Financial Crime World

Uncovered: Money Laundering Persists in Côte d’Ivoire Despite Legal Frameworks

Suspected Cases Worth €15 Million Reported in 2018

Amidst a legal framework aimed at tackling corruption and money laundering, Côte d’Ivoire remains a hotbed for such illicit activities. According to Noël Adou, the head of the National Financial Intelligence Processing Unit (NFIP), more than 50 suspicious cases, worth an estimated €15 million, were reported to the prosecution service in 2018.

Adou’s revelation comes in the face of increasing scrutiny over African countries’ efforts to combat money laundering and ill-gotten gains. Although Côte d’Ivoire has legislation against these crimes, experts and activists argue that the legal framework lacks effective implementation.

NFIP’s Capacity Constrained

The NFIP, set up in 2013, is tasked with monitoring financial transactions to identify and prevent money laundering and terrorist financing. However, resource constraints hinder the unit’s capacity to effectively investigate reported cases.

Financial Secrecy Laws Ease Hiding Illicit Wealth

Adou expressed concern that the financial secrecy laws still in place make it easy for individuals to hide their ill-gotten wealth.

Economy’s Dependence on Exports Fuels Money Laundering

The money laundering issue is rooted in the country’s economy, which heavily relies on agriculture, mining, and oil exports. The vast amounts of cash flowing in and out of the country make it a prime target for money laundering schemes.

Weak Governance Structures Increase Risk

Additionally, weak governance structures in sectors such as real estate development, construction, and infrastructure increase the risk of money laundering activities.

International Pressure to Combat Money Laundering

In an effort to increase transparency and combat money laundering, Côte d’Ivoire ratified the United Nations Convention against Corruption in 2017.

Corruption Prevalence

However, corruption remains prevalent, fuelled by a culture of impunity and a lack of political will to address the issue effectively.

Whistleblower Protection System Fails

A recent Transparency International report exposed the failure of the country’s whistleblower protection system, which could discourage potential informants from coming forward with information about corruption and money laundering cases.

As the international community continues to put pressure on African nations to tackle money laundering and other financial crimes, Côte d’Ivoire finds itself at a crossroads.

  • Will it seize the opportunity to strengthen its legal framework and bolster its capacity to investigate and prosecute cases?
  • Or will it continue to harbor an environment conducive to financial crimes?

The IACC Series will continue to monitor developments in this area and report on progress being made in the fight against corruption and money laundering in Côte d’Ivoire. Stay tuned for updates.

Author: Aboubacar Ouakaltio Ouattara, IACC Series.

Disclaimer: The information provided above is for educational and informative purposes only. It is not intended, nor should it be construed, as legal advice. Please consult your legal counsel for specific advice on your situation.