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FATF Statement re AML Strategic Deficiencies:
Date: 22 February 2013
In February 2010, Sudan made a high-level political commitment
to work with the FATF and MENAFATF to address its strategic
AML/CFT deficiencies. However, the FATF has determined that
certain strategic AML/CFT deficiencies remain. Sudan should
continue to work on implementing its action plan to address these
deficiencies, including by: (1) implementing adequate procedures
for identifying and freezing terrorist assets; (2) ensuring a fully
operational and effectively functioning Financial Intelligence Unit;
and (3) ensuring an effective supervisory programme for
AML/CFT compliance. The FATF welcomes the adoption of the
MENAFATF mutual evaluation report and will work with Sudan in
light of the significant additional deficiencies identified in the
report. The FATF encourages Sudan to address its remaining
deficiencies and continue the process of implementing its action
plan.
____________________________________________________
Sanctions:
12 May 2013 - OFAC has released its Quarterly Report of
Licensing Activities relating to license applications requesting
authorization to export agricultural commodities, medicine, and
medical devices to Iran and Sudan
Read Report (pdf file)
17 April 2013 - OFAC issues a general license to authorize
certain academic and professional exchange activities between
the United States and Sudan
Read License
The European Union adopted Council Regulation (EC) No
131/2004 of 26 January 2004 which implemented measures in the
EU prohibiting the supply of technical, financial and other
assistance related to military activities, with exemptions, directly or
indirectly to any person, entity or body in, or for use in Sudan.
By the adoption of UNSCR 1591 (2005) on 29 March 2005, the
United Nations imposed travel restrictions, with exemptions, and
an assets freeze on designated individuals. A Committee was
established to designate targets of the travel restrictions and
assets freeze. Designated targets were those deemed by the
Committee to be impeding the peace process, constituting a
threat to stability in Darfur and the region, committing human
rights violations and violating measures set out in previous
resolutions (primarily related to an arms embargo). For further
information:
http://www.hm-treasury.gov.uk/fin_sanctions_sudan.htm
For further info on current US sanctions:
http://www.treasury.gov/resource-
center/sanctions/Programs/pages/sudan.aspx
October 11 2012 - 2nd and 3rd Quarter FY 2012 Licensing
Activities undertaken pursuant to the Trade Sanctions Reform
and Export Enhancement Act of 2000 (TSRA) - reference to
Sudan
Read More
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:
Information unavailable.
____________________________________________________
US State Department Money Laundering Report - 2012:
Sudan became two states on July 09, 2011, resulting in Sudan
(rump Sudan) and a new country, South Sudan. Ongoing conflicts
in South Kordofan, Blue Nile, and Darfur states, a lack of basic
infrastructure in many rural areas, and a reliance by much of the
population on subsistence agriculture, ensures that much of the
population will remain at or below the poverty level for years to
come. Sudan currently has limited access to international financial
markets and institutions because of comprehensive U.S.
economic sanctions. Traders and other legitimate business
persons often carry large sums of cash because electronic
transfer of money outside of Sudan is challenging. This
dependence on large amounts of cash can complicate
enforcement efforts.
Sudan has been designated a State Sponsor of Terrorism by the
United States.
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
KNOW-YOUR-CUSTOMER (KYC) RULES:
Enhanced due diligence procedures for PEPs: Foreign: YES
Domestic: YES
KYC covered entities: Commercial banks, exchange and
brokerage firms, securities firms, insurance companies, gambling
clubs, estate brokerages, mineral and gem traders, attorneys,
and accountants
SUSPICIOUS TRANSACTION REPORTING (STR)
REQUIREMENTS:
Number of STRs received and time frame: 16 as of July 9, 2011
Number of CTRs received and time frame: Not available
STR covered entities: Commercial banks, exchange and
brokerage firms, securities firms, insurance companies, gambling
clubs, estate brokerages, mineral and gem traders, attorneys,
and accountants
MONEY LAUNDERING CRIMINAL
PROSECUTIONS/CONVICTIONS:
Prosecutions: None in 2011
Convictions: None
RECORDS EXCHANGE MECHANISM:
With U.S.: MLAT: NO Other mechanism: NO
With other governments/jurisdictions: YES
Sudan is a member of the Middle East and North Africa Financial
Action Task Force (MENAFATF), a Financial Action Task Force
(FATF)-style regional body. A MENAFATF mutual evaluation on-
site visit took place in December 2011. Once finalized, the report
can be found here: www.menafatf.org
Enforcement and implementation issues and comments:
Sudan’s links with international terrorist organizations led to
Sudan's 1993 designation as a State Sponsor of Terrorism. In
October 1997, the U.S. imposed comprehensive economic, trade,
and financial sanctions against Sudan.
