Financial Crimes Haunt Gabon, Experts Warn

Gabon, a small country in Central Africa, is struggling to contain the consequences of financial crimes, experts say. A recent evaluation by the Financial Action Task Force (FATF) reveals that the country has made significant strides in implementing anti-money laundering and combating terrorism financing measures, but more needs to be done.

FATF Assessment Highlights Weaknesses

The FATF assessment rated Gabon largely compliant or partially compliant on 20 out of 40 recommendations, highlighting areas where the government and financial institutions must improve. The report noted that while Gabon has established a national committee to combat money laundering and terrorist financing, its powers are limited.

Key Challenges Facing Gabon

One of the key challenges facing Gabon is the lack of transparency in beneficial ownership of companies and trusts, which allows criminals to launder money and evade taxes. The country’s financial intelligence unit also lacks sufficient resources to effectively monitor and investigate suspicious transactions.

Need for Improvement in Customer Due Diligence

The FATF report also highlighted the need for Gabon to improve its customer due diligence practices, particularly in the banking sector, where weak controls have allowed corrupt officials and individuals to move large sums of money without being detected.

Key Areas for Improvement

The FATF report identified several areas where Gabon needs to improve its anti-money laundering and combating terrorism financing measures:

• Beneficial Ownership: Gabon must establish a transparent system for identifying the ultimate beneficial owners of companies and trusts.
• Customer Due Diligence: Financial institutions in Gabon must strengthen their customer due diligence practices, including verifying the identity of customers and monitoring transactions for suspicious activity.
• Financial Intelligence Unit: The country’s financial intelligence unit must be provided with sufficient resources to effectively monitor and investigate suspicious transactions.
• Regulation and Supervision: Gabon’s regulatory bodies must be strengthened to ensure that financial institutions are held accountable for any wrongdoing.

Conclusion

By addressing these weaknesses, Gabon can improve its reputation as a stable and secure place to do business and reduce the risk of financial crimes. Experts say that the country has made significant strides in implementing anti-money laundering and combating terrorism financing measures, but more needs to be done.