By: Julius Konton
In continuation of its robust stand intended to Crack down on would be violations within the sector, The Financial Intelligence Agency of Liberia (FIA) has imposed a monetary fine of L$18,500,000 (eighteen million five hundred thousand Liberian dollars) against the Liberian Bank for Development and Investment .
The latest decision was due to the bank’s alleged failure to meet up to its critical and essential AML/CFT requirements as provided by the country’s Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) Act of 2021.
The fine at the same time 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 Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) compliance obligations.
According to FIA’s risk-based AML/CFT Compliance Inspection report, the LBDI was found to be in violation of several AML/CFT requirements.
These include the bank’s lack of Board oversight on the AML/CFT Risk Management, consistent with Section 12.0 of the Amended Corporate Governance Regulations for Financial Institutions (No. CBL/RSD/001/2012); and the bank’s failure to take appropriate steps to identify, assess and monitor its ML Risk – including those of pre-existing customers, products and services, geographical locations, and delivery channels.
Emphasizing further, the FIA stated that these actions further violate sections 15.3.1 and 15.3.10 of the AML/CFT Act of 2021, and Section 2.9 of Liberia’s AML/CFT Regulations for Financial Institutions in Liberia (Regulations No. CBL/RSD/002/2017).
Moreover, LBDI Senior Management according to the FIA also failed to approve its AML/CFT Policies as required by section 15.3.12(2) of the AML/CFT OF 2021.
Other violations identified by the FIA in its AML/CFT inspection include lack of appropriate structure and/or mechanism to verify Customer and Beneficial Owners’ information and credentials from reliable and independent source document or information, particularly high-risk customers, and failure to file suspicious transactions with the FIA as required by section 15.3.20 of the AML/CFT Act of 2021, despite the bank’s being in possession of software to monitor and report suspicious transactions.
“In addition, employees responsible for monitoring and tracking these suspicions lack requisite training”, FIA added.
In a move to avoid recurrence, The FIA mandates LBDI to ensure that the fine is deposited into the Liberian government’s account stationed at the Central Bank of Liberia in accordance with Law, and a copy of deposit slips shared with the Agency, within ten (10) working days commencing September 29, 2025, to October 10, 2025.
Meanwhile, the FIA further instructs the Management of LBDI to take appropriate mitigating measures, including developing and adopting an action plan with well-defined timelines as part of remediation measures and submit the same to the FIA Monday, October 20, 2025.
At the same time, The LBDI is also mandated to ensure that all appropriate measures are put in place to address all deficiencies identified in the FIA Risk-based AML/CFT Compliance Report and to adopt other necessary mitigating measures to curb the risk of Money Laundering and Financing of Terrorism and Proliferation of Weapon of Mass Destructions, no later than Monday, December 1, 2025.
Furthermore, the FIA warned that it shall take appropriate supervisory actions, where necessary, to ensure that LBDI complies with the full range of AML/CFT Obligations.
Meanwhile, the bank is yet to make official statement relative to the FIA’s latest decision.
