R 021423Z DEC 08
FM AMEMBASSY OUAGADOUGOU
TO SECSTATE WASHDC 4378
INFO ECOWAS COLLECTIVE
DEPT OF TREASURY WASHDC
DOJ WASHDC

UNCLAS OUAGADOUGOU 001045 
 
 
DEPT PLEASE PASS TO INL, SCT, EEB, AND AF/W DORSEY LOCKART 
TREASURY FOR FINCEN 
JUSTICE FOR AFMLS, OIA, AND OPDAT 
 
E.O. 12958: N/A 
TAGS: KCRM EFIN KTFN SNAR UV
SUBJECT: BURKINA FASO: 2008-09 INSCR PART II MONEY LAUNDERING AND 
FINANCIAL CRIMES 
 
REF: STATE 103815 
 
¶1. Per reftel request, below is Part Two of the International 
Narcotics Control Strategy Report concerning Money Laundering and 
Financial Crimes, submitted in narrative form.  Embassy Ouagadougou 
will forward a copy of the most recently published submission via 
unclassified email to the addressees indicated in reftel. 
 
¶2.  The following is the proposed text for Burkina Faso for the 2009 
INCSR, Part II, Money Laundering and Financial Crimes: 
(Begin text) 
 
Burkina Faso is not a regional financial center and there are no 
offshore banking institutions or free trade zones.  Burkina Faso's 
economy is primarily cash-based; and most economic activity takes 
place in the informal sector. Only an estimated six percent of the 
population has bank accounts.  The country is serviced by a 
traditional banking sector composed of 11 commercial banks and three 
specialized credit institutions called, "Etablissements Financiers." 
 Banks include: the Banque Internationale pour le Commerce, 
l'Industrie et l'Agriculture du Burkina Faso (BICIA-B), the Banque 
Internationale du Burkina (BIB), the Societe Generale de Banques du 
Burkina (SGBB), the Banque Commerciale du Burkina (Arabo-Libyan), 
(BCB), the Banque Agricole et Commerciale du Burkina (BACB), 
Ecobank, Bank of Africa, and Banque Sahelo-Sahelienne pour 
l'Investissement et le Commerce (BSIC), and Coris Banque 
International, Banque Atlantique. 
 
The Central Bank of West African States (BCEAO), based in Dakar, 
Senegal, is the Central Bank for countries in the West African 
Economic and Monetary Union (WAEMU): Benin, Burkina Faso, 
Guinea-Bissau, Cote d'Ivoire, Mali, Niger, Senegal, and Togo, all of 
which use the French-backed CFA franc currency. The BCEAO requires 
that all bank deposits over $13,500 in member countries must be 
reported. 
 
Although criminal activities take place within the region, there is 
no evidence to suggest that large-scale money laundering activities 
occur within Burkina Faso.  Because the country's borders tend to be 
largely unregulated, illegal narcotics operations and black market 
currency exchanges could easily flow in an unregulated manner in and 
out of the country and from one country to another within the 
region. Since the 2004 reform of its mining code, gold mining in 
Burkina Faso has increased dramatically bringing with it an 
increased incidence of gold-related scams, many of which appear to 
involve Nigerian nationals. There have been unsubstantiated reports 
of some foreign-owned businesses engaging in money laundering and 
narcotics trading. President Blaise Compaore has publicly stated 
that the illegal narcotics trade is one of the most serious national 
security threats faced by Burkina Faso, although the problem is 
still small scale by regional standards.  To combat drug 
trafficking, the Government of Burkina Faso (GOBF) has created the 
Inter-Ministerial National Committee against Drugs (NCAD), which is 
directed by the Ministry of Security and includes representatives 
from 24 of the 34 ministries.  NCAD is a member of both the United 
Nations Drug Committee (UNDC) and the African Union Drug Committee. 
 
Key challenges faced by Burkina Faso in the fight against money 
laundering, illegal narcotics and terrorism finance include: 
ineffective regional cooperation, ineffective capital controls for 
cross border transactions, regional corruption, lack of resources, 
and weak and overburdened judicial and law enforcement systems. 
In 2000, the Economic Community of West African States (ECOWAS) 
established the Intergovernmental Group for Action against Money 
Laundering (GIABA), a Financial Action Task Force (FATF) style 
regional body based in Dakar, Senegal.  GIABA is charged with 
promoting legislation against money laundering and coordinating the 
activities of West African Economic and Monetary Union (WAEMU) 
member countries.  In January 2006, GIABA's mandate was revised to 
fully incorporate the imperative to fight terrorism financing.  In 
March 2003, WAEMU adopted a uniform law to combat money laundering 
from a variety of sources.  The law imposes due diligence 
obligations on financial institutions and directs them to report 
suspicious transactions to the Cellule Nationale de Traitement des 
Informations Financieres (CENTIF) of each WAEMU member state. In 
June 2003, WAEMU issued a directive which provided a legal basis for 
governments to implement the asset freeze provisions of UNSCR 1373. 
It also directed member governments to circulate the names of 
suspected terrorists and terrorist organizations on the UNSCR 1267 
Sanctions Committee's Consolidated List to all financial 
institutions. 
 
