Law No. 178/AN/25/9th L Amending Law No. 106/AN/24/9th L on the Fight against Money Laundering, Terrorist Financing and Proliferation of Weapons of Mass Destruction

REPUBLIC OF DJIBOUTI
Unity-Equality-Peace

PRESIDENCY OF THE REPUBLIC

Law No. 178/AN/25/9th L
Amending Law No. 106/AN/24/9th L on the Fight against Money Laundering, Terrorist Financing and Proliferation of Weapons of Mass Destruction.

THE NATIONAL ASSEMBLY HAS ADOPTED
THE PRESIDENT OF THE REPUBLIC PROMULGATES
THE LAW WHOSE TEXT FOLLOWS

HAVING REGARD TO the Constitution of 15 September 1992; HAVING REGARD TO Constitutional Law No. 92/AN/10/6th L of 21 April 2010 amending the Constitution; HAVING REGARD TO Law No. 59/AN/94 of 05 January 1995 establishing the Penal Code; HAVING REGARD TO Law No. 60/AN/94/3rd L of 05 January 1995 establishing the Code of Criminal Procedure; HAVING REGARD TO Law No. 103/AN/24/9th L of 06 March 2024 on the prevention and fight against corruption and related offences; HAVING REGARD TO Law No. 104/AN/24/9th L of 06 March 2024, amending Law No. 110/AN/11/6th L on the fight against terrorist financing; HAVING REGARD TO Law No. 105/AN/24/9th L of 06 March 2024, amending Law No. 111/AN/11/6th L on the fight against terrorism and other serious offences; HAVING REGARD TO Law No. 106/AN/24/9th L on the fight against money laundering, terrorist financing and the proliferation of weapons of mass destruction; HAVING REGARD TO Decree No. 2024-052/PR/MJDH on the organization and functioning of the National Financial Intelligence Agency (ANRF); HAVING REGARD TO Decree No. 2024-053/PR/MJDH on the implementation regime for targeted financial sanctions related to terrorist financing and the proliferation of weapons of mass destruction; HAVING REGARD TO Decree No. 2024-314/PR/MI on the application of Law No. 106/AN/24/9th L on the fight against money laundering, terrorist financing and the proliferation of weapons of mass destruction; HAVING REGARD TO Decree No. 2021-105/PRE of 24 May 2021 on the appointment of the Prime Minister; HAVING REGARD TO Decree No. 2021-106/PRE of 24 May 2021 on the appointment of Government members; HAVING REGARD TO Decree No. 2021-114/PRE of 31 May 2021 fixing the attributions of Ministries;

HAVING REGARD TO Decree No. 2022-001/PRE of 02 January 2022 on ministerial reshuffle; HAVING REGARD TO Decree No. 2025-082/PRE of 01 April 2025 on the appointment of the Minister of Foreign Affairs and International Cooperation; HAVING REGARD TO Circular No. 86/PAN of 28/05/2025 on the convocation of the National Assembly in public session;

The Council of Ministers heard in its session of 20 May 2025.

HAS ADOPTED, IN ITS PUBLIC SESSION OF 02/06/2025, THE LAW WHOSE TEXT FOLLOWS:

TITLE I: GENERAL PROVISIONS

CHAPTER I: OBJECT

Article 1-1-1: Object of the Law.

This law aims to define the legal framework regarding the fight against money laundering and terrorist financing and the proliferation of weapons of mass destruction. It determines measures aimed at preventing the use of the financial system for money laundering, terrorist financing, and the proliferation of weapons of mass destruction, as well as facilitating related investigations, prosecutions, and international cooperation.

CHAPTER II: DEFINITIONS

Article 1-2-1: Definition of Money Laundering.

For the purposes of this law, the following are considered money laundering:
a) The conversion or transfer of property, for the purpose of concealing or disguising the illicit origin of such property or of assisting any person who is involved in the commission of the predicate offence to evade the legal consequences of his or her actions; b) The concealment or disguise of the true nature, source, location, disposition, movement, rights with respect to, or ownership of, property; c) The acquisition, possession or use of property by a person who knows, suspects or ought to have suspected that such property or assets constitute proceeds of crime within the meaning of this law.

The knowledge, intent or motive required as an element of the offence may be inferred from objective factual circumstances.

Article 1-2-2: Terminology.