In 2011, the Government of Sudan continued its efforts to raise its
approach to combating money laundering and other financial
crimes to international standards. The financial intelligence unit
and the Central Bank of Sudan concentrated on implementation of
the Money Laundering and Terrorism Financing Act (MLFTA) of
2010. The Central Bank published a circular in January 2011 with
updated know your customer regulations. It is unclear whether all
of the implementing regulations for the MLFTA are enforceable. In
March 2011, the Central Bank held the first meeting of the
compliance officers network with representatives from commercial
banks and other financial institutions.
Still, shortcomings exist. Investigatory capacity is limited, and
enforcement can be subject to political pressures. After the split
between South Sudan and Sudan, both countries introduced new
currencies, accompanied by inconsistent and, at times
contradictory, guidance for redeeming the old currencies. Large
volumes of cash transactions in the period between July and
September were commonplace and overwhelmed attempts to
police the nature of the dealings.
Going forward, Sudan must focus on full implementation of the
new law, and establishing and empowering effective enforcement
institutions, particularly the financial intelligence unit. Sudan
should become a party to the UN Convention against Corruption.
____________________________________________________
US State Dept Narcotics Report 2011:
Sudan is not an important illicit drug-producing or drug-transit
country. However, because of vast arable land, areas of
lawlessness, ineffective border controls, impoverished conditions,
and a vulnerability to corruption, the potential exists for Sudan to
cultivate and traffic illegal drugs on a far greater scale.
In Sudan, the central government unit responsible for liaison and
coordination of national drug control policy is the Drug Combat
Administration. The Ministry of Health is the competent authority
for the issuance of authorizations and certificates for the import
and export of licit narcotic drugs and psychotropic substances.
Sudan is party to the 1961 Single Convention on Narcotic Drugs
as amended by the 1972 Protocol, the 1971 Convention on
Psychotropic Substances, and the 1988 UN Drug Convention.
Sudan has signed cooperative agreements with Egypt, Saudi
Arabia, and Turkey for fighting drug trafficking. Sudan's Narcotic
Drugs and Psychotropic Substances Act, passed in 1994, is
designed to fulfill that country's treaty obligations under these
conventions. Sudan is also a party to the UN Convention against
Transnational Organized Crime.
Sudan has a government-controlled licensing system for the
manufacture, trade, and distribution of licit narcotics-based
pharmaceuticals. There is a prescription requirement for supply or
dispensation of preparations containing narcotic drugs and
psychotropic substances. The law does not require warnings on
packages or accompanying leaflet information to safeguard the
users of preparations containing narcotic drugs and psychotropic
substances.
Cannabis is the most prevalent illegal drug in Sudan. Other drugs
abused include barbiturates, heroin and cocaine. No data relating
to prevalence or use is available according to the United Nations.
Cannabis is cultivated in commercial quantities in the southern
areas of Darfur (the largest producing area in Sudan), southern
part of Blue Nile State, in Gedaref State and in the Upper Nile and
Bahr El-Ghazal regions. According to the Drug Combat
Administration, Sudanese authorities in 2009 seized over 17
metric tons of cannabis and arrested over 8000 individuals on
drug-related charges. The arrests were a two percent increase
over 2008; seizures were down 73 percent from the 63 metric
tons confiscated in 2008. Authorities from the Drug Combat
Administration maintain that the increase in arrests and decrease
in seizures reflects the effectiveness of a targeted campaign in
certain areas of the country including the States of Khartoum,
Northern Kordofan, Gedaref, El-Geziraa, Red Sea, River Nile and
Southern Darfur.
Accusations by Sudanese government officials that rebels groups
in the country are using the sale of narcotics drugs to finance
their operations have not been substantiated. Sudan does not
officially encourage or sanction drug trafficking, and there is no
evidence that senior officials are engaged in such activities.
For Full report, click here
____________________________________________________
US State Dept Trafficking in Persons Report 2012
(introduction):
(Tier 3)
Sudan is a source, transit, and destination country for men,
women, and children subjected to forced labor and sex trafficking.
Internal trafficking occurs in Sudanese territory both within and
outside of the government’s control. Sudanese women and girls,
particularly those from rural areas or who are internally displaced,
are vulnerable to forced labor as domestic workers in homes
throughout the country; most are believed to be working without
contracts or government-enforced labor protections. Some of
these women and girls are subsequently sexually abused by male
occupants of the household or forced to engage in commercial
sex acts. Sudanese girls engage in prostitution within the country –
including in restaurants and brothels – at times with the assistance
of third parties. Khartoum, Nyala, and Port Sudan have reportedly
seen a rise in child prostitution in recent years, as well as in
numbers of street children and child laborers – two groups which
are highly vulnerable to labor and sexual exploitation. There are
reports of organized child street begging in Khartoum and other
large cities.
Sudanese women and girls are subjected to domestic servitude in
Middle Eastern countries – such as Bahrain, Egypt, Saudi Arabia,
and Qatar – and to sex trafficking in European countries. Some
Sudanese men who voluntarily migrate to the Middle East as low-
skilled laborers face conditions indicative of forced labor.
