IPNEWS-Monrovia: Poor Compliance at the Financial Intelligence Unit (FIU), now Financial Intelligence Agency (FIA) with individuals and institutions designated has become a greatest challenge that continues to increase money laundering with others financial malpractices in Liberia.
Over the years, the Agency has alerted several financial misconducts with no responsive results showing the consequences posted on individuals and organizations designated during their probe.
The Freedom of Information (FOI) request sent to the FIU (now FIA) through their official email address info@fiuliberia.gov.lr September 3 this year followed by a hard copy on October 17 requesting the level of compliance of consequences posted on those designated by the Agency has yielded no fruit.
In February this year; the Financial Intelligence Unit of Liberia levied fines of Twenty-One Million Liberian Dollars (L$21,000,000) against all Insurance Companies operating in Liberia for Non-Compliance, Violations, and Obstruction.
Accordingly, Insurance Companies operating in Liberia have refused and failed to file both Currency Transaction and Suspicious Transaction Reports in Violation of section 67.4.1,67.5 of the 2012 Financial Intelligence Unit Act and both section 2. 4 of the regulations on Currency and Suspicious Transaction reports and unlawfully exempted themselves.
The Company fined include but not limited to: Accident and General Life Insurance Company, American Underwriter Group, Accidental and Casualty Insurance Company, Activia Insurance Company, Blue Cross Insurance Company, Insurance Company of Africa.
Others include Mutual Benefit Assurance Company, Medicare Insurance Company, Omega Group of Company Limited, Palm Insurance Company, SAAR Insurance Company among others with One Million Five Hundred Thousand Liberian Dollars (L$1,500,000.00) to be paid by each within 72 hours.
Meanwhile, KORLANE INVESTMENTS LIBERIA LIMITED LIABILITY COMPANY has been characterized as Shell Company designated as a Set up for Money Laundering and Concealment of Crime Proceeds.
The Financial Intelligence Unit of Liberia (FIU) designates KORLANE INVESTMENTS LIBERIA LIMITED LIABILITY COMPANY as a high-risk money Laundering shell company set up for what appears to be the sole purpose of laundering the proceeds of crimes generated through fraud, a predicated offense for Money Laundering, but (FIU) is yet to provide reports on the status of KORLANE INVESTMENTS LIMITED.
The FIU’s designation of Korlane Investments Liberia Limited Liability Company comes after a preliminary investigation conducted by competent authorities found that Korlane Investment Liberia Limited Liability Company is a subsidiary company of Korlane Investments based in Cyprus that has not answered questions concerning its relationship with Korlane Liberia and source of funding.
According to FIU reports, Korlane Investment Liberia Limited Liability Company has no known office space in Liberia nor does it have staffers. Korlane Investments Liberia Limited Liability Company acquired funds through cards (Visa, Master and Swift) fraud from owners in Ecuador and Slovakia; concealed and laundered the said funds into its local account domiciled at some commercial banks in Liberia.
They said, Fraud alerts and queries were raised by both Visa and MasterCard after these questionable transactions were made on their users’ cards.
Interestingly, there is no revenue from the business activities that Korlane Investment Liberia Limited Liability Company proposed to undertake as per its Article of Incorporation filed with the Liberia Business Registry (LBR). Also, there is no tax record at the Liberia Revenue Authority (LRA) from Korlane Investment Liberia Limited Liability Company on such accumulative huge inflows which occurred during just three months after its establishment.
FIU also reported that, One Patrick Herman Wahi, an Ivorian made claims to the said funds of Korlane Investment Liberia Limited Liability Company but has since disappeared upon invitation by Competent Authorities.
The investigation further reveals that from October 2021 when Korlane Investment Liberia Limited Liability Company was established up to December 12, 2021, a little over US$500,000.00 was transferred directly from Master and Visa Card holders’ members from Ecuador and Slovakia directly into the local account of Korlane Investment Liberia Limited Liability Company. These activities by Korlane Investment Liberia Limited Liability contravene the law and such unlawful activities cannot be countenanced by the FIU.
The Financial Intelligence Unit of Liberia has since moved to freeze the account which contains the alleged proceeds of crime pending further legal actions against Korlane Investment Liberia Limited Liability Company, its parent company in Cyprus and all responsible persons within the space of Korlane Investment Liberia Limited.
FIU also recognizes that in time past, these shell and fraudulent businesses used the Liberia financial space without any punitive action. Also, Ganjay L. Ananaba with his OMEGA Group of Insurance Limited was designated as Primary Concern for Money Laundering.
In early May this year release, FIU stated that the OMEGA Group of Insurance Limited and its Managing Director in person of Ganjay L. Ananaba have blatantly refused and failed to comply with AML/CFT reporting obligations, inspections, and examinations.
According to the FIU Act of 2012, Section 67.5, it requires them, among other things: to inspect and examine records, ensure that reporting entities including banks, insurance companies etcetera file Suspicious Transaction Reports (STRs) and Cash Transactions Reports (CTRs) as mandatory reporting obligations and also be subjected to AML/CFT oversight, regulation, and supervisions.
Meanwhile, FIU presented the National Risk Assessment (NRA) Report to the Liberia Bankers Association this year at the International Bank -Liberia Limited headquarters in Sinkor, Monrovia.
Presenting the report during an interactive forum, FIU Director General by then, Edwin W. Harris said the NRA report highlights threats and vulnerabilities in major sectors that will be greatly tackled based on the developed National Anti-Money Laundering and Countering Terrorist Financing (AML/CFT) Policy and Action Plan prepared by FIU and other relevant stakeholders.
According to him, those challenges will be hugely addressed by FIU and all stakeholders, if compliance becomes a national drive for everybody to prioritize in the confines of the law.
He mentioned that FIU is interested in following the rule of law and as such, there will be no unnecessary compromise regarding the filing of Suspicious Transaction Report (STRs) by banks, insurance companies and others to enhance Liberia’s image that needs gradual improvement.
“The World Bank, United States of America Treasury and other actors played key technical roles regarding the formulation of the report, which will serve as a tool for banks, insurance entities, gaming and others to implement without fear or favor,” he said.
The FIU boss further urged all banks and other actors in the public and private sectors to comprehensively read the NRA Report and brainstorm how to find solutions to some of the challenges outlined in the widely distributed report.
“I strongly hold the view that the proposal for regular meetings suggested by the Bankers Association with the FIU and executives of various banks could help reduce the sending of regular circulars and some issues that can be easily addressed without writing formal communications“, Mr. Harris intoned at the time.
Also speaking during the presentation meeting, the Head of Secretariat, Doreen O. McIntosh, welcomed the presentation of the NRA report by FIU which looks at challenges in various sectors.
According to her, the Liberia Bankers Association is preparing and proposing a regular interactive forum with the FIU to find workable solutions to some of the constraints that are hindering the effective submission of STRs and general processes to fulfill compliance obligations.
She mentioned that the association supports full compliance, but called for intensive training of compliance officers of various banks by the FIU.
