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| Recent seizures of cocaine and
marijuana demonstrate, the country is also one of the routes for drug
trafficking in West Africa, GIABA says. (Photo shows cocaine bust, estimated to worth $1 billion, June 2010, Banjul) |
Progress in the implementation of
Anti-Money Laundering and Counter-financing Terrorism, AML/CFT, measures in The
Gambia has been slow, according to a new report published by a West African
agency that monitors and works to prevent the twin crimes.
The Gambia also lacks the capacity to
monitor the full stretch of its borders, according to the 2013 Annual Report
of the Inter-Governmental Action Group Against Money Laundering in West Africa,
GIABA.
The report, released in August 2014, stated
that smuggling is therefore prevalent, though the country’s customs collaborate
with Senegalese counterparts to address the problem.
“As recent seizures of cocaine and
marijuana demonstrate, the country is also one of the routes for drug
trafficking in West Africa,” the report indicated.
It noted that the high concentration of
commercial banks in The Gambia is generally considered as disproportionate to
the country’s economy – while tourism-related human trafficking is a thriving
underground business in the West African country.
“It is also a source, transit and
destination country for women and children subjected to forced labour and sex
exploitation,” it added.
Serious challenge
The US State Department's 'Trafficking
in Persons Report 2013' reveals that the booming sex tourism industry
propels the recruitment of young, sometimes under-aged, girls from nearly all
ECOWAS member States by traffickers to meet the demands of European child-sex
tourists.
GIABA's report stated that cross-border
movement of cash is a serious challenge due to the economic activities of
nationals from other countries.
The anti-money laundering agency said The
Gambia has become very attractive for such transactions because of its more
liberal policies compared to neighbouring Senegal's strict monitoring of
foreign exchange transfers.
GIABA said the most prevalent predicate
crimes in the country in 2013 were drug trafficking, corruption, tax fraud,
bank fraud and fraud in other investments.
It quoted a Country Report provided
by The Gambia, which states that “the proceeds of these crimes are typically
laundered through the real estate, cross-border cash movements, banks and
DNFBPs [Designated Non-Financial Business and Profession].”
Two years ago, The Gambia enacted a new
AML/CFT law, reactivated the Inter-Ministerial Committee and appointed a
Director for its financial intelligence unit, the FIU. GIABA said these
measures have helped to address some of the deficiencies in the country’s
AML/CFT regime.
However, it added that the seventh
follow-up report of the country, submitted in November 2013, shows that it has
not addressed a number of the strategic deficiencies in its AML/CFT system.
The most crucial of these deficiencies are
the non-criminalisation of the full range of predicate offences, absence of
effective laws and procedures for implementing UN Security Council Resolutions
1267 and 1373, and lack of ratification of various instruments on
counter-terrorism.
In particular, the country has not ratified
the key UN International Convention on the Suppression of the Financing of
Terrorism.
Meanwhile, the country has received funding
from the African Development Bank to support the implementation of the
requirements of the Anti-Money Laundering and Combating of Terrorism Financing
Act 2012.
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| Previous reports have found similar problems |
Weak law enforcement
Last year, the FIU received 20 STRs
(Suspicious Transaction Reports), of which 16 are linked to money laundering,
according to GIABA, of which 10 cases were forwarded to the law enforcement
agencies for investigation.
In one of the cases involving suspected
ML-related drug trafficking worth US$500,000, investigations showed that the
funds were genuine.
But in another case involving illegal gold
mining and smuggling worth US$400,000, the Netherlands Government has sought
mutual legal assistance to recover illicit funds in a commercial bank in The
Gambia.
“While the status of the other
investigations is not known, however, and there has been neither prosecution
nor conviction,” GIABA lamented. “The low level of reporting and the lack of
prosecution and conviction in the face of real ML/TF threats are matters of
concern.”
It said the main obstacles to
implementation of AML/CFT measures in the country are “weak law enforcement”
and the “low capacity” of regulatory authorities.
Strategic deficiencies
At its November 2013 Plenary session, GIABA
said The Gambia was called upon to demonstrate greater commitment to the
implementation of its AML/CFT measures.
The country was directed to address its
AML/CFT “strategic deficiencies” and submit a follow-up report in May 2014,
failing which a public statement will be published on the country.
“These serious measures have been taken by
the Plenary because of the high risk associated with the country’s low
compliance level,” the report revealed.
GIABA said The Gambia needs to mobilize all
required resources, including political commitment at the highest level, in
order to mitigate the ML/TF risks it faces.
It is also in the interest of the country
to address these deficiencies urgently in order to avoid being blacklisted as a
country not making sufficient progress to improve its AML/CFT system, GIABA
warned.
“The consequences of this action on the
country’s economy will be enormous.”
Written by Modou S. Joof
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