Financial Crime World

Financial Institution Fraud Epidemic Rocks Gabon: Authorities Scramble to Combat Illicit Flows

Gabon, a small nation in Central Africa, is grappling with a growing epidemic of financial institution fraud, according to sources within the government and international organizations. The situation has led to an increased sense of urgency among authorities to take concrete steps to prevent and combat illicit financial flows.

Fighting Financial Institution Fraud: Key Players

To combat this scourge, the Gabonese Government created a Ministry dedicated to good governance in 2003, followed by the National Commission for the Fight against Illicit Enrichment (CNLCEI) in the same year. In 2021, CNLCEI was renamed the National Commission for the Fight against Corruption and Illicit Enrichment.

Another key player in the fight against financial institution fraud is the National Agency for Financial Investigation (ANIF), established to monitor financial flows and work with financial institutions. ANIF is governed by Community Regulation N°01/CEMAC/UMAC/CM of April 2016 on the Prevention and Suppression of Money Laundering, Terrorist Financing and Proliferation in Central Africa.

The country’s institutional, legal, and regulatory framework has undergone significant reforms to ensure regular financial flows. The General Directorate of Customs and Indirect Rights and the General Directorate of Taxes are responsible for ensuring the regularity of financial flows, while the 2019 reform of the judicial system created specialized Tribunals and Courts to repress offenses related to illegal mining, forestry, and fishing activities.

Collaborative Efforts

In collaboration with the United Nations Development Programme (UNDP), the Gabonese Government developed a Strategy Document to Combat Corruption and Money Laundering (DSLCCBC) targeting 10 priority sectors likely to be subject to illicit trafficking. The strategy is led by ANIF and CNLCEI and guided by the concept of PRECIS (Prevention, Education, Conditions, Incentives, Sanctions).

Key Actors Involved

Some key actors involved in the fight against financial institution fraud include:

  • National Financial Investigation Agency (ANIF)
  • National Directorate of the Bank of Central African States (BEAC) and its secular arm, the Central African Banking Commission (COBAC)
  • Inter-Governmental Task Force against Money-Laundering in Central Africa (GABAC)

Collaborations and Studies

As part of efforts to combat financial institution fraud, a collaboration was initiated between CNLCEI, security forces, and public prosecutors. Another collaboration was established between ANIF, the banking sector, and public prosecutors for money laundering offenses.

In April 2021, a diagnostic study on national governance, corruption, and the risk of illicit financial flows in the implementation of public policies was launched. The study aims to identify suspected illicit commercial financial flows to Gabon, including tax fraud, violation of market rules, corruption, and money laundering.

Objectives and Expectations

To combat these flows, authorities plan to conduct in-depth studies to estimate the financial flows mentioned above, strengthen the capacity of all actors combating IFFs, establish a mechanism for measuring and sharing data related to IFFs, and contribute to the implementation of objectives 16.4 and 16.5, including the reduction of illicit financial flows, strengthening recovery of stolen goods, fighting against all forms of organized crime, and significantly reducing corruption in all its forms.

The expectations of this pilot project are high, with authorities hoping that it will help strengthen the fight against financial institution fraud and prevent further erosion of trust in the country’s financial system.