Libyan Arab Jamahiriya: A Hotbed of Financial Crime and Kleptocratic Rule - A Warning from The Sentry Report

Washington, DC, USA - November 7, 2023

In a scathing report titled “Libya’s Kleptocratic Boom”, The Sentry shed light on the alarming rise of financial crime and organized corruption in Libya, directly linked to the country’s rulers.

The Rise of Transnational Crime in Libya

According to the report, illicit enterprises have proliferated in Libya, involving:

Human trafficking
Fuel smuggling
Narcotics
Money laundering
Currency manipulation
Financial fraud
Theft of billions of dollars in public assets

The Sentry’s Co-Founder, John Prendergast, expressed grave concerns: “Libya’s corruption has long been perceived as a domestic issue with limited international security implications. However, the rapid expansion of illicit trade in drugs, fuel, and human beings, as well as the outright theft of billions of dollars in public assets, is transforming Libya into a hub of transnational crime and a growing regional and international security threat.”

Libya’s Entrenched Illegal Groups and Kleptocratic Rulers

Oliver Windridge, Director of Illicit Finance Policy at The Sentry, spoke of how post-2011 Libya became infamous for its armed groups: “Unfortunately, the strategy of appeasement has allowed militias to entrench themselves in state institutions and granted them a free hand to plunder public resources. International powers, including the US, must demonstrate their intention to confront this escalating threat by implementing robust policy measures, such as targeted network sanctions.”

Neglect of Infrastructure and Economy

The September 2023 floods in Derna and other northeastern Libyan areas highlighted the negligence and indifference of the current Libyan leadership towards their nations’ economies and crumbling infrastructure.

Inadequate International Response

Despite international criticism, Libya’s political leaders and state officials continue to engage in corrupt practices, such as horse-trading and dividing public offices and budgets, while armed groups offer day-to-day security and commit human rights abuses with impunity.

Recommendations for Combating Kleptocratic Activity

The Sentry’s report offers the following recommendations for governments, banks, and international institutions to curb the surge of kleptocratic activity:

Transparency: Expose fraudulent practices and relationships between Libyan leaders and international entities to increase transparency.
Inclusive Governance: Implement more inclusive governance systems that remove the monopoly over decision-making held by Libya’s kleptocrats.
Checks and Balances: Strengthen checks and balances within the Libyan state system and ensure public funds are used for public welfare, not private enrichment.
Accountability: Address the culture of impunity for human rights violations and hold perpetrators accountable.

To read the full report, “Libya’s Kleptocratic Boom”, visit: https://thesentry.org/reports/libyas-kleptocratic-boom

For media inquiries or interview requests, contact: Greg Hittelman Director of Communications [email@address]

About The Sentry

The Sentry is an investigative and policy organization that seeks to expose and disrupt multinational networks that profit from violent conflict, repression, and kleptocracy. Our work provides evidence and strategies for governments, banks, and law enforcement to hold perpetrators accountable. We follow the money trails of those involved in grand corruption and human rights abuses, from war zones to financial centers around the world. Learn more at: www.TheSentry.org