Financial Crime World

The Gambia Moves to Strengthen AML Regulations Amid FATF Scrutiny

The Gambia has taken a significant step towards strengthening its anti-money laundering (AML) regulations by introducing a draft Bill aimed at addressing technical compliance deficiencies in the country’s legal framework. This development comes amid scrutiny from the Financial Action Task Force (FATF), which published The Gambia’s 2nd Round of Mutual Evaluation report in June 2022.

Strengthening AML Regulations

According to Alhagie Darboe, Director of the Financial Intelligence Unit (FIU), the draft Bill is a proactive step towards strengthening the country’s financial resilience and complying with international standards. Key aspects of the Bill include:

  • Providing a clearer definition of Politically Exposed Persons (PEPs) in line with FATF Recommendation 12
  • Enhancing the regulatory framework by addressing challenges posed by money or value transfer services (MVTS) and emerging technologies such as virtual assets, allowing The Gambia to comply with FATF Recommendations 14 and 15

Enforcing Compliance

Darboe noted that while the AML/CFT Act of 2012 provides a range of sanctions for breaches, no sanctions have been applied due to procedural limitations. The draft Bill would allow the FIU to enforce compliance without requiring a court order, enhancing the effectiveness of sanctions and broadening administrative penalties to penalize breaches of AML/CFT obligations.

Importance of Effective Measures

Siaka Bah, representative of the Central Bank of The Gambia (CBG), emphasized the importance of implementing robust anti-money laundering and combating financing of terrorism measures. He highlighted the need for strengthening regulatory confidence among investors and reiterated the CBG’s commitment to collaborating with domestic and international authorities to combat financial crimes.

  • Money laundering and terrorist financing pose significant reputational risks, undermine the integrity of the financial system, facilitate corruption, and jeopardize economic growth
  • Continued collaboration, transparency, and vigilance are necessary for effective implementation of AML/CFT measures

Collaboration and Coordination

Amie Khan, representative of the Permanent Secretary at the Ministry of Finance, called on all stakeholder institutions to fully commit to the implementation of the legislation when enacted. She emphasized the importance of domestic coordination and collaboration among Competent Authorities in combating money laundering and terrorist financing.

  • The draft Anti-Money Laundering and Combating of Terrorist Financing Bill, 2024 includes provisions for domestic coordination and collaboration among Competent Authorities
  • Stakeholders are urged to do justice to the validation exercise, sharing their expertise and insights to fine-tune the AML/CFT legislation

Commitment to Combating Financial Crimes

The Gambia’s commitment to combating money laundering and terrorist financing remains unwavering. Officials express optimism that the country will become the first in the ECOWAS region to score a moderate rating of effectiveness in relation to confiscation and provisional measures.