Sudanese children in Saudi Arabia are used by criminal gangs for
forced begging and street vending. Sudanese and Eritrean
nationals in Israel reported being brutalized by smugglers from
the Rashaida tribe in the Sinai, including being chained together,
whipped and beaten, deprived of food, raped, and forced to do
domestic or manual labor at smugglers’ homes; some of these
individuals were not migrants, but were abducted from Khartoum,
Sudan-based refugee camps, or border crossings.
Sudan is a transit and destination country for Ethiopian and
Eritrean women, including illegal immigrants and refugees,
subjected to domestic servitude in Sudan and Middle Eastern
countries. Filipino migrant domestic workers and caregivers are
also victimized by forced labor in Khartoum. Foreign domestic
workers recruited by Khartoum-based employment agencies are
reportedly exposed to exploitative practices, such as retention of
salaries and physical abuse. In large cities, undocumented
migrants and refugees often face discriminatory working
conditions and endure exploitation because they feared
approaching police or being deported. Ethiopian, Eritrean, Somali,
and possibly Thai women are subjected to forced prostitution in
Sudan. Agents recruit young women from Ethiopia’s Oromia
region with promises of high-paying employment as domestic
workers, only to force them into prostitution in brothels in
Khartoum.
Thousands of Dinka women and children, and a fewer number of
children from the Nuba tribe, were abducted and subsequently
enslaved by members of the Missiriya and Rizeigat tribes during
the North-South civil war that spanned from 1983 until 2005.
Some of those enslaved remain with their captors.
During the reporting period, Sudanese children in Darfur were
forcibly conscripted, at times through abduction, and used by
armed groups, such as the Sudan Liberation Army (SLA)/Minni
Minawi, SLA/Abdul Wahid, Liberation and Justice Movement
(LJM), Justice and Equality Movement (JEM), and government-
supported Janjaweed militia. Government security forces also
used child soldiers; children were verified as being associated
with the government-aligned Popular Defense Forces (PDFs)
during the year in both Darfur and the “Two Areas” (South
Kordofan and Blue Nile). The SAF also reportedly armed, trained,
and used two tribes (Falata and Hawsa), including children, as
militia in Tadamon locality against the Sudanese People’s
Liberation Movement – North (SPLM-N). The SPLM-N forcibly
recruited and used child soldiers in South Kordofan and Blue Nile
states. There were also reports that elements in Sudan tied to
anti-South Sudanese militias – such as the South Sudanese
Defense Forces (SSDF) and the rebel groups of the late
Lieutenant General George Athor, the late Colonel Gatluak Gai,
and Captian Johnson Olonyi – kidnapped and forcibly recruited
ethnic Southerners, including children, to fight in the “Three
Areas” (including Abyei) on the side of the Government of Sudan
or with the SSDF rebels.
The Government of Sudan does not fully comply with the minimum
standards for the elimination of trafficking and is not making
significant efforts to do so. While the government took some initial
steps during the reporting period to acknowledge the existence of
trafficking, draft anti-trafficking legislation, prosecute suspected
traffickers, demobilize and reintegrate child soldiers, and waive
overstay fines for foreign domestic workers, its efforts to combat
human trafficking through law enforcement, protection, or
prevention measures were undertaken in an ad hoc fashion,
rather than as the result of strategic planning. The government
convicted three traffickers, but did not officially identify trafficking
victims or make public data regarding its efforts to combat human
trafficking. Its proxy militias reportedly unlawfully recruited and
used child soldiers during the reporting period, and it did not take
action to conclude a proposed action plan with the UN to address
the problem.
For full report click here
____________________________________________________
US State Dept Terrorism Report 2011
Sudan was designated as a State Sponsor of Terrorism in 1993.
In 2011, Sudan was a cooperative counterterrorism partner of the
United States.
Elements of several designated terrorist groups including al-
Qa'ida (AQ)-inspired terrorist groups remained in Sudan. The
Government of Sudan has reportedly taken steps to limit the
activities of these organizations and worked to disrupt foreign
fighters' use of Sudan as a logistics base and transit point for
violent extremists going to Iraq and Afghanistan. However, gaps
remained in the Government of Sudan's knowledge of and ability
to identify and capture these individuals. There was some
evidence to suggest that former participants in the Iraqi
insurgency have returned to Sudan and are in a position to use
their expertise to conduct attacks within Sudan or to pass on their
knowledge. There was also evidence that Sudanese extremists
participated in terrorist activities in Somalia, activities that the
Government of Sudan has also reportedly attempted to disrupt.
