THE ANTI-MONEY LAUNDERING AND COUNTER-TERRORIST FINANCING FRAMEWORK IN THE WEST AFRICAN ECONOMIC AND MONETARY UNION (UEMOA) 2005

TABLE OF CONTENTS
INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 I - PRESENTATION OF THE ANTI-MONEY LAUNDERING AND COUNTER-TERRORIST FINANCING FRAMEWORK IN UEMOA . . . . . . . . . . . . . . . . . . . . . 7

1. Anti-Money Laundering Framework . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
2. Counter-Terrorist Financing Framework . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
   II - LEGAL AND REGULATORY TEXTS RELATING TO ANTI-MONEY LAUNDERING AND COUNTER-TERRORIST FINANCING IN UEMOA . . . . . . . . 11
3. Directive N° 07/2002/CM/UEMOA on the Fight Against Money Laundering in UEMOA Member States . . . . . . . . . . . . . . . . . . . 13
4. Uniform Law on the Fight Against Money Laundering in UEMOA Member States . . . . . . . . . . . . . . . . . . . 27
5. Framework Decree on the Creation, Organization and Operation of a National Financial Information Processing Unit . . . . 60
6. Regulation n° 14/2002/CM/UEMOA on the Freezing of Funds and Other Financial Resources in the Fight Against Terrorist Financing . . 63
7. Decision n° 06/2003/CM/UEMOA on the List of Persons, Entities or Organizations Subject to Fund Freezing . . . . . . . . . . 66
8. Decision N° 04/2004/CM/UEMOA Amending Decision N° 06/2003/CM/UEMOA of June 26, 2003 . . . . . . . . . . . . . . . . 68
   ANNEXES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
   Annex 1: List of Community-Adopted Texts . . . . . . . . . . . . . . . . . . . . . . . . 73
   Annex 2: References of Texts Adopted by Member States . . . . . . . . . . . . 75

INTRODUCTION

THE ANTI-MONEY LAUNDERING AND COUNTER-TERRORIST FINANCING FRAMEWORK in the member states of the West African Economic and Monetary Union (UEMOA) consists of a set of legislative and regulatory texts approved by Community Authorities, which have been incorporated or are in the process of being integrated into the internal legal order of each State. It reinforces the protection measures for the integrity of the Union's financial system, contained in regulatory texts governing banking and financial operations, notably the banking law and the regulation on external financial relations.

This framework comprises two complementary pillars: one focusing on anti-money laundering and the other on counter-terrorist financing.

This document outlines the main characteristics of the framework and lists the approved legal and regulatory texts. It serves as a reference tool for professionals and any other person wishing to learn more on the subject.

This reference document will be updated periodically. In this regard, observations and suggestions to improve its content are welcome.

I - PRESENTATION OF THE ANTI-MONEY LAUNDERING AND COUNTER-TERRORIST FINANCING FRAMEWORK IN UEMOA

1. Anti-Money Laundering Framework

The UEMOA anti-money laundering framework is based on the Uniform Law on the Fight Against Money Laundering, approved by the Council of Ministers of the West African Monetary Union (UMOA) on March 20, 2003, in Ouagadougou. This law transposes Directive N° 07/2002/CM/UEMOA on the Fight Against Money Laundering in UEMOA Member States, adopted by the Council of Ministers during its session on September 19, 2002, in Cotonou.

The Uniform Law establishes a legal framework to prevent the use of economic and financial circuits for recycling illicitly sourced capital. Its scope covers any natural or legal person who, within the framework of their profession, carries out, controls, or advises on operations involving deposits, exchanges, investments, conversions, or all other capital movements. This applies to both financial and non-financial sector entities, notably legal professionals for certain activities, money couriers, high-value goods dealers, and gaming establishments.

Under the prevention of money laundering, the Uniform Law defines the procedures for obliged entities to identify their clientele (regular and occasional) and the conditions for retaining supporting documents for executed operations. Furthermore, it provides provisions governing the establishment by financial institutions of internal prevention programs to better detect money laundering operations.

The procedures for detecting money laundering operations have been organized, along with the reporting procedures for suspicious transactions. In addition, the liability regime applicable to obliged entities and the State, as well as the lifting of professional secrecy in connection with money laundering investigations, are contained within the law. Furthermore, each Member State of the Union is required to establish a National Financial Information Processing Unit (CENTIF), whose investigative work should enable the transition from presumption to suspicion and, where appropriate, referral to judicial authorities.

Regarding coercive actions, the Uniform Law provides for administrative and penal sanctions applicable to natural and legal persons, as well as conservatory measures that may be taken by the investigating judge. These include, notably, the seizure or confiscation of assets related to the money laundering offense. In this regard, the quantum of sanctions reflects the intention to ensure severe repression of money laundering acts while maintaining their correctional character across all UEMOA Member States, thereby fostering genuine judicial cooperation.

