Financial Crime World

Gambia’s Regulatory Bodies Failing to Combat Financial Crimes

The Gambia has long been plagued by political instability, with a weak opposition and questionable democratic credentials. However, it appears that the country’s financial regulatory bodies are equally ineffective in combating financial crimes.

Governance Index Score

According to a recent report by the Mo Ibrahim Foundation, The Gambia scored 52 out of 100 on its governance index, ranking 27th out of 52 countries. While the country has made some progress in implementing anti-money laundering and combating the financing of terrorism (AML/CFT) measures, much work remains to be done.

Financial Intelligence Unit

The country’s financial intelligence unit (FIU) is still semi-operational, with no clear budget or personnel size. Moreover, the FIU’s independence is questionable, as most staff members were drawn directly from the banking department of the Central Bank.

AML/CFT Regime Weaknesses

Despite receiving technical assistance from the West African region’s Financial Action Task Force (GIABA), The Gambia’s AML/CFT regime remains weak. In 2012, the country received only five suspicious transaction reports out of 14, and none have resulted in money laundering or terrorist financing convictions.

Anti-Corruption Bill

The government has introduced an anti-corruption bill aimed at combating malpractices, but more needs to be done to improve oversight supervision over financial and non-financial institutions, as well as designated non-financial businesses and professions (DNFBPs).

Recommendations for Improvement

To combat financial crimes effectively, The Gambia needs to put in place a proper mechanism for the freezing and confiscation of criminal assets, as contained in the Financial Action Task Force’s (FATF) recommendations. The country also requires training and mentoring for judicial authorities, law enforcement, and specialized investigating and prosecution agencies that deal with AML/CFT issues.

Key Recommendations

  • Establish a clear budget and personnel size for the FIU
  • Ensure the independence of the FIU by hiring staff from diverse backgrounds
  • Improve oversight supervision over financial and non-financial institutions, as well as designated non-financial businesses and professions (DNFBPs)
  • Put in place a proper mechanism for the freezing and confiscation of criminal assets
  • Provide training and mentoring for judicial authorities, law enforcement, and specialized investigating and prosecution agencies that deal with AML/CFT issues

Conclusion

The Gambia’s lack of progress in combating financial crimes is a major concern, particularly given its porous borders and high level of cash-based transactions. Unless the country takes concrete steps to strengthen its regulatory bodies and AML/CFT regime, it will remain vulnerable to financial crime and money laundering.