For the purposes of this law:

The expression "financing of terrorist activities" has the same meaning as the expression "terrorist financing" as defined by the legislation against terrorist financing;
The expression "financial institutions" refers to the list of financial institutions or bodies referred to in paragraph I of Article 2-1-1 of this law;
The expression "designated non-financial businesses and professions" refers to the list of persons mentioned in paragraphs II and III of Article 2-1-1 of this law;
The term "proceeds of crime" refers to any property or economic advantage derived directly or indirectly from any crime or offence, or obtained directly or indirectly through the commission of an offence; this advantage may consist of property as defined in point 5 below;
The term "property" refers to all types of assets, whether tangible or intangible, movable or immovable, corporeal or incorporeal, as well as legal instruments or documents attesting ownership of such assets or rights related thereto;
The term "instrument" refers to all objects used or intended to be used in any way, in whole or in part, to commit one or more criminal offences;
The term "criminal organization" or "organized criminal activity" refers, for the purposes of this law, to any structured association established for the purpose of committing crimes or offences;
The term "confiscation" refers to the permanent deprivation of property following a decision by a court or other competent authority;
The term "predicate offence" refers to any criminal offence, even committed abroad, that enabled its perpetrator to obtain proceeds of crime or offence within the meaning of this law;
The term "perpetrator" refers to any person who participated in the offence either as a principal, co-perpetrator, or accomplice. In order to serve as a basis for money laundering prosecution, the facts of the predicate offence committed abroad must constitute a criminal offence in the country where they were committed and under the domestic law of the Republic of Djibouti, unless otherwise provided by treaty;
The terms "Politically Exposed Persons" refer to foreign and national politically exposed persons, as well as persons who exercise or have exercised prominent public functions within or for the account of an international organization;
The expression "foreign politically exposed persons" refers to persons who exercise or have exercised prominent public functions in a foreign country, including but not exclusively, heads of state and government, senior politicians, senior government officials, senior judiciary members and military officials, public enterprise executives and senior political party officials;
The expression "national PEPs" refers to natural persons who exercise or have exercised prominent public functions within the territory of the Republic of Djibouti, including but not exclusively, heads of state and government, senior politicians, senior government officials, senior judiciary members and military officials, public enterprise executives and senior political party officials. Persons who exercise or have exercised prominent functions within or for the account of an international organization refer to senior management members, namely directors, deputy directors, board members, and all persons exercising equivalent functions;
The term "business relationship" refers to a commercial relationship that is expected, at the time it is established, to have a certain duration;
The term "occasional client" refers to a client who approaches a person listed in Article 2-1-1 of this law for the execution of a one-off transaction;
The term "virtual asset" refers to a digital representation of value that can be digitally exchanged or transferred, and that can be used for payment or investment purposes;
The term "virtual asset service provider" or "VASP" refers to any natural or legal person who commercially carries out one or more of the following activities or operations on behalf of or for a client:
i. exchange between virtual assets and fiat currency;
ii. exchange between one or more forms of virtual assets;
iii. transfer of virtual assets;
iv. safekeeping and/or administration of virtual assets or instruments enabling control over virtual assets; and participation and provision of financial services related to an issuer's offer and/or the sale of virtual assets. To carry out their activities, VASPs are subject to prior approval by the Central Bank of Djibouti and must comply with the regulations issued by the Governor of the Central Bank of Djibouti regarding the administration and control of their operations.
The term "bearer shares" refers to negotiable instruments that confer a shareholding in a legal entity to the person holding a bearer share certificate;
