Gambia

**No Specific VASP Licensing Regime:** Unlike jurisdictions with mature crypto regulations (e.g., Malta, Singapore, Dubai), Gambia has not enacted dedicated laws requiring specific licenses for entities operating purely as cryptocurrency exchanges, custody providers, or payment processors for virtual assets.

**Cautious Stance from Regulators:** The Central Bank of The Gambia has historically adopted a cautious approach to cryptocurrencies, often issuing warnings about the risks associated with them (volatility, illicit finance, lack of consumer protection). Their focus is on maintaining financial stability and protecting consumers.

**General AML/CFT Framework:** While there are no crypto-specific AML/CFT laws, the FIU-GAM enforces the general Anti-Money Laundering and Combating the Financing of Terrorism Act. Any entity involved in financial services, even if not specifically licensed for crypto, would implicitly be expected to comply with general AML/CFT obligations if their activities fall within the scope of "financial institutions" or "designated non-financial businesses and professions" (DNFBPs) as defined in the Act. This includes conducting KYC, monitoring transactions, and reporting suspicious activities.

**Digital Transformation Initiatives:** Gambia, with support from the World Bank (e.g., the DIGITAL-Gambia Project), is actively working on strengthening its digital infrastructure and developing a regulatory framework for digital financial services. This *may* include virtual assets in the future, but it is currently a work in progress.

**Overlap with Traditional Financial Services:** If an entity's operations involve the conversion of virtual assets to fiat currency or vice-versa, or if they facilitate traditional money transfers alongside crypto services, they *might* fall under existing regulations for traditional financial service providers. For example:

**Money Remittance/Transfer Service Providers:** If a crypto exchange allows users to deposit fiat currency from a bank account and withdraw fiat to a bank account, it *could* be seen as performing activities similar to a money transfer service, which *would* require a license from the Central Bank of The Gambia.

**Payment Systems Providers:** If a "payment processor" handles fiat payments, it would likely require a license under the National Payment System Act and regulations issued by the CBG.

**General Business Registration:** Any entity operating in Gambia, regardless of its specific financial activities, must comply with general business registration requirements (e.g., registering with the Registrar General's Office).

**Currently, neither a specific registration nor a specific licensing regime exists for pure VASPs in Gambia.**

The likely path forward, once regulations are developed, would be a **licensing regime** given the nature of financial services and the need for robust oversight, especially in line with Financial Action Task Force (FATF) recommendations for VASPs.

**Capital Requirements:** There are no specific capital requirements for crypto activities. However, if an entity needs a traditional financial license (e.g., money remitter), then the CBG's prescribed capital requirements for that specific license would apply.

**AML/KYC Requirements:** This is the most critical area. Even without specific crypto regulations, entities involved in financial flows are expected to adhere to the provisions of the **Anti-Money Laundering and Combating the Financing of Terrorism Act**. This would include:

Customer Due Diligence (CDD) / Know Your Customer (KYC) procedures.

Suspicious Transaction Reporting (STR) to the FIU-GAM.

Having a designated Money Laundering Reporting Officer (MLRO).

**Local Presence:** If an entity is registered as a business in Gambia, it would typically require a local registered office and potentially local directors or management, depending on the type of legal entity.

Submission of a comprehensive application form.

Information on management and key personnel (fit and proper tests).

Technological infrastructure details (security, resilience).

Payment of application and licensing fees.

Ongoing reporting and compliance requirements.

**Central Bank of The Gambia (CBG):** The primary financial regulator. Any future crypto-related financial services regulations would likely emanate from here.

*Look for:* News releases, press statements, or circulars concerning digital currencies or fintech. Historically, they have issued warnings rather than regulations.

**Financial Intelligence Unit of The Gambia (FIU-GAM):** Responsible for AML/CFT oversight.

*Look for:* The **Anti-Money Laundering and Combating the Financing of Terrorism Act** and any guidelines issued. These general AML/CFT provisions would apply to any financial activity.

