Financial Crime World

Eritrea’s Struggle with Corruption and Organized Crime

Eritrea is ranked high on the risk scale for corruption and organized crime. The country’s authoritarian government, absence of an independent judiciary, and lack of democratic institutions are major contributing factors.

A Poorly Organized Criminal Justice System

  • Eritrea’s criminal justice system is dependent on the executive branch, with instances of interference by power holders.
  • Arbitrary arrest and detention are common practices in the country.
  • Prisoners are often held incommunicado for indefinite periods without charge or trial.

Economic Regulatory Capacity: A Major Concern

  • Eritrea’s irrational financial policy has led to a steady expansion of the currency black market.
  • The government’s monopoly on the economic sphere, with significant enterprises controlled by the PFDJ and military, contributes to the problem.
  • The country’s low internet penetration rate makes it less vulnerable to cyber-dependent crime.

Key Challenges Facing Eritrea

  • Corruption: The PFDJ’s Hdiri Trust Fund controls all major companies in the country, and the financial head of the party is responsible for auditing the fund.
  • Lack of Independent Judiciary: The judiciary system is poorly organized and dependent on the government, with instances of interference by power holders.
  • Absence of Democratic Institutions: Civil society organizations such as NGOs, labour unions, and organized interest groups are prohibited.
  • Poor Economic Regulatory Capacity: Eritrea’s irrational financial policy has led to a steady expansion of the currency black market.
  • Lack of Victim Support Mechanisms: The government fails to take any measures to identify and support victims and witnesses of organized crime.

Conclusion

Eritrea faces significant challenges in addressing corruption and organized crime due to its authoritarian government, lack of democratic institutions, and poor economic regulatory capacity. Addressing these issues will require a multifaceted approach that involves reforming the criminal justice system, improving economic regulations, and promoting democratic institutions.