Thursday 14 August 2014

Gambia to amend money laundering deficiencies or risk being blacklisted

By Lamin Jahateh
Gambia Flag
A number of strategic deficiencies have been identified in The Gambia efforts to tackle money laundering and terrorism financing, although it has registered some progress in tackling the twin evils.

The 2013 annual report of the Inter-Governmental Action Group against Money Laundering in West Africa (GIABA), released on Monday showed that The Gambia has not addressed a number of the strategic deficiencies in its Anti-money laundering and counter financing of terrorism (AML/CFT) system.

GIABA, an arm of Ecowas mandated to fight money laundering and terrorism financing in the sub-region, said the most crucial of these deficiencies are the non-criminalization of the full range of predicate offences, absence of effective laws and procedures for implementing United Nations Security Council (UNSC) Resolutions 1267 and 1373, and lack of ratification of various instruments on counterterrorism.

Imminent drastic actions

At the GIABA November 2013 plenary, 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 among others failing which a public statement will be published on the country.

Also, if the deficiencies are not addressed urgently, GIABA said The Gambia will soon be blacklisted for not making sufficient progress to improve its AML/CFT system.

“The consequences of this action on the country’s economy will be enormous,” the report stated, though it does not specified the repercussion.

In the report, GIABA said these serious measures have been taken against The Gambia because of the high risk associated with the country’s low compliance to international standards to tackle money laundering and terrorism financing.

For GIABA, The Gambia therefore needs to mobilize all required resources, including political commitment at the highest level, in order to mitigate the money laundering and terrorism financing risks it faces.

Wednesday 13 August 2014

Gambia real estate sector provides conduit for illicit money to be laundered

By Lamin Jahateh
The Gambia’s booming real estate sector has provided a conduit, a channel through which drug traffickers, corrupt people and other criminals involve in illicit financial activities to launder their ill-gotten gains.

The 2013 annual report of the Inter-Governmental Action Group against Money Laundering in West Africa (GIABA), released on Monday, stated that the most prevalent predicate crimes in the country in 2013 were drug trafficking, corruption, tax fraud, bank fraud and fraud in other investments.

Monies generated from such criminal ventures are typically laundered through the real estate, cross-border cash movements, and banks.

Real estate sector

The rapid development in The Gambia’s real estate sector is increasingly becoming a cause for concern as it is one of the sectors that are most vulnerable to the activities of money launderers.

The country continues to witness tremendous development in the construction and real estate sector with strong foreign direct investment.  Almost all the major coastal and some inland towns and villages have at least one housing estate or individual properties situated randomly for sale. 

However, the increased pace of economic development in the real estate sector also presents a challenge to the country.  This is so because The Gambia is yet to fully develop a regulatory framework to shield itself against criminals using real estate to launder their ill-gotten money or proceeds from criminal activities.

W/African economic growth provides fertile land large scale corruption



By Lamin Jahateh
The rapid and sustained economic growth and financial expansion across economies in West Africa have provide fertile ground for large-scale corruption and profit-motivated crimes.

The 2013 annual report of the Inter-Governmental Action Group against Money Laundering in West Africa (GIABA), released on Monday, said West African countries witnessed major political, economic and social developments in 2013.

Prominent among these developments, according to the report, is the continued macro-economic growth and the expansion of the financial sector.  Specifically, West Africa is projected to post an average Gross Domestic Product (GDP) growth of 6.7 per cent and 7.4 per cent in 2013 and 2014, respectively. 

“The evidence, economic and financial growth provide a fertile ground for large-scale corruption and profit-motivated crimes unless it is accompanied by far-reaching reforms in governance,” GIABA said.

Besides, the fact that this growth has not generated corresponding levels of employment means that many young people still suffer high unemployment, with attendant consequences for crime and other social problems.

Gambia's stability “built on coercion” than freedom and democracy


By Lamin Jahateh
President Jammeh

The Gambia has remained politically stable since the military coups of 1994 that brought the incumbent president, Yahya Jammeh, to power, the 2013 report of an Ecowas institution has noted in its analysis of the political situation of The Gambia. 

