutions. Regulatory authorities are required to put in place Anti-Money Laundering and Combating Financing of Terrorism (AML / CFT) oversight frameworks and ensure supervised entities comply and take corrective action where frameworks are not adhered to. On the other hand, accountable institutions are supposed to comply with all applicable laws and regulations, and properly manage AML / CFT risks they are exposed to.

Despite the existence of guidelines, findings of mutual evaluations conducted between 2015 and 2021 in the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG) highlight the need to further improve the effectiveness of AML / CFT systems, and the level of compliance with FATF standards. In light of these deficiencies and given that the standards are continually updated to address sophisticated money-laundering schemes and developments in digital technology, MEFMI through its Business Development Unit offered a course on AML / CFT during the period 7 – 11 March 2022 as part of its support to countries’ efforts to put in place effective AML / CFT frameworks. The course was organised in collaboration with the Financial Intelligence Unit (FIU) in Zimbabwe.

A total of 101 officials from nine (9) MEFMI member countries, namely Angola, Botswana, Eswatini, Mozambique, Rwanda, Tanzania, Uganda, Zambia and Zimbabwe, participated in the course. The course enhanced participants’ knowledge of the major facets of AML/CFT and the strategies their institutions should adopt to reduce the risk of money laundering and financing of terrorism, such as the use of a risk-based approach and enhancing customer due diligence, record-keeping, and reporting. It also provided a platform for discussion and sharing of insights on best practices and challenges regulators and accountable institutions face, and the methodologies that can be used to ensure compliance with international standards. MEFMI intends to offer this course on a regular basis to support countries’ efforts to safeguard the integrity and stability of their financial systems.

The course was facilitated by a team of six (6) resource persons, namely Mr. Calvin Habasonda (Bank of Zambia); Mr. Cuthbert Munjoma (Insurance and Pensions Commission of Zimbabwe); Mr. Tirivafi Nhundu (Securities and Exchange Commission of Zimbabwe); Mr. Amon Chitsva (Reserve Bank of Zimbabwe); Ms. Clara Hwata (FIU Zimbabwe); and Mr. Mirirai Chiremba (Financial Integrity Advisory Services).

Prepared by Tiviniton Makuve and Sharon Wallett