|
|
Sanctions:
None applicable
____________________________________________________
Offshore Jurisdiction Blacklists:
Information unavailable.
____________________________________________________
US State Department Money Laundering Report - 2011:
Madagascar is not a regional financial center. Illicit activities,
public corruption, and associated money laundering appear to
have increased in 2010. Tax and customs fraud, violation of the
foreign exchange code, and illegal rosewood logging are the
major sources of proceeds. Smuggling of gemstones, protected
flora and fauna, and illegal drugs, to a lesser extent, also
contributes to money laundering. Madagascar’s inadequately
monitored 3,000 mile coastline facilitates smuggling and money
laundering. Criminal proceeds laundered in the country derive
mostly from domestic criminal activity, but are often linked to
international trade. It is suspected that most money laundering
occurs through informal channels and is not tracked by the
government.
Offshore banks and international business companies are
permitted in Madagascar. Along with domestic banks and credit
institutions, offshore banks are required to request authorization
from the Financial and Banking Supervision Committee (CSBF)
which is affiliated with the central Bank.
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: NO 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: NO
(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 other financial institutions
Enhanced due diligence procedures for PEPs: Foreign: NO
Domestic: NO
SUSPICIOUS TRANSACTION REPORTING REQUIREMENTS:
Covered entities: Banks and moneychangers
Number of STRs received and time frame: 76 in 2010
Number of CTRs received and time frame: None
MONEY LAUNDERING CRIMINAL
PROSECUTIONS/CONVICTIONS:
Prosecutions: 0
Convictions: 0
Assets forfeited: criminally: None civilly: None
RECORDS EXCHANGE MECHANISM:
With U.S.: NO
With other governments/jurisdictions: NO
Madagascar is not yet a member of a Financial Action Task Force-
style regional body.
ENFORCEMENT AND IMPLEMENTATION ISSUES AND
COMMENTS:
The Government of Madagascar (GOM) should continue to
implement the requirements of Law 2004-020 and internationally
recognized anti-money laundering/counter-terrorist financing
standards. The GOM should pass the stalled legislation on
terrorist financing. Additional effort should be made to combat
smuggling. Money laundering related to underground finance and
informal value transfer systems should be recognized and
enforced. The GOM should train police and customs authorities to
proactively recognize money laundering at the street level and at
the ports of entry. Additionally, prosecutors should receive
training so they are more able to successfully prosecute complex
financial crime and money laundering cases.
Contacts have been established with the East and Southern Africa
Anti-Money Laundering Group (ESAMLAG) secretariat to start the
membership process.
____________________________________________________
US State Dept Narcotics Report 2011 (introduction):
No report available
____________________________________________________
US State Dept Trafficking in Persons Report 2011
(introduction):
(Tier 3)
Madagascar is a source country for women and children
subjected to forced labor and sex trafficking. Reports indicate that
sex and labor trafficking have increased, particularly due to a lack
of economic development and a decline in the rule of law during
the current political crisis, which began in March 2009. An
estimated 7,000 Malagasy women are currently employed as
domestic workers in Lebanon, with a smaller number in Kuwait.
Many of these women are single mothers, come from rural areas,
and are illiterate or poorly educated, making them more
vulnerable to deception and abuse at the hands of recruitment
agencies and employers. Numerous trafficking victims returning to
Madagascar from Lebanon reported rape, psychological abuse,
physical torture and violence, sexual harassment and assault,
harsh working conditions, confinement to the home, confiscation
of travel documents, and withholding of salaries. At least 11
deaths were reported among this population in 2010. Of the 777
Malagasy returnees since 2009, 85 percent ended their contracts
early because of mistreatment.
Children, mostly from rural areas, are subjected to domestic
servitude, commercial sexual exploitation, and forced labor in
mining, fishing, and agriculture within the country. Most child
trafficking occurs with the involvement of family members, but
friends, transport operators, tour guides, and hotel workers also
facilitate the enslavement of children. A child sex tourism problem
exists in coastal cities, including Tamatave, Nosy Be, Diego
Suarez, and Majunga, as well as the capital city of Antananarivo.
Some children are recruited for work in the capital using
fraudulent offers of employment as waitresses and maids before
being coerced into prostitution on the coast. The main
nationalities of child sex tourists seen in Madagascar are French,
German, and Swiss. In Antananarivo and Nosy Be, child sex
tourists hire local taxi drivers to procure children in prostitution or
virgins. Parents sell young women into marriages, some of which
are short-term and involve foreigners, and often for significant
sums of money, and leave the women vulnerable to sex trafficking
or domestic servitude. The main clients of prostituted children in
Madagascar, however, are Malagasy men. There are reports that
boys are also in prostitution in Madagascar, though it is hidden as
it is culturally taboo.
