Financial Crime World

Eritrea’s Struggle with Organized Crime, Corruption, and Governance

Economic Environment: A High-Risk Area

Eritrea’s economy operates largely in the informal sector, creating a high risk of money laundering due to the use of informal money transfer systems. The country’s banks are under state control and lack transparency, making it difficult to track financial transactions.

  • Informal economy: Eritrea’s economy is characterized by a large informal sector, where businesses operate outside the formal regulatory framework.
  • High risk of money laundering: The use of informal money transfer systems makes it challenging for authorities to detect and prevent money laundering activities.
  • Limited financial transparency: Banks in Eritrea are under state control and lack transparency, making it difficult to track financial transactions.

Corruption and Governance: Weak Institutions

Corruption and bribery are widespread in Eritrea, particularly in law enforcement agencies. The government’s weak law-enforcement capacities and lack of independent judiciary or democratic institutions contribute to a culture of corruption.

  • Widespread corruption: Corruption is a significant problem in Eritrea, with bribery and embezzlement being common practices.
  • Weak law enforcement: The government’s law-enforcement agencies are poorly equipped and lack the capacity to effectively investigate and prosecute corruption cases.
  • Limited judicial independence: Eritrea’s judiciary is not independent, and judges often face pressure from the executive branch to deliver verdicts that favor the government.

Organized Crime: Human Trafficking and Smuggling

Eritrea has laws against human trafficking, but there is limited comprehension of the phenomenon among national authorities. Victims of trafficking have no alternatives to being deported to their home countries, and there are no proactive victim identification mechanisms in place.

  • Human trafficking: Eritrea has laws against human trafficking, but the government’s understanding of the issue is limited.
  • Victim deportation: Victims of trafficking are often deported back to their home countries, without access to support services or protection.
  • Lack of victim identification mechanisms: There are no proactive measures in place to identify and protect victims of human trafficking.

Security: Border Control and Smuggling

Eritrea’s borders are controlled by the government, which enforces a “shoot to kill” policy for unauthorized entry or exit. There is evidence that the government profits from people smuggling and narcotics trafficking.

  • Border control: Eritrea’s borders are strictly controlled by the government, with a “shoot to kill” policy in place for unauthorized entry or exit.
  • Smuggling and trafficking: The government is involved in people smuggling and narcotics trafficking, generating significant revenue.
  • Limited international cooperation: Eritrea’s lack of international cooperation makes it difficult to combat organized crime effectively.

Civil Society and Social Protection: Limited Freedom

Non-governmental organizations are not permitted to operate in Eritrea. Independent media outlets were closed down in 2001, and there is no regard for freedom of assembly. Demonstrations have been met with lethal force and arbitrary detentions.

  • Limited civil society: Non-governmental organizations are not allowed to operate in Eritrea, limiting the country’s ability to address social and humanitarian issues.
  • Restrictions on media freedom: Independent media outlets were closed down in 2001, and there is no regard for press freedom or freedom of expression.
  • Limited access to assembly: The government restricts the right to peaceful assembly, often using force against demonstrators.