Financial Crime World

Guinea’s Struggle Against Financial Crimes: A Lamentable State of Affairs

Political Instability and Economic Challenges

Amidst political turmoil, Guinea grapples with a weak economy and rampant financial crimes.

  • Political instability intensified with disputes over the voter register delaying legislative elections.
  • Opposition supporters and police clashes intensified, making Guinea the 179th best place to do business out of 183, as per the World Bank’s 2012 report.

Economic Progress and Challenges

  • Guinea’s economy grew at a rate of 5.1% in 2012, supported by the primary sector.
  • Gold and diamond productions were predicted to decrease significantly.
  • Poverty remained a widespread issue, with over half of the population living below the poverty line.
  • Foreign exchange reserves hovered around $677 million.

Financial Sector and Vulnerability to Financial Crimes

  • Guinea’s financial sector includes twelve deposit money banks.
  • Remittances amounted to about $78 million or 1.5% of the nation’s GDP.

struggles with financial crimes

Corruption and Empbezzlement

  • Corruption remained deeply ingrained, with nine civil servants apprehended attempting to embezzle public funds.
  • The Director of the Treasury was assassinated, highlighting the danger and desperation surrounding these criminal activities.

Guinea’s AML/CFT Challenges

  • Guinea’s AML/CFT framework remained weak and incomplete.
  • The country had yet to establish a functional FIU and pass the CFT law.
  • Technical monitoring committee lacked the necessary resources to perform its duties efficiently.

Technical Assistance from GIABA

  • GIABA provided technical assistance to strengthen Guinea’s AML/CFT framework.
  • However, further assistance was required to develop a national AML/CFT strategy, strengthen the technical committee, and provide training on financial crimes to the judicial personnel.

Conclusion

Guinea’s political and economic instability, coupled with deep-rooted financial crimes, demands urgent attention and action. The government must commit to:

  • Establishing the FIU
  • Adopting and promulgating the law on terrorist financing
  • Creating an AML/CFT national strategy

GIABA remains supportive and willing to help in these efforts, but it ultimately depends on the political will and firm commitment of the Guinean authorities.