However the political stability in the country is “generally perceived” to have been built on coercion rather than on civil liberties, fundamental freedoms, democratic culture and popular participation, the Inter-Governmental Action Group against Money Laundering in West Africa (GIABA) stated in its latest annual report, released on Monday.

“Democratic politics and human rights are still limited under a system where the ruling Alliance for Patriotic Reorientation and Construction Party dominates the political space, and there is little tolerance for dissent,” the sub-regional institution mandated to fight money laundering and terrorism financing in the sub-regional said in its report. 

Friday 13 June 2014

Egypt Acquits Former Minister of Money Laundering Charges

Habib Al-Adly
Habib Al-Adly,
Cairo — An Egyptian court has acquitted former interior minister Habib al-Adly of money-laundering and profiteering charges.

 Adly, who served under the rule of toppled autocrat Hosni Mubarak, was sentenced in 2011 to 12 years in prison over charges of illegally acquired 181 million Egyptian pounds.

He was also fined four million Egyptian pounds and eight-hundred fifty-three Egyptian pounds for graft charges and nine million and twenty-six pounds for money laundering.

Adly will submit a request to be released after serving a three-years prison term over other charges, his lawyer told Aswat Masriya.

Monday 2 June 2014

Son of Brazilian football legend sentenced to 33 years in jail for money laundering

Pele's son Edinho
Edinho, son of Pele
 
The son of the Brazilian football legend Pele has been sentenced to 33 years in jail for laundering money raised from drug trafficking. 

Edinho is a retired footballer who played goalkeeper for Pele's old club, Santos, in the 1990s.

He was first arrested in 2005 and has served a sentence for drug trafficking offences and links with a notorious drug dealer in the city of Santos.

He admits he had a drug problem but denies the trafficking charges.

The ruling was issued by a judge in the nearby coastal city of Praia Grande, in Sao Paulo state.
Brazilian media have not been able to contact Edinho, whose real name is Edson Cholbi do Nascimento, but they say he is expected to appeal.

Edinho, 43, works as a goalkeeping coach at Santos.
US childhood
Pele, or Edson Arantes do Nascimento, played all his professional career in Brazil for Santos.
Playing for Brazil, he won the World Cup in 1958, 1962 and 1970 and was acclaimed as the greatest footballer of his generation.

Nigeria: Banks and Money Laundering

Editorial
The indictment by the Acting Governor of Nigeria's central Bank, Dr. Sarah Alade that Banks have been aiding money laundering, a practice which puts a slur on their integrity, professional and ethical standard did not come as a surprise to keen observers of the Nigerian banking system. What is however curious is that the charge is coming from the apex bank that has statutory regulatory power to detect, query, and sanction any erring bank that violates the extant banking regulations. 

CBN Governor delivered the indictment at a course on Combating Money Laundering and other Financial Crimes organised by the West African Institute for Financial and Economic Management (WAIFEM) in Abuja last week. According to Mrs. Alade, "bank facilities are used knowingly and unknowingly to further the act of money laundering and in most cases to retain the proceeds of such crime" which include, round tripping, financial fraud, capital flight, fake cheques, fake currency minting, advanced fee fraud and insiders abuse. She also warned that money laundering has adverse effect on foreign direct investment (FDI) "when a country's commercial and financial sector are perceived to be associated with the incidence of organized crimes".

Saturday 17 May 2014

Money Laundering Trial: Banks mandated to scrutinise financial transactions

Float from Mardi Gras 2009 in New Orleans, lam...
Float from Mardi Gras 2009 in New Orleans, lampooning the money laundering trial of Louisiana State Senator Derrick Shepherd. (Photo credit: Wikipedia)
A Guaranty Trust Bank internal control officer has said [commercial] banks are mandated by the central bank of The Gambia under the Anti-Money Laundering Act to scrutnise financial transactions.  

