Financial Crime World

Title: Benin’s Ongoing Battle against Financial Crime and Terrorism Funding

Subtitle: Inter-Governmental Action Group Against Money Laundering in West Africa (GIABA) supports Benin’s efforts

Benin, a West African country, faces ongoing challenges in combating financial crime and terrorism funding due to its porous borders. The Inter-Governmental Action Group Against Money Laundering in West Africa (GIABA), headquartered in Benin, remains committed to strengthening the country’s legal and institutional frameworks against illicit activities.

Background

  • GIABA: One of 15 member states, Benin is committed to GIABA’s mission (est. 2000) to prevent, suppress, and punish money laundering and terrorist financing in the region.
  • Threats persist: Despite progress, financial crime and terrorism funding remain significant threats to Benin and its neighbors. Benin was previously on the EU’s list of high-risk third countries but was removed in 2019.

Financial Crimes and Terrorism Funding in Benin

Money Laundering

  • Strategic deficiency: A 2018 FATF report identified Benin’s deficiency in implementing targeted financial sanctions against terrorist entities.
  • Gold mining and trafficking: Linked to money laundering in the region.

Terrorism Funding

  • Maritime piracy: The Gulf of Guinea is a significant hub for piracy. Terror groups like AQIM and Boko Haram operate in the area.
  • Funding: Groups utilize proceeds from kidnappings, ransoms, and pillaging for funding.

Fraud

  • Benin’s experience: Numerous banking fraud cases, primarily in the trade and investment sectors.

GIABA’s Response

  • Capacity building: GIABA provides training, technical assistance, and regulatory framework support to enhance member states’ capacity.
  • International partnerships: GIABA collaborates with organizations like the World Bank, UN, and EU to provide resources and expertise.

Benin’s Progress

  • Strengthened financial intelligence unit (FIU): Improved monitoring of financial transactions.
  • Stricter measures: More stringent measures to monitor high-risk individuals and entities.

Further Action Needed

  • Continuous strengthening: Institutional and law enforcement agency improvements.
  • Interagency cooperation: Enhanced coordination and cooperation with neighboring countries and international partners.

Conclusion

GIABA and international partners continue to support Benin, making significant strides in combating financial crime and terrorism funding. However, more work is needed to ensure that the West African nation and its regional counterparts stay vigilant and committed to the ongoing battle.