Financial Crime World

Equatorial Guinea: A Hotbed for Financial Crimes and Organized Criminal Activities

People

  • Human Trafficking and Forced Labor: Thousands of migrants and women face exploitation and risk of human trafficking in Equatorial Guinea, particularly in the capital city Malabo and urban areas like Bata and Mongomo.
  • Victims: West Africans, Ethiopian women, Chinese, and Caribbean nationals are the most vulnerable populations.
  • Exploitation: Domestic work and labor markets are the primary areas of exploitation for children.

Trade

  • Piracy and Maritime Crimes: Equatorial Guinea, located in the Gulf of Guinea, experiences high levels of piracy and maritime crimes.
  • Arms Trafficking: Small arms smuggling is a concern, with illegal weapons entering the region primarily through Equatorial Guinea’s porous borders.

Environment

  • Illegal Logging: Equatorial Guinea is a significant source and transit country for illicit logging, with China being a major destination for exported logs.
  • Flora and Fauna:
    • High deforestation rates
    • Unsustainable hunting practices
    • Threats to monkeys and pangolins
    • Illegal trade in chameleons
    • Hotspot for illegal fishing

Drugs

  • Cannabis: Small-scale cultivation and sales occur in the country; limited involvement of organized criminal groups due to social tolerance.
  • Heroin: Limited evidence of trafficking or use, but diplomats have reportedly been involved in heroin smuggling.
  • Cocaine and Synthetic Drugs: No reports of trafficking or production.

Cyber Crimes

  • No Comprehensive Data: Newly included indicator, no comprehensive data on cyber crimes in Equatorial Guinea is available.

Financial Crimes

  • Oil Wealth and Corruption: Equatorial Guinea’s oil wealth attracts opportunities for embezzlement and contributes to a kleptocratic regime.
  • Corruption in the Logging Sector: Widespread corruption among state officials, with high-level involvement in embezzlement, money laundering, and fraud.
  • Money Laundering: Complex shell companies and offshore financial centers are used to launder embezzled funds.

Criminal Actors

  • State-Embedded Organized Crime: Substantial allegations of corrupt high-level officials, with the political elite’s lavish lifestyles indicating substantial revenues acquired from the extractive industries.

Leadership and Governance

  • Autocratic Regime: President Teodoro Obiang Nguema Mbasogo has been in power since 1979 and labeled one of Africa’s most brutal dictators.
  • Human Rights Abuses: Equatorial Guinea is known as a kleptocracy with rampant corruption and a lack of prosecution of human-trafficking suspects.
  • Legal Instruments Against Corruption: The country has not ratified international legal instruments against corruption and bribery.

Criminal Justice and Security

  • Lack of an Independent Judiciary: Challenges in prosecuting criminal activities and human rights abuses.
  • Police Corruption and Extortion: Widespread issue, contributing to limited efforts to counter organized crime.

Economic and Financial Environment

  • Weak Anti-Money Laundering Laws: Ineffective implementation and enforcement of anti-money laundering laws.
  • Corruption in the Banking Sector and Financial System: Collusion between officials and criminal actors results in vulnerabilities to criminal activities within financial institutions.
  • Lack of Financial Transparency and Regulatory Frameworks: Facilitates criminal activities and money laundering.