**Registrar General's Office:** For general business registration.

**World Bank DIGITAL-Gambia Project:** While not a regulatory body, this project is significant as it supports the development of digital financial services infrastructure and legal frameworks in Gambia, which *could* eventually include virtual assets.

**Monitor Developments:** Keep a close watch on any new announcements, circulars, or draft legislation from the CBG and FIU-GAM.

**Comply with General Laws:** Ensure full compliance with general business registration requirements and the existing Anti-Money Laundering and Combating the Financing of Terrorism Act.

**Shares, stocks, bonds, debentures, warrants, notes, options, and other instruments creating or acknowledging indebtedness.**

**Instruments giving rights to participate in the profits or assets of an entity.**

**Investment contracts** (which is where the spirit of the Howey test comes in). An investment contract typically involves:

An investment of money (or other value).

Derived solely or substantially from the efforts of others.

**Security Tokens:** These are tokens designed to represent traditional financial instruments, such as equity in a company, debt instruments, or rights to a share of profits. Examples include tokens representing real estate ownership, shares in a fund, or corporate bonds.

**Initial Coin Offerings (ICOs) & Initial Exchange Offerings (IEOs):** Most tokens issued through ICOs/IEOs that promise future returns or give investors a stake in an underlying project with an expectation of profit from the efforts of the issuer or others would likely be deemed securities.

**Payment Tokens / Pure Currencies:** Cryptocurrencies like Bitcoin (BTC) or pure Ether (ETH) that function primarily as a medium of exchange or store of value, and are not issued by a specific enterprise with an expectation of profit from their efforts, would generally *not* be considered securities. However, the CBG generally views all cryptocurrencies with caution due to their volatility and unregulated nature.

**Pure Utility Tokens:** Tokens that provide immediate access to a product or service, and where their primary value lies in their direct use rather than speculative investment, might avoid security classification. The key is whether there is a common enterprise and an expectation of profit derived from the efforts of others.

**Registration:** The offering and sale of such securities would likely require registration with the relevant authority (which could be the Central Bank or a dedicated Capital Markets Authority, if one is fully established and operational for such purposes). This would involve providing detailed disclosures about the token, the issuer, the project, risks, and financial information.

**Prospectus Requirements:** Issuers would likely need to prepare and submit a prospectus or similar offering document that provides full and fair disclosure to potential investors.

**Licensing:** Any entity involved in advising on, distributing, or trading such security tokens would likely need to be licensed under Gambian financial services laws.

**Private Placements:** Offerings made to a limited number of sophisticated investors.

**Small Offerings:** Offerings below a certain monetary threshold.

**Offerings to Qualified Investors:** Investors meeting specific criteria for wealth or experience.

**Regulated Exchanges:** Trading would ideally need to occur on exchanges licensed and regulated in The Gambia. As of now, there are no regulated crypto exchanges in The Gambia, let alone ones capable of listing security tokens.

**Broker-Dealer Licensing:** Entities facilitating secondary trading would need to be licensed as broker-dealers.

**Market Conduct Rules:** Rules against insider trading, market manipulation, and other illicit trading practices would apply.

**Reporting Requirements:** Exchanges and market participants might have reporting obligations.

**Warnings and Advisories:** The Central Bank of The Gambia (CBG) has issued multiple warnings to the public about the risks associated with investing in cryptocurrencies, highlighting their volatile nature, speculative risks, potential for illicit activities (AML/CFT concerns), and the lack of regulatory oversight. These warnings serve as the primary "enforcement" mechanism by discouraging participation.

**Example:** In 2018, the CBG issued a public statement warning the public against investing in cryptocurrencies due to "the absence of regulation governing its issuance and usage" and risks like "volatility, money laundering, cyber fraud, and financing of illicit activities." This warning was reiterated in subsequent years.

**Anti-Money Laundering (AML) / Counter-Terrorist Financing (CTF):** If cryptocurrencies are suspected of being used for illicit financial activities, existing general financial crime and AML/CTF laws would be used for enforcement, rather than specific crypto securities laws.

