Africa-Press – Gambia. The Committee asked the Managing Director about the Bank’s roles and responsibilities, particularly customer onboarding procedures, Anti-Money Laundering (AML) regulations, and assessing high-risk clients. In response, the MD explained that the bank follows a rigorous “Know Your Customer” (KYC) process before onboarding customers. This procedure helps the bank determine the customer’s identity, including ownership structure, source of funds, and nature of business.
Continuing with his testimony, the MD stated that the bank seeks to obtain as much information as possible from the customer. This includes examining identity documents to verify consistency with the individual’s profile. The bank requires a Memorandum, Articles of Association, and business registration documents for corporate clients. Clients must also disclose the purpose of the account and the source of funds. If standard documentation is not met, the bank requests rectification before proceeding with the account opening process.
The committee asked whether the opening of the sub-account “Ultimate Biege/Apogee FZC “meets the required standards. The MD asserted that opening sub-accounts under designations such as “Ultimate/Apogee” is a standard practice to facilitate specific transactions. He cited a hypothetical example where a customer may open an account in their name and a sub-account tagged with a suffix such as “/Son’s” to distinguish transactions by location or purpose, eg, in Farafenni.
The MD also noted that it is standard banking procedure for an individual to be the sole signatory to a corporate account if designated by a Board Resolution. Additionally, the signatories to main and sub-accounts may differ at the discretion of the corporate entity. However, this position appeared to contradict the testimony of the officials of the Central Bank, who stated that assigning a single signatory to a corporate account is not typical banking practice.’
The Committee asked whether Mr Aurimas was identified as a high-risk customer at the time of account opening. The MD stated that the bank became aware, during due diligence procedures, that the mother of Mr Aurimas was a politician in Lithuania. As a result, the bank classified his account as belonging to a Politically Exposed Person (PEP), which should have triggered enhanced due diligence measures. However, the bank failed to implement adequate oversight and control procedures. Consequently, Mr Aurimas was allegedly able to conduct transactions suggesting money laundering without appropriate alerts being raised with the relevant authorities.
The Committee further asked whether the Gambia Police were invited. In his response, the MD stated that on an unspecified date, Ecobank was invited by the Gambia Police Force (GPF) to receive general cautions concerning specific clients and transactions, particularly those involving the Ultimate Biege Logistics. He added that while the police offered cautionary advice, no formal notification or disclosure was made to the bank about any suspected money laundering linked to the accounts. The MD claimed he could not recall whether the police obtained formal statements from the bank.
The Committee requested further documentation, including a detailed account statements and correspondence between the bank and the clients above, to assess the extent of compliance with national financial regulations and AML obligations.
Findings!
1. A review of Ecobank’s documents and testimony revealed that Ultimate Biege Logistics opened a sub-account titled “Ultimate Biege/Apogee,” with Mr Aurimas designated as the sole signatory through a board resolution dated 6th June 2023. Notably, Mr Aurimas was neither a director, shareholder, nor employee of Ultimate Biege Logistics, but rather a representative (Business Development Manager) of Apogee FZC is reportedly registered in Dubai. Being the sole signatory to the subaccount gave Mr Aurimas the authority to exercise total control. It enabled him to transfer all the funds to an offshore account in Dubai.
2. The Committee observed that, given that the Police had received a report from the Financial Intelligence Unit (FIU) containing information on potential money laundering activities, they ought to have briefed the bank accordingly; this amounted to a lapse on the part of the Gambia Police Force. A joint effort between the police and the bank could have led to earlier remedial actions taken.
3. Ecobank’s financial statements analysis revealed that the bank accrued significant earnings from its business relationship with Ultimate Biege Logistics and Apogee FZC over a specified period. The Committee noted that these factors influenced the bank’s decisions to relax its internal controls and compliance with AML/CFT guidelines. Evidence revealed that this was intentional.
4. The investigation also revealed that the sub-account (UBL/Apogee FZC) did not qualify as a sub-account as it does not have any linkage to the main account. The two corporate entities (UBL Gambia and Apogee FZC) and the Directors did not have any linkage; instead, a joint account should have been operated.
5. Mr Aurimas being allowed to operate as a sole signatory to a sub-account (UBL Gambia/Apogee FZC) without Apogee FZC being registered in The Gambia violates banking rules. Ecobank claiming that the sub-accounts were different from the main accounts of UBL Gambia Ltd should have warranted a separate account being opened. Ecobank would not do this as Apogee FZC, whose funds were protected by Mr Aurimas, is not a registered company in The Gambia; as a result, it could not operate an account or do business in The Gambia.
6. Testimonies and documentary review also indicated that Mr Aurimas was classified as a Politically Exposed Person (PEP) during the time of the account opening, which requires the bank to perform enhanced due diligence as required by the banking guidelines; however, the bank failed to implement adequate oversight and control procedures. Consequently, Mr Aurimas was allegedly able to conduct transactions suggesting money laundering without appropriate alerts being raised with the relevant authorities.
Source: The Standard Newspaper | Gambia
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