Central Bank of The Gambia (CBG)

Overview

Confidence: 92%

Currency: Gambian Dalasi (GMD)

Regional Membership: WAEMU Framework

Payment Innovation: BANTABA Real-Time Payment System

The Central Bank of The Gambia (CBG) is the monetary authority and primary financial regulator of The Gambia, a small West African nation with a population centered along the Gambia River. Established under the Central Bank Act 2018, the CBG operates as an independent institution mandated to formulate and implement monetary policy, regulate and supervise the financial sector, issue and manage currency, and oversee the national payment system.

As the lead regulator of the national payment system, the CBG is actively driving The Gambia's digital financial transformation through advanced payment infrastructure and regulatory frameworks supporting fintech innovation. The Bank's governance structure includes a Board of Directors and professional management committees ensuring institutional autonomy and technical competence in monetary and financial regulation.

Basic Identity

Classification

Inclusion Justification

What This Entity Oversees

The CBG's Banking Supervision Department, established under Section 71 of the Central Bank Act 2018, is responsible for licensing, regulating, and supervising deposit-taking institutions including commercial banks, development banks, and microfinance institutions. Supervision operates under a risk-based framework with emphasis on capital adequacy, asset quality, management effectiveness, earnings, and liquidity (CAMEL assessment).

Supervisory Functions:

• Licensing and Authorization — Approval of new bank establishment, branch operations, and service expansion
• Capital Adequacy Review — Monitoring compliance with minimum capital requirements (8% Basel I standard, transitioning to Basel III)
• Prudential Standards Enforcement — Large exposures limits, loan classification, loan loss provisioning, connected lending restrictions
• Onsite Inspections — Periodic examinations of financial health, operational compliance, and risk management
• Offsite Surveillance — Continuous monitoring through regulatory reporting and financial statement analysis
• Enforcement Actions — Remedial directives, fines, cease-and-desist orders, and license suspension/revocation authority

Current Supervisory Priorities:

• Mobile money operation regulation and oversight
• Cybersecurity and IT governance standards
• AML/CFT compliance and sanctions screening
• Stress testing and macroprudential risk assessment
• Fintech and digital banking innovation oversight

Approximately 11–13 commercial banks operate under CBG supervision, alongside microfinance institutions and non-bank financial services providers.

The CBG enforces a comprehensive anti-money laundering and counter-terrorist financing framework under the Anti-Money Laundering Act 2011 (amended), aligned with Financial Action Task Force (FATF) standards and international best practices.

AML/CFT Requirements:

• Customer Due Diligence (CDD) — Mandatory KYC procedures at account opening; identity verification and beneficial ownership documentation
• Enhanced Due Diligence (EDD) — Intensified scrutiny for high-risk customers including politically exposed persons (PEPs), high-risk jurisdictions, and complex ownership structures
• Suspicious Activity Reporting (SAR) — Mandatory reporting of suspected money laundering, terrorist financing, or other illicit activity to Financial Intelligence Unit
• Sanctions Compliance — Integration with UN Security Council and national sanctions lists; screening of customers, beneficiaries, and transactions
• Record Retention — Maintenance of transaction records for minimum of five years
• Staff Training — Regular compliance training and awareness programs on AML/CFT procedures

The Financial Intelligence Unit (FIU), established under the Anti-Money Laundering Act, coordinates with the CBG on financial intelligence gathering, AML/CFT supervision, and enforcement of sanctions compliance.

Regulatory Powers

The CBG possesses comprehensive enforcement authority under the Central Bank Act 2018, Financial Services Act 2014, and sectoral legislation. Enforcement actions escalate from supervisory guidance to formal sanctions and license revocation.

Enforcement Powers:

• Administrative Fines — Monetary penalties for regulatory breaches, scaled to violation severity and institutional size
• Remedial Directives — Formal instructions requiring corrective actions within specified timeframes
• Cease and Desist Orders — Prohibition of specific activities, product lines, or service offerings
• Capital Injections — Directives to increase capital in response to solvency or stability concerns
• Management Actions — Authority to remove or replace directors and senior management
• License Suspension/Revocation — Withdrawal of banking or financial services license for systemic violations or insolvency

The CBG publishes enforcement actions and supervisory updates to maintain transparency and accountability in regulation.

Regulatory Role and Function

Legal Foundation

The Central Bank of The Gambia operates under the Central Bank Act 2018, which establishes its legal status, governance structure, institutional autonomy, and core mandate. The Act confers upon the CBG exclusive authority to issue and manage the domestic currency, formulate and implement monetary policy, and supervise the financial sector.

Key supporting legislation includes:

• Financial Services Act 2014 — Comprehensive framework for regulation of banking, insurance, and financial services
• Payment System Act (Draft) — Forthcoming legislation to codify payment system oversight authority
• Anti-Money Laundering Act 2011 (amended) — AML/CFT requirements and financial intelligence authority
• National Payment System Guidelines — CBG directives on payment system operator licensing and operational standards

Recent Legislative Development:

The CBG is modernizing its regulatory framework through updated guidelines on digital money, mobile payment services, and fintech licensing. In early 2026, the CBG formally established the National Payment Systems Advisory Committee (NPSAC) to strengthen payment system governance and coordinate stakeholder engagement on payment infrastructure development.