**Fraud:** In cases where individuals are defrauded through cryptocurrency schemes, general criminal laws related to fraud would be applicable.

**Central Bank of The Gambia (CBG):** The CBG is the primary regulator that issues guidance and warnings regarding financial instruments, including digital assets.

**CBG Official Website:** https://www.cbg.gm/ (Look for press releases, advisories, or circulars related to cryptocurrencies. Specific warning statements might be in their news archives).

*Note:* Finding direct links to specific crypto advisories within the CBG's potentially vast news archives can be challenging, but their general stance is publicly known.

**The Capital Markets Act, 2011:** This is the primary legislation governing securities in The Gambia.

*Note:* A direct, stable, and easily accessible URL for the full text of the Capital Markets Act, 2011 on a Gambian government portal is often difficult to find. Legal databases or specialized legal information sites might host it, but a direct official link is not consistently available for many African nations' specific legislative texts. Its principles, however, would be applied.

**Legal Basis:** The primary legislation is the **Anti-Money Laundering and Combating the Financing of Terrorism Act, 2012**. This Act establishes the legal framework for combating money laundering and terrorist financing, including the implementation of UN Security Council resolutions related to freezing assets of designated individuals and entities.

Gambia is legally bound to implement all resolutions of the UN Security Council, particularly those imposing targeted financial sanctions related to terrorism financing (Al-Qaida, ISIL) and proliferation financing (DPRK, Iran), as well as sanctions against specific individuals and entities for other reasons (e.g., various country-specific regimes).

**Obligation to Freeze Assets:** Any person or entity (including financial institutions) holding funds or other assets of individuals or entities designated by the UN Security Council must immediately freeze those assets and report the action to the National Centre for Financial Intelligence (NCFI).

**Prohibition on Transactions:** It is prohibited to make funds or other assets available, directly or indirectly, to UN-designated individuals or entities.

**Direct Obligation:** All entities, including VASPs, under Gambian jurisdiction are legally required to comply with UN sanctions lists. This means screening users and transactions against the **UN Security Council Consolidated List**.

**URL:** UN Security Council Consolidated List

**OFAC (U.S. Office of Foreign Assets Control) Sanctions:**

**Indirect but Critical Impact:** OFAC sanctions generally apply to U.S. persons globally and to non-U.S. persons engaged in transactions that have a U.S. nexus (e.g., involving U.S. dollars, U.S. technology, U.S. financial systems, or U.S. entities). While Gambian-based VASPs with no U.S. nexus are not directly subject to OFAC, virtually all global financial institutions and many major cryptocurrency exchanges *are*.

**De-risking and Correspondent Relationships:** To maintain access to the global financial system (including correspondent banking relationships or partnerships with larger, globally compliant crypto platforms), Gambian VASPs will find it essential to screen against OFAC lists, particularly the **Specially Designated Nationals and Blocked Persons (SDN) List**. Failure to do so can lead to de-risking by international partners.

**Similar to OFAC:** EU sanctions apply to EU persons and entities globally, and to certain activities conducted within the EU. Similar to OFAC, Gambian VASPs not directly under EU jurisdiction would face indirect pressure to comply with EU sanctions (e.g., the **EU Consolidated List of persons, groups and entities subject to EU financial sanctions**) to facilitate international transactions or partnerships.

The Financial Action Task Force (FATF) Recommendations are the global standard for AML/CFT, including for virtual assets and VASPs. Gambia, as a member of GIABA (the Inter-Governmental Action Group against Money Laundering in West Africa), is committed to implementing FATF standards.

**FATF Recommendation 15 (New Technologies) and its Interpretive Note** specifically extend AML/CFT obligations, including sanctions screening, to VASPs. This means VASPs should conduct risk-based CDD, monitor transactions, and screen against relevant sanctions lists.

**Mandatory:** Screening against the **UN Security Council Consolidated List** is a legal obligation under Gambian AML/CFT law.

