The Financial Intelligence Agency (FIA) of Liberia has imposed a fine of LRD 25 million (approximately USD 125,000) on Lonestar Cell MTN Mobile Money Inc. (LCMMMI) for violations of the country’s anti-money laundering and countering the financing of terrorism (AML/CFT) regulations.
The penalty, announced on 28 April, follows findings from a regulatory inspection conducted by the FIA in September 2024. According to the agency, LCMMMI, a subsidiary of telecommunications provider Lonestar Cell MTN and Liberia’s largest mobile money operator, failed to establish an independent board of directors separate from its parent company. This was deemed non-compliant with Section 6 of the Mobile Money Regulation No. CBL/RSD/003/2014.
The issue was initially identified in a 2018 Joint Digital Financial Services and AML/CFT Risk-Based Examination Report by the Central Bank of Liberia (CBL). The FIA noted that the company had not addressed the governance deficiency in the years since, describing the continued noncompliance as a concern.
In a statement, the FIA said it would implement additional supervisory actions as needed to ensure LCMMMI aligns with AML/CFT obligations. The agency has directed the company to submit a remediation action plan by 12 May.
In addition to governance issues, the FIA’s investigation also highlighted lapses in the company’s agent suitability assessments. These lapses reportedly contributed to the use of LCMMMI’s platform in a 2023 e-commerce fraud scheme known as Smart AI, which led to financial losses for thousands of Liberians. Other regulatory breaches included failing to obtain necessary authorization from the CBL for certain transaction thresholds involving agents and merchants.
This latest enforcement action comes after a separate fine levied by the CBL in June 2024 for similar violations related to mobile money regulations and corporate governance requirements.
LCMMMI has not publicly commented on the FIA’s announcement.
Liberia became the 177th member of the Egmont Group of Financial Intelligence Units in June 2024, joining international efforts to combat money laundering and terrorist financing.
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