The term "competent authorities" refers to all public authorities designated, under a law or regulation of the Republic of Djibouti, as responsible for the fight against money laundering and/or terrorist financing and/or financing of the proliferation of weapons of mass destruction.
The term "beneficiary" refers to:
- with regard to express trusts and similar legal arrangements, a beneficiary is the person(s) who have the right to benefit from an express trust arrangement or similar legal arrangement. A beneficiary may be a natural or legal person or a legal arrangement,
- in the context of a life insurance policy or another investment-linked insurance product, a beneficiary is the natural or legal person, legal arrangement, or category of persons who will receive the contract amount upon the occurrence of the insured event covered by the insurance contract, if it occurs.
  This term also refers to the natural or legal person, or legal arrangement, identified as the recipient of an electronic transfer by the orderer.
  20 bis. The term "beneficial owner" refers to the natural person(s) who ultimately:
  a) own or control the client and/or; b) the natural person on whose behalf a transaction is being conducted or a business relationship is being established.
  This also includes persons who ultimately exercise effective control over a legal person or legal arrangement. Only a natural person can ultimately be the beneficial owner, and more than one natural person can ultimately be the beneficial owner of a given legal person or legal arrangement. Any natural person who directly or indirectly controls at least 25% of the capital of a legal person is a beneficial owner.
The term "settlor" refers to a natural or legal person who transfers ownership of their assets to trustees via an instrument creating a trust or analogous arrangement.
The term "legal arrangement" refers to express trusts or similar legal arrangements.
The term "correspondent banking" refers to the provision of banking services by a bank (the "correspondent bank") to another bank (the "customer bank").
The term "originator" refers to the account holder who authorizes an electronic transfer from that account or, in the absence of an account, the natural or legal person who instructs the financial institution to carry out an electronic transfer.
The term "cash" refers to banknotes and coins in circulation serving as a medium of exchange, regardless of the currency.
The term "funds" refers to all types of assets, material or immaterial, corporeal or incorporeal, movable or immovable, regardless of their mode of acquisition, as well as legal instruments or documents in any form, including electronic or digital, attesting ownership of such assets or rights related thereto.
The term "foreign counterparts" refers to foreign competent authorities exercising analogous responsibilities and functions in the context of a cooperation request, including when these foreign competent authorities are of a different nature or status.
The term "reasonable measures" refers to appropriate measures that are proportional to the risks of money laundering and terrorist financing.
The term "manual exchange operation" refers to the immediate exchange of banknotes or currencies denominated in different currencies, carried out by transfer or delivery of cash, against settlement by another payment method denominated in another currency.
The term "obliged entity" refers to financial institutions and designated non-financial businesses and professions referred to in Article 2-1-1 and subject to the provisions of Titles II and III of this law.
The term "professional secrecy" refers to restrictions established by legal provisions or case law on members of certain professions to disclose certain information regarding their activity or clients.
The term "National Financial Intelligence Agency" or "ANRF" is Djibouti's Financial Intelligence Unit (FIU) established by Article 3-2-1-1 of this law.
The term "money or value transfer service" refers to a financial service consisting of accepting cash, cheques, or any other payment instrument or value deposit and paying an equivalent amount in cash or any other form to a beneficiary by means of a communication, message, transfer, or clearing system to which the money or value transfer service belongs.
The terms "trusts" and "trustee" shall be understood in accordance with the Hague Convention on the Law Applicable to Trusts and on their Recognition.
The term "express trust" refers to a trust clearly established by the settlor, generally by means of a document such as a written trust creation deed.
The term "electronic fund transfer" refers to any operation carried out electronically on behalf of an originator to make a certain sum of money available to a beneficiary at another financial institution, it being understood that the originator and the beneficiary may be the same person.

