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Sanctions:
November 28, 2011 - The Arab League (comprising 22 Arab
member states), of which this country is a member, has approved
imposing sanctions on Syria. These include: -
* Cutting off transactions with the Syrian central bank
* Halting funding by Arab governments for projects in Syria
* A ban on senior Syrian officials travelling to other Arab countries
* A freeze on assets related to President Bashar al-Assad's
government
The declaration also calls on Arab central banks to monitor
transfers to Syria, with the exception of remittances from Syrians
abroad.
For further information, click here
The Arab League (comprising 22 Arab member states), of which
this country is a member, has boycotted Israel in a systematic
effort to isolate Israel economically in support of the Palestinians,
however, the implementation of the boycott has varied over time
among member states..
There are three tiers to the boycott. The primary boycott prohibits
the importation of Israeli-origin goods and services into boycotting
countries. The secondary boycott prohibits individuals, as well as
private and public sector firms and organizations, in member
countries from engaging in business with any entity that does
business in Israel. The Arab League maintains a blacklist of such
firms. The tertiary boycott prohibits any
entity in a member country from doing business with a company or
individual that has business dealings with U.S. or other firms on
the Arab League blacklist.
____________________________________________________
Offshore Jurisdiction Blacklists:
As a recognised offshore finance jurisdiction this country may fall
under various country offshore jurisdiction blacklists.
____________________________________________________
US State Department Money Laundering Report - 2011:
The Union of the Comoros (Comoros) consists of three islands:
Ngazidja (Grande Comore), Anjouan and Moheli, and claims a
fourth (Mayotte), which France governs. Although Comoros lacks
homegrown narcotics, the islands are used to transit drugs,
mainly from Madagascar and continental Africa. Comoros is not a
financial center for the region. The fact the Comoran financial
system is relatively underdeveloped minimizes the risk of some
ML activities. Neither Union nor island government authorities
have the means to estimate the income gained from predicate
offenses committed within the country. Nevertheless, due to the
low level of development in Comoros, illicit income seems to have
been limited compared to the sums generated in other countries.
The main income-producing predicate offenses seem to be
narcotics trafficking, migrant smuggling, and corruption.
Comoros has introduced a number of measures to establish an
anti-money laundering/combating the financing of terrorism
(AML/CFT) regime. However, the legal framework has many
shortcomings and is generally not effectively implemented.
Generally, Comoros is not in compliance with international
standards. A grossly inadequate budget, dysfunctional ministries,
and a nonfunctioning judiciary limit effectiveness of Comoran
AML/CFT efforts, despite apparent high-level political support.
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 or “list” approach to predicate
crimes: All serious crimes
Legal persons covered: criminally: YES civilly: YES
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: Banks and designated non-financial businesses
and professions (DNFBP)
Enhanced due diligence procedures for PEPs: Foreign: NO
Domestic: NO
SUSPICIOUS TRANSACTION REPORTING REQUIREMENTS:
Covered entities: Banks and DNFBPs
Number of STRs received and time frame: None
Number of CTRs received and time frame: Not available
MONEY LAUNDERING CRIMINAL
PROSECUTIONS/CONVICTIONS:
Prosecutions: None
Convictions: None
Assets forfeited: criminally: None civilly: None
RECORDS EXCHANGE MECHANISM:
With U.S.: YES
With other governments/jurisdictions: YES
Comoros is not a member of a FATF-style regional body but is an
observer of the Eastern and Southern Africa Anti-Money
Laundering Group (ESAAMLG). No mutual evaluation has been
done of Comoros.
ENFORCEMENT AND IMPLEMENTATION ISSUES AND
COMMENTS:
A financial intelligence unit (FIU) was authorized in 2008, and a
March 2009 ordinance expanded the scope of the AML/CFT
preventive measures and covered the financing of terrorism.
However, there have been no investigations or convictions for
money laundering or terrorist financing.
The recent enactment of a law on economic citizenship might be
attractive to criminals. The authorities have indicated they have
implemented strict control measures intended to prevent abuses,
but concerns regarding the possible misuse of this arrangement
for criminal purposes do remain.
