GABON: Anti-Money Laundering Efforts Still Lacking, Says FATF Mutual Evaluation

The Financial Action Task Force (FATF) has published a mutual evaluation report highlighting Gabon’s insufficient efforts to combat money laundering and terrorist financing. The country’s weaknesses in implementing key recommendations leave it vulnerable to illicit financial flows.

Assessing Risk: A Key Weakness

Gabon was found to be non-compliant in assessing and managing risks related to money laundering and terrorist financing. The country lacks effective mechanisms for identifying and prioritizing high-risk areas, making it challenging to apply a risk-based approach.

• Lack of clear guidelines for identifying and evaluating risks
• Inadequate risk assessment frameworks
• Insufficient training for officials on risk management

National Cooperation and Coordination: Room for Improvement

While Gabon has made progress in establishing national cooperation and coordination bodies, the country still falls short of international standards. The lack of clear roles and responsibilities among agencies and institutions hampers effective collaboration and information-sharing.

• Unclear roles and responsibilities among agencies
• Limited information-sharing between institutions
• Insufficient coordination mechanisms

Money Laundering Offence: Weak Legislation

Gabon’s laws and regulations related to money laundering are considered inadequate by the FATF. The country lacks a comprehensive definition of money laundering, which makes it difficult to prosecute offenders effectively.

• Lack of clear definition of money laundering
• Inadequate laws and regulations on money laundering
• Limited powers for law enforcement agencies

Confiscation and Provisional Measures: Inadequate Powers

The Gabonese authorities were found to have insufficient powers to confiscate assets linked to money laundering and terrorist financing activities. This gap hinders the effective implementation of provisional measures and the recovery of illicit funds.

• Limited powers for confiscating assets
• Insufficient enforcement mechanisms
• Inadequate coordination between agencies

Financial Institution Secrecy Laws: Lax Regulations

Gabon’s financial institution secrecy laws are considered overly broad, allowing for excessive confidentiality and hindering efforts to combat money laundering and terrorist financing. The lack of transparency in financial transactions increases the risk of illicit activities going undetected.

• Overly broad financial institution secrecy laws
• Limited customer due diligence requirements
• Insufficient supervision of financial institutions

Customer Due Diligence: Inconsistent Implementation

The country’s banks and other financial institutions were found to have inconsistent implementation of customer due diligence requirements, which compromises the effectiveness of anti-money laundering measures.

• Inconsistent customer due diligence procedures
• Limited training for staff on customer due diligence
• Insufficient supervision of financial institutions

Correspondent Banking: Vulnerabilities Remain

Gabon’s correspondent banking relationships with international banks are considered vulnerable to money laundering and terrorist financing risks. The lack of effective supervision and monitoring hampers efforts to prevent illicit activities.

• Limited oversight of correspondent banking relationships
• Insufficient risk assessment frameworks
• Inadequate training for officials on correspondent banking

The findings highlighted in the FATF report underscore Gabon’s ongoing challenges in combating money laundering and terrorist financing, which can have significant consequences for the country’s financial stability and reputation.