**Highly Recommended (Best Practice & Risk Mitigation):** Screening against the **OFAC SDN List**, the **EU Consolidated List**, and other major national sanctions lists (e.g., UK Sanctions List) is crucial for managing international risk, ensuring global interoperability, and avoiding potential secondary sanctions or de-risking by international partners.

**Prohibition on transactions with sanctioned jurisdictions/regions:** VASPs operating in Gambia must prevent transactions (either directly or indirectly) with individuals, entities, or regions subject to comprehensive sanctions by the UN, OFAC (e.g., Cuba, Iran, North Korea, Syria, Venezuela), or the EU. This includes identifying the originators and beneficiaries of funds.

**IP Blocking and Geofencing:** Many global VASPs implement IP blocking and geofencing to prevent users from comprehensively sanctioned jurisdictions from accessing their platforms, regardless of the user's nationality.

**Fines:** Significant monetary penalties can be imposed on financial institutions (and potentially VASPs, once regulated under this framework) for failure to comply with obligations such as reporting suspicious transactions, freezing assets, or implementing adequate internal controls.

**Imprisonment:** Individuals found guilty of offences under the Act, including facilitating money laundering or terrorist financing, can face terms of imprisonment.

**Reputational Damage and Loss of Business:** Beyond legal penalties, non-compliance can lead to severe reputational damage, loss of trust from customers and partners, and exclusion from the international financial system.

**No Gambian-Specific Crypto Sanctions List:** At present, there are no specific sanctions lists created by the Gambian government that target individuals or entities solely for crypto-related activities. Gambia primarily implements sanctions designated by the United Nations.

**Future Possibility:** If Gambia develops a robust and comprehensive regulatory framework for virtual assets, it *could* theoretically introduce specific domestic designations, but this is uncommon for smaller economies and would typically align with international standards and designations.

**Comply with the Anti-Money Laundering and Combating the Financing of Terrorism Act, 2012.**

**Mandatorily screen against the UN Security Council Consolidated List.**

**Strongly consider screening against OFAC SDN and EU Consolidated Lists** to manage global risk and maintain access to international financial services.

**Implement robust AML/CFT controls** in line with FATF recommendations, including customer due diligence, transaction monitoring, and suspicious activity reporting to the National Centre for Financial Intelligence (NCFI).

**Be aware of and adhere to geographic restrictions** imposed by global sanctions regimes.

**In Principle:** Yes, The Gambia is committed to implementing FATF Recommendations, including Recommendation 16 (the Travel Rule), through its membership in GIABA. GIABA regularly conducts mutual evaluations and provides guidance to its member states to align with FATF standards.

**Legislative Efforts:** While the core AML/CFT framework exists, specific legislation directly addressing virtual assets and the Travel Rule has been a more recent development. The Gambian authorities have been working towards creating a dedicated framework for Virtual Assets (VAs) and Virtual Asset Service Providers (VASPs).

**AML/CFT Act 2019:** The Anti-Money Laundering and Combating the Financing of Terrorism Act, 2019, provides the overarching framework for AML/CFT in The Gambia. While it doesn't explicitly detail the Travel Rule, it empowers relevant authorities (like the Central Bank and Financial Intelligence Unit) to issue regulations.

[Link to AML/CFT Act 2019 (often found on FIU/Central Bank websites, exact direct link may vary based on official government publication portals): Gambia Law Foundation often hosts these or related documents may be found on the Central Bank of Gambia website under 'Legal Frameworks'. As a placeholder: Search "The Gambia Anti-Money Laundering and Combating the Financing of Terrorism Act, 2019" on official government/legal resource sites.]

**Proposed VASP Act:** The Gambia has been in the process of drafting and enacting a dedicated **Virtual Assets Service Providers Act**. This proposed legislation aims to provide a comprehensive regulatory framework for VAs and VASPs, including aspects related to AML/CFT and likely incorporating the Travel Rule requirements.

*Note:* As of late 2023/early 2024, such an Act was being finalized or had very recently been enacted. Confirmation of its full enactment and public availability of its text is crucial for definitive details.

