FIA Issues Administrative Sanction Against UBA-Liberia For Non-compliance

Published: August 29, 2024

MONROVIA — The Financial Intelligence Agency of Liberia (FIA) has issued an administrative sanction against the United Bank for Africa (UBA) Liberia Limited for non-compliance with the country’s Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) measures. The sanction, consistent with section 67.3 of the FIA Act of 2021 and section 15.3.29 of the AML/CFT Act of 2021, comes in the form of a warning letter to UBA-Liberia, underscoring the seriousness of the violation.

The FIA’s action against UBA-Liberia is based on the bank’s failure to provide legally requested information to the Agency, which is a direct violation of Liberia’s AML/CFT laws. The agency expressed concern that this failure highlights a significant weakness in UBA-Liberia’s risk management framework, potentially undermining the country’s efforts to combat money laundering, terrorist financing, and other related financial crimes.

The FIA has made it clear that the failure of UBA-Liberia to comply is not just a regulatory issue but also poses a serious threat to Liberia’s financial security. The warning issued by the FIA is only the first step, with the Agency indicating that it will impose further supervisory sanctions if the bank does not take immediate and effective action to address the identified gaps within its systems. These sanctions could escalate to include criminal penalties if necessary.

In response to the violation, the FIA has given UBA-Liberia a 72-hour deadline, starting from August 28, 2024, to submit the requested documents. This ultimatum is intended to ensure that the FIA can fulfill its mandate effectively.

The FIA’s legal authority to demand information is rooted in section 67.3 (3) of the FIA Act of 2021, which empowers the Agency to request and receive any additional information it deems necessary to carry out its functions. This includes the ability to conduct preliminary investigations without hindrance from reporting entities and other relevant institutions.