Gabon Faces Scrutiny Over Anti-Money Laundering Regulations

A recent evaluation by the Financial Action Task Force (FATF) has revealed that Gabon still has some work to do in implementing anti-money laundering regulations. The country received mixed ratings across various aspects of its compliance with FATF recommendations.

Assessing Risk and Applying a Risk-Based Approach

• Gabon was found to be partially compliant (PC) in assessing risk and applying a risk-based approach.
• National Cooperation and Coordination, however, received a compliant rating (C).

Money Laundering Offenses

• Gabon’s laws regarding money laundering offenses were deemed largely compliant (LC).
• Confiscation and provisional measures received a partial compliance rating (PC).
• The country also fared poorly in its handling of terrorist financing offenses, with a largely compliant rating (LC).

Targeted Financial Sanctions

• Targeted financial sanctions related to terrorism and terrorist financing were found to be non-compliant (NC).
• Those related to proliferation were also deemed non-compliant (NC).
• Non-profit organizations and financial institution secrecy laws received partial compliance ratings (PC).

Weaknesses in Other Areas

• Customer due diligence was rated partially compliant (PC).
• Record keeping and politically exposed persons received largely compliant ratings (LC).
• Correspondent banking, money or value transfer services, and wire transfers were all deemed non-compliant (NC).

Other Findings

• The country’s reliance on third parties and internal controls and foreign branches and subsidiaries were found to be lacking.
• Reporting of suspicious transactions was partially compliant (PC), while tipping-off and confidentiality received a compliant rating (C).
• Gabon’s DNFBPs, customer due diligence, and other measures all received partial compliance ratings (PC).
• Transparency and beneficial ownership of legal persons and arrangements were deemed non-compliant (NC).

Regulation and Supervision

• Regulation and supervision of financial institutions and DNFBPs were both rated partially compliant (PC).
• Financial intelligence units received a compliant rating (C).
• Law enforcement and investigative authorities’ powers and responsibilities also received compliant ratings (C).

Conclusion

Overall, Gabon has been tasked with implementing significant reforms to bring its anti-money laundering regulations in line with global standards. The country’s lack of transparency and weaknesses in its financial system make it vulnerable to illicit activities, and it is imperative that steps are taken to address these shortcomings.