Financial Crime World

Djibouti’s Strides in Combating Financial Crimes: A Closer Look

Djibouti, the smallest country in the Horn of Africa, has been making significant strides in enhancing its financial crime prevention measures. According to the Organized Crime Index (OCI) published by the Global Initiative Against Transnational Organized Crime (GI-TOC), Djibouti’s score in the financial crime dimension showed an improvement between 2019 and 2023.

Measuring Progress in Financial Crime Prevention

The OCI is an essential tool for measuring the level of countries’ criminality and their resilience to organized crime. In the context of financial crimes, it evaluates countries based on several thematic areas, such as:

  • Money laundering
  • Financial exploitation
  • Corruption
  • Fraud

Djibouti’s Improvement in Financial Crime Scores

The OCI’s analysis revealed that Djibouti’s financial crime score improved from 4.53 in 2019 to 4.38 in 2023. While this progress might seem marginal, it represents an important step forward for the country.

One crucial aspect of Djibouti’s advancement in financial crime prevention involves strengthening its legal framework. The country has enacted several laws addressing financial crimes:

  • The Anti-Money Laundering and Counter-Terrorist Financing Law of 2017
  • The Financial Regulation Law of 2018

Djibouti is also a signatory to the United Nations Convention against Transnational Organized Crime and its Protocols, further underscoring its commitment to combating financial crimes.

Capacity Building and International Cooperation

Additionally, efforts have been made to boost capacity building and international cooperation. In 2019, Djibouti’s Financial Intelligence Unit (FIU) was created to combat money laundering, terrorist financing, and other financial crimes. The FIU collaborates with other African FIUs within the East African Financial Task Force (Eaftf) and cooperates with international organizations, such as the Financial Action Task Force (FATF) and the Egmont Group, to strengthen its capabilities.

Challenges and Opportunities

These initiatives are a promising indication that Djibouti is making progress in addressing financial crimes. However, challenges remain, including:

  • The need to enhance the implementation and enforcement of existing laws
  • Improving investigative and prosecutorial capacities
  • Addressing the perceived lack of transparency and accountability in some sectors

Inviting Technical Assistance and Capacity Building Initiatives

Despite these challenges, Djibouti’s determination to tackle financial crimes is a commendable effort towards securing its financial system and fostering an environment conducive to economic growth and development. The Government of Djibouti has invited organizations like the World Bank and the United Nations Development Programme to provide technical assistance and capacity building initiatives to improve its financial crime prevention measures.

Conclusion

Djibouti’s advances in financial crime prevention are a clear demonstration of its commitment to safeguarding its financial system and fostering a favorable business environment. The country’s improvements in the OCI’s financial crime scores serve as milestones on its journey towards a more robust and resilient economy.