Countries/Jurisdictions of Primary Concern - Burundi
Burundi is not considered a significant center for money laundering or terrorist financing. The Government of Burundi has enacted AML/CFT legislation and become a party to relevant conventions, but has yet to commit funding, provide training, implement policies, or demonstrate the political will to counter money laundering in practice. Corruption is a significant problem and corrupt Burundian politicians are adept at devising methods of laundering stolen Burundian assets both in-country and abroad, enjoying near impunity.
For additional information focusing on terrorist financing, please refer to the Department of State’s Country Reports on Terrorism, which can be found at: http://www.state.gov/j/ct/rls/crt/
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 illegal drug sales that otherwise significantly affect the U.S.: NO
criminalizATION OF money laundering:
“All serious crimes” approach or “list” approach to predicate crimes: Not available
Are legal persons covered: criminally: YES civilly: NO
Know-your-customer (KYC) rules:
Enhanced due diligence procedures for PEPs: Foreign: YES Domestic: YES
KYC covered entities: Not available
Number of STRs received and time frame: 0
Number of CTRs received and time frame: 0
STR covered entities: Not available
money laundering criminal Prosecutions/convictions:
Records exchange mechanism:
With U.S.: MLAT: NO Other mechanism: NO
With other governments/jurisdictions: NO
Burundi is not a member of a FATF-style regional body (FSRB).
Enforcement and implementation issues and comments:
Although AML/CFT laws exist, there appears to be little political will to prosecute violators or to commit the resources to investigate possible crimes, particularly those that could implicate high-level government officials. The enforcement of laws in general is hindered by a dysfunctional and corrupt administration and a severe lack of capacity in supervisory, investigative, and enforcement bodies. The Bank of the Republic of Burundi, the country’s central bank, supervises and examines financial institutions for compliance with AML/CFT laws and regulations. A law requiring banks to report large deposits or transactions to authorities is not enforced.
Neither the Financial Crime Unit (FCU) of the Burundian National Police nor the Financial Intelligence Unit (FIU) of the Ministry of Finance has conducted any financial investigations. Reliable information indicates the FIU is not operational and that no personnel have been assigned to the unit. Burundian law enforcement officials lack training and expertise in investigating financial crimes.
The Government of Burundi should develop an oversight capability and provide sufficient resources, funding, and training for the FIU and the FCU. Burundi also should become a party to the International Convention for the Suppression of the Financing of Terrorism, and take steps toward becoming a member of an FSRB.