Financial Crime World

Eritrea: A Country Confronting Significant Challenges

Organized Crime

Eritrea has laws in place to combat organized crime, including human trafficking. However, the government’s efforts are hindered by its own involvement in people smuggling and goods smuggling, including narcotics.

  • Human Trafficking Laws: Eritrea has laws addressing human trafficking.
  • Government Involvement: Despite efforts to combat human trafficking, there is evidence that the government controls and profits from people smuggling and goods smuggling.
  • Organized Crime Challenges: The country faces significant challenges in combating organized crime due to its own involvement.

Criminal Justice and Security

Eritrea’s lack of democratic institutions has led to a power vacuum, resulting in an environment where human rights violations and impunity persist.

  • Independent Judiciary: There is no independent judiciary or national assembly.
  • Human Rights Violations: Human rights violations are common due to the lack of accountability and transparency.
  • Prison Conditions: Prison conditions are harsh, with severe overcrowding being a major issue.
  • Law-Enforcement Capacities: Law-enforcement capacities are weak, and corruption and bribery are prevalent.

Economic and Financial Environment

Eritrea’s cash-based economy and lack of transparency in the banking sector make it vulnerable to money laundering.

  • Money Laundering Risks: The country is at high risk of money laundering due to its cash-based economy.
  • State Currency: The state currency is not fully convertible, opening up vulnerabilities to illicit financial services.
  • International Cooperation: State cooperation with international organizations such as the IMF and World Bank is insufficient.

Civil Society and Social Protection

Eritrea’s restrictive policies towards civil society and media freedom hinder its ability to address social protection challenges.

  • Victim Identification Mechanisms: There are no proactive victim identification mechanisms in place.
  • Trafficking Victim Support: The government has yet to establish a standardized instrument for referring trafficking victims to proper care.
  • NGO Restrictions: Non-governmental organizations are not permitted to operate in Eritrea.
  • Media Freedom: Independent media outlets were closed down in 2001.

Key Challenges

Eritrea faces significant challenges due to:

  • Lack of transparency and accountability in governance
  • Weak law-enforcement capacities
  • Corruption and bribery
  • Limited cooperation with international organizations
  • Restrictions on civil society and social protection initiatives