Gabon’s Banking System Under Scrutiny for Financial Crimes Vulnerabilities

A recent assessment by the global watchdog group, FATF, has highlighted significant weaknesses in Gabon’s banking security measures against financial crimes. The evaluation revealed that the country has failed to implement key requirements aimed at preventing money laundering and terrorist financing.

Inadequate Risk Assessment and Implementation of a Robust Risk-Based Approach

The FATF report noted that Gabon has not adequately assessed its risk of money laundering and terrorist financing, and as such, has not implemented a robust risk-based approach. This failure is a major concern, as it leaves the country’s financial system vulnerable to illicit activities.

National Cooperation and Coordination Lacking

The assessment also found that national cooperation and coordination among Gabonese authorities are inadequate. The lack of effective communication and collaboration between agencies hinders the detection and investigation of financial crimes.

Key Findings

• Confiscation and Provisional Measures Not in Place: Gabon has not established a system for confiscating assets related to money laundering and terrorist financing.
• Terrorist Financing Offence Not Properly Defined: The FATF report noted that Gabon has not defined a specific offence for terrorist financing, which makes it difficult to prosecute individuals or entities involved in such activities.
• Financial Institution Secrecy Laws Inadequate: Gabon’s financial institution secrecy laws are not robust enough to prevent money laundering and terrorist financing.
• Customer Due Diligence Falls Short: The assessment found that Gabonese financial institutions have not implemented adequate customer due diligence measures.

Recommendations for Improvement

To address the vulnerabilities identified in the FATF report, Gabon should prioritize the following:

1. Implement a robust risk-based approach to prevent money laundering and terrorist financing.
2. Establish effective national cooperation and coordination among authorities to enhance detection and investigation of financial crimes.
3. Develop and implement confiscation and provisional measures to combat money laundering and terrorist financing.
4. Define a specific offence for terrorist financing to facilitate prosecution.
5. Strengthen financial institution secrecy laws to prevent illicit activities.

By addressing these weaknesses, Gabon can improve its banking security measures and reduce the risk of financial crimes.