Financial Crime World

Title: FATF Report: The Gambia’s Progress towards Anti-Money Laundering and Counter-Terrorist Financing Compliance

Assessment by FATF and GIABA

The Financial Action Task Force (FATF) recently released an assessment report on The Gambia’s progress in countering money laundering (ML) and terrorist financing (TF). The evaluation was conducted by the Inter-Governmental Action Group against Money Laundering in West Africa (GIABA), a regional body affiliated with FATF.

Significant Strides but Unmet Challenges

The report highlights that The Gambia has made considerable progress in strengthening its legal and institutional framework to meet international Anti-Money Laundering/Counter-Terrorist Financing (AML/CFT) standards. However, certain gaps remain, primarily with respect to risk assessment and coordination.

Understanding and Addressing ML/TF Risks

  • Improved Understanding of Domestic ML/TF Risks: The Gambian authorities have better understood their ML/TF risks by completing their first National Risk Assessment (NRA) in 2020. However, the report suggests that the scope and comprehensiveness of the NRA can be expanded.
  • Addressing Identified Risks: The National Risk Assessment Action Plan (2020-2023) is crucial to creating a more efficient AML/CFT system in The Gambia. The authorities have allocated resources and started implementing strategies based on the NRA; however, they lack a policy based on the assessment findings and a mechanism for monitoring its progress.

Cooperation and Coordination

  • Strong Coordination: The National Co-ordination Committee (NCC) provides strong coordination.
  • Operational Initiatives: However, operational initiatives by law enforcement authorities (LEAs) have yet to yield significant outcomes in addressing high-risk areas and AML/CFT in general.
  • Proliferation Financing: The Gambia lacks a coordination mechanism or demonstrated efforts concerning proliferation financing (PF).

Limited Use of Financial Intelligence

LEAs in The Gambia, with the exception of the Police, have limited use of financial intelligence to support investigative activities.

  • Quality of FIU Reports: The limited quality of the Financial Intelligence Unit’s (FIU) financial intelligence and analysis reports contributes to the infrequent utilization.
  • STR Filings: The non-filing of suspicious transaction reports (STRs) by designated non-financial businesses and professionals (DNFBPs) and most non-bank financial institutions (NBFIs) further limits the FIU’s ability to analyze and investigate.

Limited Progress in Investigation, Prosecution, and Confiscation

Despite having adequate legal frameworks for ML offenses and confiscation, The Gambia has seen minimal results in implementing confiscation measures. Challenges include:

  • Identifying and Tracing Criminal Assets: Identifying and tracing criminal assets remains difficult.
  • UNSCR Implementation: The Gambia has not designated a competent authority for proposing individuals and entities to the UN Security Council Resolution 1267 Committee, and it has not effectively implemented related UNSCR 1373 measures.
  • Clearly Defined Procedures: The lack of clear procedures for implementing these resolutions hinders progress. Small and medium financial institutions and DNFBPs have a low understanding of their obligations.

Unmet Technical Compliance

The report notes various shortcomings in The Gambia’s AML/CFT regime:

  1. Risk Assessments and Risk-Based Approach
  2. Legal and Institutional Framework
  3. Financial Intelligence Units (FIUs) and Other Relevant Authorities
  4. Supervision and Enforcement
  5. Transparency and Beneficial Ownership (including legal persons and arrangements)
  6. Mutual Legal Assistance, Extradition, and International Cooperation

Addressing these shortcomings is vital for The Gambia to strengthen its AML/CFT system and effectively mitigate money laundering and terrorist financing risks.