_________________________________________________________
AML Updates / Relevant news
June 1, 2011 - Memorandum on Economic and Financial Policies
extracted from 2011 IMF Report: -
Read Statement (internal link)
Links:
Worldwide AML Legislation (International Bar Association)
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Sanctions:
None applicable
____________________________________________________
Offshore Jurisdiction Blacklists:
Information unavailable.
____________________________________________________
US State Department Money Laundering Report - 2011:
Burundi is not considered a significant center for money
laundering and terrorist financing. The Government of Burundi
(GOB) has created anti-money laundering/ counter-terrorist
financing (AML/CFT) laws and signed conventions but has yet to
commit funding, provide training, implement policies, or
demonstrate the political will to counter money laundering.
Enforcement of laws in general is hindered by a dysfunctional and
corrupt administration and a severe lack of capacity in
supervisory, investigative and enforcement bodies. Neither the
Financial Crime Unit (FCU) of the Burundian National Police nor
the Financial Intelligence Unit (FIU) of the Ministry of Finance has
conducted any investigations. Corruption is a significant problem
in Burundi and corrupt Burundian politicians are adept at devising
methods of laundering Burundian assets abroad, enjoying near
impunity of their thefts of public funds.
DO FINANCIAL INSTITUTIONS ENGAGE IN CURRENCY
TRANSACTIONS RELATED TO INTERNATIONAL NARCOTICS
TRAFFICKING THAT INCLUDE SIGNIFICANT AMOUNTS OF US
CURRENCY; CURRENCY DERIVED FROM ILLEGAL SALES IN
THE U.S.; OR THAT OTHERWISE SIGNIFICANTLY AFFECT THE
U.S.: NO
CRIMINALIZATION OF MONEY LAUNDERING:
“All serious crimes” approach to predicate crimes: Not available
Legal persons covered: criminally: YES civilly: NO
CRIMINALIZATION OF TERRORIST FINANCING:
Ability to freeze terrorist assets without delay: NO
UN lists of designated terrorists or terrorist entities distributed to
financial institutions: YES
(Please refer to the Department of State’s Country Reports on
Terrorism, which can be found here: http://www.state.
gov/s/ct/rls/crt/)
KNOW-YOUR-CUSTOMER RULES:
Covered entities: Not available
Enhanced due diligence procedures for PEPs: Foreign: NO
Domestic: YES
SUSPICIOUS TRANSACTION REPORTING REQUIREMENTS:
Covered entities: Not available
Number of STRs received and time frame: None
Number of CTRs received and time frame: None
MONEY LAUNDERING CRIMINAL
PROSECUTIONS/CONVICTIONS:
Prosecutions: None
Convictions: None
Assets forfeited: criminally: None civilly: None
RECORDS EXCHANGE MECHANISM:
With U.S.: NO
With other governments/jurisdictions: NO
Burundi is not a member of a Financial Action Task Force (FATF)-
style regional body.
ENFORCEMENT AND IMPLEMENTATION ISSUES AND
COMMENTS:
The Central Bank supervises and examines financial institutions
for compliance with AML/CFT laws and regulations. A law requiring
banks to report large deposits or transactions to the police is
under consideration, but banks and financial institutions are
currently not required to report individuals engaging in significant
transactions.
There are significant problems that deter effective AML/CFT
efforts. Although laws exist, there appears to be little political will
to prosecute or commit the resources to investigate crimes,
particularly those that could implicate high-level government
officials. Burundi is listed 170 out of 178 countries surveyed in
Transparency International’s International Corruption Perception
Index. Furthermore, Burundian law enforcement officials lack
training and expertise in investigating financial crimes. The GOB
should develop an oversight capability and provide sufficient
resources, funding, and training to the new Financial Intelligence
Unit and the Financial Crime Unit. The GOB should ratify the UN
International Convention for the Suppression of the Financing of
Terrorism and become a party to the UN Convention against
Transnational Organized Crime.
