Gambia: Regulatory Body Launches Investigation into Money Laundering and Terrorism Financing Practices by Local Banks

The Gambia Financial Intelligence Unit (FIU) has launched a comprehensive investigation into the money laundering and terrorism financing practices of local banks in the country. This move comes on the heels of a report by the International Monetary Fund (IMF) highlighting the risks posed by weak anti-money laundering (AML) and combating the financing of terrorism (CFT) measures in The Gambia.

Investigation Details

According to sources, the FIU has been investigating several major banks in the country for allegedly violating AML/CFT regulations. The investigation is focused on identifying instances of suspicious transactions and money laundering schemes carried out by individuals and entities linked to the financial sector.

“We are taking this matter very seriously and are working closely with local authorities and international partners to ensure that those responsible for these illegal activities are held accountable,” said a spokesperson for the FIU.

Background

The investigation follows a report by the IMF, which warned that The Gambia’s financial system was vulnerable to money laundering and terrorist financing due to inadequate AML/CFT measures. The report highlighted several weaknesses in the country’s regulatory framework, including lack of effective oversight and poor risk assessment practices.

Cooperation with Local Banks

The FIU has been working closely with local banks to ensure compliance with AML/CFT regulations and to identify and prevent suspicious transactions. However, sources suggest that some banks have failed to cooperate fully with the investigation and are accused of engaging in illegal activities.

“The Gambia Financial Intelligence Unit is committed to ensuring that our financial system is transparent, stable, and secure,” said a spokesperson for the FIU. “We will continue to work closely with local authorities and international partners to combat money laundering and terrorism financing.”

Broader Effort

The investigation comes as part of a broader effort by The Gambia government to strengthen its financial sector and comply with international AML/CFT standards. The country has been working to improve its regulatory framework, enhance risk assessment practices, and increase cooperation with international partners.

Several major banks in The Gambia have announced plans to implement new AML/CFT measures, including enhanced customer due diligence and suspicious transaction reporting procedures.

“The implementation of these new measures is a critical step towards ensuring compliance with international standards and protecting our financial system from money laundering and terrorism financing,” said a spokesperson for one of the affected banks.

Ongoing Investigation

The investigation by the FIU is ongoing, and it remains to be seen what consequences will be meted out to those found guilty of violating AML/CFT regulations. However, sources suggest that the government is determined to take a tough stance on money laundering and terrorism financing in order to protect The Gambia’s financial system and reputation.

Impact on Local Banks

Local banks are facing increased scrutiny from regulatory authorities and international partners, and it remains to be seen how the situation will unfold.