In addition, Palestinian Islamic Jihad (PIJ) and Hamas maintained
a presence in Sudan and Hamas has increased its presence
there since late 2011. Hamas leader Khaled Meshaal visited
Khartoum in November 2011, and Hamas political chief Ismail
Haniyeh led a delegation of Hamas officials to Khartoum in late
December during a regional tour. In addition, Haniyeh was
President Bashir's guest of honor at the Sudanese independence
celebrations on December 31. With the exception of Hamas,
whose members the Government of Sudan does not consider to
be terrorists, the government does not openly support the
presence of terrorist elements within its borders.
Khartoum also has maintained a relationship with Iran. In 2011,
President Bashir and the Sudanese Ambassador to Iran both met
with Iranian President Mahmoud Ahmadinejad to discuss
bolstering political and economic ties between Khartoum and
Tehran.
In June of 2010, four Sudanese men sentenced to death for the
January 1, 2008 killing of U.S. diplomat John Granville and his
Sudanese driver, escaped from Khartoum's maximum security
Khobar Prison. That same month Sudanese authorities confirmed
that they recaptured one of the four convicts and a second
escapee was reportedly killed in Somalia in May 2011. The
whereabouts of the other two convicts remained unknown.
Two cases stemmed from the murder of the two U.S. Embassy
employees: in the first, the Sudanese Supreme Court was
deliberating on an appeal filed by defense attorneys for the three
surviving men convicted of the two murders requesting that their
death sentences be commuted. The second case was the trial
against five people allegedly involved in the escape of the four
convicts from Khobar prison. The last court session on this case
was held on November 22.
Sudan is a member of the Middle East North Africa Financial
Action Task Force, a Financial Action Task Force (FATF)-style
regional body. Through the FATF's International Cooperation
Review Group process, Sudan has made significant progress in
the establishment and development of its Anti-Money
Laundering/Counterterrorist Finance (AML/CTF) regime. Toward
the end of 2011, Sudan introduced an inspection program for
banks. Sudan has not yet implemented adequate procedures for
identifying and freezing terrorist assets, or ensured an effective
supervisory program for AML/CTF compliance. Sudan's Financial
Intelligence Unit is not fully functional.
____________________________________________________________
Links:
Worldwide AML Legislation (International Bar Association)
Date: 22 February 2013
In February 2010, Sudan made a high-level political commitment
to work with the FATF and MENAFATF to address its strategic
AML/CFT deficiencies. However, the FATF has determined that
certain strategic AML/CFT deficiencies remain. Sudan should
continue to work on implementing its action plan to address these
deficiencies, including by: (1) implementing adequate procedures
for identifying and freezing terrorist assets; (2) ensuring a fully
operational and effectively functioning Financial Intelligence Unit;
and (3) ensuring an effective supervisory programme for
AML/CFT compliance. The FATF welcomes the adoption of the
MENAFATF mutual evaluation report and will work with Sudan in
light of the significant additional deficiencies identified in the
report. The FATF encourages Sudan to address its remaining
deficiencies and continue the process of implementing its action
plan.
____________________________________________________
Sanctions:
12 May 2013 - OFAC has released its Quarterly Report of
Licensing Activities relating to license applications requesting
authorization to export agricultural commodities, medicine, and
medical devices to Iran and Sudan
Read Report (pdf file)
17 April 2013 - OFAC issues a general license to authorize
certain academic and professional exchange activities between
the United States and Sudan
Read License
The European Union adopted Council Regulation (EC) No
131/2004 of 26 January 2004 which implemented measures in the
EU prohibiting the supply of technical, financial and other
assistance related to military activities, with exemptions, directly or
indirectly to any person, entity or body in, or for use in Sudan.
By the adoption of UNSCR 1591 (2005) on 29 March 2005, the
United Nations imposed travel restrictions, with exemptions, and
an assets freeze on designated individuals. A Committee was
established to designate targets of the travel restrictions and
assets freeze. Designated targets were those deemed by the
Committee to be impeding the peace process, constituting a
threat to stability in Darfur and the region, committing human
rights violations and violating measures set out in previous
resolutions (primarily related to an arms embargo). For further
information:
http://www.hm-treasury.gov.uk/fin_sanctions_sudan.htm
For further info on current US sanctions:
http://www.treasury.gov/resource-
center/sanctions/Programs/pages/sudan.aspx
October 11 2012 - 2nd and 3rd Quarter FY 2012 Licensing
Activities undertaken pursuant to the Trade Sanctions Reform
and Export Enhancement Act of 2000 (TSRA) - reference to
Sudan
Read More
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:
Information unavailable.
____________________________________________________
US State Department Money Laundering Report - 2012:
Sudan became two states on July 09, 2011, resulting in Sudan
(rump Sudan) and a new country, South Sudan. Ongoing conflicts
in South Kordofan, Blue Nile, and Darfur states, a lack of basic
infrastructure in many rural areas, and a reliance by much of the
population on subsistence agriculture, ensures that much of the
population will remain at or below the poverty level for years to
come. Sudan currently has limited access to international financial
markets and institutions because of comprehensive U.S.
economic sanctions. Traders and other legitimate business
persons often carry large sums of cash because electronic
transfer of money outside of Sudan is challenging. This
dependence on large amounts of cash can complicate
enforcement efforts.
