Liberia’s gambling sector regulatory gaps exposed in GIABA report
FIA and NLA join forces to close AML/CFT gaps and strengthen Liberia’s gambling oversight.
Liberia.- Liberia’s gambling industry has alarming gaps in its defences against money laundering and financial crime, exposing serious shortcomings in the country’s regulatory framework, according to a report flagged by the Inter-Governmental Action Group Against Money Laundering in West Africa (GIABA).
Despite handling millions in daily cash flows, the gambling sector remains vulnerable due to “weak regulations and oversight”, leaving it open to financial crime.
Key gaps identified include the absence of transaction thresholds for casinos, the exclusion of internet and ship-based casinos (casinos operating on ships or cruise vessels) from the National Lottery Authority (NLA) Act and a weak “fit and proper” test that does not include character checks, such as criminal background vetting, leaving a gap in the vetting of owners, operators and key personnel who control or influence gambling operations.
The report also warned that the NLA’s role as an anti-money laundering supervisor “lacks clarity”, leaving questions about its powers to properly police the industry.
In response to these red flags and the need for clearer Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) oversight, the Financial Intelligence Agency of Liberia (FIA) partnered with the NLA to roll out a specialised training program for its staff.
The AML/CFT workshop was conducted on September 24, and was designed to arm regulators with the tools needed to spot suspicious activities, enforce customer due diligence and strengthen transaction monitoring systems.
According to FIA Officer-In-Charge Mohammed Ali Nasser, the initiative was both timely and urgent. The gambling sector handles “significant cash flows”, he said, making it imperative that its regulators and operators are continuously equipped with the latest skills to detect and report suspicious activities.
Nasser said: “This training is a strategic initiative to strengthen the NLA’s capacity and address critical AML/CFT gaps.”
Training boosts gambling oversight
The NLA hailed the collaboration as a boost to its operations. “We are now better positioned to ensure that our services contribute to national development, not to financial crime,” said NLA Deputy Director General, Richlue Burphy.
He emphasised that the Authority’s role goes beyond revenue generation to protecting public trust and national security. He added: “This underscores a strategic shift from viewing the NLA solely as a commercial entity to recognising its vital role in ensuring the integrity and security of the national lottery system.”
In August, the FIA imposed fines on Colony Casino and 50/50 Casino for breaches of the AML/CFT Act, highlighting the sector’s regulatory gaps and the need for stronger oversight, a need now being addressed through specialised training for NLA staff.
Under the new regulatory framework, gaming operators are also required to report their ultimate beneficial owners to the NLA, ensuring transparency in ownership and reducing the risk of financial crime.
The training concluded with NLA staff receiving certificates, but it’s bigger impact lies in addressing critical AML/CFT skills gaps and reinforcing the regulatory partnership between the FIA and NLA.