Thus far, most institutions subject to the law have not yet put
AML/CFT policies and procedures in place. Although the Central
Bank has begun to monitor implementation of the AML/CFT
preventive measures, limited resources hamper the government’s
ability to enforce the AML regulations, and local institutions and
personnel lack the training and capacity to fully enforce the law.
Comoran government security forces have limited resources and
training in money laundering, counter-terrorist financing and
maritime security.
___________________________________________________
US State Dept Narcotics Report 2011 (introduction):
No report available
____________________________________________________
US State Dept Trafficking in Persons Report 2011
(introduction):
(Tier 2 Watch List)
The Comoros is a source country for children subjected to forced
labor and sex trafficking, and possibly for men and women for
those same purposes. Comoran children are subjected to forced
labor within the country in domestic service, roadside and market
vending, baking, and agriculture. Many of these children are sent
by family members to do this work and subsequently experience
long working hours, wage nonpayment, and physical or sexual
abuse – conditions indicative of forced labor. Children from
Anjouan, one of the islands of the Comoros, are sent as domestic
workers to the island of Mayotte, where some are subjected to
forced labor. Children from Anjouan also are coerced into illegal
activities, such as drug trafficking. Girls are exploited in
prostitution on all three islands in rented houses, nightclubs, and
hotels, often with the knowledge of their families and after being
coerced by other young girls. There are reports that foreign
tourists frequent these establishments. Many Comoran boys aged
3 to 14 studying at Koranic schools headed by unscrupulous
fundi, or religious teachers, are exploited in forced labor as
porters, market venders, field workers, construction workers, or
domestic servants. These Koranic students – including girls – also
are subjected to physical and sexual abuse; the ILO reports more
than 60 percent of children it surveyed in 2009 were victims of
sexual abuse by their fundi. The Comoros may be particularly
vulnerable to transnational human trafficking due to a lack of
adequate border controls, endemic corruption within the
administration, and the existence of local and international
criminal networks involved in human smuggling and document
forgery. For example, the government recently dismantled an
illegal migrant network of Iraqis traveling to Europe through the
Comoros with counterfeit passports. During the separatist crisis in
2007 and 2008, the Anjouan Gendarmerie Force (FGA), a local
arm of the Comoran national army, conscripted and armed at
least 200 child soldiers from the island of Anjouan to intimidate
civilians. There are no longer child soldiers in the Anjouan
Gendarmerie and during the reporting period the government
began implementation of a National Disarmament, Demobilization,
and Reintegration Plan through which former child soldiers
received care. Trafficked Comoran children also have been
identified in situations of domestic servitude in France.
The Government of the Comoros does not fully comply with the
minimum standards for the elimination of trafficking; however, it is
making significant efforts to do so. During the reporting period,
the government, in partnership with international organizations,
began implementation of a National Disarmament, Demobilization,
and Reintegration Plan, through which 40 former child soldiers,
some of whom were trafficking victims, received protective
services. In addition, the government began implementation of a
national action plan to address the worst forms of child labor,
including forced child labor, reflecting the government’s
awareness of the seriousness of the child labor problem in the
Comoros. Despite these efforts, the Ministry of Labor itself made
negligible efforts to prevent the use of forced child labor or
investigate suspected cases. The government made no
discernible efforts to investigate, prosecute, or convict trafficking
offenders, including unscrupulous fundi, under existing legislation.
Children in prostitution were sometimes beaten or harassed by
authorities following arrest. Although former child soldiers
received care, the government did not provide care to victims of
sex or labor trafficking and prevention efforts were minimal.
Although resource strapped, the government failed to find cost-
effective ways to take law enforcement action against trafficking
offenders, protect victims, and prevent these crimes from
occurring. The Comoros, therefore, is placed on Tier 2 Watch List.