Sudan has been designated a State Sponsor of Terrorism by the
United States.
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
KNOW-YOUR-CUSTOMER (KYC) RULES:
Enhanced due diligence procedures for PEPs: Foreign: YES
Domestic: YES
KYC covered entities: Commercial banks, exchange and
brokerage firms, securities firms, insurance companies, gambling
clubs, estate brokerages, mineral and gem traders, attorneys,
and accountants
SUSPICIOUS TRANSACTION REPORTING (STR)
REQUIREMENTS:
Number of STRs received and time frame: 16 as of July 9, 2011
Number of CTRs received and time frame: Not available
STR covered entities: Commercial banks, exchange and
brokerage firms, securities firms, insurance companies, gambling
clubs, estate brokerages, mineral and gem traders, attorneys,
and accountants
MONEY LAUNDERING CRIMINAL
PROSECUTIONS/CONVICTIONS:
Prosecutions: None in 2011
Convictions: None
RECORDS EXCHANGE MECHANISM:
With U.S.: MLAT: NO Other mechanism: NO
With other governments/jurisdictions: YES
Sudan is a member of the Middle East and North Africa Financial
Action Task Force (MENAFATF), a Financial Action Task Force
(FATF)-style regional body. A MENAFATF mutual evaluation on-
site visit took place in December 2011. Once finalized, the report
can be found here: www.menafatf.org
Enforcement and implementation issues and comments:
Sudan’s links with international terrorist organizations led to
Sudan's 1993 designation as a State Sponsor of Terrorism. In
October 1997, the U.S. imposed comprehensive economic, trade,
and financial sanctions against Sudan.
In 2011, the Government of Sudan continued its efforts to raise its
approach to combating money laundering and other financial
crimes to international standards. The financial intelligence unit
and the Central Bank of Sudan concentrated on implementation of
the Money Laundering and Terrorism Financing Act (MLFTA) of
2010. The Central Bank published a circular in January 2011 with
updated know your customer regulations. It is unclear whether all
of the implementing regulations for the MLFTA are enforceable. In
March 2011, the Central Bank held the first meeting of the
compliance officers network with representatives from commercial
banks and other financial institutions.
Still, shortcomings exist. Investigatory capacity is limited, and
enforcement can be subject to political pressures. After the split
between South Sudan and Sudan, both countries introduced new
currencies, accompanied by inconsistent and, at times
contradictory, guidance for redeeming the old currencies. Large
volumes of cash transactions in the period between July and
September were commonplace and overwhelmed attempts to
police the nature of the dealings.
Going forward, Sudan must focus on full implementation of the
new law, and establishing and empowering effective enforcement
institutions, particularly the financial intelligence unit. Sudan
should become a party to the UN Convention against Corruption.
____________________________________________________
US State Dept Narcotics Report 2011:
Sudan is not an important illicit drug-producing or drug-transit
country. However, because of vast arable land, areas of
lawlessness, ineffective border controls, impoverished conditions,
and a vulnerability to corruption, the potential exists for Sudan to
cultivate and traffic illegal drugs on a far greater scale.
In Sudan, the central government unit responsible for liaison and
coordination of national drug control policy is the Drug Combat
Administration. The Ministry of Health is the competent authority
for the issuance of authorizations and certificates for the import
and export of licit narcotic drugs and psychotropic substances.
Sudan is party to the 1961 Single Convention on Narcotic Drugs
as amended by the 1972 Protocol, the 1971 Convention on
Psychotropic Substances, and the 1988 UN Drug Convention.
Sudan has signed cooperative agreements with Egypt, Saudi
Arabia, and Turkey for fighting drug trafficking. Sudan's Narcotic
Drugs and Psychotropic Substances Act, passed in 1994, is
designed to fulfill that country's treaty obligations under these
conventions. Sudan is also a party to the UN Convention against
Transnational Organized Crime.
Sudan has a government-controlled licensing system for the
manufacture, trade, and distribution of licit narcotics-based
pharmaceuticals. There is a prescription requirement for supply or
dispensation of preparations containing narcotic drugs and
psychotropic substances. The law does not require warnings on
packages or accompanying leaflet information to safeguard the
users of preparations containing narcotic drugs and psychotropic
substances.
Cannabis is the most prevalent illegal drug in Sudan. Other drugs
abused include barbiturates, heroin and cocaine. No data relating
to prevalence or use is available according to the United Nations.