Ali Senghore, Officer in charge of internal control at GTBank on Kairaba Avenue, was testifying Tuesday in the trial of Omar Jallow, a Gambian, accused of money laundering. 

Jallow is said to have received 38, 000 pounds (D2, 280, 000) from one Dodou Njie, a UK-based Gambian, through GTBank with intent to conceal or render assistance. 

The police said Mr Jallow knows or have reason to believe that the money has being laundered by the sender or must have being unlawfully obtained.

Tuesday 6 May 2014

Gambian man charge with money laundering

Deutsch: Arch 22, Triumphbogen in Banjul, Gamb...
Deutsch: Arch 22, Triumphbogen in Banjul, Gambia zwischen dem Independance Drive und dem Banjul-Serekunda-Highway gelegen wurde am 22. Juli 1996 eingeweiht Español: Arco 22, en la entrada de Banjul (Photo credit: Wikipedia)
The police in Banjul Wednesday charged a Gambian man with money laundering.

Omar Jallow, who denied the charge, is accused of receiving 38, 000 pounds (D2, 280, 000) from one Dodou Njie, a UK-based Gambian, through a Guaranty Trust Bank Account No: 201-1-114897-1590 with intent to conceal or render assistance.

The police said Mr Jallow knows or have reason to believe that the money has being laundered by the sender Dodou Njie or must have being unlawfully obtained.

Tuesday 15 April 2014

Experts Seek Tighter Regulations against Money Laundering

The Chairman, Lagos Chamber of Commerce and Industry (LCCI), Mr. Remi Bello, has stressed the need for stiffer regulations against money laundering and terrorist financing.

Bello argued that the huge amount taken out of the country illegally would have made a considerable impact on the Nigerian economy.

The LCCI boss stated this at a recent conference tagged: “Anti-money Laundering, Terrorist Financing and Identity Theft Management,” organised by the Lagos branch of the Chartered Institute of Bankers of Nigeria (CIBN).

While stating that money launders used to take away millions of naira in the past, he alleged that the crime has grown into billions of naira. The trend, according to him, calls for greater regulation as a result of the effect on the Nigerian economy.

"It is naive to think that Western nations will help us to police the theft of our patrimony. In many ways, they benefit from our corruption, "he alleged.

He added: "Therefore, there is need for Nigerians to fight for themselves through public enlightenment processes and accountability by Nigerian officials.”

He said that campaign against money laundering and terrorist financing should also at the fore front of any political campaign as well as the on-going national conference.

Thursday 10 April 2014

Egypt bans dealings with countries with poor anti-money laundering laws

(KHARTOUM) – Egyptian banks are refusing to receive wire transfers from Sudanese and Libyan companies in line with instructions issued by the Central Bank of Egypt (CBoE).
JPEG - 14.7 kb
The headquarters of the Central Bank of Egypt in the capital, Cairo (Photo: Reuters/Amr Abdallah Dalsh)

The CBoE decided to ban banking transactions with several Arab and African countries, including Qatar, Libya, Syria and Sudan, saying those countries are not committed to implementing anti-money laundering laws.

It also said there are suspicions that there are money transfers from those countries to civil and rights organisations inside Egypt and are being misused.

According to Egypt’s Al Youm Al Sabi’ daily newspaper, the Egyptian Chemical and Fertiliser Exports Council (CFEC) ,which is headed by Waleed Hilal, received complaints from several companies in the sector, saying they were negatively affected by the decision to ban banking transactions with those countries.

In a press statement on Wednesday, Hilal said that the companies are facing problems in receiving their dues from clients in some Arab countries due to CBoE instructions.

Tuesday 1 April 2014

Gambia’s fight against money laundering marred by ‘key deficiencies’



Yahya Camara Gambia FIU Director and GIABA National Coorrespondent  (Photo Credit: LJahateh/GNJAML)
By Lamin Jahateh

There are numerous challenges both legal, technical and regulatory in Gambia’s efforts to combat the twin economic crimes of money laundering and terrorism financing (ML and TF), although it has registered modest gains in combating the menaces.

