Financial Crime World

Corruption and Financial Crises Threaten Côte d’Ivoire’s Stability

Côte d’Ivoire, a West African nation with significant economic importance in the region, is facing a perfect storm of corruption and financial crises that threatens its stability. A recent report by international experts highlights several glaring gaps in the country’s anti-money laundering (AML) and combating the financing of terrorism (CFT) regime.

The Perfect Storm: Corruption and Financial Crises

  • Côte d’Ivoire’s failure to address money laundering (ML) and terrorist financing (TF) has created a vulnerable financial system that is susceptible to abuse.
  • The country’s lack of effective measures to combat ML/TF risks, coupled with its geographical position and developed financial sector, make it a prime target for illicit activities.

Gaps in the AML/CFT Regime

  • Lack of Understanding: Authorities have failed to demonstrate a detailed understanding of ML/TF methods used in practice, obstructing the implementation of a risk-based approach.
  • Unregulated DNFBPs: Designated Non-Financial Businesses and Professions (DNFBPs) such as real estate agents, lawyers, and notaries are not licensed or regulated, making it easy for criminals to launder money.
  • Virtual Asset Service Providers (VASPs): VASPs operate outside of the legal framework, adding to the country’s vulnerability.

Risks and Threats

  • Porosity of Borders: Côte d’Ivoire’s porous borders and significant informal sector exacerbate ML/TF risks, making it difficult to track transactions and identify suspicious activities.
  • Corruption: Corruption is a major predicate offense to ML in Côte d’Ivoire, with the country serving as a transshipment point for international drug trafficking.
  • Environmental Crimes: The country has become a hub for environmental crimes, such as counterfeiting and fraud.

Call to Action

The report concludes that Côte d’Ivoire’s AML/CFT regime is ineffective, and its authorities must take immediate action to address these gaps. The country’s financial stability and economic growth depend on it.