The Financial Reporting Center (FRC) is created by and derives its mandate from the Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) Act of 2016 with the objective to operate as a national central agency responsible for the receipt, analysis and appropriate dissemination of all information relating to money Laundering (ML) and terrorism financing (TF). Specifically, its functions include, but are not limited, to the following:-
- To register reporting entities.
- To issue regulations and provide guidance to reporting entities in order to ensure they have effective policies and procedures in place to stop them from being used as vehicles to launder money or finance terrorism;
- To establish and maintain a secure and confidential system to protect information on large cash transactions and suspicious transactions from the reporting entities.
- To design and implement AML/CFT compliance monitoring and enforcement systems for reporting entities that lack designated supervisory authorities.
- To impose sanctions and penalties upon reporting entities for non-compliance with AML/CFT obligations.
- To act as a central agency to freeze assets or funds without delay as per applicable laws.
- To monitor, research and identify money laundering and terrorist financing trends, typologies, risks, and developments.
- To share information collected from reporting entities available to investigating authorities and facilitate the administration and enforcement of the laws of Somalia.
- To exchange information on money laundering activities and related offenses with similar bodies in other countries.
- To enter a memorandum of understanding and other agreements with external counterparts to support and improve the effectiveness and implementation of the national AML/CFT regime;
- To represent Somalia in national, regional and global meetings, forums and organizations with a focus on money laundering and terrorist financing; and
- To conduct a desktop compliance audit for reporting entities with designated supervisory and on-site visits for reporting entities that lack a designated supervisory authority.