____________________________________________________
US State Dept Narcotics Report 2011 (introduction):
No report available
____________________________________________________
US State Dept Trafficking in Persons Report 2011
(introduction):
(Tier 2 Watch List)
Burundi is a source country for children and possibly women
subjected to forced begging and sex trafficking. Children and
young adults may also be coerced into forced labor on plantations
or small farms in southern Burundi, small-scale menial labor in
gold mines in Cibitoke, labor intensive tasks such as fetching river
stones for construction in Bujumbura, or informal commerce in the
streets of larger cities. Some traffickers are the victims’ family
members, neighbors, or friends who, under the pretext of
assisting with education or employment opportunities, obtain them
for forced labor. Some families are complicit in the exploitation of
disabled children or adults, accepting payment from traffickers
who run forced street begging operations. Older females offer
vulnerable younger girls room and board within their homes under
the guise of being benevolent, and in some cases push them into
prostitution to pay for living expenses; these brothels are located
in poorer areas of Bujumbura, as well as along the lake and
trucking routes. Extended family members sometimes also
financially profit from the prostitution of young relatives residing
with them. Male tourists from the Middle East, particularly
Lebanon, exploit Burundian girls in prostitution, mainly in newly
constructed high-end neighborhoods. Business people recruit
Burundian girls for prostitution in Bujumbura, as well as in
Rwanda, Kenya, and Uganda, and recruit boys and girls for
exploitation in various types of forced labor in southern Burundi
and Tanzania.
The Government of Burundi does not fully comply with the
minimum standards for the elimination of trafficking; however, it is
making significant efforts to do so. Within its limited capabilities,
the government continued its efforts to identify trafficking victims,
investigate potential trafficking offenses, and raise public
awareness. Despite these efforts, the government did not
demonstrate overall increased efforts to address human
trafficking over the previous year, particularly in prosecution and
protection; therefore, Burundi is placed on Tier 2 Watch List. The
government investigated several trafficking cases; however, the
government did not prosecute or convict any trafficking offenders,
including public officials suspected of complicity in trafficking
crimes, during the reporting period. Following raids in 2010,
brothel owners housing trafficking victims were fined but did not
face criminal prosecution. Although the Ministries of Health and
Solidarity provided ad hoc support to victims through the provision
of medical care vouchers and limited funding to some service
providers, most victim assistance continued to be provided by
NGOs and local organizations, without government support. The
government expanded awareness campaigns, although there still
remained a significant need for trafficking awareness among both
the general population and government officials.
For full report click here
____________________________________________________
US State Dept Terrorism Report 2010
Overview: Since 2009, al-Shabaab has threatened repeatedly
and publically to attack Burundi in retaliation for its participation in
the African Union Mission in Somalia (AMISOM). Since the al-
Shabaab terrorist attacks in Kampala, the Burundian security
forces have shifted some of their focus from internal political
issues and begun to build counterterrorism capacity. The lack of
resources and training has meant that the focus has been
primarily on the physical security of their more vulnerable sites. In
addition to strengthening their physical security posture, the
Burundians created an Anti-Terror Cell, chaired by the Minister of
Public Security, which first convened in March but then remained
dormant until the Kampala terrorist attacks. The cell consisted of
investigators and intelligence and operations officers from the
police, military, and intelligence services. At year’s end, the Anti-
Terror Cell did not have a plan or the capacity to develop the
intelligence sources crucial to combating terrorism.
Legislation and Law Enforcement: Burundi has provisions in its
penal code (Title IX, Chapter IV) defining all forms of terrorism.
Sentences for acts of terrorism range from 10 to 20 years or life
imprisonment if the act results in the death of a person. In 2010,
this provision was not applied in a Burundian court of law, as no
case had been tried by year’s end. In August, Burundian
authorities cooperated with Ugandan authorities in connection
with a Ugandan national in Burundi who was believed to be
associated with Ugandan terrorist suspects.
Regional and International Cooperation: Burundi and Uganda
were the only two troop contributing nations participating in
AMISOM, which, with support from the Transitional Federal
Government’s National Security Forces (NSF), was a critical
partner in the fight against al-Shabaab in Somalia.
