• New facility supports AML/CFT tech upgrades amid global scrutiny
• Initiative aims to reduce de-risking, support trade and financial access
  

The African Export-Import Bank (Afreximbank) has launched the Afreximbank Compliance System Financing Facility (ACSFF), a fund designed to help African banks invest in the technology and systems needed to meet international anti–money laundering (AML), counter–terrorism financing (CFT), and sanctions compliance standards.

“If a bank wants to acquire technology or systems for its compliance department, we can lend them the funds to do so,” said Idrissa Diop, Afreximbank’s Director of Compliance, speaking during outgoing President Benedict Oramah’s farewell event in Cairo. Oramah formally handed leadership to George Elombi of Cameroon on Oct. 24–25, 2025, at the bank’s New Cairo headquarters, where it has operated since 1994.

“Compliance is not a constraint; it’s a condition for survival in a banking sector increasingly exposed to sanctions and de-risking,” Diop said. “Our goal is to ensure African banks operate at the same standards as their international counterparts.”

For Afreximbank’s trade finance team, compliance has long been a strategic priority. Gwen Mwaba, the bank’s Director of Trade Finance, said Afreximbank has developed a due diligence repository — a shared platform that facilitates checks and information exchange among financial institutions.

“We train African bankers on the importance of compliance and on how to use this repository, because when verifications are properly conducted and documented, it strengthens relationships with global partners,” Mwaba explained.

Responding to Regulatory Pressure

The initiative comes as several African countries remain on the FATF grey list, putting their financial systems under heightened international scrutiny. While Nigeria, South Africa, Burkina Faso, and Mozambique were removed from the list on Oct. 24, 2025, other nations remain flagged — a status that drives up funding costs, tightens oversight from correspondent banks, and sometimes restricts cross-border transactions.

According to UNCTAD, Africa loses nearly $90 billion each year to illicit financial flows — about 3.7% of GDP. Afreximbank’s 2025 African Trade Report, released in June, estimates the continent’s trade finance gap at roughly $100 billion annually.

In response, Afreximbank wants to ensure African lenders aren’t excluded from global finance due to underinvestment in compliance technology. The theme of the upcoming Afreximbank Compliance Forum, set for Nov. 12–14 in Kigali — “Better Compliance, Better Trade: Embracing AI to Secure Trade Through a Modern AML/CFT Framework” — captures that goal.

“The forum was created to address de-risking issues and share best practices among regulators, banks, and international institutions,” Diop said. “This year in Kigali, we’ll discuss how to use AI to strengthen monitoring, manage sanctions, ensure beneficial ownership transparency, and support the AfCFTA.”

Building African Banking Resilience

Positioning itself as a central player in African trade finance, Afreximbank has also expanded its role as a correspondent bank. Its Pan-African Payment and Settlement System (PAPSS), which facilitates intra-African transactions, has become increasingly strategic amid the gradual retreat of major foreign banks such as Société Générale and BNP Paribas from several African markets.

“We not only finance local investors taking over these subsidiaries but also support their regional expansion,” Diop said. “Our goal is to build strong African institutions capable of competing globally and maintaining the continuity of financial flows.”

Diop added that Afreximbank has developed a compliance platform that allows clients to securely access international markets for trade transactions. “We’ve built a full framework that ensures transfers are both secure and traceable,” he said. “We’re stepping into the gap left by foreign banks by working with central banks, local lenders, and end clients to keep trade moving.”

“If our system weren’t robust, institutions like Citi or Standard Chartered wouldn’t work with us,” Diop noted. “We’ve invested heavily in technology that gives us a detailed view of every transaction — who sends, who receives, and whether they appear on any sanctions list. Compliance can’t be done manually; it requires constant technological investment and vigilance.”

Fiacre E. Kakpo