Transcript Cross-border Crime and Money Laundering in West Africa
Dr. Abdullahi Y. Shehu Director General, GIABA
Presented to the Commissioners of the West Africa Commission on Drugs (WACD), Accra, Ghana 29 April 2013
Regional Context – the facts Mandate of GIABA Serious and organized crime in West Africa Challenges of fighting organized crime in West Africa The role of GIABA in Countering Organized Crime in West Africa GIABA’s achievements Recommendations Conclusion
Sierra Leone; 5,997 Senegal; 12,77 Population (Mn) Togo; 6,155 Benin; 9,1 Nigeria; 162,5 Burkina Faso; 16,97 Cape Verde; 0,5006 Cote d'Ivoire; 20,15 The Gambia; 1,776 Ghana; 24,97 Mali; 15,84 Guinea; 10,22 Guinea Bissau; 1,547 Liberia; 4,129 Niger; 16,07
Nigeria 66% Senegal 4% Sierra Leone 1% Togo 1% Benin 2% Burkina Faso 3% Cape Verde 0% The Gambia 0% Ghana 11% Cote d'Ivoire 1% Guinea Bissau 0% Liberia 0% Mali 3% Niger 2%
GDP (Billion USD)
160 000 000 000 140 000 000 000 120 000 000 000 100 000 000 000 80 000 000 000 60 000 000 000 40 000 000 000 20 000 000 000 0
2011 2010 2009 2008 2007
250 000 000 000 200 000 000 000 150 000 000 000 100 000 000 000 50 000 000 000 0 2007 Nigeria's GDP 2007-2011 (USD) 2008 2009 2010 2011
4000 3000 2000 1000 0
Per Capita Income
Fifteen (15) countries, over 300 million inhabitants, with Nigeria having more than half of the total population (170 ml) Majority of the population lives in rural areas, largely isolated from the government, with little or no access to basic services. Plagued by deep and widespread poverty and underdevelopment, 11 of the 15 countries were ranked by the 2009 United Nations Development Program (UNDP) as experiencing ‘low development’.
West Africa’s GDP of approximately $369 billion is less than that of Saudi Arabia with nearly $435 billion. UNDP (2009), Human Development Report
About 66% of West Africa’s total output comes from About 66% of West Africa’s output comes from one country and the rest 14 share less than 34 % .
High unemployment and underemployment especially among the youth, including university graduates and migrants from rural to urban areas who struggle to find work and are mostly compelled to look for opportunities in the informal sector as apprentices, domestic or unpaid family workers, or as self-employed workers.
Protracted political crises and instability which have diverted attention and used up development resources
Serious and Organized crime generate large illicit proceeds in West Africa, particularly corruption and drug trafficking.
The size of the amount related to corruption in West Africa is monumental and is the number one predicate offence for money laundering related prosecutions in the region.
18 tons of cocaine worth approximately $1.25 billion were smuggled through West Africa in 2010. About $500 million of drug money remained in West Africa or was laundered through the region in 2012.
Authorities across West Africa also report frauds, abuse of trust, theft and smuggling of minerals (oil in particular), cybercrime, etc..
Criminals legitimize or ‘launder’ their illegally acquired proceeds so as to disguise the origin and identity and to avoid detection by authorities. In doing so, criminals exploit the nature and mode of economic transactions, technological advances, easy movement of people, goods, and capital, and among others The criminal proceeds are transferred through legitimate channels using series of transactions, including bank deposits and investments in legitimate businesses.
GIABA was established by the Authority of Heads of State and Government of ECOWAS in 2000 with the mandate of:
Protecting the economies of ECOWAS Member States (MS) against the laundering of proceeds of crime;
Developing strategies to combat ML/TF in the ECOWAS region; Assisting MS to implement effective AML/CFT measures, based on the FAFT Recommendations.
GIABA plays an important role in countering organized crime in West Africa by assisting its member States to implement acceptable international measures to deny criminals access to proceeds activities.
generated through criminal GIABA’s role is premised on the idea of ‘going after the money’ and making organized crime unprofitable.
The strategic plan is based on 7 pillars/ Goals: 1) Institutional Development:
constitute a strong and competent Regional Body for AML/CFT, capable of providing the requisite capacity and support to member States in order to assist them to develop strong capacity to counter Money Laundering and the Financing of Terrorism, within their respective borders and at the regional level.