“There are key deficiencies (in the country’s fight against money laundering and terrorism) which remain outstanding,” said Mr Yahya Camara, the director of the recently established Financial Intelligence Unit (FIU) which is mandated to combat money laundering and terrorism financing in The Gambia.

Speaking at the commencement of a three-day workshop to develop a national strategy to combat money laundering and terrorism in The Gambia on Tuesday at Kairaba Beach Hotel, Mr Camara said some of key outstanding deficiencies include the country’s efforts to combat ML and TF include low investment in technology for Anti-Money Laundering and Counter Financing of Terrorism (AML/CFT) measures, and lack of adoption of appropriate internal control measures against ML and TF.

Gambia beef-up machineries to prevent money laundering


Hon Ousman Sonko, Minister of the Interior delivering the statement of Finance Minister Kebba Touray (Photo Credit: LJahateh/GNJAML)
The Gambia has made significant efforts at beefing up its machineries to combat the twin evils of money laundering and terrorism financing (ML and TF), the Minister of Finance and Economic Affairs, Kebba Touray, has said.

He said the capacity of the Financial Intelligence Unit has recently been strengthened with the recruitment of more dedicated staff, in addition to the staff of the Banking Supervision department, of the Central Bank, attached to the Unit.

FIU is one of the two institutions directly responsible for implementing anti-money laundering and combating terrorism financing measures in The Gambia.

GIABA Director says Gambia should quickly finalise national anti-money laundering strategy




Participants at workshop on National AML/CFT Strategy for Gambia which officials say will be a driving force for deepening the country's AML/CFT system (Photo: MSJoof/GNJAML)
By Modou S. Joof

The director general of the Inter-governmental action group against money laundering in West Africa (GIABA), Adama Coulibaly, has advised The Gambia to “quickly finalise” its national anti-money laundering and counter-financing terrorism (AML/CFT) strategy.

Gambia has chosen to develop a national strategy that will serve as a driving force for deepening of its AML/CFT system.

In a statement read on his behalf during an April 1-3 “stakeholders workshop to develop the strategy” at a local hotel in Kololi, The Gambia, Mr Coulibaly said the timing is auspicious as the second round of evaluations for GIABA member states is set to begin in the last quarter of 2015.

Tuesday 11 March 2014

President Jammeh calls for concerted efforts to flush out terrorism



Gambian leader, Yahya Jammeh
The president of the Republic has called for concerted efforts to combat terrorism on the continent, condemning the current string of violence in Nigeria, meted out on innocent civilians by the group ‘Boko Haram’.

Speaking at the Banjul International Airport Friday evening upon his return from Nigeria where he took part in a human security summit as part of activities marking that country’s centenary, His Excellency Shiekh Prof. Alh. Dr. Yahya Jammeh lamented the myriad of proxy wars on the continent, noting that such could only retard progress.

“It has to be a concerted effort to fight terrorism,” he reiterated, calling on African leaders to work together and fight the common enemy – terrorism and other violent crimes.

The Gambian leader said it is his conviction that if everyone is committed to the fight against terrorism, there wouldn’t be any such menace in that they [terrorists] would not be safe anywhere to perpetuate acts of violence against innocent people.

“We the heads of states have realised that whatever group they are called in Nigeria, it is a criminal enterprise,” he remarked, questioning the wisdom of killing innocent people in the name of Islam. “So terrorism is not for one country to fight it, especially we in Africa given the porosity of our borders,” he told reporters.

Jammeh also condemned the fact that certain “crooks” are being used by outside forces in the name of religion or tribe to take on a government in a country that is rapidly developing. 

Bankers Seek End to Money Laundering, Identity Theft


The Lagos State Chapter of the Chartered Institute of Bankers of Nigeria (CIBN) has expressed concern over incidence of money laundering, terrorism financing and identity theft in the country.

