Financial Crime World

Gambia Moves to Strengthen Anti-Money Laundering and Combating Financing of Terrorism Regulations Worldwide

The Central Bank of Gambia, led by Governor Mr. Saidy, has emphasized the need for the country to strengthen its anti-money laundering (AML) and combating financing of terrorism (CFT) regime in order to combat the growing threat of organized crime and financial crimes.

Growing Threat of Organized Crime

The growth of organized crime and its negative impact on financial systems is alarming. Criminals employ sophisticated methods to exploit vulnerabilities in financial systems, posing a significant risk to the integrity and soundness of these systems as well as the broader economy.

Consequences of Money Laundering

Money laundering has far-reaching adverse consequences on:

  • Integrity and Soundness of Financial Systems: It can distort economic stability, create unfair competition, undermine investor confidence, and have adverse macroeconomic consequences such as massive funds flow in and out of the country.
  • Broader Economy: It can lead to economic instability, depreciation of local currency, and challenges of capital flight.

Prioritized Actions for AML/CFT Implementation

The Gambia has identified a number of priority and recommended actions for AML/CFT implementation by stakeholders following its Second Round Mutual Evaluation Report published in June 2022. In response, the country has commenced work on those priority areas, including:

  • Amendment of the Current AML/CFT Act 2012: The Governor revealed that The Gambia is working towards initiating a new AML/CFT legislation and validated a new Bill in 2024 that intends to repeal the current Act. This will address most of the deficiencies highlighted in the second round mutual evaluation.

Establishment of an AML/CFT Unit

The Central Bank of Gambia has established an AML/CFT unit under its Banking Services Department, working closely with the Financial Intelligence Unit (FIU) to conduct on-site examinations on financial institutions. This ensures that the FIU eventually relinquishes the AML/CFT supervision of financial institutions to the unit.

By strengthening its AML/CFT regime, The Gambia aims to combat the growing threat of organized crime and financial crimes, ensuring the integrity and soundness of its financial systems and broader economy.