Financial Crime World

Here is the converted article in markdown format:

Eritrea’s Criminal Underworld Exposed: A Third Iteration of a Troubled System

As Eritrea’s authoritarian government continues to grip the nation, a third iteration of its troubled criminal underworld has emerged, with state actors and individuals closely associated with them dominating the economy and society.

Leadership and Governance

Eritrea is controlled by President Isaias Afwerki, who heads the People’s Front for Democracy and Justice (PFDJ), the sole political party since 1991. The government has shown no willingness to implement political reforms, with no elections held since Eritrea gained independence from Ethiopia in 1993.

  • The state exerts almost total control over the economy, with authorities following formal and informal systems that operate free of civilian oversight.
  • The lack of transparency is exacerbated by the government’s refusal to publish reliable economic data or statistics on crime dynamics.

Criminal Justice and Security

Eritrea’s justice system is non-existent, with no independent judiciary, national assembly, or democratic institutions. Prison conditions are harsh, with severe overcrowding being a major issue. There are no specialized units to counter organized crime, and corruption and bribery are rampant.

  • The government’s “shoot to kill” policy on unauthorized border crossings has led to mounting evidence of its control and profiteering from people and goods smuggling, including narcotics.

Economic and Financial Environment

Eritrea is at high risk of money laundering due to its cash-based economy, informal systems like hawala, insufficient regulatory capacity, and growing corruption. The state-controlled banks are not transparent, and specific references to money laundering are absent in Eritrean laws.

  • State cooperation with the IMF and World Bank is insufficient, making it difficult for foreign businesses to operate in the country.
  • Eritrea’s economy remains weak, with citizens experiencing shortages of basic necessities like fuel, water, and electricity.

Civil Society and Social Protection

There is no evidence of government efforts to identify, protect, or support victims of trafficking. Proactive victim identification mechanisms are lacking, and foreign victims have no alternatives but to be deported back home.

  • Eritrea’s media landscape is repressive, with 16 journalists imprisoned in 2019.
  • Non-governmental organizations are not permitted to operate, and independent media outlets were closed down in 2001.
  • The government has shown no regard for freedom of assembly or demonstration, with recent protests met with lethal force and arbitrary detentions. Foreign human rights organizations are banned from operating within the country.