Financial Crime World

Financial Crimes Threaten Senegal’s Economic Progress: Money Laundering, Drugs, and Real Estate

Consequences of Financial Crimes in Senegal and the Potential Impact of Cooperation with the FATF

  • senegal
  • financial crime
  • money laundering
  • drugs
  • real estate
  • economy
  • FATF
  • Anti-Money Laundering (AML)
  • Counter-Terrorist Financing (CTF)

The West African nation of Senegal, renowned for its rich cultural heritage and thriving tourist industry, has unfortunately become a haven for financial crimes. The country is at risk of being added to the gray list of countries with inadequate AML and CTF measures by the Financial Action Task Force (FATF), a global money laundering and terrorist financing watchdog.

An Unholy Trinity: Drugs, Real Estate, and Money Laundering

Senegal’s Drug Problem

  • Porous borders allow an increasing flow of drugs
  • Recent seizures of cocaine and heroin worth millions of dollars

The Connection to Real Estate

  • Proceeds from drug trafficking often end up in the real estate sector
  • Fueling inflated property prices and market distortion

Impact on Society

  • Widespread poverty
  • Growing wealth gap

Money Laundering

  • FATF report highlights Senegal’s vulnerability
  • Trade-based money laundering, real estate transactions, and informal sector
  • Weak compliance frameworks make it difficult to trace funds

Economic Consequences of Financial Crimes

  • Estimated $50 billion annual loss for African continent
  • Hundreds of millions of dollars in Senegal
  • Substantial loss in tax revenue

A Path Forward: Cooperation with the FATF

Government’s Commitment

  • Strengthening AML and CTF frameworks

Impact on the Economy

  • Potential removal from the gray list
  • Unlocking international funding

Positive Signal

  • Bolstering the economy
  • Sending a strong message against financial crimes