None applicable
____________________________________________________
Offshore Jurisdiction Blacklists:
Information unavailable.
____________________________________________________
US State Department Money Laundering Report - 2011:
Burundi is not considered a significant center for money
laundering and terrorist financing. The Government of Burundi
(GOB) has created anti-money laundering/ counter-terrorist
financing (AML/CFT) laws and signed conventions but has yet to
commit funding, provide training, implement policies, or
demonstrate the political will to counter money laundering.
Enforcement of laws in general is hindered by a dysfunctional and
corrupt administration and a severe lack of capacity in
supervisory, investigative and enforcement bodies. Neither the
Financial Crime Unit (FCU) of the Burundian National Police nor
the Financial Intelligence Unit (FIU) of the Ministry of Finance has
conducted any investigations. Corruption is a significant problem
in Burundi and corrupt Burundian politicians are adept at devising
methods of laundering Burundian assets abroad, enjoying near
impunity of their thefts of public funds.
DO FINANCIAL INSTITUTIONS ENGAGE IN CURRENCY
TRANSACTIONS RELATED TO INTERNATIONAL NARCOTICS
TRAFFICKING THAT INCLUDE SIGNIFICANT AMOUNTS OF US
CURRENCY; CURRENCY DERIVED FROM ILLEGAL SALES IN
THE U.S.; OR THAT OTHERWISE SIGNIFICANTLY AFFECT THE
U.S.: NO
CRIMINALIZATION OF MONEY LAUNDERING:
“All serious crimes” approach to predicate crimes: Not available
Legal persons covered: criminally: YES civilly: NO
CRIMINALIZATION OF TERRORIST FINANCING:
Ability to freeze terrorist assets without delay: NO
UN lists of designated terrorists or terrorist entities distributed to
financial institutions: YES
(Please refer to the Department of State’s Country Reports on
Terrorism, which can be found here: http://www.state.
gov/s/ct/rls/crt/)
KNOW-YOUR-CUSTOMER RULES:
Covered entities: Not available
Enhanced due diligence procedures for PEPs: Foreign: NO
Domestic: YES
SUSPICIOUS TRANSACTION REPORTING REQUIREMENTS:
Covered entities: Not available
Number of STRs received and time frame: None
Number of CTRs received and time frame: None
MONEY LAUNDERING CRIMINAL
PROSECUTIONS/CONVICTIONS:
Prosecutions: None
Convictions: None
Assets forfeited: criminally: None civilly: None
RECORDS EXCHANGE MECHANISM:
With U.S.: NO
With other governments/jurisdictions: NO
Burundi is not a member of a Financial Action Task Force (FATF)-
style regional body.
ENFORCEMENT AND IMPLEMENTATION ISSUES AND
COMMENTS:
The Central Bank supervises and examines financial institutions
for compliance with AML/CFT laws and regulations. A law requiring
banks to report large deposits or transactions to the police is
under consideration, but banks and financial institutions are
currently not required to report individuals engaging in significant
transactions.
There are significant problems that deter effective AML/CFT
efforts. Although laws exist, there appears to be little political will
to prosecute or commit the resources to investigate crimes,
particularly those that could implicate high-level government
officials. Burundi is listed 170 out of 178 countries surveyed in
Transparency International’s International Corruption Perception
Index. Furthermore, Burundian law enforcement officials lack
training and expertise in investigating financial crimes. The GOB
should develop an oversight capability and provide sufficient
resources, funding, and training to the new Financial Intelligence
Unit and the Financial Crime Unit. The GOB should ratify the UN
International Convention for the Suppression of the Financing of
Terrorism and become a party to the UN Convention against
Transnational Organized Crime.
