Financial Crime World

Liberia: A Hotbed for Transnational and Domestic Crimes

Monrovia, Liberia – Liberia, a country still recovering from the aftermath of a long-running civil war and the impact of the Ebola virus, faces a myriad of transnational and domestic crimes. Among these, human trafficking, smuggling, illicit firearm trading, financial crimes, counterfeit goods trade, environmental crimes, and cybercrimes pose significant challenges to the government and its people.

Human Trafficking: A Tangled Web of Exploitation

Liberia is a source, destination, and transit country for human trafficking. Forced labour and sex trafficking are rampant, with victims subjected to:

  • Domestic servitude
  • Forced begging
  • Labour in industries like street vending, mining, and rubber plantations

Organized agents are involved in some instances, but a more opportunistic network seems to be at work. Economic hardship and the lack of birth registrations contribute to the vulnerability of potential victims. Liberia also serves as a waystation for human trafficking, primarily due to increases in ungoverned spaces and weak detection capabilities at entry points.

Smuggling: Unregulated Borders Fuel the Trade

Liberia’s porous borders with Guinea, Sierra Leone, and the Ivory Coast make it a popular destination for human smuggling. While not all smuggling activities are led by criminal groups, the lack of formal checks and weak policing contribute to their growth and expansion. For example, many Liberians trying to cross into Niger end up stranded in the Sahara Desert. The arrival of Ivorian refugees has increased exposure to human smuggling.

Firearm Trading: Arms Fuelling Insecurity and Violence

Firearm and ammunition smuggling in Liberia is a substantial issue, enabling the country to serve as a transit hub for illegal arms from Latin America and Asia. Smuggling rings, which occasionally receive shipments from the US, have been identified. These arms contribute to the rising crime rate in Liberia, which is characterized by high unemployment and poverty.

Counterfeit Goods: A Growing Concern for Liberia’s Economy

Counterfeit goods trading has grown exponentially in Liberia due to its weak regulatory and enforcement infrastructure. More than half of the goods imported into Liberia are counterfeits. The trade of counterfeit goods is common in the domestic market and through illicit border trafficking. Particularly alarming is the smuggling of counterfeit medicines, which pose a severe risk to Liberians’ health.

Excise Goods: Illicit Trade Threatens Liberia’s Tax Base

The illicit trade in excise goods remains a concern in Liberia. The government’s lack of capacity and political will, coupled with an ineffective Liberia Revenue Authority (LRA), drives many people to engage in the illicit trade as a means of survival.

Environmental Crimes: Deforestation and Wildlife Trafficking

Deforestation in Liberia ranks among the highest worldwide, with illegal logging and timber smuggling being a pervasive industry. Government officials, loggers, ministry officials, customs officials, and shipping companies form a “syndicate” that contributes to the devastation of Liberia’s forests. Predatory international logging and agricultural firms, along with weak domestic legal protections, significantly threaten the remainder of the forests.

Liberia also grapples with challenges related to illegal wildlife trade. Monrovia serves as a leading trading hub for critically endangered bushmeat, pangolins, and other wildlife species. Smuggling routes for these animals are mainly concentrated in the southeastern region and are heavily reliant on the exploitation of porous borders and easily bought border officials.

Illicit Mining: Gold and Diamonds Fueled by Weak Regulations

Illicit gold mining and diamond mining persist in Liberia due to inadequate government regulation and widespread poverty. Most mining activities are artisanal, with ex-combatants often involved. Gold smuggling to Guinea is common, while the illegal diamond trade is dominated by Lebanese families with connections to Belgium and the UAE. Smuggling of gold and diamonds occurs across Liberia’s borders, with unchecked flows of foot and vehicle transport.

Drugs: Transshipment Hub for Heroin and Cocaine

Liberia serves as a transit hub for heroin trafficking from Latin American and Asian countries to European markets. While the domestic heroin market in Liberia is limited, its ports and territory offer advantageous conditions for drug smugglers. Some mineworkers are even reportedly encouraged to use heroin to enhance productivity and work longer hours. The cocaine trade in Liberia has a growing impact on regional drug consumption patterns. Criminal networks capitalize on artisanal landing sites along the coastline to smuggle cocaine shipments from Latin America to Europe.

Cybercrimes: A growing menace in the digital age

Despite Liberia’s recovery from the civil war, the Ebola virus, and the pandemic, cybercrimes continue to pose a significant threat. The absence of a legal and regulatory framework hampers the collection of comprehensive information on cybercrime convictions. However, Liberia experiences a range of cybercrimes, including ransomware, DDoS attacks, botnets, and social engineering. Online businesses in the country are particularly susceptible to these attacks and fraudulent transactions, making Liberia a hotbed for cybercriminal activity.

Financial Crimes: Corruption, Embezzlement, and Misappropriation

Financial crimes, including corruption, embezzlement, and misuse of funds, are deeply ingrained in Liberia, especially among public officials. Corruption has thrived due to a culture of impunity and lack of accountability. Despite frequent allegations against senior government officials, successful convictions are rare. The hawala system, an informal funds transfer system, has become unregulated and provides a fertile ground for financial crimes.