The Financial Intelligence Agency of Liberia (FIA) has dealt a major blow to the Liberian Bank for Development and Investment (LBDI), slapping the bank with a hefty L$18.5 million fine for what it described as critical failures in meeting Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) obligations.
FIA’s Crackdown
According to the FIA, the sanction stems from a risk-based compliance inspection conducted December 2–13, 2024, which uncovered “egregious non-compliance” across LBDI’s operations. The inspection revealed weak controls, poor oversight, and repeated violations of Liberia’s AML/CFT Act of 2021.
Key Violations Identified
The compliance report outlined multiple breaches, including:
- Failure of Board oversight on AML/CFT risk management, in violation of Section 12.0 of Corporate Governance Regulations.
- Neglect in identifying and monitoring money laundering risks related to customers, products, services, and delivery channels.
- Management’s refusal to approve AML/CFT policies, contrary to Section 15.3.12(2) of the AML/CFT Act.
- Weak customer due diligence, including failure to properly verify beneficial owners and high-risk accounts.
- Failure to file suspicious transaction reports, despite possessing monitoring software.
- Untrained compliance staff, leaving red flags unchecked.
The FIA noted that these actions also breach Sections 15.3.1, 15.3.10, and 15.3.20 of the 2021 AML/CFT Act, as well as Liberia’s AML/CFT Regulations for Financial Institutions (2017).
Sanctions and Orders
The agency has directed LBDI to:
- Pay the L$18.5 million fine into the government’s account at the Central Bank of Liberia no later than October 10, 2025.
- Submit an action plan with defined timelines by October 20, 2025.
- Correct all deficiencies and adopt mitigation measures to curb risks of money laundering, terrorism financing, and proliferation financing by December 1, 2025.
The FIA warned that further supervisory actions will follow if LBDI fails to comply.
Bank Silent
As of press time, LBDI has not issued an official statement in response to the sanction.
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