Financial Crime World

GAMBIA’S ANTI-MONEY LAUNDERING EFFORTS: BEST PRACTICES AND AREAS FOR IMPROVEMENT

Introduction

The Financial Action Task Force (FATF) has been monitoring Gambia’s efforts to combat money laundering and terrorist financing. The country’s compliance with FATF recommendations is a crucial aspect of its anti-money laundering (AML) framework.

Key Findings

Gambia has made significant progress in implementing FATF recommendations, particularly in areas such as technical compliance, national cooperation and coordination, and targeted financial sanctions related to terrorism and terrorist financing. However, the country still faces challenges in implementing certain requirements, including those related to non-profit organizations, financial institution secrecy laws, and transparency and beneficial ownership of legal persons and arrangements.

Compliant and Largely Compliant Recommendations

The following recommendations are compliant or largely compliant with Gambia’s AML framework:

  • R.1 - Assessing risk & applying risk-based approach (LC): Gambia has implemented a risk-based approach to assessing the risks of money laundering and terrorist financing.
  • R.2 - National cooperation and coordination (LC): The country has established effective national cooperation and coordination mechanisms to combat money laundering and terrorist financing.
  • R.3 - Money laundering offence (LC): Gambia has established a money laundering offence that is consistent with FATF standards.
  • R.6 - Targeted financial sanctions related to terrorism & terrorist financing (LC): The country has implemented targeted financial sanctions related to terrorism and terrorist financing.
  • R.7 - Targeted financial sanctions related to proliferation (LC): Gambia has implemented targeted financial sanctions related to proliferation.
  • R.13 - Correspondent banking (LC): The country has established correspondent banking relationships that are consistent with FATF standards.
  • R.17 - Reliance on third parties (LC): Gambia relies on third-party service providers for certain AML/CFT functions.
  • R.18 - Internal controls and foreign branches and subsidiaries (LC): The country has established internal controls to prevent money laundering and terrorist financing in its financial institutions, including foreign branches and subsidiaries.
  • R.31 - Powers of law enforcement and investigative authorities (C): Gambia’s law enforcement and investigative authorities have the powers necessary to combat money laundering and terrorist financing.
  • R.27 - Powers of supervisors (C): The country’s supervisors have the powers necessary to regulate and supervise financial institutions effectively.
  • R.29 - Financial intelligence units (C): Gambia has a functioning financial intelligence unit that receives, analyzes, and disseminates financial intelligence related to money laundering and terrorist financing.
  • R.37 - Mutual legal assistance (C): The country provides mutual legal assistance in matters related to money laundering and terrorist financing.

Partially Compliant Recommendations

The following recommendations are partially compliant with Gambia’s AML framework:

  • R.4 - Confiscation and provisional measures (PC): While Gambia has implemented confiscation and provisional measures, there are gaps in the country’s laws and procedures that need to be addressed.
  • R.5 - Terrorist financing offence (PC): The country has established a terrorist financing offence, but there are gaps in the law and procedures related to this offence.
  • R.10 - Customer due diligence (PC): Gambia requires financial institutions to perform customer due diligence, but there are gaps in the implementation of these requirements.
  • R.11 - Record keeping (PC): The country has established record-keeping requirements for financial institutions, but there are gaps in the implementation of these requirements.
  • R.12 - Politically exposed persons (PC): Gambia requires enhanced due diligence on politically exposed persons, but there are gaps in the implementation of these requirements.
  • R.14 - Money or value transfer services (PC): The country has established regulations for money or value transfer services, but there are gaps in the implementation of these regulations.
  • R.16 - Wire transfers (PC): Gambia requires financial institutions to report wire transfers above a certain threshold, but there are gaps in the implementation of these requirements.
  • R.20 - Reporting of suspicious transactions (PC): The country has established procedures for reporting suspicious transactions, but there are gaps in the implementation of these procedures.
  • R.22 - DNFBPs: Customer due diligence (PC): Gambia requires non-financial businesses and professions to perform customer due diligence, but there are gaps in the implementation of these requirements.
  • R.23 - DNFBPs: Other measures (PC): The country has established regulations for non-financial businesses and professions, but there are gaps in the implementation of these regulations.
  • R.26 - Regulation and supervision of financial institutions (PC): Gambia’s supervisors regulate and supervise financial institutions effectively, but there are gaps in the implementation of these requirements.

Areas for Improvement

The following areas require attention to strengthen Gambia’s AML framework:

  • R.8 - Non-profit organisations (NC): The country lacks effective regulations and supervision of non-profit organizations.
  • R.15 - New technologies (NC): Gambia needs to develop and implement regulations for new technologies, such as cryptocurrencies and other digital assets.
  • R.19 - Higher-risk countries (NC): The country lacks effective regulations and procedures for dealing with higher-risk countries.
  • R.24 - Transparency and beneficial ownership of legal persons (NC): Gambia needs to establish effective regulations and procedures for transparency and beneficial ownership of legal persons.
  • R.25 - Transparency and beneficial ownership of legal arrangements (NC): The country lacks effective regulations and procedures for transparency and beneficial ownership of legal arrangements.
  • R.28 - Regulation and supervision of DNFBPs (NC): Gambia needs to develop and implement regulations for the regulation and supervision of non-financial businesses and professions.

Conclusion

Gambia’s efforts to combat money laundering and terrorist financing are ongoing, with the country making significant progress in implementing FATF recommendations. However, areas such as non-profit organizations, new technologies, higher-risk countries, transparency and beneficial ownership of legal persons and arrangements require attention to strengthen Gambia’s AML framework.