Countries/Jurisdictions of Primary Concern - Equatorial Guinea
Equatorial Guinea (EG) is not a regional financial center. The oil rich country has very low health and education levels. Implementation of its AML laws is not complete and enforcement is weak. EG’s greatest concerns in terms of money laundering and terrorism financing are cross-border currency transactions and the illegal international transfer of money by companies or corrupt individuals. Widespread corruption, at times involving the highest levels of the government, is a primary catalyst for money laundering and other financial crimes. Diversion of public funds and corruption are widespread in both commerce and government, particularly as regards the use of proceeds from the extractive industries, including oil, gas, and timber, the most likely sources of laundered funds. Although there is no significant market for smuggled goods, smuggling for personal use/consumption is endemic. There is no known connection to drug trafficking organizations, organized crime, or terrorists operating locally. There are no significant offshore sectors or free trade zones.
Equatorial Guinea is a member of the Economic and Monetary Community of Central African States (CEMAC) and shares a regional Central Bank (BEAC) with other CEMAC members. The Government of Equatorial Guinea is also a member of the Banking Commission of Central African States within CEMAC.
For additional information focusing on terrorist financing, please refer to the Department of State’s Country Reports on Terrorism, which can be found at: http://www.state.gov/j/ct/rls/crt/
DO FINANCIAL INSTITUTIONS ENGAGE IN CURRENCY TRANSACTIONS RELATED TO INTERNATIONAL NARCOTICS TRAFFICKING THAT INCLUDE SIGNIFICANT AMOUNTS OF US CURRENCY; CURRENCY DERIVED FROM ILLEGAL SALES IN THE U.S.; OR ILLEGAL DRUG SALES THAT OTHERWISE SIGNIFICANTLY AFFECT THE U.S.: NO
CRIMINALIZATION OF MONEY LAUNDERING:
“All serious crimes” approach or “list” approach to predicate crimes: All serious crimes
Are legal persons covered: criminally: NO civilly: NO
KNOW-YOUR-CUSTOMER (KYC) RULES:
Enhanced due diligence procedures for PEPs: Foreign: NO Domestic: NO
KYC covered entities: Treasury, Central Bank, banks, banking intermediaries, microfinance institutions, insurance companies, investment services, money changers, casinos, notaries, real estate agents, money transfer companies, travel agencies, auditors, accountants, and high-value goods dealers
Number of STRs received and time frame: Not available
Number of CTRs received and time frame: Not available
STR covered entities: Treasury, Central Bank, banks, banking intermediaries, microfinance institutions, insurance companies, investment services, money changers, casinos, notaries, real estate agents, money transfer companies, travel agencies, auditors, accountants, and high-value goods dealers
MONEY LAUNDERING CRIMINAL PROSECUTIONS/CONVICTIONS:
RECORDS EXCHANGE MECHANISM:
With U.S.: MLAT: NO Other mechanism: YES
With other governments/jurisdictions: YES
EG is a member of the Task Force against Money Laundering in Central Africa (GABAC), an entity in the process of becoming a FATF-style regional body. EG has not had a mutual evaluation.
ENFORCEMENT AND IMPLEMENTATION ISSUES AND COMMENTS:
Equatorial Guinea should work with CEMAC, BEAC, and GABAC to establish a fully functioning AML/CFT regime in line with international standards and to strengthen the capacity of the National Agency of Financial Investigation (ANIF), EG’s financial intelligence unit. Equatorial Guinea’s officers charged with crime prevention, including the police, judicial police, and ANIF, need professional training in proper financial investigative techniques. There has never been a reported successful money laundering prosecution. Although the AML regulations require covered entities to implement compliance programs and report large and suspicious transactions, financial institutions still fulfill these obligations only to a limited degree. Equatorial Guinea does not have cross-border currency reporting requirements. International law enforcement cooperation is weak, although EG works with the European Community in terms of money laundering and terrorism financing through the CEMAC financial agreement with the Treasury of France.
Equatorial Guinea should criminalize terrorism financing and become a party to the 1988 UN Drug Convention and the UN Convention against Corruption.