Opening remarks of the Deputy Head of Delegation of EU at the AML/CFT/CPF Assessors Training for South Sudan

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16.09.2024

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Honourable First Undersecretary

Excellences,

Representatives of the International Community,

Members of the Civil Society,

Distinguished Guests,

All Protocol Observed;

Allow me to extend the warm welcome to Joseph Jagada, Deputy Executive Secretary and Head of the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG) Evaluation Teams and the members of the EU-funded Anti Money Laundering and Counter Financing of Terrorism in Eastern, Southern, Central Africa and Yemen" (AML-CFT ESCAY) regional project.

In the name of the European Union, I am delighted to be able to address you at the opening of this 3-day workshop focussing on anti-money laundering, counter terrorism financing, counter proliferation of weapons of mass destruction. A special thanks to CIVIPOL for organizing this training. These are crucial issues for not only the economic development of South Sudan, but also the overall stability and peace in the country and - beyond - in the region.

The EU strongly supports the transition of the country towards a democratic, peaceful and stable South Sudan. This training contributes to the overall objective of our engagement in South Sudan. Money laundering and terrorist financing issues are complex and persistent social, political, security and economic issues that affect all countries and regions in the world, including Europe. Money laundering has a negative impact on security and stability at all levels, strengthens organised crime and has high social costs. Few profit, many pay a high price. If left unaddressed it erodes democracy, trust in institutions, the rule of law and human rights and constitutes a key obstacle to development and economic growth. It also increases very tangibly transaction costs and reduces fiscal space.

The Financial Action Task Force (FAFT) has grey-listed South Sudan in June 2022 following reports about corrupt practices and the illicit flow of funds and consequently a low ranking in the Transparency International Index. Mirroring the FATF decision the European Union regards South Sudan as a jurisdiction that constitutes a threat to its financial interests. But there is a way out and we all share the same strong interest to get South Sudan off the grey list, to promote its economic development and to increase an enabling business environment.

The European Union has a long record of supporting the Government's efforts to tackle anti-money laundering and counter terrorism financing. The financial investigation unit was set up with EU funding and we stand ready to support the unit's capacity building. Let me commend the Government for their high-level political commitment in 2021 to working with the Financial Action Task Force and its regional body the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG).

We acknowledge South Sudan's efforts towards fulfilling the recommendations of the FATF and implementing the Action Plan as a sign of South Sudan's determination and commitment to combat money laundering and terrorist financing. The way to go is still long and steep. According to FATF South Sudan scored "limited progress across its action plan with all deadlines now expired and work remains." This underlines the urgency of the matter.

We encourage the South Sudanese authorities to address strategic deficiencies as soon as possible and demonstrate strong political and institutional commitment to strengthen the effectiveness of its AML/CFT regime, particularly in supporting the Financial Intelligence Unit in coordinating national efforts.This is the only way to move from grey to white - and thereby increase the attractiveness of the investment climate of South Sudan. Your efforts will largely pay off in creating a conducive environment for business and investment, more stability and democracy and better and more accessible services for the South Sudanese people. Moving to white is a win-win on all accounts.

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This workshop provides a unique opportunity to review the progress over the past year and discuss the next steps towards the full implementation of the Action Plan. The EU is committed to continue to support the Government's efforts for combatting money laundering and terrorism financing. Our comprehensive engagement in this area includes among others the technical assistance provided to the Financial Intelligence Unit by the current regional project AML-CFT ESCAY project with CIVIPOL, but also its two predecessor projects.

Let me add that the ACP-EU Joint Parliamentary Assembly of 2023 confirmed AML-CFT to be a common concern for the EU and African partners and urged to make the fight against tax avoidance, money laundering and the financing of terrorism a priority.

Finally, let me thank the national authorities notably the Financial Intelligence Unit and the National Committee on AML-CFT, all involved government entities, as well as civil society for the collaboration with the EU Delegation and for the trust placed in the EU and its partners notably when it comes to technical assistance on AML-CFT.

I wish all participants of this three-day workshop fruitful discussions and progress in the implementation of the Action Plan.

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