Benin -- AML/CFT Compliance Regulatory Overview

Benin’s AML/CFT framework has been updated by newer laws adopted in 2018 and 2020, so Law No. 2011-06 is not the current cornerstone of the regime.

Benin's identification and verification framework was significantly updated in late 2025, including new conditions for establishing personal identification documents and the abolition of mandatory legalization for certain documents, per Décret N° 2025-678 and subsequent presidential reforms.

For BJ AML purposes, institutions must identify customers and (where required) beneficial owners and verify their identities on a risk‑based basis, which may be satisfied by customer certifications or existing reliable information; independent source documents such as national ID cards, passports, driver’s licenses, or proof of address are no longer mandatorily required in every case but are expected where the risk profile or inconsistencies warrant stronger verification.

For legal entities, obtain and record basic information such as the company name, proof of incorporation, legal form, registered office address, and the identity of directors; beneficial ownership information should also be identified and verified under applicable AML/KYC rules, but it is not generally available through ordinary public company-search tools.

**Beneficial Ownership:** Identify and take reasonable measures to verify the identity of the beneficial owner(s) of the customer.

**Purpose and Intended Nature of Business:** Understand the purpose and intended nature of the business relationship.

**Ongoing Monitoring:** Conduct ongoing due diligence on the business relationship and scrutinize transactions to ensure they are consistent with the VASP's knowledge of the customer, their business, and risk profile.

**Risk-Based Approach:** Apply a risk-based approach, meaning enhanced due diligence (EDD) for higher-risk situations (e.g., customers from high-risk jurisdictions, politically exposed persons - PEPs, complex transactions) and simplified due diligence (SDD) for lower-risk situations.

**"Travel Rule" (FATF Recommendation 16):** While implementation varies, VASPs are expected to obtain and transmit required originator and beneficiary information for virtual asset transfers (above a certain threshold), similar to traditional wire transfers.

**Obligation to Report:** Any VASP that suspects or has reasonable grounds to suspect that funds are the proceeds of a criminal activity, or are related to terrorist financing, must report promptly to the FIU.

**No Tipping-Off:** VASPs and their employees are prohibited from disclosing to the customer or third parties that an STR is being or has been filed.

**Duration:** Records of transactions and customer identification data must generally be kept for at least **five (5) years** after the business relationship is terminated or after the date of the transaction.

**Type of Records:** This includes all customer identification data (e.g., copies of identification documents), account files, business correspondence, and transaction data (e.g., amounts, dates, types of transactions, involved parties).

**Availability:** Records must be sufficient to permit the reconstruction of individual transactions and be made available to competent authorities upon request.

**Central Bank of West African States (BCEAO):** While the BCEAO is the central bank for UEMOA member states and regulates traditional financial institutions, it has issued warnings and statements regarding cryptocurrencies. It would likely be involved in any future licensing or specific regulatory framework for VASPs in the region.

The Ministry of Finance is a central actor in economic and fiscal policy and participates in financial sector policy and related legislation, but ultimate responsibility for financial sector policy and regulation is shared with, and in key areas exercised by, regional and specialized regulatory bodies (e.g., the central bank and financial sector regulators), rather than resting solely with the Ministry.

*Direct link to the legislative text in English is often hard to find publicly for Beninese national laws. It's usually available via official government gazettes or legal databases in French.*

Directive No. 02/2015/CM/UEMOA is a 2 July 2015 UEMOA directive on combating money laundering and terrorist financing, which was later transposed into member-state law and is referenced within the regional AML/CFT framework.

*This is a regional directive that Benin transposes into national law.*

Website: While a direct, frequently updated public website with specific legal texts in English for CENAREF can be elusive, their contact information and general mission are usually available through government portals. An official presence often exists within the Ministry of Economy and Finance.

*A more reliable reference is often through GIABA's documentation.*

**Inter-Governmental Action Group against Money Laundering in West Africa (GIABA):**

GIABA provides reports and information on AML/CFT frameworks for its member states, including Benin.

**Financial Action Task Force (FATF):**

Relevant documents include "Guidance for a Risk-Based Approach to Virtual Assets and Virtual Asset Service Providers."

**Central Bank of West African States (BCEAO):**

While not the direct regulator for VASPs, it's a key financial authority in the region.

**Consult local legal counsel** specializing in financial technology and AML/CFT to ensure full compliance with the most current interpretation and application of laws.

