Financial Crime World

Senegal Takes Steps to Curb Financial Crime, Launches Workshop on Illicit Financial Flows Prevention

Dakar, Senegal - June 16-17, 2023

In a bid to combat financial crime and promote transparency in the extractive sector, Senegal has launched a regional workshop on the launch of statistical measurement of Illicit Financial Flows (IFFs) for pilot countries in Africa.

The Workshop

The two-day workshop brought together experts from various agencies with expertise and data on IFFs. The event aimed to share knowledge and best practices on how to prevent and combat IFFs, particularly in the extractive sector. The following organizations were represented at the workshop:

  • National Anti-Corruption Office (OFNAC)
  • National Financial Information Processing Unit (CENTIF)
  • Extractive Industries Transparency Initiative (EITI)

The Importance of Illicit Financial Flows Prevention

According to the UNCTAD 2020 report on sustainable development in Africa, IFFs are estimated at $88.6 billion per year for the continent. In Senegal alone, it is estimated that 166 million CFA francs are lost annually due to financial crime. The workshop highlighted the need for increased transparency and accountability in the extractive sector, which is the most affected by IFFs.

Capacity Building and Collaboration

Experts emphasized the importance of capacity building on IFFs, particularly for understanding capital expenditure by mining and extractive industries. They also highlighted the need to understand statistics on money laundering, tax evasion, corruption, and the assessment of expenditure that could be assimilated as corporate income tax.

The event also emphasized the need for increased collaboration among institutions to prevent financial crime. “We need to work together to combat IFFs,” said Malick Diop, contact person for the workshop. “It’s a collective responsibility to ensure that our resources are used for the benefit of the people.”

Recommendations and Next Steps

The EITI recommended that Senegal finalize its procedure manual for the management of mining titles and provide for systematic controls on transactions on mining titles.

The pilot project, which includes capacity building on IFFs, statistical methods used to measure IFFs, and increased transparency in the extractive sector, is expected to be a key step forward in preventing financial crime.

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