Licensing and Authorization Relevance

The Central Bank of The Gambia (CBG) is a key licensing authority in The Gambia's financial system:

The licensing process typically involves assessment of capital adequacy, fitness and propriety of management, business plan viability, AML/CFT compliance frameworks, and IT systems readiness.

Payments and Money Movement Relevance

The CBG formulates monetary policy targeting price stability and support for sustainable economic growth. The Gambian dalasi (GMD) is managed as a freely floating currency with the CBG utilizing multiple policy instruments to achieve inflation and financial stability objectives.

Monetary Policy Framework:

• Inflation Target: Medium-term inflation target of 5% (range: 3–7%)
• Policy Rate: CBG Monetary Policy Rate (MPR) as primary policy instrument
• Operational Target: Reserve money/monetary base management
• Transmission Mechanisms: Interest rate channel, credit channel, and exchange rate channel

Monetary Policy Instruments:

• Open Market Operations (OMOs) — Primary tool for liquidity management and interest rate influence
• Standing Facilities — Lending and deposit facilities for overnight liquidity provision
• Reserve Requirements — Minimum reserve ratios imposed on deposit-taking institutions
• Moral Suasion — Policy guidance and supervisory expectations to banks on credit conditions

Recent Policy Stance:

The CBG has maintained a moderately accommodative monetary policy stance supporting post-pandemic recovery while managing inflationary pressures from global commodity prices and energy costs. The Monetary Policy Committee meets at regular intervals to assess economic conditions and adjust policy accordingly.

The CBG operates and oversees the national payment system pursuant to the Payment System Act 2018 (draft). The Bank is driving digital financial transformation through advanced payment infrastructure and comprehensive regulatory frameworks.

Payment Infrastructure:

• BANTABA 2.0 Real-Time Payment System — Fully interoperable, real-time gross settlement (RTGS) system for high-value payments
• Check Clearing System (ACP/ACH) — Automated clearing house for lower-value check clearing and electronic fund transfers
• Card Payment Networks — Debit, credit, and prepaid card schemes
• Mobile Money Services — CBG-licensed mobile money operators providing payment, remittance, and basic financial services
• Digital Wallets — Emerging payment modality under regulatory development

Recent Developments (2025–2026):

The CBG launched the National Payment Systems Advisory Committee (NPSAC) to strengthen payment system governance and coordinate stakeholder engagement. BANTABA 2.0 represents a major breakthrough in payment infrastructure, offering real-time, fully interoperable payment capabilities that expand financial inclusion and reduce payment system risk.

Regulatory Framework:

The CBG has issued guidelines on mobile money operator licensing, operational standards, cybersecurity requirements, and AML/CFT compliance. The Bank is actively developing regulatory frameworks for emerging payment modalities including digital wallets, stablecoins, and potential central bank digital currency (CBDC) initiatives.

The Gambian dalasi (GMD) is managed under a floating exchange rate regime with the CBG intervening to maintain orderly market conditions and manage excessive volatility. The CBG maintains official foreign exchange reserves primarily in USD, EUR, and SDR baskets, with reserve management objectives aligned to balance of payments stability and international liquidity adequacy.

FX Management Functions:

• Official Reserve Custodianship — Holdings managed to support balance of payments solvency and IMF reserve adequacy
• Authorized Dealer Licensing — Oversight of banks and authorized dealers conducting FX transactions
• Interbank Market Surveillance — Monitoring of FX trading and prevention of illicit market operations
• Import/Export Financing — Issuance of FX allocation licenses for trade finance transactions
• Cross-Border Payment Facilitation — Administration of foreign exchange transfer approvals

Correspondent banking relationships with major central banks and international commercial banks facilitate cross-border settlement. The CBG participates in the West African Central Banks Monetary Cooperation framework and WAEMU-affiliated payment systems where applicable.

Payment Systems Governed or Overseen

The CBG operates and/or oversees the national payment and settlement infrastructure of The Gambia. Specific systems include:

[Further detail on specific system names requires verification from official sources]

Relationship to Other Regulators

The CBG actively participates in regional financial stability frameworks, international standard-setting bodies, and bilateral regulatory cooperation:

Regional Engagement:

• West African Monetary Institute (WAMI) — Cooperation on monetary policy and central banking standards
• ECOWAS Central Banks Monetary Cooperation — Regional framework for payment system coordination
• WAEMU Framework — Participation in West African Economic and Monetary Union coordination mechanisms

International Participation:

• IMF Article IV Consultations and periodic technical assessments
• World Bank and African Development Bank cooperation on financial sector development
• BIS participation in central bank peer networks and standard-setting forums
• FATF Mutual Evaluation Reviews and AML/CFT compliance assessments
• Commonwealth Association of Central Banks coordination

The CBG is transitioning toward enhanced Basel III capital standards and increased coordination with regional central banks on payment system interoperability and macroprudential risk management.

Geography and Jurisdiction Notes

Important Departments and Divisions

Key Public Resources

Head Office:

• Central Bank of The Gambia
• Banjul, The Gambia

Telephone: +220 4225-9000

Email: [email protected]

Website: www.cbg.gm

Key Departments:

• Banking Supervision Department
• Monetary Policy Division
• Payment Systems Unit
• International Relations and Cooperation

Governor: Buah Saidy (2022–present)

Notes on Naming and Language