Financial Crime World

Gabon Faces Challenges in Combating Tax Evasion and Financial Crime

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The government of Gabon is struggling to combat tax evasion and financial crime, with illicit financial flows posing a significant threat to the country’s economy. Despite efforts by various institutions, the problem persists, with suspected illegal activities including tax fraud, market abuse, corruption, and money laundering.

Challenges Faced by Gabon

  • Illicit financial flows pose a significant threat to the country’s economy
  • Tax evasion and financial crime persist despite efforts by institutions
  • Suspected illegal activities include tax fraud, market abuse, corruption, and money laundering

Institutional Framework

The government of Gabon has established an institutional framework to tackle these issues:

  • Ministry dedicated to good governance
  • National Commission for the Fight against Corruption and Illicit Enrichment (CNLCEI) created in 2003
  • CNLCEI monitors financial flows and identifies suspicious transactions

Regulatory Framework

Experts say that Gabon’s regulatory framework needs to be strengthened to effectively combat tax evasion and financial crime:

  • General Directorate of Customs and Indirect Rights and the General Directorate of Taxes have implemented reforms aimed at dematerializing payment systems
  • More needs to be done to strengthen the regulatory framework

Judicial Reforms

The 2019 judicial reform has led to the creation of specialized tribunals and courts for the repression of offenses related to:

  • Illegal mining activities
  • Forestry activities
  • Fishing activities

National Financial Investigation Agency (ANIF)

  • Responsible for monitoring financial flows and identifying suspicious transactions
  • Plays a key role in combating money laundering offenses

Strategy Document

The government has developed a strategy document to combat corruption and money laundering with the support of the United Nations Development Programme (UNDP):

  • Targets 10 priority sectors likely to be subject to illicit trafficking
  • Implementation led by ANIF and CNLCEI

Diagnostic Study

A diagnostic study on national governance, corruption, and the risk of illicit financial flows in the implementation of public policies was launched in April 2021:

  • Aims to identify the root causes of the problem and provide recommendations for its solution

Inter-Agency Collaboration

Experts say that inter-agency collaboration is crucial in combating tax evasion and financial crime:

  • Collaboration between:
    • CNLCEI, security forces, and Public Prosecutor’s Office
    • ANIF, banking sector, and Public Prosecutor’s Office to combat money laundering offenses

Conclusion

Illicit financial flows continue to pose a significant threat to Gabon’s economy. The country needs to strengthen its capacity to detect and prevent such flows, as well as establish a mechanism for measuring and sharing data related to IFFs.

The pilot project aims to contribute to the implementation of objectives 16.4 and 16.5 of the Sustainable Development Goals (SDGs), which relate to the reduction of illicit financial flows and the fight against all forms of organized crime.