Cannabis is cultivated in commercial quantities in the southern
areas of Darfur (the largest producing area in Sudan), southern
part of Blue Nile State, in Gedaref State and in the Upper Nile and
Bahr El-Ghazal regions. According to the Drug Combat
Administration, Sudanese authorities in 2009 seized over 17
metric tons of cannabis and arrested over 8000 individuals on
drug-related charges. The arrests were a two percent increase
over 2008; seizures were down 73 percent from the 63 metric
tons confiscated in 2008. Authorities from the Drug Combat
Administration maintain that the increase in arrests and decrease
in seizures reflects the effectiveness of a targeted campaign in
certain areas of the country including the States of Khartoum,
Northern Kordofan, Gedaref, El-Geziraa, Red Sea, River Nile and
Southern Darfur.
Accusations by Sudanese government officials that rebels groups
in the country are using the sale of narcotics drugs to finance
their operations have not been substantiated. Sudan does not
officially encourage or sanction drug trafficking, and there is no
evidence that senior officials are engaged in such activities.
For Full report, click here
____________________________________________________
US State Dept Trafficking in Persons Report 2012
(introduction):
(Tier 3)
Sudan is a source, transit, and destination country for men,
women, and children subjected to forced labor and sex trafficking.
Internal trafficking occurs in Sudanese territory both within and
outside of the government’s control. Sudanese women and girls,
particularly those from rural areas or who are internally displaced,
are vulnerable to forced labor as domestic workers in homes
throughout the country; most are believed to be working without
contracts or government-enforced labor protections. Some of
these women and girls are subsequently sexually abused by male
occupants of the household or forced to engage in commercial
sex acts. Sudanese girls engage in prostitution within the country –
including in restaurants and brothels – at times with the assistance
of third parties. Khartoum, Nyala, and Port Sudan have reportedly
seen a rise in child prostitution in recent years, as well as in
numbers of street children and child laborers – two groups which
are highly vulnerable to labor and sexual exploitation. There are
reports of organized child street begging in Khartoum and other
large cities.
Sudanese women and girls are subjected to domestic servitude in
Middle Eastern countries – such as Bahrain, Egypt, Saudi Arabia,
and Qatar – and to sex trafficking in European countries. Some
Sudanese men who voluntarily migrate to the Middle East as low-
skilled laborers face conditions indicative of forced labor.
Sudanese children in Saudi Arabia are used by criminal gangs for
forced begging and street vending. Sudanese and Eritrean
nationals in Israel reported being brutalized by smugglers from
the Rashaida tribe in the Sinai, including being chained together,
whipped and beaten, deprived of food, raped, and forced to do
domestic or manual labor at smugglers’ homes; some of these
individuals were not migrants, but were abducted from Khartoum,
Sudan-based refugee camps, or border crossings.
Sudan is a transit and destination country for Ethiopian and
Eritrean women, including illegal immigrants and refugees,
subjected to domestic servitude in Sudan and Middle Eastern
countries. Filipino migrant domestic workers and caregivers are
also victimized by forced labor in Khartoum. Foreign domestic
workers recruited by Khartoum-based employment agencies are
reportedly exposed to exploitative practices, such as retention of
salaries and physical abuse. In large cities, undocumented
migrants and refugees often face discriminatory working
conditions and endure exploitation because they feared
approaching police or being deported. Ethiopian, Eritrean, Somali,
and possibly Thai women are subjected to forced prostitution in
Sudan. Agents recruit young women from Ethiopia’s Oromia
region with promises of high-paying employment as domestic
workers, only to force them into prostitution in brothels in
Khartoum.
Thousands of Dinka women and children, and a fewer number of
children from the Nuba tribe, were abducted and subsequently
enslaved by members of the Missiriya and Rizeigat tribes during
the North-South civil war that spanned from 1983 until 2005.
Some of those enslaved remain with their captors.
During the reporting period, Sudanese children in Darfur were
forcibly conscripted, at times through abduction, and used by
armed groups, such as the Sudan Liberation Army (SLA)/Minni
Minawi, SLA/Abdul Wahid, Liberation and Justice Movement
(LJM), Justice and Equality Movement (JEM), and government-
supported Janjaweed militia. Government security forces also
used child soldiers; children were verified as being associated
with the government-aligned Popular Defense Forces (PDFs)
during the year in both Darfur and the “Two Areas” (South
Kordofan and Blue Nile). The SAF also reportedly armed, trained,
and used two tribes (Falata and Hawsa), including children, as
militia in Tadamon locality against the Sudanese People’s
Liberation Movement – North (SPLM-N). The SPLM-N forcibly
recruited and used child soldiers in South Kordofan and Blue Nile
states. There were also reports that elements in Sudan tied to
anti-South Sudanese militias – such as the South Sudanese
Defense Forces (SSDF) and the rebel groups of the late
Lieutenant General George Athor, the late Colonel Gatluak Gai,
and Captian Johnson Olonyi – kidnapped and forcibly recruited
ethnic Southerners, including children, to fight in the “Three
Areas” (including Abyei) on the side of the Government of Sudan
or with the SSDF rebels.