**Engage with CENAREF** to understand their expectations and any specific guidance they might provide for virtual asset businesses.

**Monitor official announcements** from the Beninese government, CENAREF, and BCEAO for any new legislation or directives regarding virtual assets.

Benin, through its GIABA/FATF-aligned AML/CFT framework, is expected to implement current FATF standards, but the Travel Rule is not automatically or implicitly adopted in Benin merely by GIABA membership; any Travel Rule obligations depend on Benin’s specific domestic implementation and sectoral rules.

The foundational AML/CFT legislation currently referenced for Benin is Law n°2018-17 du 25 juillet 2018 relative à la lutte contre le blanchiment de capitaux et le financement du terrorisme en République du Bénin, which superseded earlier AML/CFT laws and now provides the core framework for reporting obligations, covered entities, and penalties.

An official Benin government portal now directly provides Loi n° 2017‑15 du 10 août 2017 (e.g., via the Secrétariat Général du Gouvernement at sgg.gouv.bj), so users can and should primarily consult this official source, with sites like Droit‑Afrique.com serving as secondary references whose version currency must still be verified.

A specific "effective date" for the Travel Rule itself is not readily available for Benin. Instead, the obligations would likely be deemed effective as soon as virtual asset activities fall under the scope of existing or amended AML/CFT laws, or any specific directives issued by supervisory authorities. The Law N°2017-15 was effective from June 19, 2017. Subsequent guidance or decrees might clarify VASP obligations.

FATF Recommendation 16 (for wire transfers, which the Travel Rule mirrors for VA transfers) specifies that financial institutions (and by extension, VASPs) should obtain and transmit required originator and beneficiary information for transactions equal to or above **USD/EUR 1,000**.

In the absence of specific domestic guidance for Benin's VASP Travel Rule, the expectation is that the **FATF standard of USD/EUR 1,000 (or equivalent in local currency)** would apply to inter-VASP virtual asset transfers. Lower thresholds may apply for suspicious transaction reporting.

The FATF defines VASPs broadly to include any natural or legal person who, as a business, conducts one or more of the following activities or operations for or on behalf of another natural or legal person:

Exchange between virtual assets and fiat currencies.

Exchange between one or more forms of virtual assets.

Safekeeping and/or administration of virtual assets or instruments enabling control over virtual assets.

Participation in and provision of financial services related to an issuer's offer and/or sale of a virtual asset.

Benin's AML/CFT law (Law N°2017-15) broadly defines "reporting entities" (assujettis) to include financial institutions and certain designated non-financial businesses and professions (DNFBPs). The interpretation would be that any entity conducting the above activities *as a business* would likely be considered a "reporting entity" under the law, even if not explicitly named "VASP."

**GIABA Guidance:** GIABA actively encourages its member states to regulate and supervise VASPs for AML/CFT purposes. Their mutual evaluation reports and guidance documents clarify these expectations.

**Reference:** GIABA Official Website – Look for publications, mutual evaluation reports for Benin or general guidance on virtual assets.

Since there isn't specific national legislation detailing technical requirements, VASPs operating in Benin would generally be expected to:

VASPs operating in Benin would generally be expected to collect the required originator and beneficiary information (name, address, account number/VA wallet address, transaction hash, etc.) for transfers exceeding the threshold, in line with the FATF Travel Rule.

Transmit this information to the beneficiary VASP during or before the transaction.

Be able to make this information available to competent authorities (e.g., Benin's Financial Intelligence Unit – Cellule Nationale de Traitement des Informations Financières du Bénin - CENTIF-Bénin) upon request.

Common industry solutions (e.g., TRISA, Shyft Network, Sygna, Travel Rule Protocol) are typically used for this purpose, but no specific protocol is mandated by Benin.

Penalties for non-compliance with AML/CFT obligations in Benin would be outlined in **Law N°2017-15 du 19 juin 2017** and subsequent decrees or regulations. These typically include:

**Administrative Sanctions:** Fines, warnings, temporary suspension, or permanent revocation of operating licenses (if applicable).

**Criminal Penalties:** Imprisonment and substantial fines for individuals found responsible for money laundering or terrorist financing, or for wilfully failing to comply with reporting obligations.

Specific penalty amounts would depend on the severity and nature of the non-compliance (e.g., failure to report suspicious transactions, failure to implement due diligence, or actual involvement in illicit activities).