GABON REGULATORY UPDATES: FOCUS ON FINANCIAL CRIMES

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The Gabonese financial sector is increasingly under scrutiny as regulators tighten their grip on fraud and financial crimes. With evolving technological developments, geopolitical events, and interconnected financial networks, the risks of money laundering, terrorist financing, sanctions evasion, consumer scams, and compliance violations are escalating.

Key Regulatory Focus Areas

Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT)

• Regulators will intensify efforts to prevent illicit exploitation of access to the financial system, including shell companies and all-cash real estate purchases.
• Strengthening AML/CFT regulations to mitigate the risks associated with these crimes.

Fraud Models and Operations

• Financial institutions will be expected to strengthen their fraud models, operations, and investigation processes to mitigate risks.
• Implementing effective measures to prevent and detect fraudulent activities.

Insider Corruption

• Employee misconduct, vendor/third-party misconduct, and cybercrime will remain key areas of focus for regulators.
• Enhancing internal controls and governance frameworks to prevent insider corruption.

New Regulatory Challenges

Crypto and Digital Assets

• Regulators will combat threats and vulnerabilities posed by digital assets, including non-compliance with existing regulations.
• Ensuring that crypto and digital asset transactions are subject to strict AML/CFT regulations.

AML for NFTs and DeFi

• The rapid growth of NFTs and DeFi platforms has led to an elevated risk of money laundering and terror financing, prompting regulators to expand AML regulations.
• Implementing effective measures to prevent the misuse of NFTs and DeFi platforms for illicit activities.

Sanctions and Price Cap Compliance

• Continued geopolitical tensions will result in increased focus on sanctions and price cap compliance.
• Ensuring that companies are aware of and comply with all relevant sanctions and price caps.

Consumer Protection Interplay

While regulators recognize the need for fraud controls, they will also assess companies’ ability to manage potential violations of consumer compliance regulations, including:

• Fair processing and treatment of consumer complaints, claims, and disputes.
• Ensuring that customers are protected from financial crimes and scams.

ESG Governance Challenges

Companies and their boards will be expected to enhance risk and compliance frameworks for effective oversight and governance in areas such as:

• Anti-bribery and corruption
• Competitive behavior
• Lobbying/political involvement
• Code of conduct compliance

As the financial landscape continues to evolve, companies must ensure they are protecting their customers by combating fraud, money laundering, and related financial crimes on their platforms. By leveraging technology and data, coupled with a deep focus on customer experience, financial institutions can instill a strong culture of doing the right thing.