Financial Crime World

Libya’s Shadow Economy: A Hub of Transnational Crime and Corruption

Washington, D.C. - In a chilling new report, The Sentry uncovers the expansion of illicit enterprises in Libya, revealing a surge in transnational crime and corruption within the banking industry. The report, titled “Libya’s Shadow Economy: A Hub of Transnational Crime and Corruption,” details the alarming picture of a nation on the brink of destruction.

Key Findings

  • Human trafficking, fuel smuggling, narcotics trade, money laundering, currency manipulation, financial fraud, and the theft of billions of dollars in public assets, all orchestrated by Libya’s leaders.
  • Transformation of Libya into a hub of transnational crime, generating cascading regional and international security risks.

“Libya’s ruling elite has transformed the country into a hub of transnational crime, generating cascading regional and international security risks and potentially sparking major armed conflict.” - John Prendergast, Co-Founder of The Sentry

Post-Gaddafi Era

Since the fall of Muammar Gaddafi in 2011, Libya has faced myriad armed groups. Some have been accommodated for providing marginal services and security to local communities.

Militia Influence

However, this strategy of appeasement has contributed to the entrenched influence of militias over state institutions. It has provided free rein to plunder public resources leading to:

  1. Lack of security and order
  2. Neglect of national economy and crumbling infrastructure

Corrupt Leaders

Some Libyan leaders have adopted criminal tactics while posing as indispensable allies to Western powers. The Sentry’s investigation reveals that many of these leaders are at the heart of multibillion-dollar criminal ventures:

  1. Narcotics Business: Libya’s ruling elite is involved in the cannabis, captagon, and cocaine trade.
  2. Mercenary Groups: Russia’s Wagner Group and Turkey’s SADAT, despite no longer actively involved in the war theater, continue their presence in Libya.

Role of Neighboring Countries

Neighboring countries like Sudan and Chad have played a role in arming Libyan factions, violating the UN Arms Embargo.

Policy Recommendations

To tackle the explosion of kleptocratic activity, The Sentry recommends the following measures:

  1. Lift the veil of complicity, both domestic and international
  2. Shift away from the current extractive governance system
  3. Ensure that public funds lead to public good, not private enrichment
  4. Tackle the culture of impunity for those who systematically violate human rights.

For the full report, visit: https://thesentry.org/reports/libyas-shadow-economy-a-hub-of-transnational-crime-and-corruption

Media Inquiries

For media inquiries or interview requests, contact: [Greg Hittelman, Director of Communications, at email@email](mailto:email@email)

About The Sentry

The Sentry is an investigative and policy organization that seeks to disable multinational predatory networks that benefit from violent conflict, repression, and kleptocracy. For more information, visit: www.TheSentry.org