Financial Crime World

Gabon Takes Steps to Tackle Money Laundering in Online Payment Systems

Strengthening Anti-Money Laundering (AML) and Know-Your-Customer (KYC) Regulations

The Central African country of Gabon has announced plans to enhance its AML/KYC regulations for online payment systems, aiming to reduce the risk of money laundering and terrorist financing in the country’s rapidly growing digital economy.

The Global Online Payment Market at Risk

  • Estimated to reach $1.3 trillion by 2025
  • Africa expected to account for a significant share of this growth
  • Increasing use of online payment systems increases the risk of money laundering and terrorist financing

Money launderers often exploit weaknesses in online payment systems to funnel illicit funds into the financial system, making it an attractive target.

Regulatory Response

The Gabonese government has announced plans to establish a dedicated AML/CFT unit within the country’s central bank to oversee and enforce AML/KYC regulations. The unit will work closely with online payment service providers to ensure compliance with international standards.

Key Requirements for Online Payment Service Providers

  • Implement robust AML/KYC measures, including customer due diligence, transaction monitoring, and suspicious activity reporting
  • Ensure compliance within six months of the regulations taking effect

International Cooperation

Gabon’s efforts to strengthen its AML/KYC regulations reflect a growing trend among African countries to cooperate on anti-money laundering and counter-terrorism financing (AML/CFT) issues.

  • Several African countries have established regional AML/CFT bodies to share best practices and coordinate efforts to combat money laundering and terrorist financing
  • These initiatives demonstrate a commitment to international cooperation in the fight against financial crime

Conclusion

The introduction of new AML/KYC regulations in Gabon marks an important step forward in the country’s efforts to combat money laundering and terrorist financing. As the online payment market continues to grow, it is essential that governments and regulatory bodies work together to ensure that AML/KYC measures are robust and effective.