____________________________________________________
US State Dept Terrorism Report 2010
Overview: Comoran government security forces had limited
resources and training in counterterrorism and maritime security,
so the country remained vulnerable to terrorist transit. In April, a
Comoran Coast Guard unit was created and received an
ArchAngel patrol boat from the United States to help with maritime
surveillance. Training to Comoran Coast Guard officials on its
proper operation and maintenance was also provided.
Countering Terrorist Finance: Comoros has introduced a number
of measures to establish an anti-money laundering/countering
terrorist finance (AML/CTF) regime, including a 2009 law providing
for the establishment of a financial intelligence unit, expanding the
scope of preventative measures, and covering terrorism
financing. However, the legal framework has many shortcomings
and the government has not effectively implemented it. The
Financial Action Task Force (FATF) mutual evaluation assessors
found Comoros “largely compliant” (the FATF’s second highest
rating) for four of the FATF 40+9 recommendations, and it
received ratings of partially compliant or noncompliant on the rest.
An inadequate budget, dysfunctional ministries, and a
nonfunctioning judiciary limit effectiveness of Comorian AML/CTF
efforts, despite apparent high-level political support. Thus far,
most institutions subject to the law have not yet put AML/CTF
policies and procedures in place. Although the central bank has
begun to monitor implementation of the AML/CTF preventive
measures, limited resources hampered the government’s ability to
enforce the AML regulations, and local institutions and personnel
lacked the training and capacity to enforce the law fully.
There have been no investigations or convictions for money
laundering to date. The criminalization of terrorist financing does
not comply with the 1999 UN Convention for the Suppression of
the Financing of Terrorism. There were no provisions allowing the
Comorian authorities to freeze the assets of terrorists and other
persons designated by the UNSCRs 1267 and 1373.
As of December, Comoros was a member of the Eastern and
Southern Africa Anti-Money Laundering Group (ESAAMLG), a
FATF-style regional body. ESAAMLG became an Associate
Member of the FATF in June.
Regional and International Cooperation: Comoros acted as Chair
of the East African Standby Brigade (an AU body for
peacekeeping and intervention missions) in 2010.
Countering Radicalization and Violent Extremism: President
Sambi, democratically elected in 2006, with Comoran religious
leaders, has publicly rejected religious extremism. President
Sambi has also sought close partnership with the United States to
develop Comoros economically and to create opportunities for the
country's youth. To this end, he has requested that the Peace
Corps return to Comoros as soon as possible.
____________________________________________________
Links:
Worldwide AML Legislation (International Bar Association)
November 28, 2011 - The Arab League (comprising 22 Arab
member states), of which this country is a member, has approved
imposing sanctions on Syria. These include: -
* Cutting off transactions with the Syrian central bank
* Halting funding by Arab governments for projects in Syria
* A ban on senior Syrian officials travelling to other Arab countries
* A freeze on assets related to President Bashar al-Assad's
government
The declaration also calls on Arab central banks to monitor
transfers to Syria, with the exception of remittances from Syrians
abroad.
For further information, click here
The Arab League (comprising 22 Arab member states), of which
this country is a member, has boycotted Israel in a systematic
effort to isolate Israel economically in support of the Palestinians,
however, the implementation of the boycott has varied over time
among member states..
There are three tiers to the boycott. The primary boycott prohibits
the importation of Israeli-origin goods and services into boycotting
countries. The secondary boycott prohibits individuals, as well as
private and public sector firms and organizations, in member
countries from engaging in business with any entity that does
business in Israel. The Arab League maintains a blacklist of such
firms. The tertiary boycott prohibits any
entity in a member country from doing business with a company or
individual that has business dealings with U.S. or other firms on
the Arab League blacklist.
____________________________________________________
Offshore Jurisdiction Blacklists:
As a recognised offshore finance jurisdiction this country may fall
under various country offshore jurisdiction blacklists.
