Senegal Country Summary

FATF Status

Senegal is no longer on the FATF List of Countries that have been identified as having strategic AML deficiencies

Latest FATF Statement - 25 October 2024

The FATF welcomes Senegal’s significant progress in improving its AML/CFT regime. Senegal strengthened the effectiveness of its AML/CFT regime to meet the commitments in its action plan regarding the strategic deficiencies that the FATF identified in February 2021 by: (1) demonstrating consistent understanding of ML/TF risks across relevant authorities; (2) seeking international cooperation to facilitate ML/TF investigations and tracing of proceeds of crime located abroad; (3) demonstrating that FIs and DNFBPs are subject to adequate and effective risk-based supervision and sanction measures and that they improve compliance with AML/CFT obligations including by increasing STR reporting and establishing effective internal control mechanisms; (4) maintaining adequate, accurate and up-to-date basic and beneficial ownership information and ensuring its timely access by competent authorities; (5) increasing the capacity of the FIU staff to conduct analysis and increasing the dissemination of financial intelligence; (6) increasing the capacity of law enforcement authorities in the detection and investigation of ML and predicate offences in line with risk and maintaining statistics on cases investigated and prosecuted; (7) establishing policies and procedures for the identification and seizure of proceeds of crime and demonstrating the effective application of seizing and freezing powers of relevant competent authorities; (8) strengthening the law enforcement and prosecutorial authorities’ understanding of TF risks and CFT capacity and demonstrating that TF investigations are in line with Senegal’s risk profile; (9) implementing targeted financial sanction regime; and (10) implementing a risk-based monitoring regime for NPOs at risk of abuse for TF purposes.

Senegal should continue to work with GIABA to sustain its improvements in its AML/CFT system.

Compliance with FATF Recommendations

The last follow-up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Senegal was undertaken in 2022. According to that Evaluation, Senegal was deemed Compliant for 9 and Largely Compliant for 16 of the FATF 40 Recommendations. It remains Highly Effective for 0 and Substantially Effective for 0 with regard to the 11 areas of Effectiveness of its AML/CFT Regime.

Senegal has made limited progress in combating corruption, with the government focusing on investigations against political rivals and requiring asset disclosures from high-level officials. Despite improvements in its anti-money laundering and counter-terrorism financing regime, significant challenges remain, including the prevalence of organized crime, human trafficking, and cybercrime. The country is under enhanced monitoring by the FATF and has been working to address deficiencies in its compliance measures, while U.S. companies are advised to assess corruption risks and ensure compliance with anti-corruption laws.

Senegal's economy is characterized by stable macroeconomic conditions, with a GDP growth rate that remains healthy despite challenges such as rising public debt, which has reached 75 percent of GDP. The government actively promotes foreign investment and has made significant strides in improving infrastructure and the business climate, although investors still face obstacles like complex tax administration and bureaucratic hurdles. Key sectors attracting investment include petroleum, agribusiness, and tourism, while the country aims to enhance its role as a regional hub for trade and transportation.

Senegal's investment climate is characterized by a welcoming government that prioritizes foreign investment and has made significant improvements in infrastructure and economic reforms since 2012. The country offers various incentives, including tax exemptions in Special Economic Zones, and has a relatively stable currency, the CFA franc, pegged to the Euro. However, challenges such as burdensome tax administration, complex customs procedures, and a rigid labor market can hinder investment opportunities.