Diop: Afreximbank positioning to ensure compliance risks mitigated

African governments are making significant efforts to ensure compliance with the requirements set by the Financial Action Task Force (FATF), according to Idrissa Diop, the Compliance Director at the African Export Import Bank. In a recent interview with CNBC Africa, Diop highlighted the importance of identifying ultimate beneficiary owners and the impact of new regulations on trade facilitation. The regulations are now placing a stronger emphasis on customer identification and information sharing to mitigate compliance risks. Diop emphasized the need for financial institutions to educate their customers on the importance of disclosing information about their entities to comply with FATF requirements. One of the key takeaways from the conversations at the forum was the need to align regulations with FATF requirements. Financial institutions must ensure that they embed FATF requirements in their processes to educate customers and facilitate information sharing. Diop pointed out the challenges faced by financial institutions in identifying ultimate beneficial owners, especially when clients have complex ownership structures. Simplifying corporate structures and promoting information sharing between corporates and banks can create a more balanced information-sharing environment, improving compliance with FATF regulations. On the topic of FATF grey list reforms, practical steps and suggestions were shared to help countries meet FATF criteria. Panel discussions included insights from financial intelligence units in Nigeria and Senegal, both of which are on the FATF grey list. Diop highlighted Senegal's efforts to implement a new regulation that enhances customer identification and information sharing, aligning with FATF requirements. The panel emphasized the importance of African countries taking proactive measures to address grey list concerns, as it can impact their attractiveness to investors and access to international financial support. Sanction risks were also a significant focus during the conversations, as they continue to pose challenges in the compliance space. The impact of sanctions on trade was discussed, with a particular emphasis on how it can affect correspondent banking relationships. Regulators, including the Central Bank of the Umoa zone, are working closely with banks to raise awareness about sanction risks and ensure compliance. Diop highlighted the collaborative efforts between regulators and banks to find solutions and adapt to the evolving compliance landscape. In conclusion, African Export Import Bank, under the leadership of Idrissa Diop, is actively positioning itself to mitigate compliance risks and ensure adherence to FATF requirements. By promoting customer education, enhancing information sharing, and addressing sanction risks, the bank is demonstrating a commitment to upholding international compliance standards and fostering a conducive environment for trade and investment.