____________________________________________________
US State Department Money Laundering Report - 2011:
The Union of the Comoros (Comoros) consists of three islands:
Ngazidja (Grande Comore), Anjouan and Moheli, and claims a
fourth (Mayotte), which France governs. Although Comoros lacks
homegrown narcotics, the islands are used to transit drugs,
mainly from Madagascar and continental Africa. Comoros is not a
financial center for the region. The fact the Comoran financial
system is relatively underdeveloped minimizes the risk of some
ML activities. Neither Union nor island government authorities
have the means to estimate the income gained from predicate
offenses committed within the country. Nevertheless, due to the
low level of development in Comoros, illicit income seems to have
been limited compared to the sums generated in other countries.
The main income-producing predicate offenses seem to be
narcotics trafficking, migrant smuggling, and corruption.
Comoros has introduced a number of measures to establish an
anti-money laundering/combating the financing of terrorism
(AML/CFT) regime. However, the legal framework has many
shortcomings and is generally not effectively implemented.
Generally, Comoros is not in compliance with international
standards. A grossly inadequate budget, dysfunctional ministries,
and a nonfunctioning judiciary limit effectiveness of Comoran
AML/CFT efforts, despite apparent high-level political support.
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 or “list” approach to predicate
crimes: All serious crimes
Legal persons covered: criminally: YES civilly: YES
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: Banks and designated non-financial businesses
and professions (DNFBP)
Enhanced due diligence procedures for PEPs: Foreign: NO
Domestic: NO
SUSPICIOUS TRANSACTION REPORTING REQUIREMENTS:
Covered entities: Banks and DNFBPs
Number of STRs received and time frame: None
Number of CTRs received and time frame: Not available
MONEY LAUNDERING CRIMINAL
PROSECUTIONS/CONVICTIONS:
Prosecutions: None
Convictions: None
Assets forfeited: criminally: None civilly: None
RECORDS EXCHANGE MECHANISM:
With U.S.: YES
With other governments/jurisdictions: YES
Comoros is not a member of a FATF-style regional body but is an
observer of the Eastern and Southern Africa Anti-Money
Laundering Group (ESAAMLG). No mutual evaluation has been
done of Comoros.
ENFORCEMENT AND IMPLEMENTATION ISSUES AND
COMMENTS:
A financial intelligence unit (FIU) was authorized in 2008, and a
March 2009 ordinance expanded the scope of the AML/CFT
preventive measures and covered the financing of terrorism.
However, there have been no investigations or convictions for
money laundering or terrorist financing.
The recent enactment of a law on economic citizenship might be
attractive to criminals. The authorities have indicated they have
implemented strict control measures intended to prevent abuses,
but concerns regarding the possible misuse of this arrangement
for criminal purposes do remain.
Thus far, most institutions subject to the law have not yet put
AML/CFT policies and procedures in place. Although the Central
Bank has begun to monitor implementation of the AML/CFT
preventive measures, limited resources hamper the government’s
ability to enforce the AML regulations, and local institutions and
personnel lack the training and capacity to fully enforce the law.
Comoran government security forces have limited resources and
training in money laundering, counter-terrorist financing and
maritime security.
___________________________________________________
US State Dept Narcotics Report 2011 (introduction):
No report available
____________________________________________________
US State Dept Trafficking in Persons Report 2011
(introduction):
(Tier 2 Watch List)
The Comoros is a source country for children subjected to forced
labor and sex trafficking, and possibly for men and women for
those same purposes. Comoran children are subjected to forced
labor within the country in domestic service, roadside and market
vending, baking, and agriculture. Many of these children are sent
by family members to do this work and subsequently experience
long working hours, wage nonpayment, and physical or sexual
abuse – conditions indicative of forced labor. Children from
Anjouan, one of the islands of the Comoros, are sent as domestic
workers to the island of Mayotte, where some are subjected to
forced labor. Children from Anjouan also are coerced into illegal
activities, such as drug trafficking. Girls are exploited in
prostitution on all three islands in rented houses, nightclubs, and
hotels, often with the knowledge of their families and after being
coerced by other young girls. There are reports that foreign
tourists frequent these establishments. Many Comoran boys aged
3 to 14 studying at Koranic schools headed by unscrupulous
fundi, or religious teachers, are exploited in forced labor as
porters, market venders, field workers, construction workers, or
domestic servants. These Koranic students – including girls – also
are subjected to physical and sexual abuse; the ILO reports more
than 60 percent of children it surveyed in 2009 were victims of
sexual abuse by their fundi. The Comoros may be particularly
vulnerable to transnational human trafficking due to a lack of
adequate border controls, endemic corruption within the
administration, and the existence of local and international
criminal networks involved in human smuggling and document
forgery. For example, the government recently dismantled an
illegal migrant network of Iraqis traveling to Europe through the
Comoros with counterfeit passports. During the separatist crisis in
2007 and 2008, the Anjouan Gendarmerie Force (FGA), a local
arm of the Comoran national army, conscripted and armed at
least 200 child soldiers from the island of Anjouan to intimidate
civilians. There are no longer child soldiers in the Anjouan
Gendarmerie and during the reporting period the government
began implementation of a National Disarmament, Demobilization,
and Reintegration Plan through which former child soldiers
received care. Trafficked Comoran children also have been
identified in situations of domestic servitude in France.