The Government of Sudan does not fully comply with the minimum
standards for the elimination of trafficking and is not making
significant efforts to do so. While the government took some initial
steps during the reporting period to acknowledge the existence of
trafficking, draft anti-trafficking legislation, prosecute suspected
traffickers, demobilize and reintegrate child soldiers, and waive
overstay fines for foreign domestic workers, its efforts to combat
human trafficking through law enforcement, protection, or
prevention measures were undertaken in an ad hoc fashion,
rather than as the result of strategic planning. The government
convicted three traffickers, but did not officially identify trafficking
victims or make public data regarding its efforts to combat human
trafficking. Its proxy militias reportedly unlawfully recruited and
used child soldiers during the reporting period, and it did not take
action to conclude a proposed action plan with the UN to address
the problem.
For full report click here
____________________________________________________
US State Dept Terrorism Report 2011
Sudan was designated as a State Sponsor of Terrorism in 1993.
In 2011, Sudan was a cooperative counterterrorism partner of the
United States.
Elements of several designated terrorist groups including al-
Qa'ida (AQ)-inspired terrorist groups remained in Sudan. The
Government of Sudan has reportedly taken steps to limit the
activities of these organizations and worked to disrupt foreign
fighters' use of Sudan as a logistics base and transit point for
violent extremists going to Iraq and Afghanistan. However, gaps
remained in the Government of Sudan's knowledge of and ability
to identify and capture these individuals. There was some
evidence to suggest that former participants in the Iraqi
insurgency have returned to Sudan and are in a position to use
their expertise to conduct attacks within Sudan or to pass on their
knowledge. There was also evidence that Sudanese extremists
participated in terrorist activities in Somalia, activities that the
Government of Sudan has also reportedly attempted to disrupt.
In addition, Palestinian Islamic Jihad (PIJ) and Hamas maintained
a presence in Sudan and Hamas has increased its presence
there since late 2011. Hamas leader Khaled Meshaal visited
Khartoum in November 2011, and Hamas political chief Ismail
Haniyeh led a delegation of Hamas officials to Khartoum in late
December during a regional tour. In addition, Haniyeh was
President Bashir's guest of honor at the Sudanese independence
celebrations on December 31. With the exception of Hamas,
whose members the Government of Sudan does not consider to
be terrorists, the government does not openly support the
presence of terrorist elements within its borders.
Khartoum also has maintained a relationship with Iran. In 2011,
President Bashir and the Sudanese Ambassador to Iran both met
with Iranian President Mahmoud Ahmadinejad to discuss
bolstering political and economic ties between Khartoum and
Tehran.
In June of 2010, four Sudanese men sentenced to death for the
January 1, 2008 killing of U.S. diplomat John Granville and his
Sudanese driver, escaped from Khartoum's maximum security
Khobar Prison. That same month Sudanese authorities confirmed
that they recaptured one of the four convicts and a second
escapee was reportedly killed in Somalia in May 2011. The
whereabouts of the other two convicts remained unknown.
Two cases stemmed from the murder of the two U.S. Embassy
employees: in the first, the Sudanese Supreme Court was
deliberating on an appeal filed by defense attorneys for the three
surviving men convicted of the two murders requesting that their
death sentences be commuted. The second case was the trial
against five people allegedly involved in the escape of the four
convicts from Khobar prison. The last court session on this case
was held on November 22.
Sudan is a member of the Middle East North Africa Financial
Action Task Force, a Financial Action Task Force (FATF)-style
regional body. Through the FATF's International Cooperation
Review Group process, Sudan has made significant progress in
the establishment and development of its Anti-Money
Laundering/Counterterrorist Finance (AML/CTF) regime. Toward
the end of 2011, Sudan introduced an inspection program for
banks. Sudan has not yet implemented adequate procedures for
identifying and freezing terrorist assets, or ensured an effective
supervisory program for AML/CTF compliance. Sudan's Financial
Intelligence Unit is not fully functional.
____________________________________________________________
Links:
Worldwide AML Legislation (International Bar Association)
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| Further Tables |
*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.
Key Findings
This report provides a summary of the AML/CFT measures in place in
the Republic of Sudan as at the date of the on-site visit or immediately
thereafter. The report describes and analyzes these measures, and
specifies the levels of Sudan’s compliance with the FATF 40
Recommendations and 9 Special Recommendations.
Despite enjoying tremendous and diverse resources, Sudan is not
considered one of the financial hubs in the region due to several
reasons that largely prevented the development and expansion of the
financial and non-financial sectors over the past years. Sudan suffers
from an array of internal and external circumstances that increase
risks of ML/TF activities. However, limited transactions using foreign
currency, the focus on local clients in the financial sector, the weak
growth of some sectors such as insurance and stock companies may
reduce the importance of these risks especially in large-scope misuse
of the financial sector in ML operations.
