Financial Crime and Corruption Thrive in Equatorial Guinea: The Role of Anonymous Shell Corporations

October 21, 2019

By Maureen Heydt

Equatorial Guinea: A Hotbed of Financial Crime and Corruption

• Population of 700,000
• Rich in natural resources
• Presidency of Teodoro Obiang Nguema Mbasogo since 1979
• Allegations of vast fortunes amassed by the president and his family
• Citizens left in poverty

Obiang’s Son’s Alleged Money Laundering Activities

• Teodorin Obiang: Minister of Agriculture from 2007 to 2016
• Over $100 million laundered through American banks
• Secretive shell corporations facilitated money laundering

Addressing Anonymous Shell Corporations in the US: A Step Towards Transparency

• US government suspected Obiang’s regime of stashing over $700 million in US banks since the late 1990s
• Teodorin imposed “revolutionary tax” on timber, demanding cash or checks made out to his company
• DOJ seized over $70.8 million from Teodorin in 2018
• Transparency measures and money laundering review called for by a new report

The Global Scourge of Money Laundering

• Amounted to $1.6 trillion in 2009
• International Anti-Corruption Day: Celebrating progress and addressing challenges

By addressing the issue of anonymous shell corporations, Congress has an opportunity to make a significant impact in the global fight against financial crime and corruption.