FATF Status

Gabon is not on the FATF List of Countries that have been identified as having strategic AML deficiencies

Compliance with FATF Recommendations

The last Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Gabon was undertaken in 2023. According to that Evaluation, Gabon was deemed Compliant for 3 and Largely Compliant for 12 of the FATF 40 Recommendations. It was deemed Highly Effective for 0 and Substantially Effective 0 with regard to the 11 areas of Effectiveness of its AML/CFT Regime.

US Department of State Money Laundering assessment (INCSR)

Gabon was deemed a ‘Monitored’ Jurisdiction by the US Department of State 2016 International Narcotics Control Strategy Report (INCSR). Key Findings from the report are as follows: -

Gabon is not a regional financial center. Gabon suffers from porous borders and smuggling, facilitated by organized criminal groups. Despite fiscal management reform efforts, systemic corruption persists. The embezzlement of state funds, including by politically exposed persons (PEPs), reportedly gives rise to money laundering. There is a large expatriate community in Gabon engaged in the oil and gas sector, the timber industry, construction, and general trade.

Money or value transfer services, such as hawala, are often used by those expatriates, particularly the large Lebanese community, to avoid strict controls on the repatriation of corporate profits.

The Bank of Central African States (BEAC), based in Cameroon, is a regional central bank that serves six Central African countries and supervises Gabon’s banking system. BEAC’s Economic Intervention Service harmonizes the regulation of currency exchanges in the member states of the Central African Economic and Monetary Community.

Rating                                                                           (100-Good / 0-Bad)

Transparency International Corruption Index                           28

World Governance Indicator – Control of Corruption             16

Corruption in Gabon presents an obstacle for companies operating or planning to invest in the country. President Ali Bongo's government has engaged in curbing corruption, and breaking with patterns of patronage, clientelism and systemic corruption, which flourished under the former regime of Omar Bongo. Some successes have been recorded; nonetheless, some corruption investigations have been politically motivated. Corruption is still rampant in several sector of the economy, particularly with public procurement in the extractive industries. The Gabonese government has set up a strong anti-corruption legal framework, which mainly consists of the Penal Code (in French), under which passive and active bribery, gifts, embezzlement and other corruption offences are criminalized in the public sector. Enforcement has been moderate and bribery is a widespread practice. For further information - GAN Integrity Business Anti-Corruption Portal

Gabon is a historically stable country in a volatile region that benefits from significant economic advantages: a small population (roughly 2.3 million), an abundance of natural resources, and a strategic location in the Gulf of Guinea. After taking office in 2009, President Ali Bongo Ondimba introduced reforms to diversify Gabon’s economy away from oil and traditional investment partners such as EU countries, particularly France, and to position Gabon as an emerging economy. Gabon promotes foreign investment across a range of sectors, particularly in oil and gas, infrastructure, timber, ecotourism, and mining. Gabon remains dependent on revenue from petroleum and mining.

Foreign investors participating in Gabon’s investment climate face hurdles establishing new businesses, connecting to utilities like electricity and water, and transferring company ownership. Many companies report difficulties in obtaining business financing. Banks and other financiers struggle to release funds, especially to small and medium-sized enterprises (SMEs), due to a lack of guarantees and insufficient documentation. These challenges make Gabon a difficult place for foreign businesses to operate. According to the World Bank 2022 report, Gabon ranks 38th in Africa for the protection of minority investors and 43rd for the payment of taxes.

Russia’s further invasion of Ukraine in February 2022 significantly increased inflation and concerns over food security in Gabon. The government estimated overall inflation at almost 4 percent in 2022, but economic experts noted countries in the Economic and Monetary Community of Central Africa (CEMAC), an organization that includes Gabon, had lower inflation than other countries in the region. However, the prices for many food items in Gabon surged with global food instability in 2022 due to the vast majority of food items being imported for consumption. Gabon was forced to continue fuel and food subsidies enacted during the COVID-19 pandemic due to the inflationary pressure from food and energy insecurity in 2022.

Though economic conditions in Gabon recovered from the COVID-19 recession, the business environment is challenging. Corruption and lack of transparency, including inconsistently applied customs regulations and duties, remain impediments to investment. Many international companies, including U.S. firms, continue to report difficulties in collecting timely payments from the government, including significant delays in VAT reimbursements that hinder further foreign trade and investment. As part of the IMF’s 2021-2024 $553.2 million Fund Facility arrangement, the Gabonese government has agreed to enact significant governance and transparency reforms.

Historically, the petroleum and mining sectors attracted the most investment in Gabon. To entice more investors in other sectors, particularly the timber sector, Gabon created a Special Economic Zone (SEZ) at Nkok near Libreville in 2010. The 1,350-hectare SEZ offers considerable tax and financial incentives for local and foreign investors to start business there, provides dedicated electricity and water services to the area and preferred access to the deep-sea port of Owendo, all of which enhance industrial competitiveness and build a business-friendly ecosystem to attract investment. With the success of the Nkok SEZ, Gabon launched two new SEZs in Inkolo (June 2021) and Mpassa-Lebombi (April 2022), with a fourth planned near Port-Gentil in the future. In addition, Gabon has several business incubators active in the country that attempt to facilitate all business activities, foster entrepreneurialism, and develop startups.

Country Links

National Agency for Financial Investigation (ANIF)

Bank of Central African States