The de facto Government of Madagascar does not fully comply
with the minimum standards for the elimination of trafficking and is
not making significant efforts to do so. Since the March 2009
coup, combating human trafficking has not been a priority of the
de facto government, despite the growing size of the problem
both internally and transnationally. The authorities’ anti-trafficking
efforts were negligible during the year; they failed to prosecute or
convict trafficking offenders, identify and refer repatriated victims
to necessary services, and prevent the increased trafficking of
Malagasy citizens. Lack of awareness on the coverage and
application of the anti-trafficking law, and the continued arrest and
punishment of potential underage children in prostitution by local
law enforcement, contributes to the dismal state of anti-trafficking
law enforcement efforts in Madagascar. Efforts to repatriate
victims from Lebanon, though necessary, have often been poorly
managed, and reveal a minimal and wholly reactive approach to
addressing the problem.
For full report click here
____________________________________________________
US State Dept Terrorism Report 2009
Despite several steps taken in 2008 to counter terrorism,
progress stalled in 2009 due to a political crisis that weakened
government operations. Following an unconstitutional change of
government in March, the United States had limited engagement
with the de facto authorities, who did demonstrate a willingness to
cooperate in law enforcement matters, however. The government
budget suffered due to a suspension of foreign aid programs,
negatively affecting public investment throughout the island.
To combat terrorist threats, the government previously created
the Central Counterterrorism Service within the Ministry of Interior
to work with INTERPOL and to provide information within the
framework of regional and international cooperation. It also
created a special counterterrorism branch within the Central
Intelligence Service. These entities continued to function during
the year, but did not fulfill their full roles.
The Financial Intelligence Unit (SAMIFIN) launched in June 2008
to combat money laundering, including terrorist finance, remained
nominally operational, but its work was seriously limited by budget
constraints.
Although the Malagasy government took steps to create a coast
guard to improve maritime security and border control in 2008, no
further progress was made in 2009, and the coast guard was not
yet operational. Parliament was disbanded after the March coup,
so no action was taken on a draft 2008 bill that would have
implemented the provisions of several universal counterterrorism
instruments, including UN Security Council Resolution 1373.
Political unrest and limited resources severely constrained
Madagascar's ability to confront a potential terrorist threat. The
Malagasy authorities lacked the capacity to effectively monitor
suspect organizations, control suspicious financial transactions,
identify terrorist suspects, and control the movement of people
and goods across its borders.
____________________________________________________
Links:
Worldwide AML Legislation (International Bar Association)
None applicable
____________________________________________________
Offshore Jurisdiction Blacklists:
Information unavailable.
____________________________________________________
US State Department Money Laundering Report - 2011:
Madagascar is not a regional financial center. Illicit activities,
public corruption, and associated money laundering appear to
have increased in 2010. Tax and customs fraud, violation of the
foreign exchange code, and illegal rosewood logging are the
major sources of proceeds. Smuggling of gemstones, protected
flora and fauna, and illegal drugs, to a lesser extent, also
contributes to money laundering. Madagascar’s inadequately
monitored 3,000 mile coastline facilitates smuggling and money
laundering. Criminal proceeds laundered in the country derive
mostly from domestic criminal activity, but are often linked to
international trade. It is suspected that most money laundering
occurs through informal channels and is not tracked by the
government.
Offshore banks and international business companies are
permitted in Madagascar. Along with domestic banks and credit
institutions, offshore banks are required to request authorization
from the Financial and Banking Supervision Committee (CSBF)
which is affiliated with the central Bank.
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: NO 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: NO
(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 other financial institutions
Enhanced due diligence procedures for PEPs: Foreign: NO
Domestic: NO
SUSPICIOUS TRANSACTION REPORTING REQUIREMENTS:
Covered entities: Banks and moneychangers
Number of STRs received and time frame: 76 in 2010
Number of CTRs received and time frame: None
MONEY LAUNDERING CRIMINAL
PROSECUTIONS/CONVICTIONS:
Prosecutions: 0
Convictions: 0
Assets forfeited: criminally: None civilly: None
RECORDS EXCHANGE MECHANISM:
With U.S.: NO
With other governments/jurisdictions: NO
Madagascar is not yet a member of a Financial Action Task Force-
style regional body.
ENFORCEMENT AND IMPLEMENTATION ISSUES AND
COMMENTS:
The Government of Madagascar (GOM) should continue to
implement the requirements of Law 2004-020 and internationally
recognized anti-money laundering/counter-terrorist financing
standards. The GOM should pass the stalled legislation on
terrorist financing. Additional effort should be made to combat
smuggling. Money laundering related to underground finance and
informal value transfer systems should be recognized and
enforced. The GOM should train police and customs authorities to
proactively recognize money laundering at the street level and at
the ports of entry. Additionally, prosecutors should receive
training so they are more able to successfully prosecute complex
financial crime and money laundering cases.
Contacts have been established with the East and Southern Africa
Anti-Money Laundering Group (ESAMLAG) secretariat to start the
membership process.
