Gambia’s Risk-Based Approach to Anti-Money Laundering Earns Mixed Reviews
A recent assessment by a leading financial regulatory body has found that Gambia’s efforts to combat money laundering and terrorist financing through a risk-based approach have shown mixed results.
Progress Made, but Areas for Improvement Remain
According to the assessment, Gambia has made progress in implementing some of the key recommendations of the Financial Action Task Force (FATF), including:
- Assessing risk and applying a risk-based approach to anti-money laundering measures: Gambia was found to be “largely compliant” with this recommendation, earning it a rating of LC.
- National cooperation and coordination mechanisms: Gambia’s mechanisms were deemed effective, earning an LC rating.
- Money laundering offense and terrorist financing offense laws: The country’s laws received positive reviews, earning PC ratings.
Areas Requiring Improvement
However, several recommendations were found to be only partially implemented or non-compliant, including:
- Confiscation and provisional measures
- Targeted financial sanctions
- Customer due diligence for certain businesses and professions
- Sharing information with foreign countries
- Implementing effective measures to prevent the misuse of new technologies
Importance of a Risk-Based Approach
The assessment highlights the importance of a risk-based approach in combating money laundering and terrorist financing, which involves identifying high-risk areas and taking targeted measures to mitigate those risks. It notes that Gambia’s failure to fully implement this approach has resulted in weaknesses in its anti-money laundering regime.
Commitment to Strengthen Anti-Money Laundering Regime
Despite these challenges, the assessment acknowledges that Gambia has made progress in implementing some of the FATF recommendations and has expressed confidence in the country’s ability to address the remaining deficiencies. The government has committed to continue working with international partners to strengthen its anti-money laundering regime and prevent the misuse of financial systems for illicit purposes.
Conclusion
Gambia’s risk-based approach to anti-money laundering earns mixed reviews, with progress made in some areas but challenges remaining in others. The country must continue to work towards implementing effective measures to combat money laundering and terrorist financing, and ensure that its financial system is not used for illicit purposes.