A specific effective date for the Travel Rule in The Gambia would depend on the promulgation and official commencement of dedicated VASP regulations or the aforementioned Virtual Assets Service Providers Act.

Until such specific legislation is fully effective, VASPs operating in The Gambia may be expected to adhere to general AML/CFT principles under the 2019 Act, interpreted in line with FATF standards as encouraged by GIABA.

The FATF Travel Rule recommends a threshold of **USD/EUR 1,000** for both transmittals of virtual assets (where identifying information must be obtained and transmitted) and for transfers where the information only needs to be obtained and held (without being transmitted, if certain conditions are met, though full transmittal is generally encouraged).

It is highly probable that The Gambia's specific VASP regulations, once enacted, would adopt a threshold consistent with the FATF standard of **USD/EUR 1,000** or its equivalent in Gambian Dalasi (GMD).

The FATF defines VASPs broadly as any natural or legal person who conducts one or more of the following activities for or on behalf of another natural or legal person:

Exchange between virtual assets and fiat currencies

Exchange between one or more forms of virtual assets

Safekeeping and/or administration of virtual assets or instruments enabling control over virtual assets

Participation in and provision of financial services related to an issuer’s offer and/or sale of a virtual asset

The upcoming Gambian VASP legislation is expected to cover entities performing these functions and likely require them to register or be licensed by the Central Bank of The Gambia.

The FATF Travel Rule requires VASPs to obtain, hold, and transmit certain originator and beneficiary information immediately and securely. This includes:

**Originator Information:** Name, account number (or unique transaction identifier), physical address, national identity number, customer identification number, or date and place of birth.

**Beneficiary Information:** Name, account number (or unique transaction identifier).

While the general requirement is to have a mechanism to securely send and receive this information, The Gambia's specific regulations are unlikely to mandate a particular technical solution (e.g., TRISA, Sygna, Travel Rule Universal Protocol). Instead, they would likely focus on the *outcome*: that VASPs must be able to securely exchange the required data with counterpart VASPs.

Detailed technical specifications would typically be outlined in subsidiary regulations or guidance issued by the Financial Intelligence Unit (FIU) or the Central Bank of The Gambia.

Penalties for non-compliance with AML/CFT obligations in The Gambia are outlined in the **Anti-Money Laundering and Combating the Financing of Terrorism Act, 2019**, and potentially in the new VASP legislation.

**Administrative Sanctions:** Fines, warnings, directives to cease and desist, suspension or revocation of licenses/registrations for VASPs.

**Pecuniary Penalties:** Significant monetary fines for institutions and individuals.

**Criminal Penalties:** Imprisonment for individuals found guilty of serious breaches, particularly those linked to money laundering or terrorist financing.

The severity of penalties depends on the nature and extent of the non-compliance, whether it was intentional, and if it facilitated illicit activities.

**GIABA Website:** https://www.giaba.org/ - For mutual evaluation reports and guidance related to AML/CFT for member states.

**Central Bank of The Gambia (CBG) Website:** https://www.cbg.gm/ - Look under "Legal Frameworks," "Financial Sector Regulations," or "Press Releases" for updates on VASP legislation or guidance.

**Financial Intelligence Unit of The Gambia (FIU) / Ministry of Finance:** Relevant government portals might publish the full text of enacted laws and regulations.

**No specific custodial license requirements** exist for cryptocurrency or digital asset custodians in The Gambia. Since there is no dedicated legal framework for crypto assets, there's no licensing regime for service providers, including custodians.

The CBG has not issued licenses for virtual asset service providers (VASPs) or digital asset custodians.

**Regulatory Reference (Indirect):** The Central Bank of The Gambia's official website outlines the financial institutions it regulates (e.g., banks, insurance companies, microfinance institutions). Cryptocurrencies or digital asset custodians are not listed or included under their current regulatory scope for licensing.

**Central Bank of The Gambia:** https://www.cbg.gm/ (While this doesn't directly state "no crypto licenses," the absence of such a framework on their regulatory page implies it.)

