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.

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. 

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.

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).

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.

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.

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.

‘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.

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.

GIABA calls for re-examining of laws against money laundering, financing terrorism in W/Africa

By Lamin Jahateh

There is a need to re-examine the anti-money laundering and counter-financing of terrorism (AML/CFT) measures in West African countries to ensure they do not induce superficial compliance by countries, said the director general of the Inter-Governmental Action Group against Money Laundering in West Africa (GIABA), Dr Abdullahi Shehu.

Dr Shehu observed that the current AML/CFT framework may force money launderers and extremist groups to make frequent tactical changes and thus produces more grievances or fertile grounds for the recruitment of new set of criminals. 

Most parts of the AML/CFT framework of countries in the sub-region are products of imperfect and incomplete information, hence the need to establish and address the root causes of terrorism to ensure the successes recorded by the AML/CFT framework are enduring, Dr Shehu said while presenting a paper on the challenges of implementing  counter-financing of terrorism regimes in West Africa at the training workshop on AML/CFT for North and West African states organised by the Swiss Confederation and the Federal Republic of Nigeria in collaboration with Giaba held in Abuja, Nigeria, from December 11 to 13, 2012.  

“The benefits of implementing effective AML/CFT regimes are enormous,” the Giaba DG said. “Giaba will continue to support its members to implement effective AML/CFT measures that facilitate optimal deployment of resources and proper sequencing of intervention activities.”

For him, the adoption of international AML/CFT standards is not the magic wand towards eradicating money laundering and financing terrorism, but they are milestones towards building enabling framework that would provide the roadmap for achieving the ultimate goal of a crime-free society.

He said Giaba, an arm of ECOWAS established to fight money laundering and terrorist financing in West Africa, is mandated to develop strategies and mechanisms for the prevention and control of the twin crimes in the sub-region.

THE IMPACT OF MONEY LAUNDERING AND FINANCIAL CRIME FROM BIGGER PERSPECTIVES

Author: Amaru Bah

Money laundering is the criminal's way of trying to ensure that, in the end, crime pays. It is necessitated by the requirement that criminals -- be they drug traffickers, organised criminals, terrorists, arms traffickers, blackmailers, or credit card swindlers -- disguise the origin of their ill-gotten money so they can avoid detection and the risk of prosecution when they use it.

Money laundering is critical to the effective operation of virtually every form of transnational and organised crime. Anti-money-laundering efforts, which are designed to prevent or limit the ability of criminals to use their ill-gotten gains, are both a critical and effective component of anti-crime programmes.

Money laundering generally involves a series of multiple transactions used to disguise the source of financial assets so that those assets may be used without compromising the criminals who are seeking to use them. These transactions typically fall into three stages: (1) placement -- the process of placing unlawful proceeds into financial institutions through deposits, wire transfers, or other means; (2) layering -- the process of separating the proceeds of criminal activity from their origin through the use of layers of complex financial transactions; and (3) integration -- the process of using an apparently legitimate transaction to disguise illicit proceeds. Through these processes, a criminal tries to transform the monetary proceeds derived from illicit activities into funds with an apparently legal source.

Money laundering has potentially devastating economic, security, and social consequences. It provides the fuel for drug dealers, terrorists, illegal arms dealers, corrupt public officials, and others to operate and expand their criminal enterprises.

Crime has become increasingly international in scope, and the financial aspects of Money Laundering. Crime has become more complex due to rapid advances in technology and the globalization of the financial services industry.

Modern financial systems, in addition to facilitating legitimate commerce, also allow criminals to order the transfer of millions of dollars instantly using personal computers and satellite dishes. Because money laundering relies to some extent on existing financial systems and operations, the criminal's choice of money laundering vehicles is limited only by his or her creativity.