Financial Crime World

Country Report: Eritrea

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Overview

Eritrea’s criminal justice system, economy, social protection, and human rights situation are examined in this report. The following key findings provide insight into the current state of affairs.

Criminal Justice

  • Authoritarian State: Eritrea is ruled by President Isaias Afwerki, with no independent judiciary, national assembly, or democratic institutions.
  • Harsh Prison Conditions: Severe overcrowding remains a significant issue in prisons across the country.
  • Lack of Police Oversight: There is no independent police oversight body or specialized law-enforcement unit to ensure accountability.

Economy

  • High Risk of Money Laundering: Eritrea’s cash-based economy and lack of regulatory capacity put it at high risk for money laundering.
  • Vulnerabilities in Currency: The state currency (nakfa) is not fully convertible, exposing the country to vulnerabilities in illicit financial services.
  • State-Controlled Banks: Banks in Eritrea are under government control and lack transparency.

Social Protection

  • Lack of Support for Victims: There is no evidence of government efforts to identify, protect, or support victims of trafficking.
  • No Proactive Victim Identification: No proactive mechanisms are in place to recognize victims from at-risk groups.
  • Limited Alternatives for Foreign Victims: Foreign victims have limited alternatives other than being deported to their home countries if they face punishment.

Human Rights

  • Clear Dictatorship: Eritrea has a clear dictatorship with limited press freedom and no rights for the media.
  • Restrictions on NGOs: Non-governmental organizations (NGOs) are not permitted to operate in Eritrea, and independent media outlets were closed down in 2001.
  • No Freedom of Assembly: Authorities have no regard for the freedom of assembly, and demonstrations in recent past have been met with lethal force and arbitrary detentions.

Organized Crime

  • Laws against Organized Crime: Eritrea has laws pertaining to organized crime, including human trafficking.
  • Elephant Protection Initiative: The country joined the Elephant Protection Initiative to support its small population of elephants.
  • Evidence of Government Involvement: There is mounting evidence that the government controls and profits from the smuggling of people as well as goods, including narcotics.