Financial Crime World

Eritrea’s Dark Underbelly: Human Trafficking, Arms Trafficking, and Criminal Activities Thrive in Isolated Nation

People

  • Eritrea, with the highest estimated prevalence of human trafficking in Africa, is a significant source of the world’s refugees.
  • Thousands of young Eritreans are subjected to indefinite national conscription, leading to discontent and massive emigration.
  • Many Eritreans are vulnerable to trafficking upon leaving the country.
  • The Eritrean diaspora is entangled in human-smuggling networks, with reported links to high-ranking political class and diplomats.
  • Senior military officers are implicated in the smuggling of Eritreans for personal gain, resulting in the frequent abuse of smuggled individuals.

Trade

  • Strategically located at the Red Sea, Eritrea functions as a critical trans-shipment point for arms trafficking to neighboring embargoed states.
  • Eritrea continued to be a major transit hub for weapons headed to Sudan during the arms embargo (2011-2018), with the flow allegedly increasing after its lifting in late 2018.
  • Military involvement in arms trafficking makes actors tied to the state or state-embedded actors likely participants.

Environment

  • Massawa port has become a critical shipping point for ivory bound for Asia.
  • Massawa is also a hub for illegal, unreported, and unregulated fishing.
  • Few reports address flora-related crimes conducted by criminal groups, but military involvement in illegal logging has been documented.
  • Gold from Sudan and possibly other countries is believed to be smuggled through Eritrea to the United Arab Emirates.

Drugs

  • Drug use in Eritrea is reportedly low, but the nation’s ports have become increasingly important in the international trade of heroin and cannabis.
  • Instances of cocaine trafficking cannot be ruled out.

Cybercrimes

  • The first inclusive mention of cybercrime indicators for Eritrea in the 2023 assessment.

Financial Crimes

  • The first mention of financial crime indicators in the 2023 assessment.

Criminal Actors

  • State and military actors and their associates are the primary perpetrators of organized crime in Eritrea.
  • Diplomats posted abroad, especially in Sudan, are prone to bribery to facilitate human trafficking.
  • Police and military personnel are known to be involved in trafficking along the Sudanese border.
  • Transnational networks of Eritrean smugglers operate on routes to Europe.
  • There are unconfirmed reports of potential involvement of criminal actors from Sudan or Egypt in Eritrean criminal markets.

Leadership and Governance

  • Eritrea is considered an authoritarian state led by President Isaias Afwerki since 1991.
  • No elections have been held in the country since its independence, resulting in little regard for human rights, freedom, and transparency.
  • Authorities control every aspect of the economy through strict control of borders and limited access to information, often enforcing a ‘shoot to kill’ policy against those attempting to leave the country illegally.
  • Despite normalized relations with some neighboring countries and international entities, Eritrea remains strained in its relationships with regional organizations, the UN, and multilateral financial institutions.
  • Eritrea is party to several international treaties meant to counter organized crime but has yet to enforce its constitution or fully publish reliable data regarding its economy and crime dynamics.