The Government of the Comoros does not fully comply with the
minimum standards for the elimination of trafficking; however, it is
making significant efforts to do so. During the reporting period,
the government, in partnership with international organizations,
began implementation of a National Disarmament, Demobilization,
and Reintegration Plan, through which 40 former child soldiers,
some of whom were trafficking victims, received protective
services. In addition, the government began implementation of a
national action plan to address the worst forms of child labor,
including forced child labor, reflecting the government’s
awareness of the seriousness of the child labor problem in the
Comoros. Despite these efforts, the Ministry of Labor itself made
negligible efforts to prevent the use of forced child labor or
investigate suspected cases. The government made no
discernible efforts to investigate, prosecute, or convict trafficking
offenders, including unscrupulous fundi, under existing legislation.
Children in prostitution were sometimes beaten or harassed by
authorities following arrest. Although former child soldiers
received care, the government did not provide care to victims of
sex or labor trafficking and prevention efforts were minimal.
Although resource strapped, the government failed to find cost-
effective ways to take law enforcement action against trafficking
offenders, protect victims, and prevent these crimes from
occurring. The Comoros, therefore, is placed on Tier 2 Watch List.
____________________________________________________
US State Dept Terrorism Report 2010
Overview: Comoran government security forces had limited
resources and training in counterterrorism and maritime security,
so the country remained vulnerable to terrorist transit. In April, a
Comoran Coast Guard unit was created and received an
ArchAngel patrol boat from the United States to help with maritime
surveillance. Training to Comoran Coast Guard officials on its
proper operation and maintenance was also provided.
Countering Terrorist Finance: Comoros has introduced a number
of measures to establish an anti-money laundering/countering
terrorist finance (AML/CTF) regime, including a 2009 law providing
for the establishment of a financial intelligence unit, expanding the
scope of preventative measures, and covering terrorism
financing. However, the legal framework has many shortcomings
and the government has not effectively implemented it. The
Financial Action Task Force (FATF) mutual evaluation assessors
found Comoros “largely compliant” (the FATF’s second highest
rating) for four of the FATF 40+9 recommendations, and it
received ratings of partially compliant or noncompliant on the rest.
An inadequate budget, dysfunctional ministries, and a
nonfunctioning judiciary limit effectiveness of Comorian AML/CTF
efforts, despite apparent high-level political support. Thus far,
most institutions subject to the law have not yet put AML/CTF
policies and procedures in place. Although the central bank has
begun to monitor implementation of the AML/CTF preventive
measures, limited resources hampered the government’s ability to
enforce the AML regulations, and local institutions and personnel
lacked the training and capacity to enforce the law fully.
There have been no investigations or convictions for money
laundering to date. The criminalization of terrorist financing does
not comply with the 1999 UN Convention for the Suppression of
the Financing of Terrorism. There were no provisions allowing the
Comorian authorities to freeze the assets of terrorists and other
persons designated by the UNSCRs 1267 and 1373.
