Central Bank of The Gambia: Orders Banks to Dismiss Non-Gambian Staff By Year-End

• The Central Bank of The Gambia has ordered all commercial banks to dismiss non-Gambian employees not on approved expatriate quotas by the end of the year.
• The directive, issued on September 19 by Second Deputy Governor Dr. Paul J. Mendy, requires banks to replace foreign workers with qualified Gambians and implement succession plans.
• This mandate follows a CBG industry study that found a high number of non-Gambians employed by banks, allegedly violating The Gambia's Labour Act 2023 and Guideline 9 on expatriate staff.
• The decision was preceded by an August meeting where the Central Bank and bank managing directors discussed concerns about non-Gambian employment.
• Affected institutions, including major Nigerian subsidiaries, must ensure full compliance with national laws and CBG guidelines to avoid regulatory penalties.

Compliance officers and legal counsel must now work swiftly to ensure that all staffing arrangements align with the Central Bank's mandate and the stipulations of the Labour Act 2023 and Guideline 9.

The Central Bank of The Gambia (CBG) has issued a directive to all commercial banks operating within the country, instructing them to dismiss non-Gambian employees who are not part of approved expatriate quotas. This significant order, conveyed in a letter dated September 19 and signed by Second Deputy Governor Dr. Paul J. Mendy, mandates that these non-citizen employees must be phased out by the end of the current year. The directive specifically targets the employment of foreign workers in the Gambia banking sector, aiming to realign staffing with national regulations.

Beyond the immediate dismissal of non-Gambian staff, the CBG's communication outlines a comprehensive transition plan for the affected financial institutions. Banks are required to replace the departing non-citizens with qualified Gambian personnel. Furthermore, the directive emphasizes the urgent need for banks to establish clear succession plans and to facilitate the transfer of skills from expatriate workers to their Gambian successors. The Central Bank of The Gambia non-citizen employees' departure must also be managed in a way that ensures the continuous smooth operation of banking services throughout this transition period.

The instruction was addressed to the managing directors of all commercial banks in The Gambia, including prominent Nigerian subsidiaries such as First Bank, Zenith, Access, Eco, and Guaranty Trust Bank. This broad application underscores the CBG's intent for a sector-wide adherence to the new employment mandates. The directive represents a pivotal moment for human resources and compliance within the nation's financial industry, as banks must now swiftly implement these far-reaching changes.

The Central Bank's decision to mandate the Gambia Central Bank dismiss non-Gambian staff stems from findings of a recent industry study it conducted. This study revealed that a substantial number of non-Gambians are employed by banks, often exceeding the recognized expatriate staff allowances. The CBG explicitly stated that this situation constitutes a CBG expatriate quota violation Gambia, indicating a systemic issue across the banking sector.

According to the Central Bank, the employment practices observed are not only out of line with its own Guideline 9 on expatriate staff but also allegedly contravene provisions of The Gambia's Labour Act 2023. Both the Labour Act 2023 expatriate staff regulations and Guideline 9 are designed to specify the conditions under which foreign workers can be employed and to set permissible quotas for such employment. The CBG's letter directly quoted its study, highlighting that a "relatively high number of non-Gambians are employed by banks, in addition to recognised expatriate staff," and unequivocally declared this to be "in violation of the provisions of the Labour Act 2023 and also not in line with guideline 9 on expatriate staff."

In light of these findings, the regulator has issued a stern warning, urging banks to strictly adhere to the country's laws and to fully comply with the Central Bank's guidelines. The directive explicitly states, "You are hereby directed to ensure full compliance with the law and strict compliance with CBG's guidelines," underscoring the seriousness with which the CBG views these regulatory breaches and its expectation for immediate corrective action from all financial institutions.

The Central Bank's directive follows a crucial meeting held in August between the central bank and the managing directors of commercial banks. During this gathering, concerns regarding the employment of non-Gambian workers in the Gambia banking sector were thoroughly discussed, setting the stage for the subsequent formal order. This pre-directive engagement suggests a considered approach by the regulator to address what it perceives as a significant imbalance in local employment within a critical economic sector.

For commercial banks, the directive necessitates an urgent and comprehensive review of their expatriate employment contracts and existing succession plans. Compliance officers and legal counsel must now work swiftly to ensure that all staffing arrangements align with the Central Bank's mandate and the stipulations of the Labour Act 2023 and Guideline 9. Failure to comply with the order to dismiss non-Gambian staff not on approved quotas by the year-end deadline could expose these institutions to significant regulatory risk and potential penalties from the CBG.

Ultimately, this move by the Central Bank of The Gambia is poised to reshape the employment landscape within the nation's financial services industry. By enforcing stricter Gambia banking sector employment rules and promoting the replacement of foreign workers with qualified Gambians, the CBG aims to foster greater localization of expertise and create more opportunities for the national workforce, while ensuring that banks operate within the established legal and regulatory frameworks.

Compliance officers and legal counsel for commercial banks in The Gambia must urgently review their expatriate employment contracts and succession plans to ensure immediate compliance with the Central Bank's directive to dismiss non-Gambian employees, aligning with the Labour Act 2023 and Guideline 9 on expatriate quotas. Failure to comply poses significant regulatory risk.

Source: Original reporting via Premium Times