Financial Crime World

Gambian Authorities Strengthen Anti-Money Laundering Measures Amidst Growing Concerns Over Organized Crime

The Gambia has announced measures to enhance its anti-money laundering (AML) and combating financing of terrorism (CFT) regime, aimed at strengthening the country’s financial system against organized crime. According to Central Bank Governor Saidy, the government is taking concrete steps to address the growing threat posed by sophisticated criminals exploiting vulnerabilities in financial systems.

Improving AML/CFT Regime

The Gambia’s AML/CFT regime was identified as requiring significant improvement during a second-round mutual evaluation report published in June 2022. In response, the government has commenced work on priority areas, including:

  • Amendment of the current AML/CFT Act 2012
  • Introduction of new legislation, with a validated bill expected to be enacted in 2024

The new legislation will address deficiencies highlighted in the evaluation report and strengthen the country’s AML/CFT regime.

Strengthening Supervision and Enforcement

To enhance supervision and enforcement, the Central Bank of Gambia (CBG) has established an AML/CFT unit under its Banking Services Department. The unit is working closely with the Financial Intelligence Unit (FIU) to conduct on-site examinations on financial institutions. The ultimate goal is for the FIU to relinquish supervision of financial institutions to the AML/CFT unit.

Risks and Consequences of Inaction

Saidy emphasized that money laundering poses significant risks to financial systems, including:

  • Distorting economic stability
  • Creating unfair competition
  • Undermining investor confidence

He warned that the consequences of inaction could lead to massive funds flows, economic instability, currency depreciation, and capital flight.

Staying Ahead of Criminals

The country’s efforts come amidst growing concerns over organized crime’s impact on its financial system. Saidy stressed the need for regulators, policymakers, and enforcers to stay ahead of criminals by continuously enhancing their knowledge and skills to effectively combat all forms of financial crimes.

By strengthening its AML/CFT regime and supervision mechanisms, The Gambia is taking a proactive approach to combating organized crime and protecting its financial system.