A dedicated title addresses international cooperation to promote consultation and joint actions among Member States, developing regional and international mutual legal assistance. In this regard, the space comprising the eight UEMOA Member States is considered a single territory, particularly for the application of the Uniform Law. This measure aims to organize more effectively judicial procedures already initiated or merely proposed, so that related proceedings are effectively exercised in the best-placed Member State. Regarding judicial assistance, mechanisms to facilitate cooperation in investigations have been put in place, enabling the exchange of information and evidence between Member States, as well as the performance of investigative operations. Extradition conditions have been defined to streamline required procedures. Furthermore, the confiscation of criminal assets is authorized as broadly as possible.

Based on the latest available information, the Uniform Law was adopted and promulgated in Guinea-Bissau, Niger, and Senegal during 2004. Moreover, in Senegal and Niger, decrees creating the CENTIF were signed on August 18, 2004, and October 20, 2004, respectively, and participating structures have designated their representatives. In other States, the process of integrating the project into their internal legal order continues.

2. Counter-Terrorist Financing Framework

Pending the upcoming implementation of specific legislation on terrorist financing, Regulation N° 14/2002/CM/UEMOA on the Freezing of Funds in the Fight Against Terrorist Financing within UEMOA was adopted by the Council of Ministers on September 19, 2002.

This Framework Regulation makes enforceable the Fund Freezing Decisions taken by the United Nations Security Council Sanctions Committee, based on an updated list of designated persons and entities established by that Committee.

Pursuant to the Regulation's provisions, the UEMOA Council of Ministers adopted on June 26, 2003, in Dakar, the first Decision N° 06/2003/CM/UEMOA to operationalize within the Union the fund freezing measures taken by the UN Security Council Sanctions Committee, particularly under Resolution N° 1267 adopted in 1999. The Regulation's provisions allow for periodic updates by the Sanctions Committee to the list of persons subject to these freezing measures.

Work is ongoing to equip Member States with specific legislation designed to criminalize and repress terrorist financing.

II - LEGAL AND REGULATORY TEXTS RELATING TO ANTI-MONEY LAUNDERING AND COUNTER-TERRORIST FINANCING IN UEMOA

1. Directive N° 07/2002/CM/UEMOA on the Fight Against Money Laundering in UEMOA Member States
2. Uniform Law on the Fight Against Money Laundering in UEMOA Member States
3. Framework Decree on the Creation, Organization and Operation of a National Financial Information Processing Unit
4. Regulation n° 14/2002/CM/UEMOA on the Freezing of Funds and Other Financial Resources in the Fight Against Terrorist Financing
5. Decision n° 06/2003/CM/UEMOA on the List of Persons, Entities or Organizations Subject to Fund Freezing
6. Decision N° 04/2004/CM/UEMOA Amending Decision N° 06/2003/CM/UEMOA of June 26, 2003

ANNEXES
Annex 1: List of Community-Adopted Texts
Annex 2: References of Texts Adopted by Member States

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DIRECTIVE N° 07/2002/CM/UEMOA ON THE FIGHT AGAINST MONEY LAUNDERING IN UEMOA MEMBER STATES

THE COUNCIL OF MINISTERS OF THE WEST AFRICAN ECONOMIC AND MONETARY UNION (UEMOA)

Having regard to the Treaty of January 10, 1994 establishing the West African Economic and Monetary Union (UEMOA), particularly Articles 6, 7, 16, 21, 42, 43, 97, 98 and 113; Having regard to the Treaty of November 14, 1973 establishing the West African Monetary Union (UMOA), particularly Article 22; On the joint proposal of the UEMOA Commission and the BCEAO; After opinion of the Statutory Experts Committee dated September 13, 2002;

ADOPTS THE DIRECTIVE FOLLOWS:

PRELIMINARY TITLE: DEFINITIONS

Article 1 - Terminology
For the purposes of this Directive, the following terms are defined as:

Regional Financial Market Actors: The Regional Securities Exchange (BRVM), the Central Depository/Settlement Bank, Management and Intermediation Companies, Wealth Management Companies, Stock Investment Advisors, Business Brokers, and Sales Agents.

Offender: Any person who participates in the commission of a crime or offense, in any capacity whatsoever.

Supervisory Authorities: National or Community authorities of UEMOA authorized, by law or regulation, to supervise natural and legal persons.

Public Authorities: Administrations of Member States and local authorities, as well as their public establishments.

Beneficial Owner: The principal, i.e., the person on whose behalf the agent acts or for whose account the operation is carried out.

BCEAO or Central Bank: The Central Bank of West African States.

Assets/Property: All types of assets, corporeal or incorporeal, movable or immovable, tangible or intangible, fungible or non-fungible, as well as legal instruments or documents evidencing ownership of such assets or related rights.

CENTIF: The National Financial Information Processing Unit established in each Member State.

Confiscation: Definitive deprivation of assets by decision of a court, supervisory authority, or any competent authority.

Member State: The State party to the Treaty of the West African Economic and Monetary Union.

Third State: Any State other than a Member State.

Predicate Offense: Any crime or offense under the national legislation of each Member State, even if committed within another Member State or a third State, that enabled its perpetrator to acquire assets or income.

UCITS: Collective Investment Schemes in Securities.