In late 1998, Burkina Faso adopted rule R #09, governing foreign 
financial relations. Under this rule, banks and other financial 
institutions are required to report all cash or bond payments of 5 
million CFA (USD 10,000) or more and all operations in excess of 10 
million CFA (USD 20,000).  They must also verify the identity of 
both the originator and recipient of these funds as well as details 
of the operation involved in the transaction.  Institutions must 
keep records for 10 years following closure of an account or 
finalization of a transaction. 
In 1999 Burkina Faso adopted law #017-1999/AN which makes the sale 
or possession of all types and quantities of narcotics illegal.  In 
late 2006, the GOBF adopted #026-2006/AN, an anti-money laundering 
law, which provides an effective mechanism to combat financial 
crimes.  This Anti-Money Laundering/Counter-Terrorism Finance 
(AML/CTF) legislation states that "it is illegal to transform, 
conceal, or acquire any goods or funds that result from 
participation in a criminal action." 
According to #026-2006/AN, AML/CTF controls are applicable to all 
individuals and entities involved in the deposit, exchange, 
conversion or movement of funds.  The law specifically includes the 
following entities: the Treasury, BCEAO, all financial 
organizations, the national lottery, members of the judicial 
profession who counsel clients on the purchase or sale of goods, 
commercial enterprises, real estate agents, merchants selling high 
value items, fund transporters, casino owners, travel agents and 
non-governmental organizations (NGOs).  Banks and financial 
institutions are also required to implement programs to centralize 
client records, train employees on the identification of suspicious 
transactions, and establish internal controls to prevent money 
laundering. 
 
#026-2006/AN also gives the investigating magistrate authority to 
order the seizure of assets relating to money laundering and 
terrorist financing.  Individuals convicted of attempted or actual 
money laundering activities face prison sentences of three to seven 
years, mandatory confiscation of their merchandise, and fines triple 
the amount of the goods or money that was laundered.  AML/CTF 
legislation calls for the protection of all individuals who 
cooperate with law enforcement entities on money laundering or 
terrorism issues. 
 
In June 2007, the GOBF established the Cellule Nationale de 
Traitement des Informations Financihres (CENTIF), which is 
responsible for detecting and investigating financial crimes, 
including money laundering and terrorist finance.  CENTIF is an 
autonomous entity under the Ministry of Finance, funded by the GOBF, 
UEMOA and various NGOs.  It has reciprocal agreements with financial 
institutions for the exchange of information and must report 
suspicious transactions to judicial authorities, the government, and 
to the BCEAO.  CENTIF draws on the expertise of the Customs Bureau, 
the Department of the Treasury, the Ministry of Finance, the 
Department of Importation, the Director of Central Administration, 
magistrates, the police, and the BCEAO. 
 
Burkina Faso has not enacted secrecy laws that prevent the 
disclosure of client or ownership information.  Financial 
institutions are obligated to confirm the identity and address of 
their clients before they enter into any type of financial 
transaction or open an account.  Clients must present their original 
national identity card and provide a current home and work address. 
Burkina Faso has signed the following multi-lateral agreements: the 
United Nations Protocol against the Illicit Manufacturing and 
Trafficking in Firearms, Their Parts and Components and Ammunition, 
supplementing the United Nations Convention against Transnational 
Organized Crime (entered into force March 2005); the United Nations 
Convention Against Transnational Organized Crime (entered into force 
September 2003); United Nations Convention against Illicit Traffic 
in Narcotic Drugs and Psychotropic Substances (entered into force 
November 1990). Burkina Faso is also a party to the UN International 
Convention for the Suppression of the Financing of Terrorism. (End 
text) 
 
¶3.  Embassy Ouagadougou's point of contact for inquiries is 
Economic Officer Pamela Hamblett (hamblettpa@state.gov).  Backup POC is 
Economic Commercial Assistant, Francois Cabore (caborefh@state.gov). 
 
JACKSON