The Inter-Governmental Action Group against Money Laundering
and Terrorism Financing (GIABA) has urged the Gambia to amend her Anti-Money
Laundering laws with a view to bring it in line with the international
standards.
The Gambia’s Anti-Money Laundering Act 2003 is not up to
standard as it designated only 13 predicate offences for money laundering. This falls short of the minimum 20 designated
categories under the recommendation of Financial Action Task Force (FATF),
which is the principal international standard body setting on money laundering
and terrorist financing.
Dr Abdullahi Shehu, GIABA DG |
The director general of GIABA, Dr Abdullahi Shehu said they
are negotiating with the Gambian authorities to make sure that they amend and
pass a standard anti-money laundering legislation. He noted that the negotiation has been
fruitful as the Gambian authorities had agreed to amend the law.
“Now
we are really working together with them to make sure that the law is amended
because where there is no law or where the law is weak, it create a vacuum for
criminals to take over,” said Dr Shehu, DG of GIABA - a specialized institution of ECOWAS responsible for the
prevention and control of money laundering and terrorist financing in the West
African sub-region.
Money laundering situation in Gambia
Various reports on the money laundering situation of the
Gambia indicates that the menace is increasingly a major problem in the country
hence the need for the government to make significant efforts at beefing up its
machinery by putting in place appropriate and standard legislation to combat
the social evils.
With poor regulatory mechanism,
combating the menace of money laundering in the Gambia seems to be a marmot
task and the latest annual report of GIABA which states that factors such as
porous borders, weak controls systems, high prevailing poverty, and massive
inflows of tourists are contributing to an increase in the money laundering
risk environment in the country.
However, although the laundering
of illicit money is increasingly a major problem in the country, its magnitude
or severity remains relatively difficult to determine.
The 2011 Annual Report, released in April, examines
economic indicators and the potential risk factors such as the prevalence of cash
transactions, predicate offences; such as drug trafficking, corruption and tax
evasion,
The report, which also examined
the relevant ML/FT infrastructure, including legal and institutional frameworks
and the involvement of civil society, indicated that in The Gambia proceeds of
crime are mainly derived from drug trafficking, bribery and corruption, the
tourism industry, foreign exchange transactions, and other related acquisitive
crimes.
Booming
sectors vulnerable
Almost all booming sectors of
the Gambia economy are vulnerable to money laundering, according to the GIABA’s
report. The banking industry, foreign
exchange transactions, the tourism industry, and the real estate are all sectors
cited by the report to be among the most vulnerable sectors to money
laundering.
All these sectors, particular
banking and the real estate sectors continues to witness tremendous growth over
the years at the same time drug trafficking is also increasing couple with the
porous borders and weak controls pose even a greater risk to the country.
The Gambian government has taken steps to prevent its
financial system from being misused as a conduit for the transfer and retention
of illicit funds, but the various agencies involved in Anti-Money Laundering
activities have not been allocated adequate resources.
The Central Bank of the Gambia and its Financial Intelligence
Unit lack the required technical and operational personnel to supervise and
monitor financial institutions’ compliance with the deficient Money Laundry Act.
Additionally, the Financial Supervision Department is
understaffed and is not likely to function effectively as the FIU because its
primary role of supervising financial institutions and non-bank financial
institutions for prudential purposes is considered a priority at the moment.
With 23 staff members, the Department is barely meeting its
primary obligation to supervise the financial institutions effectively.
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