The most recent member to the international financial centers, The Gambia threw its hat in the mix only a few years ago by enacting a couple of new laws and setting up a superficially very impressive regulatory environment with strong technology focus.

A lot of effort was spent on copy-pasting the legal framework of Mauritius while also borrowing from the UK and a few others.

But how has it gone?

And what about banking?

While The Gambia has a rich and interesting history that anyone curious about African history and slavery would do well to read into, it is not relevant to its current situation as a tax haven and, because I’m short on time, I will skip.

Very briefly, it was under numerous indigenous rulers until the British arrived in the 1600s. While the British and French fought over The Gambia, it retained British rule for the most part.

It gained independence from the British in 1965. It quickly fell into chaos and disarray, fighting a war with Senegal. Since the early 2000s, it has enjoyed political stability and socioeconomic development. It has a growing tourism sector to supplement its fishing and agricultural sectors (mostly peanuts).

Owing to early Arabic influences, the country is an Islamic republic. Its official language is English, which has served as a great advantage in ever since the political climate stabilized.

Geography and Demography

Map from Wikipedia.

Incorporation and Business

Generally

The Gambia launched its offshore sector in 2013, becoming the youngest offshore jurisdiction. While many of its efforts are admirable and its corporate solutions are delightfully diverse, the initiative generally seen as untimely and unfitting.

The jurisdiction went to great lengths to come up with an electronic apostille system, which in theory is years ahead of its time but in reality simply falls flat on that The Gambia offers no real advantage over other jurisdictions and as such has seen very little use.

A mere few thousand entities have been formed thus far, mostly the GBC 2 type. Formation costs are fairly low, often well under 2,000 USD for incorporation and 1,000 USD for renewal.

Reputation

Unknown. Neither good nor bad.

Regulator

While the iCommerce Registry acts as the nexus point for the Gambian offshore sector, regulatory responsibilities fall on a number of different authorities, all of which are gruesomely underfunded, understaffed, and suffering from rampant corruption. Transparency International ranks The Gambia has the 123 out of 167 in terms of transparency.

The iCommerce Registry often blurs the line between registry and agent, offering a number of services directly to end-users.

GBC 1

Essentially, an exact replica of the Mauritius’ law. GBC 1s are supposed to be resident or semi-resident companies paying a miniscule, symbolic tax in order to make use of tax treaties. One of the key differences is that The Gambia has signed an entirety of five DTAs, compared to the 56 Mauritius has signed.

A GBC 1 pays no tax on income earned outside of The Gambia, which is where most Gambian offshore companies are formed anyway, thus reducing the usefulness of a Gambian GBC 1 from small to none.

• Minimum one director (can be corporate, but not if the only one).
• Minimum one shareholder (can be corporate, but not if the only one).
• Minimum one resident, natural-person member.
• Registerd office in The Gambia.

Public Record

None.

Tax

1.5% of turnover or 32% on profits.

GBC 2

Again, by and large a carbon copy of the Mauritius’ law, which in turn is largely based on the BVI model IBC but with a number of tweaks. They even go so far as to call them IBC and offshore companies on their website.

• Minimum one director (can be corporate).
• Minimum one shareholder (can be corporate).
• Registered office in The Gambia.
• Must be operated from the Enterprise Zone or outside of The Gambia.

Public Record

None.

Taxation

None.

LLP

This one is actually potentially interesting. It’s borrowing heavily from the UK LLP legislation, which in and of itself is very attractive.

• Minimum two members (at least two need to be designated members, comparable to managers or officers or directors).
• Registered address in The Gambia.
  • List of designated members.

Public Record

None.

Taxation

None. LLPs are pass-through entities.

PLC

OK, fine. There is a PLC as well; a Public Limited Company.

That’s right, your dreams of being listed on the Gambian stock exchange has finally come true.

• Minimum two directors (can be corporate).
• Minimum two shareholders (can be corporate).
• Minimum authorised share capital of 50,000 USD.
• Company secretary required.

Public Record

Yes.

Taxation

A semi-territorial taxation system is used.

Record Keeping

Requirements exist but are not being enforced.

Licenses

Desperate for any sort of income, The Gambia has enacted a couple of licenses that they may issue:

• Banking license
• Brokerage
• Education
• Financial services
• Funds
• Gaming license (gambling)
• Insurance

So far, I have heard of no one actually applying or obtaining any of these licenses. Those seeking such licenses are instead drawn to far more established jurisdictions.

Trust

Yep, a trust law exists. It has however not been tested yet and the cautious settlors and trustees of the world are keeping an eye on The Gambia, while continuing to use far more established jurisdictions.

Foundations

They threw a foundations framework into the mix as well, hoping to compete with all jurisdictions out there.

Practically zero usage so far.

Banking

It’s currently very difficult to open bank accounts in The Gambia or even for Gambian entities.

There are nonetheless several pretty good banks in The Gambia. Its banking sector has a bright future, if the regulators are able to cope with the increased demand relative to the increase of illicit funds and money laundering. While by no means as bad as Djibouti, Ghana, or Ivory Coast just yet, The Gambia is at major risk of becoming a money laundering nest.

FATF and its underling GIABA have been lenient on The Gambia so far, despite failing to reach the FATF’s recommendations, in no small part because of the jurisdiction’s relatively small size but also because the young republic is still very much a developing nation.

While major deficiencies have been discovered, they are not seen as egregious because there is relatively little money being passed around.

Open a Bank Account in The Gambia

Generally difficult remotely but personal accounts can be opened without too much trouble in person. The bank might ask for some vague justification as to why you are opening a bank account and it’s usually enough to say you plan to invest in the local or regional economy.

Corporate accounts are a lot more difficult, especially for the local offshore companies. Most GBC 2s in The Gambia bank in Mauritius or outside of Africa.

Banking Secrecy

Effectively, because The Gambia’s laws are outdated and the new-found secrecy laws are a lot more recent than the old banking confidentiality laws, the banking secrecy here is rigorous. It’s practically impossible for a foreign agency to get anything out of a Gambian bank.

Unless they approach the bank in another jurisdiction and attempt to pressure them there.

The Gambia has not signed up for CRS/AEOI and, in fact, hasn’t signed a single EOI treaty as of yet.

Banks in The Gambia

There are banks but hardly any will engage with offshore companies.

Unless, of course, you’re here to launder money.

Living in The Gambia

While one of Africa’s most developed nations, the harsh reality is that competition isn’t exactly fierce. Those seeking to settle down in the African mainland are likely to enjoy South Africa, Equatorial Guinea, Namibia, or Botswana more, but The Gambia can be very attractive.

It’s generally stable and its economic situation continues to improve.

Costs of living are low, the weather is generally fine, and English is perfectly fine to get you by and live comfortably in The Gambia, although you will forever be a foreigner.

Citizenship

Not particularly attractive.

Dual citizenship is only allowed for Gambian citizens who obtain another citizenship through marriage.

Taxation

Average to above average.

Final words

Worth keeping an eye on, but that’s about it at this point.

Don’t be the guinea pig, unless you really want to.

See also

• OECD Peer Review (also has a list of TIEA and DTA)
• FATF documents
• Financial Secrecy Index