Africa-Press – South-Sudan. The Financial Action Task Force (FATF)—a global body preventing fraudulent money flow—has placed South Sudan on the list of countries with increased money laundering and financing of terrorism.
According to the report from the Financial Action Task Force (FATF), South Sudan was asked to continue implementing its action plan, “conducting a comprehensive review of the AML Act (2012) with the support of international partners, including technical assistance, to comply with the FATF Standards and become a party to fully implement.”
The FATF encouraged South Sudan to continue to “demonstrate its strong political and institutional commitment to strengthen the effectiveness of its Anti-Money Laundering / countering the Financing of Terrorism regime.”
“South Sudan has not yet undertaken a mutual evaluation report relating to the implementation of anti-money laundering and counter-terrorist financing standards,” the report stated.
According to the US Department of State’s assessment of money laundering (INCSR), South Sudan was deemed a “monitored” jurisdiction by the US Department of State’s 2016 International Narcotics Control Strategy Report (INCSR).
As the report indicates, South Sudan borders a number of jurisdictions in various states of conflict or lacking strong authorities.
The youngest nation continues to deal with an intra-party conflict among political elites, that broke out in December 2013 and developed into an internal civil war.
Although the government and diverse opposition forces concluded a peace agreement in August 2018, fighting has continued in various parts of the country.
South Sudan had begun to develop prior to the outbreak of civil conflict, but much remains to be accomplished in this fledgling state.
The report partly states: “The corruption and the flow of illicit funds are the offshoring of assets by the elite’s large-scale abuse and mismanagement of the extractives industry, particularly oil, financial and trade-based fraud, the convergence of licit and illicit systems, disguised beneficial ownership; and regulatory evasion, all of which have combined to create a kleptocratic governing system.”
“Lacking an AML/CFT regime and possessing long, porous borders, South Sudan is vulnerable to exploitation by criminals, including those seeking overland routes for bulk cash smuggling and those wishing to perpetrate other forms of financial crime,” the report indicates.
In June 2021, South Sudan made a high-level political commitment to work with the FATF to strengthen the effectiveness of its anti-money laundering monitoring.
Source: The City Review
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