As of December, Comoros was a member of the Eastern and
Southern Africa Anti-Money Laundering Group (ESAAMLG), a
FATF-style regional body. ESAAMLG became an Associate
Member of the FATF in June.
Regional and International Cooperation: Comoros acted as Chair
of the East African Standby Brigade (an AU body for
peacekeeping and intervention missions) in 2010.
Countering Radicalization and Violent Extremism: President
Sambi, democratically elected in 2006, with Comoran religious
leaders, has publicly rejected religious extremism. President
Sambi has also sought close partnership with the United States to
develop Comoros economically and to create opportunities for the
country's youth. To this end, he has requested that the Peace
Corps return to Comoros as soon as possible.
____________________________________________________
Links:
Worldwide AML Legislation (International Bar Association)
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*Please note that FATF deems that a country has significant aml deficiencies if
any of the 'Core' Recommendations, R1, R5, R10, R13, SRII, or SRIV are rated
either Partially of Non-Compliant. These are marked in red.
For FATF to remove a country from the regular follow-up process, it has to be rated
Compliant or Largely Compliant in the above mentioned Core Recommendations
and the following Key Recommendations: -
R3, R4, R23, R26, R35, R36, R40, SRI, SRIII, SRV
Please also note that any risk assessment should take into consideration all
follow-up reports.
any of the 'Core' Recommendations, R1, R5, R10, R13, SRII, or SRIV are rated
either Partially of Non-Compliant. These are marked in red.
For FATF to remove a country from the regular follow-up process, it has to be rated
Compliant or Largely Compliant in the above mentioned Core Recommendations
and the following Key Recommendations: -
R3, R4, R23, R26, R35, R36, R40, SRI, SRIII, SRV
Please also note that any risk assessment should take into consideration all
follow-up reports.
Executive Summary extracted from Mutual Evaluation Report
The 2003 Presidential ordinance that criminalizes money laundering
has not been widely implemented. The implementation of an AML/CFT
policy began in 2008 with the appointment of the members of the
Financial Intelligence Unit (FIU), awareness-raising efforts with entities
concerned in the public and private sectors, and the enactment of an
ordinance in March 2009 that expanded the scope of the preventive
measures and covered the financing of terrorism. However, there have
been no investigations or convictions for money laundering or terrorist
financing.
The limited capacity to absorb the proceeds of foreign offenses and the
fact that the financial system is relatively underdeveloped minimize the
risk of some money laundering activities. However, there are still
specific vulnerabilities in the Comoros due to the limitations of the
procedures for identifying legal and natural persons.1 In addition to
significant weaknesses in the administration of civil and commercial
registries, the registration of offshore companies in Anjouan and the
recent enactment of a law on economic citizenship might be attractive
to criminals. The Anjouan authorities state that they have abandoned
the development of the offshore sector since the summer of 2008. The
creation of offshore banks in Anjouan was illegal as it was in violation of
the provisions of the organic law which set out the respective
competencies of the central government and the islands. However, the
law creating offshore companies was legally adopted by the Parliament
of Anjouan and, since it has not been repealed, continues to present a
risk. As for economic citizenship, the authorities have indicated that
they have implemented strict control measures2 that are intended to
prevent abuses, but concerns regarding the possible misuse of this
arrangement for criminal purposes do remain.
Legal arrangements and Related Institutional Measures
Money laundering is a criminal offense under Comorian law in
accordance with the 1988 United Nations Convention against Illicit
Traffic in Narcotic Drugs and Psychotropic Substances (Vienna
Convention) and the 2000 United Nations Convention against
Transnational Organized Crime (Palermo Convention). All proceeds of
crimes or offenses may constitute predicate offenses of money
laundering and, consequently, Comorian legislation does not specify a
threshold for offenses. However, some offenses included in FATF’s
designated category of offenses are not listed in the Criminal Code (CC)
or special laws: e.g., trafficking in human beings and migrant
smuggling, environmental crimes, and piracy.