Article 1-1-3: Lifting of Professional Secrecy.

Notwithstanding any contrary legislative or regulatory provisions, professional secrecy may not be invoked by the persons referred to in Article 2-1-1 to refuse compliance with the obligations provided for by this law.

TITLE II: OBLIGATIONS RELATING TO THE FIGHT AGAINST MONEY LAUNDERING AND TERRORIST FINANCING

CHAPTER I: OBLIGED ENTITIES RELATING TO THE FIGHT AGAINST MONEY LAUNDERING AND TERRORIST FINANCING

Article 2-1-1: Professions Subject to the Provisions of this Law.

I- Subject to the obligations provided for in Titles II and III of this law are all financial institutions and intermediaries, as well as any natural or legal person who, in the course of their profession, executes, controls, or advises on transactions involving deposits, exchanges, placements, conversions, or any other movement of capital, including:
a. credit institutions; b. financial auxiliaries;
c. microfinance institutions;
d. the Post Office for its money transmission and manual exchange activities; e. payment service providers; f. electronic money institutions; g. insurance companies; h. virtual asset service providers.

II- Also subject to the provisions of Titles II and III of this law are:
a. casinos and gaming establishments; b. dealers in precious metals and dealers in precious stones and works of art;
c. real estate agents and business brokers;
d. non-governmental organizations and non-profit associations; e. travel agencies; f. lawyers, notaries, accountants, auditors, reviewers, and auctioneers when they prepare or execute transactions for their clients in their activities of buying and selling real estate, managing client capital, securities or other assets, managing bank accounts, savings accounts or securities accounts, organizing contributions for the creation, operation or management of companies, creating, operating or administering legal persons or legal arrangements, or buying and selling commercial entities. g. motor vehicle dealers; h. intermediaries specializing in international trade operations;

III- Trust and company service providers are also subject to the provisions of this law:
a. when they act as agents for the formation of a legal person; b. when they act or take measures to have another person act as a director or general secretary of a capital company, a partner in a partnership, or hold a similar position for other types of legal persons;
c. when they provide a registered office, business address, or premises, administrative or postal address to a capital company, partnership, or any other legal person or legal arrangement;
d. when they act or take measures to have another person act as trustee of an express trust or exercise an equivalent function for another form of legal arrangement; e. when they act or take measures to have another person act as a shareholder acting on behalf of another person.

Article 2-1-2: Limit on the Use of Cash and Bearer Instruments or Bonds.

Any payment in cash or by bearer instruments or bonds of a total amount exceeding one million Djiboutian Francs (1,000,000 FDJ) is subject to control.

Article 2-1-3: Obligation to Execute Fund Transfers through a Credit Institution or Financial Institution.

Any transfer to or from abroad of funds, securities, or assets for an amount exceeding one million Djiboutian Francs (1,000,000 FDJ) must be carried out by an authorized credit institution or financial institution, or through its intermediary.

CHAPTER II: DUE DILIGENCE OBLIGATIONS

Article 2-2-1: General Provisions.

The State organizes the legal framework to ensure transparency in economic relations, notably by ensuring that corporate law and legal mechanisms for asset protection do not allow the creation of fictitious or shell entities.

Article 2-2-2: Prohibition of Anonymous Accounts.

The persons mentioned in paragraph I of Article 2-1-1 shall not maintain anonymous accounts or accounts under manifestly fictitious names.

Article 2-2-3: Risk Assessment by Obliged Entities.

1- The persons mentioned in Article 2-1-1 shall take appropriate measures to identify and assess their money laundering and terrorist financing risks, including risks related to clients, countries or geographic areas, and products, services, transactions, and distribution channels. This risk assessment must be documented and developed by taking into account all relevant risk factors before determining the overall risk level and the appropriate level and type of measures to be applied to mitigate these risks. They shall also ensure that this assessment is updated.

2- The persons referred to in Article 2-1-1 shall take simplified measures when the national risk assessment indicates that the identified risk level is low.

3- The persons mentioned in Article 2-1-1 are required to have policies, controls, and procedures approved by their senior management, enabling them to manage and mitigate the risks identified at the national level by competent authorities and those identified by themselves within the framework of the risk assessment referred to in paragraph 1 of this article. They are also required to monitor the implementation of these controls and strengthen them if necessary.

4- When higher risks are identified, they shall take enhanced measures to manage and mitigate these risks.

Article 2-2-4: Identification and Verification of Customer and Beneficial Owner Identity in Business Relationships.

1- Before establishing a business relationship, the persons mentioned in Article 2-1-1 of this law are required to identify and verify the identity of their customer and the beneficial owner according to the procedures defined in this article.

2- The persons mentioned in Article 2-1-1 shall identify the customer as follows:

When the customer is a natural person, by collecting their full name(s), place and date of birth, as well as their address;
When the customer is a legal person or legal arrangement, by collecting information on its legal form, name, registration number, registered office address, and the address of its principal place of activity if different from the registered office, information on the powers governing and binding the legal person, as well as the names of relevant persons holding management positions in the legal person or legal arrangement.

3- The persons mentioned in Article 2-1-1 shall verify the customer's identity as follows:

When the customer is a natural person, by presenting the original of a valid official document bearing their photograph and by taking a copy of this document and a proof of address;
When the customer is a legal person or legal arrangement, by producing the articles of association and any document establishing that it has been legally registered and has a real existence at the time of identification such as the original of any official deed or extract from the registry dated less than three months, or its equivalent under foreign law, and by taking a copy of these documents. The collected documents must include mentions relating to the name, legal form, registered office address of the legal person or legal arrangement, and the identity of persons holding management positions in the legal person or legal arrangement, including their legal representatives.

4- The persons mentioned in Article 2-1-1 shall identify the beneficial owner according to the same modalities