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PRESS RELEASE |
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LESOTHO JOINS OTHER
INTERNATIONAL INITIATIVES IN THE FIGHT AGAINST MONEY
LAUNDERING |
Since 1994, it had dawned on the Central Bank of
Lesotho that Money Laundering has become a reality
in our region particularly following the advent of
democratic rule in the Republic of South Africa.
From that date coordinated initiatives have been
embarked upon to combat this monster, resulting in
inter alia the establishment of the Anti-Money
Laundering Task Team which was inaugurated in March
1999.
The Team is a multi-disciplinary unit comprising
representatives of the Ministry of Finance, Central
Bank of Lesotho, Lesotho Employers’ Association, Law
Society of Lesotho, Parliamentary Counsel,
Commissioner of Police and Interpol, and all other
banking institutions. This unit is chaired by the
Central Bank of Lesotho and has to-date been
instrumental in developing national anti money
laundering measures in line with international
standards, as money laundering is a global hazard
that requires a harmonized approach.
In an effort to assist the financial institutions
detect and recognize the suspicious and related
money laundering activities, the Team developed the
Financial Institutions (Anti-Money Laundering)
Guidelines 2000 for use by the financial
institutions.
The Division continued its endeavours to take the
lead in anti-money laundering activities. The Task
Team started drafting the Money Laundering and
Proceeds of Crime Bill in 2001 and was submitted to
the Minister of Justice in 2003.
As money laundering is a global hazard, all SADC
member countries through Finance and Law Ministries,
on behalf of their Governments, established the
Eastern and Southern Africa Anti-Money Laundering
Group (ESAAMLG) in Tanzania in 1999. Our Assistant
Minister of Finance signed ESAAMLG Memorandum of
Understanding in 2003. By so doing Lesotho undertook
to work towards the highest international standards
in the fight against laundering of the proceeds of
crimes as referred to in the multilateral agreements
and initiatives which deal with combating serious
crimes and to implement 40 recommendations of the
Financial Action Task Force on money laundering.
During the Annual General Meeting in Kampala, in
2003 the Council of Ministers approved that the
ESAAMLG member countries should be evaluated.
Lesotho volunteered to be evaluated. Mutual
evaluation Questionnaire was forwarded to Lesotho to
facilitate speedy preparation for evaluation by
ESAAMLG. The exercise took place in June and July
2004.
The primary purpose of Evaluation was to assess
Lesotho on compliance with the Financial Action Task
Force (FATF) 40 recommendations plus 8 special
recommendations on anti-money laundering and
combating the financing of terrorism (AML/CFT).
The evaluation covered the three sectors of the
economy namely financial, legal and law enforcement.
These three sectors including NGOs were evaluated
through series of interviews.
The Evaluation Mission observed that most pieces of
our legislation have not included anti-money
laundering/combating of terrorism (AML/CFT)
measures. Numerous gaps were identified in the
legislation governing financial sector. The Mission
recommended that our pieces of Legislation should
include AML/CFT measures.
Mutual Evaluation Report (MER) was forwarded to the
Ministry of Finance and the Bank. The Anti-Money
Laundering Task Team worked on the MER and submitted
its comments to the ESAAMLG Secretariat so that the
comments are incorporated in the Report before its
distribution to members of the ESAAMLG Task Force
before August 2005 meeting in Zambia.
Head, Policy & Exchange Control Division
2005 April 18 |
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