Gabon Eyes Improvement in Compliance Standards as Risk-Based Approach Takes Centerstage
Overview
In its latest assessment, the Financial Action Task Force (FATF) has underscored Gabon’s need to strengthen its anti-money laundering and combating the financing of terrorism (AML/CFT) regime. The country scored largely compliant in several areas but significant gaps remain.
Key Findings
- Risk-Based Approach: Gabon requires improvement in assessing risk and applying a risk-based approach, with a non-compliant rating for identifying high-risk customers and transactions.
- National Cooperation and Coordination: Limited interagency collaboration in AML/CFT efforts resulted in a partially compliant rating.
- Laws and Regulations on Money Laundering Offenses: Gabon’s laws and regulations were found to be largely compliant, but concerns exist about the effectiveness of confiscation and provisional measures.
Areas Requiring Improvement
- Customer Due Diligence: Gabon requires improvement in key areas such as customer due diligence, record-keeping, and correspondent banking.
- Financial Institution Secrecy Laws: The country scored poorly in areas such as financial institution secrecy laws (R.9) and correspondent banking (R.13), which require significant improvement to align with global standards.
Progress Made
- Regulation and Supervision of Financial Institutions: Gabon has made significant progress in the regulation and supervision of financial institutions (R.26), with a partially compliant rating.
- Establishment of a Financial Intelligence Unit (FIU): The country has established a FIU, enhancing its AML/CFT framework.
Recommendations
To address identified shortcomings, Gabon must:
- Implement targeted reforms
- Enhance cooperation with international partners
- Develop a more robust risk assessment framework
- Improve customer due diligence and record-keeping practices
- Align financial institution secrecy laws with global standards
Next Steps
The country has 12 months to demonstrate significant progress in addressing these concerns before the next mutual evaluation.
Conclusion
While there is still much work to be done, Gabon has shown a commitment to improving its AML/CFT regime. With sustained efforts and cooperation with international partners, the country can better align itself with global standards and reduce the risk of money laundering and terrorist financing in its financial system.