**Segregation of Client Assets Rules:**

**No specific rules or mandates** regarding the segregation of client digital assets from the custodian's own assets. This is due to the lack of a specific regulatory framework for digital asset custody.

In traditional financial services, the Banking Act or other financial services legislation would typically address asset segregation for licensed entities, but these do not explicitly extend to unregulated crypto entities.

**No specific insurance or bonding requirements** for digital asset custodians. Without a regulatory framework or licensing, there are no mandates for capital adequacy, insurance coverage, or bonding to protect client assets.

**No specific mandates or regulations** requiring the use of cold storage for digital assets held by custodians. Security practices for digital assets are left to the discretion of the service providers, without regulatory oversight on this aspect.

**No legal definition** of a "qualified custodian" for digital assets exists in Gambian law. The concept of a qualified custodian, as understood in jurisdictions like the U.S. (e.g., under the Advisers Act), does not apply in The Gambia for digital assets due to the absence of relevant legislation.

There is **no publicly known specific legislation or bills explicitly addressing digital asset custody** currently pending in Theambia.

The Gambia, as a member of GIABA (Inter-Governmental Action Group against Money Laundering in West Africa), is committed to implementing the Financial Action Task Force (FATF) Recommendations. The FATF Recommendations (specifically Recommendation 15) include guidance for virtual asset service providers (VASPs), which would encompass some custodial services.

**Money Laundering and Terrorist Financing Act 2012:** While this act exists, it predates widespread crypto adoption and doesn't explicitly mention virtual assets or their custody. However, any future amendments or new legislation aimed at implementing FATF standards more broadly could potentially include VASPs.

**GIABA Website:** https://www.giaba.org/ (This provides context for Gambia's AML/CFT commitments, which might eventually touch on VASPs and, by extension, custody).

**Regulator Name:** Central Bank of The Gambia (CBG)

**Entity Targeted:** The general public and regulated financial institutions (e.g., commercial banks, payment service providers).

**Violation Type:** Proactive warnings against the risks associated with virtual assets, including:

Operating outside the regulated financial system.

Potential for money laundering and terrorist financing (AML/CFT risks).

Consumer protection concerns (volatility, scams, lack of recourse).

Unauthorized issuance or dealing in currency-like instruments.

**Penalty Amount:** N/A (No specific monetary penalty levied against a named entity for cryptocurrency-related activities). The "penalty" for regulated financial institutions would be regulatory sanctions, including potential license revocation, for failing to adhere to CBG directives.

**Date:** The CBG's stance against cryptocurrencies has been consistent over several years, with public warnings reiterated. A prominent warning was issued around **late 2020 / early 2021**, and its position has remained unchanged since then. This falls within the last 3 years for its continued relevance.

**De Facto Prohibition:** The CBG's warnings essentially create a de facto prohibition for regulated financial institutions from dealing in or facilitating cryptocurrency transactions.

**Public Discouragement:** The public is strongly advised against engaging with cryptocurrencies due to high risks.

**Lack of Legal Tender Status:** Cryptocurrencies are not recognized as legal tender in The Gambia.

**Absence of Licensing Framework:** There is no legal or regulatory framework for licensing cryptocurrency exchanges or service providers.

**The Point Newspaper (reporting on CBG warnings, 2021):** While an older article, it reflects the ongoing and consistent stance of the CBG, which has not changed within the last three years.

CBG warns against cryptocurrency usage

**Similar reports from other local media often echo this consistent warning.** Official press releases from the CBG regarding specific "enforcement actions" against crypto firms are not publicly available.

**Risk-Aversion:** The Central Bank prioritizes financial stability and consumer protection by discouraging participation in the unregulated crypto market.

**Lack of Dedicated Legislation:** There isn't specific legislation in place to regulate or license Virtual Asset Service Providers (VASPs), which makes direct enforcement against them challenging.

**Preventative Measures:** The CBG's public warnings serve as a primary preventative measure against potential illicit activities and consumer harm.