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12TH GAMING REGULATORS AFRICA FORUM

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GAMING REGULATORS AFRICA FORUM 12thAnnual ConferenceAccra, Ghana: July 2016
Anti Money Laundering, Counter Financing of Terrorism and Human TraffickingOliver ChiperesaDeputy Director, Financial Intelligence Unit(Reserve Bank of Zimbabwe)
Presentation overview
The global AML/CFTframework and the FATF Forty RecommendationsTerroristFinancing, Money Laundering and the 21 predicate offencesHuman Trafficking as aMoney Launderingpredicate offenceImplementation of AML/CFT and Anti Human Trafficking measures in Zimbabwe
The Global AML/CFT Framework and the FATF Forty Recommendations
Globally, Anti Money Laundering and Counter Financing of Terrorism (AML/CFT) Standards are championed by the Financial Action Task Force (FATF).Every country is “required”to beamember of the FATF itself orone of eightFATF-Style Regional Bodies (FSRBs).TheAML/CFT global standards for countries are set out in the FATF Forty Recommendations.The FATF FortyRecommendations set out the detailed AML/CFT standardsand measures whichcountriesshould put in placein order to effectivelyprevent,detectandprosecutecases ofML, TF and related predicate offences and, ultimately,deprivecriminals of ill-gotten assets.
The Global AML/CFT Framework and the FATF Forty Recommendations
Countriesshould havemeasures in place,toensure that financial institutions and Designated Non Financial Businesses and Professions (casinos included) carry out adequate due diligence on customers toprevent,detectandreportsuspected cases of ML, TF and related predicate offences.Countries are evaluated periodically, either by the FATF or therespective FSRBs,to assess the level of compliancewith,and implementation oftheForty Recommendations.Countries that are found to have significant deficiencies andthat donot take measures to address thedeficiencies,riskimposition ofvaryingkinds ofmeasures against theirfinancialsectors.The measures canhindercorrespondentbankingrelationships,among otherconsequences.
Terrorist Financing, Money Laundering and the 21 Predicate Offences
Recommendations 3of the FATF Forty Recommendations requires countries to ensure that the offence of money laundering is criminalized, incompliancewith the requirements of theUnited Nations Convention on TransnationalOrganizedCrime(Palermo Convention)Similarly,Recommendation 5requires that financing of terrorists and terrorism be criminalized in line with the requirements of theInternational Convention for the Suppression of Financing of TerrorismThe FATF Standardsfurther stipulate21 categories ofoffences which can generateprofitfor criminals and which must be criminalizedby each country. Theseare referred to aspredicateoffencesML is a derivative offence, i.e. it can only take place after the commission of a prior(predicate)offence
Human trafficking as a ML predicate offence
Human trafficking(also known as Trafficking in Persons), is one of the 21 prescribed categories of offences.Every countryisrequired tohave the offence of humantraffickingin its statute books.One of theultimate objectivesof AML/CFT measures is to deprive criminals and theirassociates,of profits of crime.If human trafficking (or any predicate offence, for that matter) is not an offence under a country’s laws, the authoritieswould not beable toconfiscate anyproceeds arising from such anactivity.Similarly, thecountrymay not be able to cooperate with other countries in combating trans-borderhuman trafficking.
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Human trafficking as a ML predicate offence
As part of the requirement to criminalize humantrafficking, along with theother 20 predicate offences, countriesare required to ratify anddomesticate theInternational Convention Against Transnational Organized Crimetogether with all relevant protocols under theConvention.Countries are especially required to ratify theProtocol to Prevent, Suppress and Punish Trafficking in Personsand domesticate its provisions.
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Implementation of AML/CFT and Anti-Human Trafficking Measures in Zimbabwe
Zimbabweis a memberofthe Eastern and Southern Africa Anti Money Laundering Group (ESAAMLG), which is one of the eight FATF-Style RegionalBodies.ESAAMLG was formed in 1999, with Zimbabwe as one of the founding members.Zimbabwe implementsAML/CFT measures as set out in the FATF Forty Recommendations,andis engaged in efforts to continuously strengthens itsAML/CFT systems.In June 2015, Zimbabwe became only the third country in Africa (after Namibia and Malawi), to complete a Money Laundering and Terrorist FinancingNational Risk Assessment, a mandatory requirement under the FATFForty Recommendationssince 2012.
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Implementation of AML/CFT and Anti-Human Trafficking Measures in Zimbabwe
In line with FATF Recommendation 29 which requires every country to have a Financial Intelligence Unit (FIU), Zimbabwe established its FIU in 2004, as a Unit within the central bank, making it one of the first FIUs in the region.The FIU is responsible for AML/CFT co-ordination in the country andwas responsible for successfully coordinatingtheNationalRisk Assessmentexercise from July 2014 to June 2015.The FIU has overall responsibility for AML/CFT supervision of financial institutions and Designated Non Financial Businesses and Professions (Casinos included), working in close co-operation with the respective sector regulators.In Zimbabwe, financial institutions have a good understandingof,and implement AML/CFT requirements.There is now shift of focusin order to alsomakeDNFBPs understandand implement theirAML/CFT obligations.Progress has been made but a lot of work is still needed.
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Implementation of AML/CFT and Anti-Human Trafficking Measures in Zimbabwe
As is the case with all countries in the region, capacity and resource constraints continue to hamperprogress in AML/CFT implementation.Public institutionstakeholders, including police, the FIU, financial and DNFBP sectorregulators have to undertake their tasks with scant resources.Zimbabwe recently underwent assessment under the ESAAMLG Second Round of Mutual Evaluation process.Theassessment report is expected to be finalized and adopted when Zimbabwe hosts the next ESAAMLG 16thCouncil of Ministers and 32ndTask Force of Senior Officials meetings(Victoria Falls: 28August to 3 September 2016).
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Implementation of AML/CFT and Anti-Human Trafficking Measures in Zimbabwe
In 2013, Zimbabwe undertook a comprehensive review of its AML/CFT legislation to address deficiencies that were listedwhen the country was assessed in 2006 under the ESAAMLG FirstRound of Mutual Evaluation.Because of the recent nature of the legislative review, Zimbabwe’s AML/CFT legal framework is now one of the most up-to-date in the region.Zimbabwe has now also ratified and domesticated relevant international instruments relating to human trafficking, culminating in the passage of the Trafficking in Persons Act on 2014.
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Implementation of AML/CFT and Anti-Human Trafficking Measures in Zimbabwe
In line with the provisions of the Act, Zimbabwe has put in place a Trafficking in Persons Inter Ministerial Committee, to coordinate the national efforts to combat trafficking in persons.The Committee, under the chairmanship of the Ministry of Home Affairs, is made up of various state institutions identified as having a key role in human matters, including the Zimbabwe Republic Police, National Prosecuting Authority, Financial Intelligence Unit, Ministry of Heath, Department of Social Welfare, among others.The Committee recently came up with a Trafficking in Persons National Plan of actionIn February 2015, Zimbabwe was removed from the FATF’s list of countries that are identified as having strategic AML/CFT deficiencies, having been listed in 2011
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Implementation of AML/CFT and Anti-Human Trafficking Measures in Zimbabwe
In recognition of the efforts made by Zimbabwe in strengthening its AML/CFT framework, consistent with the Forty Recommendations, the FATF took a decision in February2015,to remove Zimbabwe fromthe FATF’s list of countries that are identified as having strategic AML/CFTdeficiencies.The country had been put on the list in October 2010.
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END OF PRESENTATION
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12TH GAMING REGULATORS AFRICA FORUM