Monrovia, Liberia- The Financial Intelligence Agency (FIA) of Liberia has imposed a L$25 million fine on Lonestar Cell MTN Mobile Money Inc. (LCMMMI) following a comprehensive risk-based Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) compliance inspection.
The full-scope inspection, conducted from September 2 to 16, 2024, revealed a series of major infractions by LCMMMI, including non-compliance with key provisions of Liberia’s AML/CFT Act of 2021, Mobile Money Regulations, and corporate governance frameworks.
FIA investigative findings revealed that LCMMMI failed to establish an independent board separate from its parent company, Lonestar Cell MTN GSM Inc.
The report further disclosed that the GSM company also failed to conduct a comprehensive risk assessment of its products, services, customer base, and delivery channels, thereby leaving customers venerable to theft.
The findings amongst other things highlighted that Lonestar Cell MTN has also refused to appoint a compliance officer through the board, instead allowing senior management to make the appointment and also conduct adequate due diligence and ongoing monitoring of business relationships and transactions.
The findings also cited the Company failure to monitor large transactions and file mandatory Currency Transaction Reports (CTRs) and obtain necessary regulatory approvals for unlimited transaction levels granted to agents and merchants.
The report further cites that LCMMMI’s weak agent vetting procedures enabled the abuse of its platform in 2023 by a fraudulent scheme operated by Smart Al, which reportedly defrauded thousands of Liberians.
The FIA has ordered LCMMMI to pay the L$25 million fine by May 9, 2025, and submit a detailed remedial action plan by May 12.
The agency also warned that failure to comply with these directives would trigger additional supervisory actions.
The FIA in a statement said this sanction underscores their firm commitment to ensuring the integrity of Liberia’s financial system, emphasizing that all reporting entities must uphold their obligations under the AML/CFT legal framework.
Meanwhile, the Central Bank of Liberia (CBL) and the Ministry of Justice (MOJ) have been copied on the FIA’s enforcement notice.