Financial Institutions: The following are designated as financial institutions:

• Banks and financial establishments;
• Financial services of postal administrations, as well as Deposit and Consignment Funds or equivalent bodies in Member States;
• Insurance and reinsurance companies, insurance and reinsurance brokers;
• Mutual or cooperative savings and credit institutions, as well as structures or organizations not constituted in mutual or cooperative form and whose object is the collection of savings and/or granting of credit;
• The Regional Securities Exchange (BRVM), the Central Depository/Settlement Bank, Management and Intermediation Companies, Wealth Management Companies;
• UCITS (Collective Investment Schemes in Securities);
• Fixed Capital Investment Enterprises;
• Authorized manual foreign exchange dealers.

UEMOA: The West African Economic and Monetary Union.
UMOA: The West African Monetary Union.
Union: The West African Economic and Monetary Union.

Article 2 - Definition of Money Laundering For the purposes of this Directive, money laundering is defined as the offense constituted by one or more of the following acts, committed intentionally:

• The conversion, transfer, or manipulation of assets, knowing that they originate from a crime or offense as defined by the national legislations of Member States or participation in such crime or offense, with the aim of concealing or disguising their illicit origin or helping any person involved in the commission of such crime or offense to evade judicial consequences;
• The concealment or disguise of the true nature, origin, location, disposition, movement, or ownership of assets or related rights, knowing that they originate from a crime or offense as defined by the national legislations of Member States or participation in such crime or offense;
• The acquisition, holding, or use of assets, knowing at the time of receipt that they originate from a crime or offense as defined by the national legislations of Member States or participation in such crime or offense.

Money laundering exists even if the facts giving rise to the acquisition, holding, and transfer of assets to be laundered are committed within another Member State or a third State.

Article 3 - Conspiracy, Association, Attempted Complicity in View of Money Laundering Conspiracy or participation in an association aimed at committing a money laundering act, the association to commit said act, attempts to perpetrate it, assistance, inducement, or advice to a natural or legal person with a view to executing or facilitating its execution also constitute money laundering offenses.

Unless the predicate offense has been subject to an amnesty law, money laundering exists even:

• If the perpetrators of crimes or offenses have not been prosecuted or convicted;
• If a condition for legal action following said crimes or offenses is missing.

TITLE I: GENERAL PROVISIONS

Article 4 - Object of the Directive
This Directive aims to define the legal framework for fighting money laundering in Member States, to prevent the use of the Union's economic, financial, and banking circuits for recycling capital or all other assets of illicit origin.

Article 5 - Scope of Application of the Directive The provisions of Titles II and III of this Directive apply to any natural or legal person who, within the framework of their profession, carries out, controls, or advises on operations involving deposits, exchanges, investments, conversions, or all other capital movements or assets, namely:
a) Public Treasuries of Member States; b) BCEAO; c) Financial institutions; d) Independent legal professionals when they represent or assist clients outside any judicial procedure, notably in the following activities:
. Purchase and sale of assets, commercial enterprises or business goodwill, . Handling of funds, securities, or other client assets, . Opening or management of bank, savings, or securities accounts, . Formation, management, or direction of companies, trusts, or similar structures; execution of other financial operations;

e) Other obliged entities, notably:
. Business brokers to financial institutions;
. Statutory auditors;
. Real estate agents;
. Dealers in high-value goods, such as art objects (paintings, masks notably), stones, and precious metals; . Money couriers; . Managers, owners, and directors of casinos and gaming establishments, including national lotteries; . Travel agencies.

TITLE II: ON THE PREVENTION OF MONEY LAUNDERING

Article 6 - Compliance with Foreign Exchange Regulations Foreign exchange operations, capital movements, and settlements of any nature within UEMOA or between a Member State and a third State must be carried out in accordance with the provisions of the foreign exchange regulations in force within the Union.

Article 7 - Client Identification by Financial Institutions Financial institutions must ensure the identity and address of their clients before opening an account, taking custody of securities, values, or bonds, assigning a safe deposit box, or establishing any other business relationship.

Verification of a natural person's identity is performed by presenting a national identity card or any original official document serving as such, currently valid and bearing a photograph, of which a copy is taken.

Verification of professional and residential address is performed by presenting any document capable of proving it. If the natural person is a merchant, they must additionally provide any document attesting to their registration in the Commercial and Movable Credit Register.

Identification of a legal person or branch is performed by producing an original copy, dispatch, or certified true copy of any act or extract from the Commercial and Movable Credit Register, attesting notably to its legal form, registered office, and, on the other hand, the powers of persons acting on its behalf.

Financial institutions ensure, under the same conditions as those set out in paragraph 2 of this Article, the true identity and address of responsible persons, employees, and agents acting on behalf of others. The latter must, in turn, produce documents attesting to the delegation of power or mandate granted to them and, on the other hand, the identity and address of the beneficial owner.

In the case of remote financial operations, financial institutions proceed to identify natural persons in accordance with the principles set out in the Annex of this Directive.

Article 8 - Identification of Occasional Clients by Financial Institutions The identification of occasional clients is carried out under the conditions provided for in paragraphs 2 and 3 of the