Equatorial Guinea: Money Laundering, Financial Crimes, and Human Trafficking Thrive Amidst Wealth and Political Instability

Malabo, the capital city of Equatorial Guinea, has become a hub for various criminal activities, including human trafficking, forced labor, money laundering, and environmental crimes. The small West African nation, known for its vast oil reserves, has seen billions of dollars flow through its economy, but the benefits have not trickled down to the majority of its population. Instead, the country’s wealth has fueled corruption and facilitated criminal networks.

People

Equatorial Guinea is a primary destination for victims of human trafficking and forced labor. Thousands of men and women from neighboring countries, Ethiopia, China, and the Caribbean, are lured by promises of employment and end up being exploited in malicious ways. Those seeking employment in Equatorial Guinea, particularly in Malabo, Bata, and Mongomo, are at risk of labor exploitation or forced prostitution. Children from other West African nations may be forced into domestic work, market labor, vending, or as launderers.

Victims lured by false promises of employment
Labor exploitation and forced prostitution
Children forced into labor

Trade

Equatorial Guinea’s location provides a favorable environment for various illicit activities, including arms smuggling and human trafficking. While arms trafficking is not a significant issue in Equatorial Guinea, small guns are smuggled to neighboring countries through its porous borders. Political instability and widespread corruption make the country a prime breeding ground for criminal networks, with reported links to human and drug trafficking.

Arms smuggling to neighboring countries
Links to human and drug trafficking
Political instability and widespread corruption

Environment

Equatorial Guinea boasts extensive tropical rainforests, making it a significant source and transit country for illegal logging. The rainforests are home to unique flora and fauna, and the illegal logging industry is a major contributor to their destruction.

Illegal logging contributes to deforestation
Unique flora and fauna at risk
Significant portion of illegal logs may originate in neighboring countries

Drugs

Cannabis is the most commonly consumed drug in Equatorial Guinea, with plants grown and sold on every street. Although cultivation, sale, and consumption are largely tolerated by society and the government, trafficking to neighboring Gabon occurs. There is no evidence to suggest any significant involvement of criminal organizations in the cannabis trade. However, diplomats from Equatorial Guinea have been implicated in heroin smuggling.

Cannabis tolerated but trafficking to Gabon occurs
No significant involvement of criminal organizations in cannabis trade
Diplomats implicated in heroin smuggling

Cybercrimes

Equatorial Guinea saw an increase in cybercrimes in the 2023 iteration of the tool, but more information is needed to fully assess the situation.

Financial Crimes

Equatorial Guinea is renowned for its deep-rooted corruption and widespread illicit financial flows. The political elite, including high-level officials, live lavish lifestyles through the exploitation of the country’s oil industry and the embezzlement of public funds. Several countries have conducted investigations and seized assets believed to be the proceeds of embezzlement. Corruption in the logging sector further enables the illegal trade, with state-embedded actors awarding fraudulent concessions and providing negligible oversight.

Deep-rooted corruption and widespread illicit financial flows
Political elite live lavish lifestyles through oil industry and embezzlement
Corruption in the logging sector enables illegal trade

State-embedded Criminal Actors and Foreign Criminal Organizations

State-embedded criminal actors dominate Equatorial Guinea’s criminal landscape, but little is known about foreign criminal organizations operating in the country. However, the country’s ties with countries like the Democratic People’s Republic of Korea (DPRK) and Lebanon have raised concerns.

State-embedded criminal actors dominate criminal landscape
Ties with DPRK and Lebanon raise concerns

Conclusion

As one of Africa’s largest oil producers, Equatorial Guinea’s reliance on the oil industry has made it vulnerable to economic instability and created an environment conducive to money laundering and financial crime. Despite having ratified international legal instruments addressing these issues, the country is not a party to key anti-corruption agreements. However, it has agreed to regulations within the Central African Economic and Monetary Community (CEMAC) to suppress terror financing and cooperate on criminal police matters. Equatorial Guinea’s judicial system lacks independence, and few, if any, trafficking convictions or prosecutions have been reported since the implementation of anti-trafficking laws. Limited police presence, both in major cities and rural areas, encourages extortion and other forms of criminal activity. Corruption is pervasive, extending to all levels of government and enabling a range of crimes, from human trafficking to logging and money laundering. The President, Teodoro Obiang Nguema Mbasogo, has faced criticism for human rights abuses since taking power in 1979. Despite the government’s signing of anti-corruption laws and regional agreements, corruption and rights abuses continue.