Sudan criminalized ML as of 2003 without being effective enough. With
regard to the financing of terrorism, it was criminalized under the
AML/CFT Law for 2010. The 2010 Law included a main AML/CFT
framework whether in developing a basis for preventive measures for
the financial and non-financial institutions for AML/CFT in the financial
and non-financial sector or in establishing a regulatory and
supervisory framework to ensure compliance with applying
requirements of international standards in this field. In the same area,
the law is supported by an array of instructions and regulations issued
by supervisory entities as per the law requirements. By virtue of 2010
Law, a Financial Information Unit (FIU) was established to assume
assigned tasks and duties. It was separated from the high
administrative committee in charge of developing public AML/CFT
policies.
On the other hand, the AML/CFT regime in Sudan seems to be in need
for more coordination and regulation by achieving integration between
the law and regulatory tools issued to ensure its implementation so
that an appropriate basis is available enabling the financial and non-
financial institutions to perform their role in this regard in an
acceptable way and to enable competent authorities, especially law
enforcement authorities, to perform their assigned tasks in tracing and
preventing the misuse of these institutions in financial criminal
activities. Competent authorities also need to provide an adequate
environment allowing the provision of accurate and clear data,
information and statistics in most of the sectors especially authorities
concerned with international cooperation. Moreover, the financial and
non-financial institutions need more awareness, human and financial
resources and training to develop their efficiency and upgrade their
readiness to deal with ML/FT risks in Sudan.
Read Full Report (pdf file)
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.
Key Findings
This report provides a summary of the AML/CFT measures in place in
the Republic of Sudan as at the date of the on-site visit or immediately
thereafter. The report describes and analyzes these measures, and
specifies the levels of Sudan’s compliance with the FATF 40
Recommendations and 9 Special Recommendations.
Despite enjoying tremendous and diverse resources, Sudan is not
considered one of the financial hubs in the region due to several
reasons that largely prevented the development and expansion of the
financial and non-financial sectors over the past years. Sudan suffers
from an array of internal and external circumstances that increase
risks of ML/TF activities. However, limited transactions using foreign
currency, the focus on local clients in the financial sector, the weak
growth of some sectors such as insurance and stock companies may
reduce the importance of these risks especially in large-scope misuse
of the financial sector in ML operations.
Sudan criminalized ML as of 2003 without being effective enough. With
regard to the financing of terrorism, it was criminalized under the
AML/CFT Law for 2010. The 2010 Law included a main AML/CFT
framework whether in developing a basis for preventive measures for
the financial and non-financial institutions for AML/CFT in the financial
and non-financial sector or in establishing a regulatory and
supervisory framework to ensure compliance with applying
requirements of international standards in this field. In the same area,
the law is supported by an array of instructions and regulations issued
by supervisory entities as per the law requirements. By virtue of 2010
Law, a Financial Information Unit (FIU) was established to assume
assigned tasks and duties. It was separated from the high
administrative committee in charge of developing public AML/CFT
policies.
On the other hand, the AML/CFT regime in Sudan seems to be in need
for more coordination and regulation by achieving integration between
the law and regulatory tools issued to ensure its implementation so
that an appropriate basis is available enabling the financial and non-
financial institutions to perform their role in this regard in an
acceptable way and to enable competent authorities, especially law
enforcement authorities, to perform their assigned tasks in tracing and
preventing the misuse of these institutions in financial criminal
activities. Competent authorities also need to provide an adequate
environment allowing the provision of accurate and clear data,
information and statistics in most of the sectors especially authorities
concerned with international cooperation. Moreover, the financial and
non-financial institutions need more awareness, human and financial
resources and training to develop their efficiency and upgrade their
readiness to deal with ML/FT risks in Sudan.
Read Full Report (pdf file)
| SUDAN |
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Know
Your
Country
Your
Country
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| AML News/Updates 20 May 2013 - MENAFATF release Mutual Evaluation Report Key Findings below 12 May 2013 - OFAC has released its Quarterly Report of Licensing Activities relating to license applications requesting authorization to export agricultural commodities, medicine, and medical devices to Iran and Sudan Read Report (pdf file) 17 April 2013 - OFAC issues a general license to authorize certain academic and professional exchange activities between the United States and Sudan Read License 24 January 2013 - OFAC release 4th Quarter FY2012 Licensing Activities Undertaken Pursuant to the Trade Sanctions Reform and Export Enhancement Act of 2000 (TSRA) - relating to Iran & Sudan Read More 11 October 2012 - 2nd and 3rd Quarter FY 2012 Licensing Activities undertaken pursuant to the Trade Sanctions Reform and Export Enhancement Act of 2000 (TSRA) - reference to Iran and Sudan Read More |
| Last Updated: 20 May 2013 |
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