____________________________________________________
US State Dept Narcotics Report 2011 (introduction):
No report available
____________________________________________________
US State Dept Trafficking in Persons Report 2011
(introduction):
(Tier 2 Watch List)
Burundi is a source country for children and possibly women
subjected to forced begging and sex trafficking. Children and
young adults may also be coerced into forced labor on plantations
or small farms in southern Burundi, small-scale menial labor in
gold mines in Cibitoke, labor intensive tasks such as fetching river
stones for construction in Bujumbura, or informal commerce in the
streets of larger cities. Some traffickers are the victims’ family
members, neighbors, or friends who, under the pretext of
assisting with education or employment opportunities, obtain them
for forced labor. Some families are complicit in the exploitation of
disabled children or adults, accepting payment from traffickers
who run forced street begging operations. Older females offer
vulnerable younger girls room and board within their homes under
the guise of being benevolent, and in some cases push them into
prostitution to pay for living expenses; these brothels are located
in poorer areas of Bujumbura, as well as along the lake and
trucking routes. Extended family members sometimes also
financially profit from the prostitution of young relatives residing
with them. Male tourists from the Middle East, particularly
Lebanon, exploit Burundian girls in prostitution, mainly in newly
constructed high-end neighborhoods. Business people recruit
Burundian girls for prostitution in Bujumbura, as well as in
Rwanda, Kenya, and Uganda, and recruit boys and girls for
exploitation in various types of forced labor in southern Burundi
and Tanzania.
The Government of Burundi does not fully comply with the
minimum standards for the elimination of trafficking; however, it is
making significant efforts to do so. Within its limited capabilities,
the government continued its efforts to identify trafficking victims,
investigate potential trafficking offenses, and raise public
awareness. Despite these efforts, the government did not
demonstrate overall increased efforts to address human
trafficking over the previous year, particularly in prosecution and
protection; therefore, Burundi is placed on Tier 2 Watch List. The
government investigated several trafficking cases; however, the
government did not prosecute or convict any trafficking offenders,
including public officials suspected of complicity in trafficking
crimes, during the reporting period. Following raids in 2010,
brothel owners housing trafficking victims were fined but did not
face criminal prosecution. Although the Ministries of Health and
Solidarity provided ad hoc support to victims through the provision
of medical care vouchers and limited funding to some service
providers, most victim assistance continued to be provided by
NGOs and local organizations, without government support. The
government expanded awareness campaigns, although there still
remained a significant need for trafficking awareness among both
the general population and government officials.
For full report click here
____________________________________________________
US State Dept Terrorism Report 2010
Overview: Since 2009, al-Shabaab has threatened repeatedly
and publically to attack Burundi in retaliation for its participation in
the African Union Mission in Somalia (AMISOM). Since the al-
Shabaab terrorist attacks in Kampala, the Burundian security
forces have shifted some of their focus from internal political
issues and begun to build counterterrorism capacity. The lack of
resources and training has meant that the focus has been
primarily on the physical security of their more vulnerable sites. In
addition to strengthening their physical security posture, the
Burundians created an Anti-Terror Cell, chaired by the Minister of
Public Security, which first convened in March but then remained
dormant until the Kampala terrorist attacks. The cell consisted of
investigators and intelligence and operations officers from the
police, military, and intelligence services. At year’s end, the Anti-
Terror Cell did not have a plan or the capacity to develop the
intelligence sources crucial to combating terrorism.
Legislation and Law Enforcement: Burundi has provisions in its
penal code (Title IX, Chapter IV) defining all forms of terrorism.
Sentences for acts of terrorism range from 10 to 20 years or life
imprisonment if the act results in the death of a person. In 2010,
this provision was not applied in a Burundian court of law, as no
case had been tried by year’s end. In August, Burundian
authorities cooperated with Ugandan authorities in connection
with a Ugandan national in Burundi who was believed to be
associated with Ugandan terrorist suspects.
Regional and International Cooperation: Burundi and Uganda
were the only two troop contributing nations participating in
AMISOM, which, with support from the Transitional Federal
Government’s National Security Forces (NSF), was a critical
partner in the fight against al-Shabaab in Somalia.
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| Last Updated: 16 April 2012 |