Financial Crime World

Senegal’s Hidden Financial World: Drugs, Real Estate, and Money Laundering

Will bold action by the Financial Action Task Force turn the tide for Senegal’s economy?

Senegal, known for its vibrant cultural scene and stunning natural beauty, faces a less glamorous issue: financial scams. The country is under increased scrutiny for its role in illicit activities such as drug trafficking, money laundering, and real estate schemes.

Challenges in Senegal’s Financial Landscape

International Financial Flows (IFFs) and Money Laundering

  • Complex networks that obscure the origin and destination of funds
  • Connected to drug trafficking operations and real estate schemes
  • Difficult to track the proceeds of crime and identify the individuals and entities involved

Threats to the Region

Drug Trafficking

  • Senegal: crucial transit point for cocaine and heroin
  • Drug seizures in the region have increased significantly in recent years
  • Senegal accounts for a sizeable percentage of seizures

Real Estate

  • Lack of transparency and regulation in Senegal’s real estate market
  • Attractive prospect for hiding proceeds of crime
  • Potential for channeling illicit funds through other countries in the region

Urgent Actions Needed

As Senegal awaits the Financial Action Task Force (FATF) evaluation, there is growing pressure for the government to take decisive actions against these financial scams.

Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) Framework

  • Improved customer due diligence
  • Enhanced transaction monitoring
  • Sanctions for those found to be engaging in money laundering or terrorist financing activities

Public-Private Partnerships

  • Collaboration between law enforcement agencies, regulatory bodies, and the private sector
  • Reveal critical intelligence on illicit financial flows and help curb these activities at their source

A Moment for Change

  • Urgent attention required for Senegal’s financial landscape
  • Opportune moment for the government to take decisive steps
  • Critical not just for Senegal but also for the region as a whole
  • Fight against financial crimes requires the cooperation of all stakeholders
  • West Africa can emerge as a thriving and legitimate business destination