South Sudan needs to move fast to fight illicit financing

South Sudan due to it’s weak financial system has been described by global financial institutions as a transit point for illicit finances.

South Sudan due to it’s weak financial system has been described by global financial institutions as a transit point for illicit finances.

This could change now or in a few years, if the 5-year project dubbed Strengthening South Sudan Financial Sector (3SF) launched on Tuesday, by the Bank of South Sudan with support from the World Bank is implemented successfully.

South Sudan needs to strengthen the capacity of the nascent Financial Intelligence Unit (FIU) to enable it monitor and track illicit financing such as money laundering and terrorism financing.

This kind of illicit activities not only discourage serious and reputable investors from putting their money in South Sudan, but also dents the integrity and confidence in the economy.

It’s no longer a secret that some powerful individuals with state links are engaged in illicit financial activities in this country. This could be because of the individual sanctions and asset freeze imposed by the United States and its allies, or just a form of corruption taking place unabated.

The Financial Action Task Force, an intergovernmental organization founded in 1989 on the initiative of the G7 to develop policies to combat money laundering and to maintain certain interest, could one day put South Sudan on the grey list which is counterproductive for the already vulnerable economy.

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