2) Compliance Monitoring :
Monitor and assess member States to determine their level of compliance with acceptable International AML/CFT Standards.
3) Research and Typologies:
Conduct Studies and Research to determine techniques, methods, extent, pattern, trends, location and impact of ML and FT on Member States.
The strategic plan is based on 7 pillars/ Goals: 4) Technical Assistance to Member States:
Provide support to Member States to create stronger and more effective and efficient AML/CFT structures and practice.
5) Partnerships: Promote strategic partnerships with the private sector, civil society and other key stakeholders.
6)Regional and International Cooperation:
Expand and reinforce cooperation within and between Member States, between Member States and GIABA, and with International partners in general.
7. Cross cutting issues: Regional and National Coordination, Monitoring and Evaluation and Long term Funding Plan
Based on its Strategic Plan, GIABA works to, among others:
Assist MS to enact; upgrade and harmonize legislation against ML in West Africa;
Help establish, strengthen, and resource Financial Intelligence Units (FIUs); Assist member States develop strategies, structures and mechanisms against ML/TF; Undertake training and awareness raising Provision of equipment, such as scanners to detect cross border currency movements; Erection of billboards with anti-money laundering messages to raise awareness in order to instigate actions against ML/TF.
Political Office holders
- illicit money generated through bribery, embezzlement of public funds
Corruption
Institutional corruption
- Public officials and institutions serving the objectives of criminals
The Private Sector
Self-corruption and conniving with PEPs and public officials to perpetuate corrupt practices.
Prevalence of corruption Inadequate political commitment Inadequate resources and competing priorities Poor compliance culture with minimum AML/CFT standards; Poor investigative and intelligence-gathering skills; Lack of capacity and expertise to handle complex and long term cases of ML. Particularly, limited specialization on ML investigation;
Separation of ML investigation from predicate offences investigation. Inadequate inter-agency cooperation/coordination; Cash-dominated economic transactions; Financial and material benefits of crime; Insufficient/poor data management systems
Prevalence of socio-cultural practices and attitudes that glorify wealth; “Backlash” of globalization and technological advancement; Low capacity of countries to absorb technical assistance
Enactment of anti-money laundering laws by all member States Formulation and adoption of National Strategic Frameworks against ML/TF (10 countries) Establishment of FIUs in thirteen (13) member States, at different levels of development; Increased knowledge and awareness of money laundering and related issues through research and typologies studies; Strengthened capacities of relevant personnel- law enforcement, prosecutory and judiciary through training workshops and seminars.
The West Africa Commission’s moral authority is needed to effect series of policy and operational changes in the region, including:
Mainstreaming issues of organized crime and money laundering into political discourse;
Advocating for political commitment from governments in West Africa; Establishing and/or strengthening institutional frameworks; and Creating systems that prevent and control corruption and promote good governance
Strengthening of institutional and personnel integrity through the establishment of an independent Law Enforcement Complaint and Integrity Commissions by member States.
enforcement.
Such commission must be independent of government and have the mandate to deal with issues of integrity and professionalism in law Regional coordination mechanisms against drug trafficking and organized their national actions.
crime should be strengthened to support countries in the region in A strong civil society platform should be created at the national and regional levels to serve as the watch dog for actions and ensure accountability.
There is the need to engage/persuade political leaders, especially Parliamentarians to pass the relevant laws required to effectively deal with drug trafficking, other organized crime and money laundering.
In order to have in place a sustained capacity, there is the need to have and designate regional centers of excellence for specialized training on combating corruption, drug trafficking and money laundering; Institutional mechanisms for coordination among countries in the region should be formed and resourced to foster operational cooperation.
Serious and organized crime, particularly corruption and drug trafficking, remain unabated in West Africa and continue to generate vast proceeds for criminals and smuggling networks. Institutions and systems have been compromised.
GIABA is playing an important role in fighting organized crime by assisting governments in the region to deny criminals of access to proceeds generated from their ‘enterprises’.
The WACD should employ its moral authority to help bring about significant policy and operational changes, including enhancing and consolidating regional cooperation frameworks and mainstreaming the relevant issues into political discourse
GAIBA Secretariat Tel: +221338591818 Email: [email protected]
Website: www.giaba.org