Action plan to technical compliance 2021-2022

Context

Madagascar conducted a mutual evaluation process in 2017 in collaboration with the World Bank and the
ESAAMLG Secretariat to determine the level of technical compliance and effectiveness of the AML/CFT regime.
The implementation of the recommendations resulting from this assessment aims to strengthen the national
AML/CFT system. The evaluation results obtained by Madagascar on the technical compliance on line with
Financial Action Task Force (FATF) standards, as well as on the effectiveness of the implementation of this
system are generally not satisfying. In consequence, Madagascar is subject to enhanced following -up report,
and submit a half-yearly progress report to ESAAMLG that will determine the country's progress in
implementing the recommendations made.

Based on ESAAMLG's assessment results on Madagascar's progress from 2018 to 2021, the assessment team
concluded that Madagascar's efforts to address strategic deficiencies in the technical compliance of the
national AML/FT are not satisfactory. The ESAAMLG Council of Minister, held on September 07, 2021, assisted
by the Minister in charge of Economy and Finance and the the Minister of Justice of Madagascar approved the
recommendations made by the team of assessment that oblige the country to establish an action plan for a
period of one year from September 2021 to address these shortcomings. In the event of failure in the
implementation of this action plan, from September 2022, the country would be classified on the FATF ICRG
or grey list. This situation will have serious impacts on the economic and financial, social, diplomatic and even
political level of Madagascar.

Objective

The action plan consists of “Improving technical compliance and strengthening the effectiveness of national
legal and institutional mechanisms to combat money laundering and terrorist financing”.