The criminalization of the financing of terrorism is not in compliance with
Article 2 of the 1999 United Nations Convention for the Suppression of
the Financing of Terrorism (New York Convention). There are no
provisions allowing the Comorian authorities to freeze the assets of
terrorists and other persons designated by the United Nations Al-Qaida
and Taliban Sanctions Committee in application of Resolution
S/RES/1267 (1999) and subsequent resolutions, and Resolution
S/RES/1373 (2001).
The authorities have established a financial intelligence unit, the
members of which have been appointed, but the unit has not yet
received any suspicious transaction reports. Moreover, the authorities
responsible for prosecutions, which take place in an environment
characterized by a lack of resources and some instances of corruption,
have not yet had the opportunity to implement their powers in
investigations of money laundering or terrorist financing. The physical
cross-border transportation of currency is subject to general exchange
control regulations and specific AML/CFT regulations, although the
latter have not yet been implemented.
Click here to read full report
The 2003 Presidential ordinance that criminalizes money laundering
has not been widely implemented. The implementation of an AML/CFT
policy began in 2008 with the appointment of the members of the
Financial Intelligence Unit (FIU), awareness-raising efforts with entities
concerned in the public and private sectors, and the enactment of an
ordinance in March 2009 that expanded the scope of the preventive
measures and covered the financing of terrorism. However, there have
been no investigations or convictions for money laundering or terrorist
financing.
The limited capacity to absorb the proceeds of foreign offenses and the
fact that the financial system is relatively underdeveloped minimize the
risk of some money laundering activities. However, there are still
specific vulnerabilities in the Comoros due to the limitations of the
procedures for identifying legal and natural persons.1 In addition to
significant weaknesses in the administration of civil and commercial
registries, the registration of offshore companies in Anjouan and the
recent enactment of a law on economic citizenship might be attractive
to criminals. The Anjouan authorities state that they have abandoned
the development of the offshore sector since the summer of 2008. The
creation of offshore banks in Anjouan was illegal as it was in violation of
the provisions of the organic law which set out the respective
competencies of the central government and the islands. However, the
law creating offshore companies was legally adopted by the Parliament
of Anjouan and, since it has not been repealed, continues to present a
risk. As for economic citizenship, the authorities have indicated that
they have implemented strict control measures2 that are intended to
prevent abuses, but concerns regarding the possible misuse of this
arrangement for criminal purposes do remain.
Legal arrangements and Related Institutional Measures
Money laundering is a criminal offense under Comorian law in
accordance with the 1988 United Nations Convention against Illicit
Traffic in Narcotic Drugs and Psychotropic Substances (Vienna
Convention) and the 2000 United Nations Convention against
Transnational Organized Crime (Palermo Convention). All proceeds of
crimes or offenses may constitute predicate offenses of money
laundering and, consequently, Comorian legislation does not specify a
threshold for offenses. However, some offenses included in FATF’s
designated category of offenses are not listed in the Criminal Code (CC)
or special laws: e.g., trafficking in human beings and migrant
smuggling, environmental crimes, and piracy.
The criminalization of the financing of terrorism is not in compliance with
Article 2 of the 1999 United Nations Convention for the Suppression of
the Financing of Terrorism (New York Convention). There are no
provisions allowing the Comorian authorities to freeze the assets of
terrorists and other persons designated by the United Nations Al-Qaida
and Taliban Sanctions Committee in application of Resolution
S/RES/1267 (1999) and subsequent resolutions, and Resolution
S/RES/1373 (2001).
The authorities have established a financial intelligence unit, the
members of which have been appointed, but the unit has not yet
received any suspicious transaction reports. Moreover, the authorities
responsible for prosecutions, which take place in an environment
characterized by a lack of resources and some instances of corruption,
have not yet had the opportunity to implement their powers in
investigations of money laundering or terrorist financing. The physical
cross-border transportation of currency is subject to general exchange
control regulations and specific AML/CFT regulations, although the
latter have not yet been implemented.
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| Last Updated: 16 April 2012 |