The body also stressed the need for more initiatives to address such fraudulent activities in the banking system, even as it expressed delight over the recent launch of biometrics. According to the Lagos CIBN, biometrics would help to track down fraudsters in the system.

Speaking ahead of its forthcoming conference on anti-money laundering, terrorist financing and identity theft management to hold in Lagos between March 24th and 25th, the First Vice-Chairperson, CIBN, Lagos Branch, Mrs. Taiwo Ige, said the impact of the such fraudulent activities on individuals, the nation and organisations were enormous.

According to her, the conference would expose lawyers, bankers and operators in other sectors to modalities on how to tackle money laundering and identity theft in order to encourage investment in the country and protect depositors.

Friday 28 February 2014

Exclusive: HSBC still in regulators' crosshairs over money-laundering


The Angel of Independence is seen near a HSBC building in Mexico City, December 11, 2012.
Credit: Reuters/Edgard Garrido

(Reuters) - U.S. regulators continue to find weaknesses in the way HSBC Holdings tries to prevent money laundering, according to people familiar with the matter, even after the British bank was forced to pay nearly $2 billion in penalties and invested millions in increasing its compliance.

In December 2012, the bank paid to U.S. authorities what was then a record amount to resolve charges that it failed to stop hundreds of millions of dollars in drug money from flowing through the bank from Mexico, and promised at the time to fix the problems.

When announcing the settlement, HSBC Chief Executive Stuart Gulliver said: "The HSBC of today is a fundamentally different organization from the one that made those mistakes."

But examiners from the Office of the Comptroller of the Currency have continued to find problems, two people familiar with the matter said. They said that the regulator told the bank late last year it has not seen enough improvement in the bank's controls in its correspondent banking business, which processes transactions for financial institutions around the world, including HSBC units.

Sources declined to provide further detail about the nature of the weaknesses. The sources declined to be named because they were not authorized to speak publicly about the internal changes or the communication with regulators.

While none of the people suggested HSBC could face another regulatory or enforcement action at this point, the assessment by the authorities shows how difficult it is for the bank to resolve the issues.

Saturday 22 February 2014

Director of Financial Intelligence Unit promises to work with anti-money laundering journalists



The director of the Financial Intelligence Unit (FIU) has promise to work with the Network of Journalists against Money Laundering and Terrorism Financing – The Gambia, a national chapter of the sub-regional network. 

Mr Yahya Camara said his unit is ready to work with the network to see how best the right information on the scourges of the twin evils of Money Laundering and Financing Terrorism (ML and FT) reach the masses.  The FIU is established by an Act of the parliament and it is mandated to render services such combating  ML and FT in The Gambia.

(L - R) Mr Drammeh, Mr Jahateh and Mr Camara
Mr Camara was speaking to members of the network during a courtesy call to his office, located within the Central Bank of The Gambia in Banjul, on Wednesday. 

Speaking earlier, Lamin Jahateh, coordinator of the network, said the purpose of the visit is to formally introduce the network to the FIU, and to discuss areas that the FIU can collaborate with the network, as part of the network’s 2014 action plan.

The main objectives of the network include complementing the efforts of the Inter-Governmental Action Group against Money Laundering in West Africa (GIABA) in combating economic and financial crimes in the sub-region with a view to protect the national economies and financial systems from M L. 

The network has aims to also to build the capacity of journalists to report well on issues pertaining to money laundering and terrorism financing.

Mr Jahateh said this year; the network intends to organize a seminar to familiarise journalists with the Anti-Money Laundering and Counter Financing Terrorism Act of The Gambia. 

This is to help journalists to be au fait with the tools and knowledge needed to do a proper reporting and analysis of the twin crimes. 

He also told the FIU boss that the network intends to hold symposium on International Anti-Corruption Day, 9th December.  The event will be staged to raise awareness on the menace of corruption as it is one of the sources where people derive illicit fund to launder or to finance criminals.

The network also has plans to prepare and publish an E-Newsletter that will contain quality reports and feature articles on ML and FT, as part of its efforts to disseminate information on the twin crimes.

