Gambia’s Anti-Money Laundering and Combating the Financing of Terrorism Efforts Fall Short

A new report has revealed that The Gambia’s efforts to combat money laundering (ML) and terrorist financing (TF) are inadequate, failing to meet international standards.

Inadequate Laws and Regulations

The report found that while The Gambia has implemented some measures to prevent ML/TF, there are significant gaps in its laws and regulations. Specifically:

• The country’s threshold for predicate offences is too high, allowing criminals to launder money without facing punishment.
• There is a lack of understanding of ML/TF risks, making it difficult to effectively implement anti-money laundering (AML) and combating the financing of terrorism (CFT) measures.

Weaknesses in Tracing and Confiscating Criminal Proceeds

The report highlighted weaknesses in The Gambia’s system for tracing and confiscating criminal proceeds and assets of corresponding value. This lack of effective mechanisms makes it challenging to prevent ML/TF.

Supervision of Reporting Entities

While The Gambia has issued guidelines and policies for financial institutions and designated non-financial businesses and professions (DNFBPs) to facilitate the implementation of AML/CFT obligations, these guidelines are not enforceable under the laws of The Gambia. As a result:

• There is no effective supervision of reporting entities.
• The country’s ability to prevent ML/TF is hindered.

Lack of Comprehensive Understanding of TF Threats and Vulnerabilities

The report criticized The Gambia for lacking a comprehensive understanding of TF threats and vulnerabilities, as well as its inability to determine whether or not these vulnerabilities are being exploited.

International Cooperation

In terms of international cooperation:

• While The Gambia has some agreements in place, there is no coordination among authorities on PF matters.
• The country’s financial intelligence unit (FIU) has not targeted ML/TF risks of other DNFBPs, making it difficult to effectively combat these threats.

Recommendations for Improvement

The report made several recommendations for improvement:

• Develop a comprehensive AML/CFT strategy
• Strengthen international cooperation
• Adopt a risk-based approach to supervision
• Increase resources to target complex and higher-risk ML activities

Overall, the report concludes that while The Gambia has taken some steps to combat ML/TF, more needs to be done to bring the country’s efforts in line with international standards.