Financial Crime World

Title: Anti-Corruption Laws Face Challenges in Benin: High Risk of Corruption in Judiciary, Police, and Public Services

Overview

Benin, a West African country known for its rich cultural heritage, faces significant challenges in enforcing its anti-corruption laws. The country ranks 163 out of 190 in the World Bank’s Doing Business report, with corruption being a major hurdle.

Judicial System

In the judicial system, corruption is a high risk. Irregular payments or bribes to gain favorable judgments are common. Magistrates’ involvement in financial scandals hampers judicial independence.

  • Lack of trust in the legal system
  • Magistrates’ involvement in financial scandals
  • Executive respect for court decisions, but concerns over nominations and promotions

Enforcing Anti-Corruption Laws

Enforcing anti-corruption laws in Benin faces low territorial and functional penetration, according to the Bertelsmann Transformation Index (BTI) 2016.

  • Protracted and slow dispute resolution processes
  • Significant costs related to crime and violence, with police corruption being a problem
  • Corruption is a high risk in the public services sector

Public Services

In the public services sector, businesses often pay bribes or make irregular payments to obtain utility services and licenses.

  • Challenges in rural areas, with poor administration and lack of infrastructure
  • Property registration is among the most expensive in the world

Customs Administration

Corruption is a high risk in Benin’s customs administration. Businesses often report irregular payments during import and export processes.

  • Poor infrastructure at ports
  • Lack of transparency at the border complicates cross-border trade

Despite the challenges, Benin continues to improve its legal framework against corruption.

  • The country has ratified the UN Convention against Corruption and the African Union Convention on Preventing and Combating Corruption
  • A French law against corruption criminalizes active and passive corruption in both the public and private sectors

Challenges in Enforcement

  • Enforcing these provisions against corruption remains a challenge
  • Businesses advised to take proactive measures against corruption risks

Sources

  • Bertelsmann Transformation Index (BTI) 2016, 2015, 2014
  • Doing Business Report 2016
  • Global Competitiveness Report 2015-2016
  • Country Report on Human Rights Practices for 2015
  • Freedom House: Freedom of the Press 2015, Freedom in the World 2015
  • Transparency International: Global Corruption Barometer 2015
  • Afrobarometer: AD3, AD56, AD69
  • Investment Climate Statement 2016, 2015
  • Global Journalist: “The President of Benin Pardoned Offenses of the TV Head,” 2013