Welcomed initiatives

Mr Camara, director of the FIU, said the initiatives of the network are welcome and that the FIU will see how best they can collaborate with the network.

Tuesday 11 February 2014

‘African countries incapable of dealing with terrorism in isolation’



By Modou S. Joof 
 
Dr. Abdullahi Shehu has said “most African countries are incapable of dealing with the problems” associated with terrorism in isolation due to many challenges confronting them.

The Director General of the Inter-Governmental Action Group against Money Laundering in West Africa, GIABA, said on 13 May, 2013 that the impact of terrorist acts which are manifested in various dimensions is widespread.

In a paper addressing “Peace and Security in Africa: The Challenges of the Fight against Terrorism in the Context of Maintaining International Peace and Security“, he told the United Nations Security Council (UNSC), “that the patterns and locations of these terrorist acts depend on the ideology, intents and capability of the perpetrators”.

While most terrorist activities have been driven by extremist and political motivations, Dr. Shehu says: “We are yet to see perhaps a devastating pattern if terrorist groups are driven by a feeling of deprivation, hunger, poverty and unemployment, and that may be even more difficult to control in a country.”

Close ranks

Speaking at the UNSC Open Debate on Combating Terrorism in Africa in the Context of Peacekeeping and International Security in New York, the GIABA Director General called on national, regional and international actors to close ranks in order to effectively fight the menace of terrorism in Africa.

He noted that the factors exacerbating terrorism include: “Political corruption, weaknesses in the legal framework and institutional mechanisms for the prevention of terrorists acts, inadequate skills and manpower for effective law enforcement, insufficient resources yet competing priorities, and inadequate inter-agency cooperation within countries and internationally.”

“Any strategic approach to the prevention and control of terrorism must also address the financing aspects of terrorism,” he said.

Monday 10 February 2014

Gambia university student wins anti-money laundry speech competition in Ghana

Gabriel Bangura, a second year law student at the University of The Gambia (UTG), has emerged second at a recently concluded speech competition held in Ghana, organised by the Inter-governmental Action Group against Money Laundering in West Africa (GIABA).  

The competition attracted participants from four other universities in Ghana, Nigeria, Sierra Leone and Liberia. 

It was centred on topics such as: the impact of anti-money laundry and terrorist financing in West African economies and the role of the youth in fighting terrorism, and what inter-governmental organisations can do to prevent money laundry. 

The competition was won by Nigeria followed by The Gambia.

Tuesday 4 February 2014

New Leadership in GIABA


The ECOWAS Council of Ministers in Abidjan on 23rd January 2014, at its Extraordinary Meeting approved the appointment of Messrs. Adama Coulibaly and Brian Anku Sapati, as the Director General and Deputy Director General, respectively, of the Intergovernmental Action Group against Money Laundering in West Africa (GIABA). The new leadership is taking over from Dr. Abdullahi SHEHU, a Nigerian who has been Director General since 26th May 2006 and his Deputy, Dr. (Mrs) Ndeye Elisabeth Diaw, a Senegalese.

Mr. Adama Coulibaly, an Ivorian, is bringing to GIABA over thirty-two years of diverse experience. Until his new appointment, the new Director General was the President of the Financial Intelligence Unit of Cote d’Ivoire (CENTIF-CI) and GIABA National Correspondent for Cote d’Ivoire from July 2011. Mr. Coulibaly presided over the GIABA 18th, 19th and 20th Technical Commission/Plenary meetings held between November 2012 and November 2013. The new Director General was Director General of the National Federation of Industries and Services in Cote d’Ivoire (FNISCI) from 2005 to 2011. Between 1982 and 1999, he worked at the Cote d’Ivoire Customs Department where he rose to the position of the Director General on 8th November 1996. Under his leadership from 1996 to 1999, the Customs Department broke all revenue collection records, improved performance and secured revenue that was consistent with the requirements of the Bretton Woods Institutions.