Financial Crime World

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Gambian Authorities Struggle to Combat Money Laundering and Terrorist Financing

The Gambian government’s efforts to combat money laundering (ML) and terrorist financing (TF) are hindered by a lack of understanding of the scale of these threats, according to a new report.

Understanding the Threats

The report assessed the country’s anti-money laundering and combating the financing of terrorism (AML/CFT) framework and found that Gambian authorities consider fraud, drug trafficking, theft/stealing or robbery, bribery, and corruption as the main domestic ML threats. However, their understanding of these threats is limited, and they lack a comprehensive assessment of organized crime, illicit trafficking in stolen goods, and arms trafficking.

Addressing Vulnerabilities

The report highlighted the importance of addressing the ML/TF vulnerabilities of legal persons, virtual assets, the tourism sector, and the informal economy. Additionally, the authorities’ understanding of TF threats is evolving, but more work needs to be done to appreciate inherent vulnerabilities.

Measures Taken by the Government

To address these challenges, the Gambian government has adopted some measures, including:

  • Supervision of the real estate sector
  • Simplified reporting requirements for lower-risk sectors

However, more needs to be done to mitigate ML/TF risks in high-risk areas such as:

  • Banking
  • Foreign exchange
  • Remittance
  • Real estate
  • Casinos
  • Digital payment methods

Coordination and Cooperation

The report found that competent authorities are beginning to align their objectives and activities with national ML/TF risks and the National Risk Assessment Action Plan (NRA-AP). However, there is still a need for more effective coordination and cooperation among authorities on AML/CFT policy and operational matters.

Transparency and Regulation

The report emphasized the importance of transparency of beneficial ownership of legal persons and arrangements, as well as the regulation and supervision of Designated Non-Financial Businesses and Professions (DNFBPs).

Key Recommendations

To effectively combat ML/TF, the Gambian government is recommended to:

  • Conduct a comprehensive assessment of organized crime, illicit trafficking in stolen goods, and arms trafficking.
  • Develop a National Counter-Terrorism Strategy that incorporates CFT.
  • Improve understanding of TF threats and vulnerabilities.
  • Enhance coordination and cooperation among authorities on AML/CFT policy and operational matters.
  • Strengthen regulation and supervision of DNFBPs.
  • Increase transparency of beneficial ownership of legal persons and arrangements.

Sources

The report relied on the following sources:

  • National Risk Assessment Action Plan (NRA-AP)
  • National Drug Controls Strategy
  • National Security Strategy
  • Strategy Against Terrorism (GAMSAT)