West African Economic and Monetary Union - Financial Sector Assessment Program - Technical Note - Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) Supervision of the Banking Sector

Jul 19, 2026

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This technical note examines anti-money laundering and combating the financing of terrorism (AML/CFT) supervision in the banking sector of the West African Economic and Monetary Union. Prepared within the Financial Sector Assessment Program framework, it provides technical analysis and detailed inputs supporting the FSAP findings and recommendations. Coverage spans regional mutual evaluation status, recent reforms, institutional responsibilities, off-site supervision inputs and feedback, risk assessment modeling, and on-site inspection planning, results, sanctions, and corrective actions, plus domestic and international cooperation measures.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages36

Reading Time1 h 31 min

Executive Summary

Background

Status of AML/CFT Mutual Evaluations in the Region

Key, Recent Reforms to the Regional Framework

Institutional Framework and Banking Sector Landscape

Mandate and Responsibilities of the Banking Commission

Organizational Structure of the General Secretariat

Banking Sector Landscape

Off-Site Supervision Program

Inputs to Perform Off-Site Supervision

Results and Feedback Provided

Recommendations: Off-Site Supervision

Risk Assessment Model

Inputs

Weighting of Risk Factors

Results

Recommendations: Risk Rating

On-Site Inspection Program

Selection of Banks to Inspect

Methodology

Results: Deficiencies and Sanctions or Corrective Measures

Recommendations: On-Site Inspections

Domestic and International Cooperation

Cooperation with National Financial Intelligence Units

Exchange of Information with Extra-Regional Counterparts

Recommendations: Domestic and International Cooperation

Tables

Glossary

Public Disc losure Authorized June 2022 Authorized Pub lic Disc losure Authorized WEST AFRICAN ECONOMIC AND MONETARY UNION FINANCIAL SECTOR ASSESSMENT PROGRAM TECHNICAL NOTE ANTI-MONEY LAUNDERING AND COMBATING THE FINANCING OF TERRORISM (AML/CFT) SUPERVISION OF THE BANKING SECTOR Prepared By Legal Department, IMF Finance Competitiveness and Innovation, World Bank This Technical Note was prepared by IMF and World Bank staff in the context of the Financial Sector Assessment Program. It contains technical analysis and detailed information underpinning the FSAP’s findingsand recommendations. Further information on the FSAP can be found at [http://www.imf.org/external/np/fsap/fssa.aspx](http://www.imf.org/external/np/fsap/fssa.aspx) INTERNATIONAL MONETARY FUND THE WORLD BANK CONTENTS GLOSSARY _______________________________________________________________________________________4 EXECUTIVE SUMMARY __________________________________________________________________________ 5 BACKGROUND_________________________________________________________________________________ 10 A. Status of AML/CFT Mutual Evaluations in the Region _________________________________________11 B. Key, Recent Reforms to the Regional Framework______________________________________________12 INSTITUTIONAL FRAMEWORK AND BANKING SECTOR LANDSCAPE ______________________ 13 A. Mandate and Responsibilities of the Banking Commission____________________________________13 B. Organizational Structure of the General Secretariat ___________________________________________14 C. Banking Sector Landscape ____________________________________________________________________14 OFF-SITE SUPERVISION PROGRAM___________________________________________________________ 15 A. Inputs to Perform Off-Site Supervision________________________________________________________17 B. Results and Feedback Provided _______________________________________________________________19 C. Recommendations: Off-Site Supervision ______________________________________________________20 RISK ASSESSMENT MODEL____________________________________________________________________ 21 A. Inputs _________________________________________________________________________________________22 B. Weighting of Risk Factors _____________________________________________________________________23 C. Results ________________________________________________________________________________________23 D. Recommendations: Risk Rating _______________________________________________________________24 ON-SITE INSPECTION PROGRAM_____________________________________________________________ 26 A. Selection of Banks to Inspect__________________________________________________________________27 B. Methodology__________________________________________________________________________________28 C. Results: Deficiencies and Sanctions or Corrective Measures___________________________________31 D. Recommendations: On-Site Inspections ______________________________________________________33 DOMESTIC AND INTERNATIONAL COOPERATION __________________________________________ 34 A. Cooperation with National Financial Intelligence Units________________________________________34 B. Exchange of Information with Extra-Regional Counterparts ___________________________________35 C. Recommendations: Domestic and International Cooperation _________________________________36 TABLES 1. AML/CFT Supervision of the WAEMU Banking Sector: Reform Recommendations _____________ 8 2. WAEMU Member-States’ MER Status as of December 2021 ___________________________________11 3. Banks Under BC Supervision, by Country ______________________________________________________15 4. ML/TF Risk-Ratings of WAEMU Region Banks from 2018–2020 _______________________________ 24 5. GSBC On-Site Inspections of Banks from January 2018–December 2021 ______________________ 26 GLOSSARY AML/CFT BC BC

FAQs

What is the purpose of this technical note in the FSAP context?

It discusses AML/CFT supervision and provides technical analysis and detailed information underpinning FSAP findings and recommendations.

Which supervisory components are covered for the banking sector?

The note covers off-site supervision, risk assessment modeling, and on-site inspection programming, including recommendations for each.

How does the note address coordination and information sharing beyond national authorities?

It includes domestic cooperation with national financial intelligence units and exchange of information with extra-regional counterparts, with corresponding recommendations.

Jul 19, 2026

Upload by Finn