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 current administration focusing investigations on political rivals while securing some convictions. Despite efforts to improve its anti-money laundering and counter-terrorism financing regime, strategic deficiencies remain, although the country has operationalized a beneficial ownership register and strengthened sanctions for transparency violations. U.S. companies operating in Senegal must assess corruption risks and comply with anti-corruption laws, as bribery and petty corruption are prevalent, compounded by a weak judiciary that hampers enforcement.

Senegal's economy is characterized by healthy GDP growth and a generally stable macroeconomic profile, although public debt has risen to 75 percent of GDP due to COVID-19 measures and rising commodity costs. The government actively encourages foreign investment and has made significant improvements in infrastructure and economic reforms, aiming to enhance competitiveness and attract investment in strategic sectors such as petroleum, agribusiness, and tourism.

Senegal's investment climate is characterized by a welcoming stance towards foreign investment, supported by a stable macroeconomic environment and significant improvements in infrastructure and business regulations since 2012. The government has implemented a 'single window' system to streamline services for investors and has established Special Economic Zones that offer tax exemptions and other benefits. However, challenges such as bureaucratic hurdles, complex tax administration, and high costs of doing business remain, which can deter potential investors.