LBDI Incurs L$18.5m Fine -FIA Cites Failure to Meet AML/CFT Requirements
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MONROVIA – The Financial Intelligence Agency seemingly remains robust and uncompromising in keeping its ever-alert radars on conformists failing to heed regulatory precepts. Yet again, it has embarked on what appears to be significant move to strengthen Liberia’s financial sector, imposing a monetary fine of L$18,500,000 on the Liberian Bank for Development and Investment (LBDI) for failing to meet critical and essential Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) requirements. The fine follows a risk-based compliance inspection that identified significant inadequate controls and “egregious non-compliance” within the bank’s AML/CFT compliance obligations. The Analyst reports.
The Financial Intelligence Agency of Liberia (FIA) has imposed a monetary fine of L$18,500,000 against the Liberian Bank for Development and Investment (LBDI) due to its failure to meet critical and essential Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) requirements as provided by the country’s AML/CFT Act of 2021.
This fine follows a risk-based AML/CFT compliance inspection conducted at LBDI from December 2-13, 2024, which identified significant inadequate controls and egregious non-compliance within the bank’s AML/CFT compliance obligations.
The FIA’s inspection report revealed that LBDI was in violation of several AML/CFT requirements, including lack of Board oversight on AML/CFT Risk Management, failure to identify, assess, and monitor ML Risk, and failure to approve AML/CFT Policies.
Other violations identified by the FIA include lack of appropriate structure and/or mechanism to verify Customer and Beneficial Owners’ information and credentials, failure to file suspicious transactions with the FIA, and inadequate training for employees responsible for monitoring and tracking suspicious transactions.
The FIA has mandated LBDI to deposit the fine into the Liberian government’s account at the Central Bank of Liberia within ten working days and to develop and adopt an action plan to address the identified deficiencies.
The bank is also required to take mitigating measures to curb the risk of Money Laundering and Financing of Terrorism and Proliferation of Weapons of Mass Destruction.
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