Financial Crime World

Gambia Strengthens Anti-Money Laundering and Combating the Financing of Terrorism Measures

The Gambia has made significant strides in enhancing its anti-money laundering (AML) and combating the financing of terrorism (CFT) measures, according to a recent assessment by an independent body. This article provides an overview of the country’s progress and identifies areas for improvement.

Progress Made

The Gambia has implemented various elements of the AML/CFT Act, including adequate measures for tracing and confiscating criminal proceeds and assets of corresponding value. The country has also issued guidelines and policies for financial institutions and designated non-financial businesses and professions (DNFBPs) to facilitate the implementation of AML/CFT obligations.

Gaps Identified

While The Gambia has made efforts to strengthen its understanding of money laundering and terrorist financing risks, there are still gaps in its AML/CFT system. These include:

  • Improving supervision of reporting entities
  • Enhancing the implementation of preventive measures
  • Strengthening international cooperation, including mutual legal assistance (MLA) and extradition

Recommendations for Improvement

The assessment team identified several areas where The Gambia needs to improve its AML/CFT measures, including:

Key Recommendations

  • Criminalize migrant smuggling as a predicate offense of money laundering
  • Designate tax crimes as predicate offenses of money laundering
  • Improve the confiscation of assets of corresponding value
  • Strengthen the legal framework for freezing and seizing terrorist assets
  • Enhance regulation and supervision of DNFBPs

Domestic Money Laundering Threats

The Gambia’s authorities have identified fraud, drug trafficking, theft/stealing or robbery, bribery, and corruption as the main domestic money laundering threats. However, their understanding of these threats is limited, and they need to develop a more comprehensive risk assessment framework to identify and mitigate systemic vulnerabilities.

National Risk Assessment Action Plan

The country has made progress in addressing specific short-term systemic vulnerabilities through its National Risk Assessment (NRA) Action Plan. The plan identifies higher-risk areas such as the banking, foreign exchange, remittance, real estate, casinos, and digital payment methods sectors. The Gambia has adopted some measures to mitigate these risks, including supervision of the real estate sector.

Conclusion

While The Gambia has made progress in strengthening its AML/CFT measures, there is still much work to be done to ensure the effective implementation of its AML/CFT obligations. The country needs to continue to strengthen its legal and institutional frameworks, improve its risk assessment and mitigation strategies, and enhance its international cooperation and coordination efforts.

Commitment to Implementation

The Gambia’s authorities have expressed commitment to implementing the recommendations of the assessment team and have already taken steps to address some of the identified weaknesses. The country is expected to make further progress in strengthening its AML/CFT measures in the coming years.