Financial Crime World

GABON’S BATTLE AGAINST MONEY LAUNDERING: WHAT YOU NEED TO KNOW

Gabon, a country in Central Africa, has been working tirelessly to implement anti-money laundering (AML) measures as part of its commitment to the Financial Action Task Force (FATF). The FATF is an intergovernmental organization that sets standards for combating money laundering and terrorist financing.

Mutual Evaluation by the FATF

The Gabonese government underwent a mutual evaluation by the FATF in 2023, which assesses the country’s compliance with the technical requirements of the FATF Recommendations. These recommendations provide a framework for countries to implement effective AML/CFT (combating the financing of terrorism) regimes.

Key Recommendations

The evaluation covers 40 key recommendations that Gabon must meet to effectively prevent money laundering and terrorist financing. The results show that Gabon has made progress in implementing some of these requirements, but there is still room for improvement.

Progress Made

  • Gabon has achieved compliance or substantial compliance with several key requirements, including:
    • Assessing risk and applying a risk-based approach (R.1)
    • National cooperation and coordination (R.2)
    • Confiscation and provisional measures (R.4)
    • Targeted financial sanctions related to terrorism and terrorist financing (R.6) and non-profit organizations (R.8)

Areas for Improvement

However, Gabon still needs to improve its implementation of several key requirements, including:

  • Financial institution secrecy laws (R.9) are not fully compliant with international standards
  • Better customer due diligence (R.10) and record keeping (R.11)
  • Strengthening reliance on third parties (R.17) and internal controls (R.18)

Additional Recommendations

The evaluation also highlights the importance of:

  • Transparency and beneficial ownership of legal persons and arrangements (R.24-25)
  • Regulation and supervision of financial institutions and DNFBPs (designated non-financial businesses and professions) (R.26, R.28)

Commitment to Implementation

To address these shortfalls, Gabon has committed to implementing several measures, including:

  • Strengthening its AML/CFT regime
  • Improving customer due diligence and record keeping practices
  • Enhancing cooperation with international partners

Conclusion

While Gabon has made progress in implementing anti-money laundering measures, there is still much work to be done. The country must continue to strengthen its AML/CFT regime to prevent money laundering and terrorist financing, and ensure the integrity of its financial system.