____________________________________________________
US State Dept Narcotics Report 2011 (introduction):
No report available
____________________________________________________
US State Dept Trafficking in Persons Report 2011
(introduction):
(Tier 3)
Madagascar is a source country for women and children
subjected to forced labor and sex trafficking. Reports indicate that
sex and labor trafficking have increased, particularly due to a lack
of economic development and a decline in the rule of law during
the current political crisis, which began in March 2009. An
estimated 7,000 Malagasy women are currently employed as
domestic workers in Lebanon, with a smaller number in Kuwait.
Many of these women are single mothers, come from rural areas,
and are illiterate or poorly educated, making them more
vulnerable to deception and abuse at the hands of recruitment
agencies and employers. Numerous trafficking victims returning to
Madagascar from Lebanon reported rape, psychological abuse,
physical torture and violence, sexual harassment and assault,
harsh working conditions, confinement to the home, confiscation
of travel documents, and withholding of salaries. At least 11
deaths were reported among this population in 2010. Of the 777
Malagasy returnees since 2009, 85 percent ended their contracts
early because of mistreatment.
Children, mostly from rural areas, are subjected to domestic
servitude, commercial sexual exploitation, and forced labor in
mining, fishing, and agriculture within the country. Most child
trafficking occurs with the involvement of family members, but
friends, transport operators, tour guides, and hotel workers also
facilitate the enslavement of children. A child sex tourism problem
exists in coastal cities, including Tamatave, Nosy Be, Diego
Suarez, and Majunga, as well as the capital city of Antananarivo.
Some children are recruited for work in the capital using
fraudulent offers of employment as waitresses and maids before
being coerced into prostitution on the coast. The main
nationalities of child sex tourists seen in Madagascar are French,
German, and Swiss. In Antananarivo and Nosy Be, child sex
tourists hire local taxi drivers to procure children in prostitution or
virgins. Parents sell young women into marriages, some of which
are short-term and involve foreigners, and often for significant
sums of money, and leave the women vulnerable to sex trafficking
or domestic servitude. The main clients of prostituted children in
Madagascar, however, are Malagasy men. There are reports that
boys are also in prostitution in Madagascar, though it is hidden as
it is culturally taboo.
The de facto Government of Madagascar does not fully comply
with the minimum standards for the elimination of trafficking and is
not making significant efforts to do so. Since the March 2009
coup, combating human trafficking has not been a priority of the
de facto government, despite the growing size of the problem
both internally and transnationally. The authorities’ anti-trafficking
efforts were negligible during the year; they failed to prosecute or
convict trafficking offenders, identify and refer repatriated victims
to necessary services, and prevent the increased trafficking of
Malagasy citizens. Lack of awareness on the coverage and
application of the anti-trafficking law, and the continued arrest and
punishment of potential underage children in prostitution by local
law enforcement, contributes to the dismal state of anti-trafficking
law enforcement efforts in Madagascar. Efforts to repatriate
victims from Lebanon, though necessary, have often been poorly
managed, and reveal a minimal and wholly reactive approach to
addressing the problem.
For full report click here
____________________________________________________
US State Dept Terrorism Report 2009
Despite several steps taken in 2008 to counter terrorism,
progress stalled in 2009 due to a political crisis that weakened
government operations. Following an unconstitutional change of
government in March, the United States had limited engagement
with the de facto authorities, who did demonstrate a willingness to
cooperate in law enforcement matters, however. The government
budget suffered due to a suspension of foreign aid programs,
negatively affecting public investment throughout the island.
To combat terrorist threats, the government previously created
the Central Counterterrorism Service within the Ministry of Interior
to work with INTERPOL and to provide information within the
framework of regional and international cooperation. It also
created a special counterterrorism branch within the Central
Intelligence Service. These entities continued to function during
the year, but did not fulfill their full roles.
The Financial Intelligence Unit (SAMIFIN) launched in June 2008
to combat money laundering, including terrorist finance, remained
nominally operational, but its work was seriously limited by budget
constraints.
Although the Malagasy government took steps to create a coast
guard to improve maritime security and border control in 2008, no
further progress was made in 2009, and the coast guard was not
yet operational. Parliament was disbanded after the March coup,
so no action was taken on a draft 2008 bill that would have
implemented the provisions of several universal counterterrorism
instruments, including UN Security Council Resolution 1373.
Political unrest and limited resources severely constrained
Madagascar's ability to confront a potential terrorist threat. The
Malagasy authorities lacked the capacity to effectively monitor
suspect organizations, control suspicious financial transactions,
identify terrorist suspects, and control the movement of people
and goods across its borders.
____________________________________________________
Links:
Worldwide AML Legislation (International Bar Association)
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
| MADAGASCAR |
| KnowYourCountry |
|
|
| Last Updated: 16 April 2012 |