Gambia’s Financial Institutions Under Scrutiny: New Sanctions Screening Measures Implemented
As part of efforts to combat money laundering, terrorist financing, and proliferation financing (ML/TF/PF), financial institutions in Gambia are now required to implement robust financial sanctions screening measures. This move is aimed at ensuring compliance with international standards and regulations.
New Requirements for Financial Institutions
Under the new requirements, accountable or reporting institutions are expected to:
- Conduct thorough risk assessments to identify potential ML/TF/PF risks associated with their clients
- Evaluate the effectiveness of their existing client screening mechanisms and consider alternative solutions if necessary
Sanctions Screening Tool Developed by FIC
The Financial Intelligence Centre (FIC) has developed a sanctions screening tool designed to assist financial institutions in identifying and blocking transactions that may be linked to sanctioned individuals or entities. However, it is essential for these institutions to conduct their own risk assessments and evaluations to ensure the tool’s effectiveness in mitigating their risk exposure.
Consequences of Non-Compliance
Failure to comply with the new regulations could result in severe penalties, including fines and reputational damage. In light of this, financial institutions are advised to take immediate action to implement the necessary sanctions screening measures to avoid any legal or regulatory consequences.
Responsibility for Compliance
The FIC has emphasized that it is not responsible for the obligations of accountable or reporting institutions in terms of ML/TF/PF risk management. Instead, these institutions must make their own evaluations and assessments to ensure compliance with international standards and regulations.
Prioritizing Effective Sanctions Screening
As Gambia’s financial sector continues to evolve, it is crucial that institutions prioritize effective sanctions screening to prevent illicit activities from taking root. The new measures are expected to have a significant impact on the country’s anti-money laundering efforts, and it remains to be seen how effectively they will be implemented in practice.
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